10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________________________________

FORM 10-Q

____________________________________________

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period ended December 31, 2014

Or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For transition period from              to             

Commission File Number 001-35871

Westbury Bancorp, Inc.

(Exact Name of Registrant as Specified in Charter)

____________________________________________

Maryland	46-1834307
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification Number)
200 South Main Street, West Bend, Wisconsin	53095
(Address of Principal Executive Officers)	(Zip Code)

(262) 334-5563

Registrant’s telephone number, including area code

Not Applicable

(Former name or former address, if changed since last report)

____________________________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  o.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x  No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  o  No  x

Indicate the number of shares outstanding of each of the Issuer’s classes of common stock as of the latest practicable date.

There were 4,924,749 shares of Common Stock, par value $.01 per share, outstanding as of January 30, 2015.

WESTBURY BANCORP, INC.

Form 10-Q Quarterly Report 

Table of Contents 

PART I  FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS	2
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	32
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	43
ITEM 4. CONTROLS AND PROCEDURES	43
PART II  OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	44
ITEM 1A. RISK FACTORS	44
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	44
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	45
ITEM 4. MINE SAFETY DISCLOSURES	45
ITEM 5. OTHER INFORMATION	45
ITEM 6. EXHIBITS	45
INDEX TO EXHIBITS	47

PART I

ITEM 1.FINANCIAL STATEMENTS

Westbury Bancorp, Inc. and Subsidiary

Consolidated Balance Sheets

December 31, 2014 and September 30, 2014

(Unaudited)

(In Thousands, except share data)

	December 31, 2014			September 30, 2014
Assets
Cash and due from banks	$	10,688		$	9,369
Interest-bearing deposits	13,787			8,239
Cash and cash equivalents	24,475			17,608
Securities available-for-sale	83,180			90,346
Securities held to maturity, at amortized cost ($3,025 fair value at December 31, 2014)	3,025			—
Loans held for sale, at lower of cost or fair value	2,082			326
Loans, net of allowance for loan losses of $4,224 and $4,072 at December 31 and September 30, respectively	438,172			416,874
Federal Home Loan Bank stock, at cost	2,670			2,670
Foreclosed real estate	2,333			2,355
Real estate held for investment	3,730			3,763
Office properties and equipment, net	11,404			11,181
Cash surrender value of bank-owned life insurance	12,844			12,742
Mortgage servicing rights	1,528			1,624
Deferred tax asset	5,406			5,702
Other assets	3,765			3,504
Total assets	$	594,614		$	568,695
Liabilities and Stockholders’ Equity
Liabilities
Deposits	$	472,688		$	454,928
Advances from Federal Home Loan Bank	31,000			17,000
Advance payments by borrowers for property taxes and insurance	255			5,869
Other liabilities	4,145			4,411
Total liabilities	508,088			482,208
Stockholders’ Equity
Preferred stock $0.01 par value, 50,000,000 shares authorized; none issued or outstanding	—			—
Common stock $0.01 par value, 100,000,000 shares authorized; 5,346,206 shares issued at December 31, 2014 and September 30, 2014	53			53
Additional paid-in capital	49,426			49,164
Retained earnings	45,637			45,190
Unearned Employee Stock Ownership Plan (ESOP) shares	(3,703		)	(3,754		)
Accumulated other comprehensive income (loss)	66			(46		)
Less treasury stock, 326,357 shares at cost, at December 31, 2014 and 271,296 at September 30, 2014	(4,953		)	(4,120		)
Total stockholders’ equity	86,526			86,487
Total liabilities and stockholders’ equity	$	594,614		$	568,695

See Notes to Unaudited Consolidated Financial Statements.

2

Westbury Bancorp, Inc and Subsidiary
Consolidated Statements of Operations
Three Months Ended December 31, 2014 and 2013 (Unaudited)
(In Thousands, except per share data)
	Three Months Ended   December 31,
	2014		2013
Interest and dividend income:
Loans	$	4,459	$	3,978
Investments - nontaxable	17		16
Investments - taxable	392		495
Interest bearing deposits	12		37
Total interest and dividend income	4,880		4,526
Interest expense:
Deposits	425		424
Advances from the Federal Home Loan Bank	4		—
Total interest expense	429		424
Net interest income before provision for loan losses	4,451		4,102
Provision for loan losses	350		150
Net interest income after provision for loan losses	4,101		3,952
Noninterest income:
Service fees on deposit accounts	1,156		1,065
Gain on sales of loans, net	69		47
Servicing fee income, net of amortization and impairment	37		247
Insurance and securities sales commissions	58		95
Gain on sales of securities	70		—
Gain on sales of branches and other assets	18		—
Increase in cash surrender value of life insurance	102		105
Rental income from real estate operations	128		160
Other income	36		39
Total noninterest income	1,674		1,758
Noninterest expenses:
Salaries and employee benefits	2,381		2,297
Commissions	55		51
Occupancy	313		427
Furniture and equipment	103		130
Data processing	781		861
Advertising	60		67
Real estate held for investment	103		152
Net loss from operations and sale of foreclosed real estate	148		334
FDIC insurance premiums	105		173
Other expenses	1,056		1,152
Total noninterest expenses	5,105		5,644
Income before income tax expense (benefit)	670		66
Income tax expense (benefit)	223		(2		)
Net income	$	447	$	68
Earnings per share:
Basic	$	0.10	$	0.01
Diluted	$	0.10	$	0.01

See Notes to Unaudited Consolidated Financial Statements.

3

Westbury Bancorp, Inc. and Subsidiary

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended December 31, 2014 and 2013

(Unaudited)

(In Thousands)

	Three Months Ended   December 31,
	2014			2013
Net income	$	447		$	68
Other comprehensive income (loss), before tax:
Unrealized gains (losses) on available-for-sale securities	255			(496		)
Reclassification adjustment for realized gains included in net income	(70		)	—
Other comprehensive income (loss), before tax	185			(496		)
Income tax benefit (expense) related to items of other comprehensive income (loss)	(73		)	241
Other comprehensive income (loss), net of tax	112			(255		)
Comprehensive income (loss)	$	559		$	(187	)

See Notes to Unaudited Consolidated Financial Statements.

4

Westbury Bancorp, Inc. and Subsidiary

Consolidated Statements of Changes in Stockholders’ Equity

Three Months Ended December 31, 2014 and 2013

(Unaudited)

(In Thousands, except share data)

	Preferred Stock		Common Stock		Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
Balance, September 30, 2013	$	—	$	51	$	48,800	$	46,625	$	(4,114	)	$	(760	)	$	—		$	90,602
Net income	—		—		—		68		—			—			—			68
Other comprehensive loss, net of tax	—		—		—		—		—			(255		)	—			(255		)
Allocation of 20,570 shares by ESOP	—		—		81		—		206			—			—			287
Balance, December 31, 2013	$	—	$	51	$	48,881	$	46,693	$	(3,908	)	$	(1,015	)	$	—		$	90,702
Balance, September 30, 2014	$	—	$	53	$	49,164	$	45,190	$	(3,754	)	$	(46	)	$	(4,120	)	$	86,487
Net income	—		—		—		447		—			—			—			447
Other comprehensive income, net of tax	—		—		—		—		—			112			—			112
Repurchase of 55,061 shares of common stock	—		—		—		—		—			—			(833		)	(833		)
Stock based compensation expense	—		—		201		—		—			—			—			201
Commitment to be allocated of 5,142 ESOP shares					61				51						—			112
Balance, December 31, 2014	$	—	$	53	$	49,426	$	45,637	$	(3,703	)	$	66		$	(4,953	)	$	86,526

See Notes to Unaudited Consolidated Financial Statements.

5

Westbury Bancorp, Inc. and Subsidiary
Consolidated Statements of Cash Flows
Three Months Ended December 31, 2014 and 2013 (Unaudited)
(In Thousands)
	Three Months Ended   December 31,
	2014			2013
Cash Flows From Operating Activities
Net income	$	447		$	68
Adjustments to reconcile net income to net cash used in operating activities:
Provision for loan losses	350			150
Depreciation and amortization	145			200
Depreciation on real estate held for investment	33			49
Net amortization of securities premiums and discounts	149			180
Amortization and impairment of mortgage servicing rights	96			(94		)
Capitalization of mortgage servicing rights	—			(1		)
Gain on sales of available-for-sale securities	(70		)	—
Gain on sales of branches and other assets	(18		)	—
Loss on sale of foreclosed real estate	79			150
Write-down of foreclosed real estate	57			115
Loans originated for sale	(6,819		)	(2,490		)
Proceeds from sale of loans	5,132			3,437
Gain on sale of loans, net	(69		)	(47		)
ESOP compensation expense	112			95
Stock based compensation expense	201			—
Deferred income taxes	224			22
Increase in cash surrender value of life insurance	(102		)	(105		)
Net change in:
Other assets	(243		)	(579		)
Other liabilities and advance payments by borrowers for property taxes and insurance	(5,880		)	(5,249		)
Net cash used in operating activities	(6,176		)	(4,099		)
Cash Flows From Investing Activities
Purchases of securities available-for-sale	(8,189		)	(6,394		)
Proceeds from sales of securities available-for-sale	12,084			—
Proceeds from maturities, prepayments, and calls of securities available-for-sale	3,376			2,508
Purchases of securities held to maturity	(3,025		)	—
Proceeds from sale of real estate held for investment	—			49
Net increase in loans	(21,967		)	(4,150		)
Purchases of office properties and equipment	(368		)	(131		)
Proceeds from sales of foreclosed real estate	205			569
Net cash used in investing activities	(17,884		)	(7,549		)
Cash Flows From Financing Activities
Net increase (decrease) in deposits	17,760			(2,353		)
Increase in Federal Home Loan Bank borrowings	14,000			—
Purchase of Company treasury stock	(833		)	—
Net cash provided by (used in) financing activities	30,927			(2,353		)
Net increase (decrease) in cash and cash equivalents	6,867			(14,001		)
Cash and cash equivalents at beginning	17,608			47,665
Cash and cash equivalents at end	$	24,475		$	33,664
Supplemental Disclosures of Cash Flow Information
Interest paid (including amounts credited to deposits)	$	428		$	422
Supplemental Schedules of Noncash Investing Activities
Loans receivable transferred to foreclosed real estate	$	319		$	369

See Notes to Unaudited Consolidated Financial Statements.

6

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

Note 1.Basis of Presentation

 The accompanying unaudited consolidated financial statements of Westbury Bancorp, Inc. and its wholly-owned subsidiary, Westbury Bank, (the "Bank", and collectively, the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X.  Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Estimates used in the preparation of the financial statements are based on various factors including the current interest rate environment and the general strength of the local economy.  Changes in the overall interest rate environment can significantly affect the Company’s net interest income and the value of its recorded assets and liabilities.  Actual results could differ from those estimates used in the preparation of the financial statements.  Certain prior period amounts have been reclassified to conform to current period presentation.  These reclassifications did not result in any changes to previously reported net income or stockholders’ equity.

In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company’s financial condition as of December 31, 2014 and September 30, 2014 and the results of operations and cash flows for the interim periods ended December 31, 2014 and 2013.  All interim amounts are unaudited, and the results of operations for the interim periods herein are not necessarily indicative of the results of operations to be expected for the year.  These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended September 30, 2014 filed as part of Westbury Bancorp, Inc.’s Annual Report on Form 10-K for the year ended September 30, 2014.

The Jumpstart Our Business Startups Act (the JOBS Act), which was signed into law on April 5, 2012, has made numerous changes to the federal securities laws to facilitate access to capital markets. Under the JOBS Act, a company with total annual gross revenues of less than $1.0 billion during its most recently completed fiscal year qualifies as an “emerging growth company.” The Company qualifies as an “emerging growth company” and believes that it will continue to qualify as an “emerging growth company” until five years from the completion of the stock offering.

As an “emerging growth company,” the Company has elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, the financial statements may not be comparable to the financial statements of companies that comply with such new or revised accounting standards.

Note 2.Recent Accounting Developments

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss or a Tax Credit Carrryforward Exists. ASU 2013-11 is intended to clarify the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carrryforward exists. This presentation had not been addressed in Topic 740 and there was diversity in reporting practices in those instances. ASU 2013-11 requires an unrecognized tax benefit to be presented as a liability and not netted against a deferred tax asset. ASU 2013-11 is effective for reporting periods beginning after December 15, 2014. Adoption by the Company is not expected to have an impact on the consolidated financial statements and related disclosures.

In January 2014, the FASB issued ASU 2014-04, Receivables (Topic 310) - Troubled Debt Restructurings by Creditors. ASU 2014-04 is intended to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU 2014-04 is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

7

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is intended to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 and interim periods within annual periods beginning after December 15, 2018. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860) - Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. ASU 2014-11 is intended to clarify the accounting for and improve the disclosures related to repurchase-to-maturity transactions and repurchase financings. ASU 2014-11 is effective for the first interim or annual period beginning after December 15, 2015. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period. ASU 2014-12 is intended to clarify the accounting for the timing of expense recognition related to employee share-based payments in which a performance target that effects vesting could be achieved after the requisite service period. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

In August 2014, the FASB issued ASU 2014-14, Receivables - Troubled Debt Restructuring by Creditors (Topic 310) - Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure. ASU 2014-14 is intended to clarify the accounting for and improve the consistency of balance sheet classification of certain foreclosed mortgage loans that are either fully or partially guaranteed under government programs. Greater consistency in classification of such mortgage loans upon foreclosure is expected to provide more decision-useful information about a creditor's foreclosed mortgage loans that are expected to be recovered, at least in part, through government guarantees. ASU 2014-14 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

8

Note 3.Earnings Per Share

Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding, adjusted for weighted average unallocated ESOP shares, during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards and restricted stock units, though no actual shares of common stock related to restricted stock units are issued until the settlement of such units, to the extent holders of these securities receive non-forfeitable dividends or dividend equivalents at the same rate as holders of the Company's common stock. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (in thousands, except share and per share data).

	Three Months Ended December 31,
	2014			2013
Net income	$	447		$	68
Basic potential common shares:
Weighted average shares outstanding	4,833,308			5,142,541
Weighted average unallocated ESOP shares	(373,692		)	(393,119		)
Basic weighted average shares outstanding	4,459,616			4,749.422
Dilutive effect of equity awards	15,975			—
Diluted weighted average shares outstanding	4,475,591			4,749,422
Basic income per share	$	0.10		$	0.01
Diluted income per share	$	0.10		$	0.01

9

Note 4.Investment Securities

The amortized cost and fair value of investment securities are summarized as follows:

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale
U.S. Government and agency securities	$	—	$	—	$	—		$	—
U.S. Government agency residential mortgage-backed securities	38,329		445		(181		)	38,593
U.S. Government agency collateralized mortgage obligations	5,233		26		(56		)	5,203
U.S. Government agency commercial mortgage-backed securities	12,614		25		(82		)	12,557
Municipal securities	26,895		110		(178		)	26,827
Total Available for Sale	83,071		606		(497		)	83,180
Held to Maturity
Municipal securities	3,025		—		—			3,025
Total Investment Securities	$	86,096	$	606	$	(497	)	$	86,205
	September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale
U.S. Government and agency securities	$	5,250	$	—	$	(71	)	$	5,179
U.S. Government agency residential mortgage-backed securities	37,144		389		(337		)	37,196
U.S. Government agency collateralized mortgage obligations	3,458		30		(56		)	3,432
U.S. Government agency commercial mortgage-backed securities	10,835		11		(94		)	10,752
Municipal securities	33,735		280		(228		)	33,787
Total Available for Sale	90,422		710		(786		)	90,346
Held to Maturity
Municipal securities	—		—		—			—
Total Investment Securities	$	90,422	$	710	$	(786	)	$	90,346

10

The amortized cost and fair value of investment securities, by contractual maturity at December 31, 2014 are shown in the following table.  Actual maturities differ from contractual maturities for mortgage-backed securities because the mortgages underlying the securities may be called or repaid without penalty.  Therefore, these securities are not presented in the maturity categories in the table below.

	December 31, 2014
	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	2,562	$	2,565
Due after one year through five years	14,064		14,056
Due after five years through ten years	7,600		7,582
Due after ten years	2,669		2,624
U.S. Government agency collateralized mortgage obligations	5,233		5,203
U.S. Government agency residential mortgage-backed securities	38,329		38,593
U.S. Government agency commercial mortgage-backed securities	12,614		12,557
	83,071		83,180
Held to maturity:
Due in one year or less	566		566
Due after one year through five years	679		679
Due after five years through ten years	929		929
Due after ten years	851		851
	3,025		3,025
Total	$	86,096	$	86,205

Proceeds from sales of investment securities during the three months ended December 31, 2014 and 2013, were $12,084 and $0, respectively. Gross realized gains, during the three months ended December 31, 2014 and 2013, on these sales amount to $111 and $0, respectively. Gross realized losses on theses sales were $41 and $0, during the three months ended December 31, 2014 and 2013 respectively.

There were nosecurities that were pledged to secure treasury, tax, and loan deposits and other purposes required or permitted by law at December 31, 2014 and September 30, 2014.

11

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:

	December 31, 2014
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Government and agency securities	$	—	$	—		$	—	$	—		$	—	$	—
U.S. Government agency residential mortgage-backed securities	7,262		(17		)	10,169		(164		)	17,431		(181		)
U.S. Government agency collateralized mortgage obligations	2,047		(11		)	844		(45		)	2,891		(56		)
U.S Government agency commercial mortgage-backed securities	8,035		(65		)	1,033		(17		)	9,068		(82		)
Municipal securities	7,270		(25		)	9,789		(153		)	17,059		(178		)
	$	24,614	$	(118	)	$	21,835	$	(379	)	$	46,449	$	(497	)

	September 30, 2014
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Government and agency securities	$	—	$	—		$	5,179	$	(71	)	$	5,179	$	(71	)
U.S. Government agency residential mortgage-backed securities	9,617		(54		)	13,075		(283		)	22,692		(337		)
U.S. Government agency collateralized mortgage obligations	—		—			891		(56		)	891		(56		)
U.S. Government agency commercial mortgage-backed securities	6,235		(73		)	1,033		(21		)	7,268		(94		)
Municipal securities	3,046		(8		)	13,621		(220		)	16,667		(228		)
	$	18,898	$	(135	)	$	33,799	$	(651	)	$	52,697	$	(786	)

At December 31, 2014, the investment portfolio included 45 securities available-for-sale which had been in an unrealized loss position for more than twelve months and 43 securities available-for-sale which had been in an unrealized loss position for less than twelve months. These securities are considered to be acceptable credit risks.  Based upon an evaluation of the available evidence, including recent changes in market rates, credit rating information and information obtained from regulatory filings, management believes the decline in fair value for these securities is temporary.  The Company does not have any current requirement to sell and does not intend to sell these securities prior to any anticipated recovery in fair value.

At September 30, 2014, the investment portfolio included 63 securities available-for-sale which had been in an unrealized loss position for greater than twelve months and 25 securities available-for-sale which had been in an unrealized loss position for less than twelve months.

12

Note 5.Loans

A summary of the balances of loans follows:

	December 31, 2014		September 30, 2014
Real estate:
Single family	$	148,067	$	135,337
Multifamily	82,981		76,396
Commercial real estate	139,554		135,121
Construction and land development	19,127		16,362
Total real estate	389,729		363,216
Commercial business	32,477		37,675
Consumer:
Home equity lines of credit	14,126		14,275
Education	4,560		4,694
Other	1,828		1,321
Total consumer	20,514		20,290
Total loans	442,720		421,181
Less:
Net deferred loan fees	324		235
Allowance for loan losses	4,224		4,072
Net loans	$	438,172	$	416,874

The following tables present the contractual aging of the recorded investment in past due loans by class of loans as of December 31, 2014 and September 30, 2014:

December 31, 2014	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	146,817	$	746	$	119	$	385	$	148,067
Multifamily	82,981		—		—		—		82,981
Commercial real estate	139,428		—		—		126		139,554
Construction and land development	19,096		31		—		—		19,127
Commercial business	32,477		—		—		—		32,477
Consumer and other:
Home equity lines of credit	13,816		24		—		286		14,126
Education	4,310		73		77		100		4,560
Other	1,828		—		—		—		1,828
	$	440,753	$	874	$	196	$	897	$	442,720

13

September 30, 2014	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	133,102	$	1,623	$	162	$	450	$	135,337
Multifamily	76,396		—		—		—		76,396
Commercial real estate	134,584		178		163		196		135,121
Construction and land development	16,362		—		—		—		16,362
Commercial business	37,653		—		—		22		37,675
Consumer and other:
Home equity lines of credit	13,918		228		—		129		14,275
Education	4,502		28		44		120		4,694
Other	1,319		—		—		2		1,321
	$	417,836	$	2,057	$	369	$	919	$	421,181

There were no loans past due ninety days or more still accruing interest as of December 31, 2014 and September 30, 2014.

The following table presents the recorded investment in nonaccrual loans by class of loans as of December 31, 2014 and September 30, 2014:

	December 31, 2014		September 30, 2014
Single family	$	530	$	791
Multifamily	—		—
Commercial real estate	275		350
Construction and land development	—		—
Commercial business	—		22
Consumer and other:
Home equity lines of credit	302		145
Education	100		120
Other	—		2
	$	1,207	$	1,430

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt and comply with various terms of their loan agreements.  The Company considers current financial information, historical payment experience, credit documentation, public information and current economic trends.  Generally, all sizeable credits receive a financial review no less than annually to monitor and adjust, if necessary, the credit’s risk profile.  Credits classified as watch and special mention generally receive a review more frequently than annually.

The Company categorizes loans into the following risk categories based on relevant information about the ability of borrowers to service their debt:

Pass — A pass asset is well protected by the current worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell in a timely manner, of any underlying collateral.

Watch — A watch asset has potential weaknesses that deserve management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.  Watch assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Special Mention — A special mention asset has characteristics of deterioration in quality exhibited by any number of well-defined weaknesses requiring significant corrective action.  The repayment ability of the borrower has not been validated, or has become marginal or weak and the loan may have exhibited some overdue payments or payment extensions and/or renewals.

14

Substandard — A substandard asset is an asset with a well-defined weakness that jeopardizes repayment in whole or in part, of the debt.  These credits are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged.  These assets are characterized by the distinct possibility that the Company will or has sustained some loss of principal and/or interest if the deficiencies are not corrected.

Doubtful — A doubtful asset is an asset that has all the weaknesses inherent in the substandard classification with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.  These credits have a high probability for loss, yet because certain important and reasonably specific pending factors may work toward the strengthening of the asset, its classification of loss is deferred until its more exact status can be determined.

Homogeneous loan types are assessed for credit quality based on the contractual aging status of the loan and payment activity.  In certain cases, based upon payment performance, the loan being related with another commercial type loan or for other reasons, a loan may be categorized into one of the risk categories noted above, unless such loan carries private mortgage insurance (PMI).  Such assessment is completed at the end of each reporting period.

The following tables present the risk category of loans evaluated by internal asset classification based on the most recent analysis performed and the contractual aging as of December 31, 2014 and September 30, 2014:

December 31, 2014	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	145,083	$	1,309	$	117	$	1,558	$	—	$	148,067
Multifamily	79,640		2,742		442		157		—		82,981
Commercial real estate	131,737		5,385		853		1,579		—		139,554
Construction and land development	19,122		—		—		5		—		19,127
Commercial business	28,988		3,419		—		70		—		32,477
Consumer and other:
Home equity lines of credit	13,782		—		—		344		—		14,126
Education	4,560		—		—		—		—		4,560
Other	1,828		—		—		—		—		1,828
Total	$	424,740	$	12,855	$	1,412	$	3,713	$	—	$	442,720

September 30, 2014	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	132,067	$	1,317	$	118	$	1,835	$	—	$	135,337
Multifamily	73,876		1,915		445		160		—		76,396
Commercial real estate	126,319		6,117		858		1,827		—		135,121
Construction and land development	16,357		—		—		5		—		16,362
Commercial business	34,112		3,459		—		104		—		37,675
Consumer and other:
Home equity lines of credit	14,088		—		—		187		—		14,275
Education	4,694		—		—		—		—		4,694
Other	1,319		—		—		2		—		1,321
	$	402,832	$	12,808	$	1,421	$	4,120	$	—	$	421,181

15

The following tables provide additional detail of the activity in the allowance for loan losses, by portfolio segment, for the three months ended December 31, 2014 and 2013:

Three Months Ended December 31, 2014	Single Family			Multifamily		Commercial Real Estate			Construction and Land Development		Commercial Business			Consumer and Other			Total
Allowance for loan losses:
Beginning balance	$	1,072		$	757	$	1,412		$	301	$	454		$	76		$	4,072
Provision for loan losses	103			175		15			66		(34		)	25			350
Loans charged-off	(161		)	—		(48		)	—		(14		)	(2		)	(225		)
Recoveries	11			—		9			—		6			1			27
Ending balance	$	1,025		$	932	$	1,388		$	367	$	412		$	100		$	4,224
Period-ended amount allocated for:
Individually evaluated for impairment	$	45		$	—	$	—		$	—	$	—		$	58		$	103
Collectively evaluated for impairment	980			932		1,388			367		412			42			4,121
Ending Balance	$	1,025		$	932	$	1,388		$	367	$	412		$	100		$	4,224
Loans:
Individually evaluated for impairment	$	1,542		$	1,894	$	558		$	—	$	—		$	360		$	4,354
Collectively evaluated for impairment	146,525			81,087		138,996			19,127		32,477			20,154			438,366
Ending Balance	$	148,067		$	82,981	$	139,554		$	19,127	$	32,477		$	20,514		$	442,720

Three Months Ended December 31, 2013	Single Family			Multifamily			Commercial Real Estate			Construction and Land Development			Commercial Business			Consumer and Other			Total
Allowance for loan losses:
Beginning balance	$	1,873		$	165		$	1,501		$	374		$	211		$	142		$	4,266
Provision for loan losses	6			(27		)	213			(203		)	154			7			150
Loans charged-off	(296		)	—			(232		)	—			(159		)	(27		)	(714		)
Recoveries	15			—			11			—			14			1			41
Ending balance	$	1,598		$	138		$	1,493		$	171		$	220		$	123		$	3,743
Period-ended amount allocated for:
Individually evaluated for impairment	$	—		$	66		$	198		$	—		$	—		$	60		$	324
Collectively evaluated for impairment	1,598			72			1,295			171			220			63			3,419
Ending Balance	$	1,598		$	138		$	1,493		$	171		$	220		$	123		$	3,743
Loans:
Individually evaluated for impairment	$	2,598		$	3,202		$	2,068		$	—		$	—		$	179		$	8,047
Collectively evaluated for impairment	131,021			46,516			112,843			10,014			24,040			17,872			$	342,306
Ending Balance	$	133,619		$	49,718		$	114,911		$	10,014		$	24,040		$	18,051		$	350,353

16

The following tables present additional detail of impaired loans, segregated by segment, as of and for the three month periods ended December 31, 2014 and 2013.  The unpaid principal balance represents the recorded balance prior to any partial charge-offs.  The recorded investment represents customer balances net of any partial charge-offs recognized on the loans.  The interest income recognized column represents all interest income reported on either a cash or accrual basis after the loan became impaired.

							Three months ended
December 31, 2014	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Single family	$	1,363	$	1,148	$	—	$	1,274	$	11
Multifamily	1,998		1,894		—		3,484		20
Commercial real estate	629		558		—		1,118		8
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	401		302		—		223		—
With an allowance recorded:
Single family	417		394		45		758		3
Multifamily	—		—		—		86		—
Commercial real estate	—		—		—		90		—
Construction and land development	—		—		—		96		—
Commercial business	—		—		—		—		—
Consumer and other	58		58		58		60		1
	$	4,866	$	4,354	$	103	$	7,189	$	43

							Three months ended
December 31, 2013	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Single family	$	3,718	$	2,598	$	—	$	1,999	$	32
Multifamily	3,399		3,033		—		4,053		28
Commercial real estate	1,939		1,870		—		1,773		54
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	336		119		—		131		—
With an allowance recorded:
Single family	—		—		—		561		—
Multifamily	169		169		66		171		7
Commercial real estate	198		198		198		189		4
Construction and land development	—		—		—		96		—
Commercial business	—		—		—		—		—
Consumer and other	60		60		60		61		3
	$	9,819	$	8,047	$	324	$	9,034	$	128

17

The following is a summary of troubled debt restructured loans (TDRs) at December 31, 2014 and September 30, 2014:

	December 31, 2014		September 30, 2014
Troubled debt restructurings - accrual	$	3,480	$	3,507
Troubled debt restructurings - nonaccrual	—		195
	$	3,480	$	3,702

Modifications of loan terms in a TDR are generally in the form of an extension of payment terms or lowering of the interest rate, although occasionally the Company has reduced the outstanding principal balance.

The following tables presents information related to loans modified in a TDR, by class, during the three months ended December 31, 2014 and 2013:

	Three Months Ended December 31, 2014
		Unpaid Principal Balance (at End of Period)		Balance in the ALLL
	Number of Modifications			Prior to Modification		At Period End
Single family	—	$	—	$	—	$	—
	—	$	—	$	—	$	—

	Three Months Ended December 31, 2013
		Unpaid Principal Balance (at End of Period)		Balance in the ALLL
	Number of Modifications			Prior to Modification		At Period End
Single family	1	$	88	$	—	$	—
	1	$	88	$	—	$	—

18

The following table presents a summary of loans modified in a TDR during the three months ended December 31, 2014 and 2013 by class and by type of modification:

Principal and Interest to Interest Only

Interest Rate Reduction

Adjusted Amortization Period

Reduced Principal Balance

Three Months Ended December 31, 2014

To Below Market Rate

To Interest Only

Other (1)

Total

Single family

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

	Principal and Interest to Interest Only		Interest Rate Reduction				Adjusted Amortization Period		Reduced Principal Balance
Three Months Ended December 31, 2013			To Below Market Rate		To Interest Only						Other (1)		Total
Single family	$	—	$	—	$	—	$	—	$	—	$	88	$	88
	$	—	$	—	$	—	$	—	$	—	$	88	$	88

___________________________________________________________

(1) Other modifications primarily include capitalization of property taxes.

There were no re-defaults of TDR that occurred during the three months ended December 31, 2014 and 2013.

Certain of the Bank’s officers, employees, directors, and their associates are loan customers of the Bank.  As of December 31, 2014 and September 30, 2014, loans of approximately $5,120 and $4,653, respectively, were outstanding to such parties.  These loans were made on substantially the same terms as those prevailing for comparable transactions with other persons and do not involve more than the normal risk of collectability.

An analysis of such loans is as follows:

	Three Months Ended December 31, 2014
Balance, beginning	$	4,653
New loans originated	511
Draws on lines of credit	99
Principal repayments	(143		)
Balance, ending	$	5,120

19

Note 6.Deposits

The following table presents the composition of deposits as of:

	December 31, 2014				September 30, 2014
	Amount		Percent		Amount		Percent
Checking Accounts:
Noninterest bearing	$	88,628	18.75	%	$	77,790	17.10	%
Interest bearing	134,486		28.45	%	132,925		29.22	%
	223,114		47.20	%	210,715		46.32	%
Passbook and Statement Savings	120,422		25.48	%	122,227		26.87	%
Variable Rate Money Market Accounts	31,901		6.75	%	25,615		5.63	%
Certificates of Deposit	97,251		20.57	%	96,371		21.18	%
	$	472,688	100.00	%	$	454,928	100.00	%

Certificates of deposit over one hundred thousand dollars totaled $38,460 and $34,853 as of December 31, 2014 and September 30, 2014, respectively.

Note 7.Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices.  The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.  Prompt corrective action provisions are not applicable to bank holdings companies.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined).  As of December 31, 2014 and September 30, 2014, the Bank is well capitalized under prompt corrective action regulations.

20

The Bank’s actual capital amounts and ratios and those required by the above regulatory standards are as follows:

At December 31, 2014	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets) - Westbury Bank	$	66,312	15.81	%	$	33,554	8.00	%	$	41,943	10.00	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	62,088		14.81	%	16,769		4.00	%	25,154		6.00	%
Tier 1 capital (to adjusted total assets) - Westbury Bank	62,088		10.79	%	23,017		4.00	%	28,771		5.00	%

At September 30, 2014	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets) - Westbury Bank	$	65,181	16.18	%	$	32,228	8.00	%	$	40,285	10.00	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	61,109		15.17	%	16,113		4.00	%	24,170		6.00	%
Tier 1 capital (to adjusted total assets) - Westbury Bank	61,109		11.13	%	21,962		4.00	%	27,452		5.00	%

The following table reconciles the Bank’s stockholders’ equity to regulatory capital as of December 31, 2014 and September 30, 2014:

	December 31, 2014			September 30, 2014
Stockholders’ equity of the Bank	$	68,282		$	67,529
Less: Disallowed servicing assets	(153		)	(162		)
Unrealized gain (loss) on securities	(69		)	33
Disallowed investment in subsidiary	(3,296		)	(3,296		)
Disallowed deferred tax assets	(2,676		)	(2,995		)
Tier 1 capital and tangible capital	62,088			61,109
Plus: Allowable general valuation allowances	4,224			4,072
Risk-based capital	$	66,312		$	65,181

Note 8.Commitments

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.  The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit is represented by the contractual amount of those instruments.  The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

21

The following instruments were outstanding whose contract amounts represent credit risk:

	December 31, 2014		September 30, 2014
Commitments to extend mortgage credit:
Fixed rate	$	938	$	960
Adjustable rate	1,437		3,339
Unused commercial loan and home equity lines of credit	90,444		61,325
Standby letters of credit	967		422
Commitment to sell loans	2,082		326

Commitments to extend credit are agreements to lend funds to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  As some such commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The Company evaluates each customer’s creditworthiness on a case-by-case basis.  The Company generally extends credit only on a secured basis.  Collateral obtained varies but consists primarily of single family residences.

Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers.  These lines of credit may be uncollateralized and ultimately may not be drawn upon to the total extent to which the Company is committed.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party.  Those letters of credit are primarily issued to support public and private borrowing arrangements, and, generally, have terms of one year or less.  The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.  The Company holds collateral supporting those commitments if deemed necessary.  In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment.  The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the summary above.  If the commitment is funded, the Company would be entitled to seek recovery from the customer.  At December 31, 2014 and September 30, 2014, no amounts have been recorded as liabilities for the Company’s potential obligations under these guarantees.

Commitments to sell loans are commitments to sell single family mortgage loans to investors on the secondary market.

Note 9.Fair Value Measurements

ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.  ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach.  Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability.  Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.  In that regard, ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1:  Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2:  Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3:  Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

22

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Securities available-for-sale:  The fair value of the Company’s securities available-for-sale is determined using Level 2 inputs, which are derived from readily available pricing sources and third-party pricing services for comparable instruments.  The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, treasury yield curves, trading levels, credit information and credit terms, among other factors. In certain cases where Level 1 or Level 2 are not available, securities are classified within Level 3 of the hierarchy.

Derivatives:  The fair values of the Company’s embedded derivatives related to certain certificates of deposit are determined using inputs that are observable or that can be corroborated by observable market data (such as the S&P 500 Index and the 10- year U.S. Treasury rate) and, therefore, are classified within Level 2 of the valuation hierarchy.

Assets and liabilities recorded at fair value on a recurring basis:  The following table summarizes assets measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value as of:

			Fair Value Measurements
December 31, 2014	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Securities available-for-sale
U.S. Government and agency securities	$	—	$	—	$	—	$	—
U.S. Government agency residential mortgage-backed securities	38,593		—		38,593		—
U.S. Government agency collateralized mortgage obligations	5,203		—		5,203		—
U.S. Government agency commercial mortgage-backed securities	12,557		—		12,557		—
Municipal securities	26,827				26,827
Total securities available-for-sale	$	83,180	$	—	$	83,180	$	—
Derivatives	$	146	$	—	$	146	$	—
Liabilities
Derivatives	$	146	$	—	$	146	$	—

23

			Fair Value Measurements
September 30, 2014	Total		Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Securities available-for-sale
U.S. Government and agency securities	$	5,179	$	—	$	5,179	$	—
U.S. Government agency residential mortgage-backed securities	37,196		—		37,196		—
U.S. Government agency collateralized mortgage obligations	3,432		—		3,432		—
U.S. Government agency commercial mortgage-backed securities	10,752		—		10,752		—
Municipal securities	33,787				33,787
Total securities available-for-sale	$	90,346	$	—	$	90,346	$	—
Derivatives	$	87	$	—	$	87	$	—
Liabilities
Derivatives	$	87	$	—	$	87	$	—

The Company did not have any transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the three months ended December 31, 2014.  The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in a transfer between levels.

Assets recorded at fair value on a nonrecurring basis:  The Company may be required, from time to time, to measure certain instruments at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles.

Impaired loans:  The Company does not record loans at fair value on a recurring basis.  The specific reserves for collateral-dependent impaired loans are based on the fair value of the collateral less estimated costs to sell. The fair value of collateral is determined based on appraisals.  In some cases, adjustments were made to the appraised values due to various factors including age of the appraisal, age of comparables included in the appraisal, and known changes in the market and in the collateral.  When significant adjustments were based on unobservable inputs, the resulting fair value measurement has been categorized as a Level 3 measurement.  Impaired loans with a carrying amount of $452 and $541 have a valuation allowance of $103 and $136 included in the allowance for loan losses to reflect their fair value as of December 31, 2014 and September 30, 2014, respectively.

Foreclosed real estate:  The Company does not record foreclosed real estate owned at a fair value on a recurring basis.  The fair value of foreclosed real estate was determined using Level 3 inputs based on appraisals or broker pricing opinions.  In some cases, adjustments were made to these values due to various factors including the age of the appraisal, age of comparables included in the appraisal, and known changes in the market and in collateral.  Foreclosed real estate is measured at fair value less estimated costs to sell at the date of foreclosure.  Subsequent to foreclosure, additional writedowns may be recorded based on changes to the fair value of the assets.

Mortgage servicing rights:  Mortgage servicing rights ("MSRs") do not trade in an active, open market with readily observable prices.  While sales of MSRs do occur, the precise terms and conditions typically are not readily available.  Accordingly, the Company estimates the fair value of MSRs using discounted cash flow models incorporating numerous assumptions from the perspective of market participants including servicing income, servicing costs, market discount rates, prepayments speeds, and default rates.  Due to the nature of the valuation inputs, MSRs are classified within Level 3 of the valuation hierarchy.  As of December 31, 2014, mortgage servicing rights with a carrying amount of $1,688 have a valuation allowance of $160 to reflect their fair value of $1,528.  As of September 30, 2014, mortgage servicing rights with a carrying amount of $1,784 have a valuation allowance of $160 to reflect their fair value of $1,624.

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			Fair Value Measurements
December 31, 2014	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Impaired loans	$	349	$	—	$	—	$	349
Foreclosed real estate	2,333		—		—		2,333
Mortgage servicing rights	1,528		—		—		1,528

			Fair Value Measurements
September 30, 2014	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Impaired loans	$	405	$	—	$	—	$	405
Foreclosed real estate	2,355		—		—		2,355
Mortgage servicing rights	1,624		—		—		1,624

Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the consolidated balance sheets.  In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments.  Certain financial instruments with a fair value that is not practicable to estimate and all non-financial instruments are excluded from the disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Company for assets and liabilities not previously described.  The Company, in estimating its fair value disclosures for financial instruments not described above, used the following methods and assumptions:

Cash and cash equivalents:  The carrying amounts of cash and cash equivalents reported in the consolidated balance sheets approximate those assets’ fair values.

Securities held to maturity: The fair values of securities held to maturity are based on quoted market prices for similar securities, adjusted for differences in security characteristics.

Loans:  For variable-rate mortgage loans that re-price frequently and with no significant change in credit risk, fair values are based on carrying values.  The fair values for fixed rate residential mortgage loans are based on quoted market prices for similar loans sold in conjunction with sale transactions, adjusted for differences in loan characteristics.  The fair values for commercial real estate loans, rental property mortgage loans, and consumer and other loans are estimated using discounted cash flow analyses and using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

Loans held for sale:  Fair value of loans held for sale are based on commitments on hand from investors or prevailing market prices.

Federal Home Loan Bank stock:  The carrying amount of FHLB stock approximates its fair value based on the redemption provisions of the FHLB.

Accrued interest receivable and payable:  The carrying amounts of accrued interest receivable and payable approximate their fair values.

Deposits:  The fair value disclosed for interest-bearing and non-interest-bearing checking accounts, savings accounts, and money market accounts are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts).  The fair values of fixed rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities of the outstanding certificates of deposit.

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Advances from the Federal Home Loan Bank:  The fair values of FHLB advances are estimated using discounted cash flow analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements.

Advance payments by borrowers for property taxes and insurance:  The carrying amounts of the advance payments by borrowers for property taxes and insurance approximate their fair values.

Mortgage banking derivatives:  The fair value of commitments to originate mortgage loans held for sale is estimated by comparing the Company’s cost to acquire mortgages and the current price for similar mortgage loans, taking into account the terms of the commitments and the credit worthiness of the counterparties.  The fair value of forward commitments to sell residential mortgage loans is the estimated amount that the Bank would receive or pay to terminate the forward delivery contract at the reporting date based on market prices for similar financial instruments.  The fair value of these derivative financial instruments was not material at December 31, 2014 and September 30, 2014.

The estimated fair values and related carrying amounts of the Company’s financial instruments are as follows:

	December 31, 2014
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	24,475	$	24,475	$	24,475	$	—	$	—
Securities available for sale	83,180		83,180		—		83,180		—
Securities held to maturity	3,025		3,025		—		3,025		—
Loans, net	438,172		440,204		—		—		440,204
Loans held for sale, net	2,082		2,082		—		2,082		—
Federal Home Loan Bank stock	2,670		2,670		—		—		2,670
Mortgage servicing rights	1,528		1,528		—		—		1,528
Accrued interest receivable	1,748		1,748		1,748		—		—
Derivative asset	146		146		—		146		—
Financial liabilities:
Deposits	472,688		460,304		88,628		—		371,676
Advances from Federal Home Loan Bank	31,000		31,000		—		31,000		—
Advance payments by borrowers for property taxes and insurance	255		255		255		—		—
Accrued interest payable	4		4		4		—		—
Derivative liability	146		146		—		146		—

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	September 30, 2014
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	17,608	$	17,608	$	17,608	$	—	$	—
Securities available for sale	90,346		90,346		—		90,346		—
Loans, net	416,874		415,857		—		—		415,857
Loans held for sale, net	326		326		—		326		—
Federal Home Loan Bank stock	2,670		2,670		—		—		2,670
Mortgage servicing rights	1,624		1,624		—		—		1,624
Accrued interest receivable	1,784		1,784		1,784		—		—
Derivative asset	87		87		—		87		—
Financial liabilities:
Deposits	454,928		442,342		77,790		—		364,552
Advances from Federal Home Loan Bank	17,000		17,000		—		17,000		—
Advance payments by borrowers for property taxes and insurance	5,869		5,869		5,869		—		—
Accrued interest payable	3		3		3		—		—
Derivative liability	87		87		—		87		—

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Note 10.Employee Stock Ownership Plan

The Bank maintains a leveraged employee stock ownership plan ("ESOP") that covers all employees meeting certain minimum age and service requirements. The ESOP was established in conjunction with the Company's stock offering completed in April 2013 and operates on a plan year ending December 31. The ESOP initially borrowed $4.1 million from the Company and used those funds to acquire 411,403 shares, or 8.0%, of the total number of shares issued by the Company in its initial public offering. The shares were acquired at a price of $10.00 per share. The Bank makes annual contributions to the ESOP equal to the ESOP's debt service. The ESOP shares were pledged as collateral for its debt. As the debt is repaid, shares are released from collateral and allocated to active participants, based on the proportion of debt service paid in the year. The Company accounts for its ESOP in accordance with ASC 718-40. Accordingly, because the debt is intercompany, it is eliminated in consolidation for presentation in these statements. The shares pledged as collateral are reported as unearned ESOP shares in the balance sheet. Total ESOP shares may be reduced as a result of employees leaving the Company as shares that have previously been released to those exiting employees may be removed from the ESOP and transferred to that employee. As shares are committed to be released from collateral, the Company reports compensation expense equal to the current market price of the shares, and the shares become outstanding for EPS computations. During the three months ended December 31, 2014, 5,142 shares were committed to be released. The total ESOP compensation expense recorded for the three months ended December 31, 2014 and 2013 was $112 and $95 respectively.

The ESOP shares as of December 31, 2014 and September 30, 2014 were as follows (in thousands, except share data):

	December 31, 2014		September 30, 2014
Allocated shares to active participants	17,392		20,570
Shares released and available for allocation	20,570		—
Shares committed to be released	—		15,428
Unallocated shares	370,263		375,405
Total ESOP shares	408,225		411,403
Fair value of unallocated shares	$	6,072	$	5,650

Note 11. Compensation Equity Plans

ASC Topic 718 requires that the grant date fair value of equity awards to employees be recognized as compensation expense over the period during which an employee is required to provide service in exchange for such award.

The following table summarizes the impact of the Company's share-based payment plans in the financial statements for the periods shown (in thousands):

	Three Months Ended December 31,
	2014		2013
	(In thousands)
Total cost of stock grant plan during the year	$	155	$	—
Total cost of stock option plan during the year	46		—
Total cost of share-based payment plans during the year	$	201	—
Amount of related income tax benefit recognized in income	$	79	$	—

The Company adopted the Westbury Bancorp Inc 2014 Equity Incentive Plan (the "Plan") in 2014. In June 2014, the Company's stockholders approved the Plan which authorized the issue of up to 203,665 restricted stock awards and up to 509,162 stock options. As of December 31, 2014 there were no restricted stock awards and 182,938 options available for future grants.

Annual equity-based incentive awards are typically granted to selected officers and employees mid-year. Options are granted with an exercise price equal to no less than the market price of the Company's shares at the date of grant: those option awards generally vest over five years of service and have 10-year contractual terms. Restricted shares and units typically vest over a five year period. Equity awards may also be granted at other times throughout the year in connection with the recruitment and retention of officers and employees.

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The following table summarizes stock options outstanding for the three months ended December 31, 2014:

	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Options outstanding as of September 30, 2014	326,224	$	15.20
Granted	—	—
Exercised	—	—
Expired or canceled	—	—
Forfeited	—	—
Options outstanding as of December 31, 2014	326,224	$	15.20	9.5	$	391
Options exercisable as of December 31, 2014	—	$	—	—	$	—

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model based on certain assumptions. Expected volatility is based on historical volatility and the expectations of future volatility of Company shares. The risk free interest rate for periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of options is estimated based on historical employee behavior and represents the period of time that options granted are expected to remain outstanding.

The following assumptions were used for options granted during the year ended September 30, 2014:

Risk-free interest rate	2.10		%
Expected volatility of Company's stock	9.49		%
Expected dividend yield	—		%
Expected life of options (years)	7.5
Weighted average fair value per option of options granted during the year	$	2.82

The total intrinsic value of options exercised during the three months ended December 31, 2014 was $0.

The following is a summary of changes in restricted shares and units for the three months ended December 31, 2014:

	Number of Shares	Weighted Average Grant Date Fair Value
Shares and Units Outstanding at September 30, 2014	203,665	$	15.20
Granted	—	—
Vested	—	—
Forfeited	—	—
Shares and Units Outstanding at December 31, 2014	203,665	$	15.20

The total intrinsic value of restricted shares that vested during the period ended December 31, 2014 was $0.

As of December 31, 2014, there was $3.6 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements (including share option and nonvested share awards) granted under the Plan. At December 31, 2014, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 4.5 years.

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Note 12. Condensed Parent Company Financial Information

The condensed financial statements of Westbury Bancorp, Inc. (parent company only) are presented below:

Balance Sheets
(In thousands)
	December 31,		September 30,
	2014		2014
Assets
Cash and interest bearing deposits	$	6,082	$	6,878
Investments	6,754		6,590
Loan to ESOP	3,778		3,931
Investment in subsidiary	71,771		71,131
Other assets	1,761		1,674
Total assets	$	90,146	$	90,204
Liabilities and Stockholders' Equity
Total liabilities	$	130	$	115
Stockholders' equity	90,016		90,089
Total liabilities and stockholders' equity	$	90,146	$	90,204

Statements of Operations
(In thousands)
	Three Months Ended December 31,
	2014			2013
Interest and other income	$	63		$	70
Interest and other expense	184			187
Loss before income tax benefit and equity in undistributed net income of subsidiary	(121		)	(117		)
Income tax benefit	(30		)	(32		)
Loss before equity in undistributed net income of subsidiary	(91		)	(85		)
Equity in undistributed net income of subsidiary	538			153
Net income	$	447		$	68

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Statements of Cash Flows
(in thousands)
	For Three Months Ended December 31,
	2014			2013
Cash Flows From Operating Activities
Net income	$	447		$	68
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiary	(538		)	(153		)
Net change in other liabilities	15			(19		)
Net change in other assets	124			130
Net cash provided by operating activities	48			26
Cash Flows From Investing Activities
Purchase of securities	(376		)	(100		)
Sales and maturities of securities	212			405
Payments received on ESOP loan	153			183
Net cash provided by (used in) investing activities	(11		)	488
Cash Flows From Financing Activities
Treasury stock transactions, net	(833		)	—
Net cash used in financing activities	(833		)	—
Net increase (decrease) in cash	(796		)	514
Cash
Beginning of year	6,878			9,271
End of year	$	6,082		$	9,785

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report 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,” “continue,” “intend,” “target” and words of similar meaning.  These forward-looking statements include, but are not limited to:

• statements of our goals, intentions and expectations;

• statements regarding our business plans, prospects, growth and operating strategies;

• statements regarding the asset quality of our loan and investment portfolios; and

• estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control.  In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.  We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this Quarterly Report.

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 manage our operations under the current adverse economic conditions nationally and in our market area;

• adverse changes in the financial industry, securities, credit and national local real estate markets (including real estate values);

• significant increases in our delinquencies and loan losses, including as a result of our inability to resolve classified or non-performing assets, changes in the underlying cash flows of our borrowers, and management’s assumptions in determining the adequacy of the allowance for loan losses;

• credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and in our allowance for loan losses and provision for loan losses;

• competition among depository and other financial institutions;

• our success in increasing our commercial business, commercial real estate and multi-family lending while maintaining our asset quality;

• our success in introducing new financial products;

• our ability to attract and maintain deposits;

• our ability to achieve increased operating efficiencies and enhanced profitability following the closing of underperforming branch offices;

• changes in interest rates generally, including changes in the relative differences between short term and long term interest rates and in deposit interest rates, that may affect our net interest margin and funding sources;

• fluctuations in the demand for loans, which may be affected by the number of unsold homes, land and other properties in our market areas and by declines in the value of real estate in our market area;

• changes in consumer spending, borrowing and savings habits;

• further declines in the yield on our assets resulting from the current low interest rate environment;

• risks related to a high concentration of loans secured by real estate located in our market area;

• the results of examinations by our regulators, including the possibility that our regulators may, among other things, require us to increase our reserve for loan losses, write down assets, change our regulatory capital position, limit our ability to borrow funds or maintain or increase deposits, or prohibit us from paying dividends, which could adversely affect our dividends and earnings;

• our ability to enter new markets successfully and capitalize on growth opportunities;

• changes in consumer spending, borrowing and savings habits;

• changes in laws or government regulations or policies affecting financial institutions, including the Dodd-Frank Act and the JOBS Act, which could result in, among other things, increased deposit insurance premiums and assessments, 

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capital requirements (particularly the new capital regulations), regulatory fees and compliance costs, and changes in the level of government support of housing finance;

• changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board;

• changes in our compensation and benefit plans;

• risks and costs associated with operating as a publicly traded company;

• changes in the financial condition or future prospects of issuers of securities that we own;

• the availability, effectiveness and security of our information technology systems; and

• other economic, competitive, governmental, regulatory and operational factors affecting our operations, pricing, products and services.

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.

Critical Accounting Policies

There are no material changes to the critical accounting policies disclosed in Westbury Bancorp, Inc.’s Annual Report on Form 10-K for the period ended September 30, 2014.

Overview

Our Business. Westbury Bank (the "Bank") is a federally-chartered savings bank headquartered in West Bend, Wisconsin. Westbury Bancorp, Inc. (the "Company") is a Maryland corporation and the savings and loan holding company for Westbury Bank, which was formed in connection with the mutual-to-stock conversion of the Bank's former mutual holding company, WBSB Bancorp, MHC, in 2013.

We provide financial services to individuals, families and businesses through our nine banking offices located in Washington County and Waukesha County. Although our current operations are not focused in central and southern Milwaukee County, we are affected by conditions in central and southern Milwaukee County because our loan portfolio includes a significant number of loans that are secured by real estate or that have borrowers located in central and southern Milwaukee County. In addition, a number of our customers who reside in Washington or Waukesha Counties are employed in Milwaukee County, and the operations of our commercial customers depend in part on sales of products and services to individuals or other businesses located in Milwaukee County.

Our principal business consists of attracting retail and commercial deposits from the general public in our market area and investing those deposits, together with funds generated from operations, and to a lesser extent, borrowings, in one- to four-family residential real estate loans, commercial and multi-family real estate loans, construction loans and commercial business loans, and, to a lesser extent, consumer loans, including home equity lines of credit and automobile loans. A significant majority of our deposits are transaction accounts, which we believe are less susceptible to large-scale withdrawals than certificates of deposit as a result of changes in interest rates, and which we believe have a lower cost of funds over various interest cycles. At December 31, 2014, transaction accounts made up 79.4% of our deposits, which we attribute to successful branding initiatives. We also purchase investment securities consisting primarily of government-sponsored mortgage-backed securities, government-sponsored debentures, municipal securities and corporate securities.

Our results of operations depend primarily on our net interest income. Net interest income is the difference between the interest income we earn on our interest-earning assets and the interest we pay on our interest-bearing liabilities. Our results of operations also are affected by our provisions for loan losses, non-interest income and non-interest expense. Non-interest income currently consists primarily of service charges on deposit accounts, loan servicing income, gain on sales of securities and loans, debit card income, income from bank-owned life insurance and miscellaneous other income. Non-interest expense currently consists primarily of expenses related to compensation and employee benefits, occupancy and equipment, data processing, federal deposit insurance premiums, ATM charges, professional fees, advertising and other operating expenses.

Our results of operations also may be affected significantly by general and local economic and competitive conditions, changes in market interest rates, governmental policies and actions of regulatory authorities.

Regulatory Matters - Federal Reserve Bank. On April 28, 2014, the Company received correspondence from the Federal Reserve Bank noting that it had no objection to the termination of a Board resolution which required the Company to

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receive prior written non-objection from the Federal Reserve Bank to declare or pay dividends, issue debt or redeem Company stock. The Board of Directors terminated the resolution at its May 2014 meeting.

Regulatory Matters - OCC. On January 6, 2014, Westbury Bancorp, Inc. received notification from the Office of the Comptroller of the Currency (the “OCC”) that the Formal Written Agreement and Individual Minimum Capital Requirement ("IMCR") between the OCC and the Company’s wholly-owned subsidiary Westbury Bank had been terminated effective December 24, 2013. The Bank had been subject to the Formal Written Agreement since October 29, 2012 and to a memorandum of understanding that the Formal Written Agreement superseded since February 2010. The Bank had been subject to the IMCR since November 5, 2012. As a result of the termination of the Formal Written Agreement, the Bank is no longer designated as in “troubled condition” and is designated as an “eligible institution” with respect to expedited processing of applications that it might file. Accordingly, the Bank is no longer required to obtain the approval of the OCC prior to effecting changes in its directors or executive officers, and is no longer subject to restrictions on the declaration or payment of dividends. 

Comparison of Financial Condition at December 31, 2014 and September 30, 2014

Total Assets.  Total assets increased by $25.9 million, or 4.6%, to $594.6 million at December 31, 2014 from $568.7 million at September 30, 2014.  The increase in total assets was primarily the result of an increase in net loans of $21.3 million, loans held for sale of $1.8 million, securities held to maturity of $3.0 million, and cash and cash equivalents of $6.9 million, offset by a decrease in securities available for sale of $7.2 million.

Net Loans.  Net loans increased by $21.3 million, or 5.1%, to $438.2 million at December 31, 2014 from $416.9 million at September 30, 2014.  Single family loans increased by $12.7 million, multifamily loans increased by $6.6 million, commercial real estate loans increased by $4.4 million and construction and land development loans increased by $2.8 million, offset by a decrease in commercial business loans of $5.2 million during the three months ended December 31, 2014. 

Investment Securities.  Investment securities available for sale decreased $7.2 million, or 7.9%, to $83.2 million at December 31, 2014 from $90.3 million at September 30, 2014.  Investment securities held to maturity increased $3.0 million to $3.0 million at December 31, 2014 from $0 at September 30, 2014.

Mortgage-backed securities and collateralized mortgage obligations increased $5.0 million, to $56.4 million at December 31, 2014 from $51.4 million at September 30, 2014, municipal securities decreased $7.0 million, to $26.8 million at December 31, 2014 from $33.8 million at September 30, 2014 and government and agency securities decreased $5.2 million, to $0 at December 31, 2014 from $5.2 million at September 30, 2014.  Net unrealized gain on securities increased by $185,000 to $109,000 at December 31, 2014 from a net unrealized loss of $76,000 at September 30, 2014, reflecting the effect of a decrease in market interest rates.  At December 31, 2014, investment securities classified as available-for-sale consisted entirely of government-sponsored mortgage-backed securities and municipal securities. At December 31, 2014, investment securities classified as held to maturity consisted entirely of municipal securities.

Foreclosed Real Estate.  Foreclosed real estate held for sale decreased $22,000, or 0.9%, to $2.3 million at December 31, 2014 from $2.4 million at September 30, 2014, as we sold $284,000 of foreclosed properties, foreclosed or obtained deeds on $319,000 of non-performing loans and recorded valuation adjustments of $57,000 during the period.  At December 31, 2014, our foreclosed real estate included primarily one- to four-family residential real estate, multi-family and commercial real estate properties.

Deposits.  Deposits increased $17.8 million, or 3.9%, to $472.7 million at December 31, 2014 from $454.9 million at September 30, 2014.  Our core deposits, which we consider to be our non-interest bearing and interest bearing checking accounts, passbook and statement savings accounts, and variable rate money market accounts, increased $16.9 million, or 4.7%, to $375.4 million at December 31, 2014 from $358.6 million at September 30, 2014.  In particular, non-interest bearing deposits increased by $10.8 million, or 13.9%, to $88.6 million at December 31, 2014 from $77.8 million at September 30, 2014. Certificates of deposit increased $880,000, or 0.9%, to $97.3 million at December 31, 2014 from $96.4 million at September 30, 2014.  

Advances from FHLB. Advances from the FHLB increased by $14.0 million, or 82.4% to $31.0 million at December 31, 2014 from $17.0 million at September 30, 2014 as we increased advances in order to assist in funding current loan growth.

Other Liabilities.  Advance payments by borrowers for property taxes and insurance decreased by $5.6 million, or 95.7%, to $255,000 at December 31, 2014 from $5.9 million at September 30, 2014 due to seasonal disbursements to customers in December to enable the payment of mortgagees’ property taxes. 

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Total Equity.  Total equity increased $39,000 to $86.5 million at December 31, 2014 from $86.5 million at September 30, 2014.  The increase resulted primarily from net income of $447,000 during the three months ended December 31, 2014, stock based compensation expense of $201,000, an increase in other comprehensive income of $112,000, and the release/allocation of ESOP shares of $112,000, offset by the repurchase of 55,061 shares of common stock for $833,000.

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Delinquent Loans

The following table sets forth our loan delinquencies, including non-accrual loans, by type and amount at the dates indicated:

	30-59 Days			Loans Delinquent For 60-89 Days			90 Days and Over			Total
	Number	Amount		Number	Amount		Number	Amount		Number	Amount
	(Dollars in thousands)
At December 31, 2014:
Real estate loans:
One- to four-family	7	$	746	2	$	119	5	$	385	14	1,250
Multi-family	—	—		—	—		—	—		—	—
Commercial	—	—		—	—		1	126		1	126
Construction and land	1	31		—	—		—	—		1	31
Total real estate	8	777		2	119		6	511		16	1,407
Commercial business loans	—	—		—	—		—	—		—	—
Consumer loans:
Home equity lines of credit	2	24		—	—		3	286		5	310
Education	9	73		4	77		10	100		23	250
Other consumer loans	—	—		—	—		—	—		—	—
Total consumer loans	11	97		4	77		13	386		28	560
Total	19	$	874	6	$	196	19	$	897	44	$	1,967
At September 30, 2014:
Real estate loans:
One- to four-family	16	$	1,623	2	$	162	6	$	450	24	$	2,235
Multi-family	—	—		—	—		—	—		—	—
Commercial	1	178		1	163		2	196		4	537
Construction and land	—	—		—	—		—	—		—	—
Total real estate	17	1,801		3	325		8	646		28	2,772
Commercial business loans	—	—		—	—		2	22		2	22
Consumer loans:
Home equity lines of credit	3	228		—	—		3	129		6	357
Education	4	28		6	44		10	120		20	192
Other consumer loans	—	—		—	—		1	2		1	2
Total consumer loans	7	256		6	44		14	251		27	551
Total	24	$	2,057	9	$	369	24	$	919	57	$	3,345

The decrease in delinquent loans at December 31, 2014, compared to September 30, 2014, is primarily attributed to generally improved economic conditions.

36

Classified Assets

The following table details the Company’s assets graded Substandard or Special Mention as of the date indicated:

	At December 31, 2014		At September 30, 2014
	(In thousands)
Classified Loans:
Loss	—		—
Doubtful	—		—
Substandard — performing:
Real estate loans:
One- to four-family	$	1,028	$	1,239
Multi-family	157		160
Commercial	1,304		1,477
Construction and land	5		5
Total real estate loans	2,494		2,881
Commercial business loans	70		82
Consumer loans:
Home equity lines of credit	58		58
Other consumer loans	—		—
Total consumer loans	58		58
Total substandard — performing	2,622		3,021
Substandard — Nonperforming:
Real estate loans:
One- to four-family	530		596
Multi-family	—		—
Commercial	275		350
Construction and land	—		—
Total real estate loans	805		946
Commercial business loans	—		22
Consumer loans:
Home equity lines of credit	286		129
Other consumer loans	—		2
Total consumer loans	286		131
Total substandard — nonperforming	1,091		1,099
Total classified loans	3,713		4,120
Foreclosed real estate	2,333		2,355
Total classified assets	$	6,046	$	6,475
Special mention:
Real estate loans:
One- to four-family	$	117	$	118
Multi-family	442		445
Commercial	853		858
Construction and land	—		—
Total real estate loans	1,412		1,421
Commercial business loans	—		—
Consumer loans:
Home equity lines of credit	—		—
Other consumer loans	—		—
Total consumer loans	—		—
Total special mention	1,412		1,421
Total classified assets and special mention loans	$	7,458	$	7,896

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_______________________

The decrease in classified assets of $429,000 to $6.0 million at December 31, 2014, from $6.5 million at September 30, 2014, was primarily due to the repayment of classified loans.

38

Non-Performing Assets

The following table sets forth information regarding our non-performing assets and troubled debt restructurings at the dates indicated.  The information reflects net charge-offs but not specific reserves.  Troubled debt restructurings include loans where the borrower is experiencing financial difficulty and for which either a portion of interest or principal has been forgiven or an extension of term granted, or for loans modified at interest rates materially less than current market rates.

	At December 31, 2014			At September 30, 2014
	(Dollars in thousands)
Nonaccrual loans:
Real estate loans:
One- to four-family	$	530		$	791
Multi family	—			—
Commercial	275			350
Construction and land	—			—
Total real estate	805			1,141
Commercial business loans	—			22
Consumer loans:
Home equity lines of credit	302			145
Education	100			120
Other consumer loans	—			2
Total consumer loans	402			267
Total nonaccrual loans(1)	1,207			1,430
Loans greater than 90 days delinquent and still accruing:
Real estate loans:
One- to four-family	—			—
Multi-family	—			—
Commercial	—			—
Construction and land	—			—
Total real estate	—			—
Commercial business loans	—			—
Consumer loans:
Home equity lines of credit	—			—
Education	—			—
Other consumer loans	—			—
Total consumer loans	—			—
Total delinquent loans accruing	—			—
Total non-performing loans	1,207			1,430
Foreclosed assets:
One- to four-family	667			653
Multi-family	402			458
Commercial real estate	1,182			1,149
Construction and land	60			95
Home equity line of credit	22			—
Total foreclosed assets	2,333			2,355
Total nonperforming assets	$	3,540		$	3,785
Performing troubled debt restructurings	$	3,480		$	3,507
Ratios:
Nonperforming loans to total loans	0.27		%	0.34		%
Nonperforming assets to total assets	0.60		%	0.67		%
Nonperforming assets and troubled debt restructurings to total assets	1.18		%	1.28		%

_______________________

(1) Includes $0 and $195,000, respectively, of troubled debt restructurings that were on non-accrual status at December 31, 2014 and September 30, 2014.

39

The decrease in non-performing assets at December 31, 2014, from September 30, 2014, was primarily due to generally improved economic conditions.

Interest income that would have been recorded for the three months ended December 31, 2014, had non-accruing loans been current according to their original terms, amounted to $16,000.  Interest of approximately $4,500 related to these loans was included in interest income for the three months ended December 31, 2014.

Other Loans of Concern.   There were no other loans at December 31, 2014 that are not already disclosed where there is information about possible credit problems of borrowers that caused management to have serious doubts about the ability of the borrowers to comply with present loan repayment terms and that may result in disclosure of such loans in the future.

Comparison of Operating Results for the Three Months Ended December 31, 2014 and December 31, 2013

General.  Net income for the three months ended December 31, 2014 was $447,000 compared to net income of $68,000 for the three months ended December 31, 2013. The increase in net income of $379,000 was due primarily to increases of $349,000 in net interest income, $91,000 in service fees on deposit accounts and $70,000 in gains on sales of securities and a decrease in non-interest expenses of $539,000, offset by a decrease in servicing fee income of $210,000, and increases in provisions for loan losses of $200,000 and income tax expense of $225,000.

Interest and Dividend Income. Interest and dividend income increased $354,000, or 7.8%, to $4.9 million for the three months ended December 31, 2014 from $4.5 million for the three months ended December 31, 2013. This increase was primarily attributable to a $481,000 increase in interest and fee income on loans receivable offset by a $127,000 decrease in interest and dividend income on investment securities and interest-earning deposits.  The average balance of loans increased $83.3 million to $423.3 million for the three months ended December 31, 2014 from $340.0 million for the three months ended December 31, 2013. The average yield on loans decreased by 47 basis points to 4.21% for the three months ended December 31, 2014 from 4.68% for the three months ended December 31, 2013.  The average balance of investment securities decreased by $20.7 million, or 19.5%, to $85.4 million for the three months ended December 31, 2014 from $106.2 million for the three months ended December 31, 2013, while the average yield on investment securities decreased by 2 basis points to 1.91% for the three months ended December 31, 2014 from 1.93% for the three months ended December 31, 2013.   The decrease in our average yield on loans reflects the growth in our loan portfolio at current market rates and the effects of downward pressure on loan pricing caused by the prolonged low interest rate environment.

Interest Expense. Total interest expense increased $5,000, or 1.2%, to $429,000 for the three months ended December 31, 2014 from $424,000 for the three months ended December 31, 2013.  Interest expense on deposit accounts increased $1,000 to $425,000 for the three months ended December 31, 2014 from $424,000 for the three months ended December 31, 2013.  The increase was primarily due to an increase of $25.9 million, or 5.8%, in the average balance of deposits to $472.9 million for the three months ended December 31, 2014 from $447.1 million for the three months ended December 31, 2013, offset by a decrease of 2 basis points in the average cost of deposits to 0.36% for the three months ended December 31, 2014 from 0.38% for the three months ended December 31, 2013, reflecting the continued low interest rate environment. Interest expense on FHLB advances increased $4,000 to $4,000 for the three months ended December 31, 2014 from $0 for the three months ended December 31, 2013. The increase was due to an increase of $10.4 million in the average balance of FHLB advances to $10.4 million for the three months ended December 31, 2014 from $0 for the three months ended December 31, 2013.

Net Interest Income. Net interest income increased $349,000, or 8.5%, to $4.5 million for the three months ended December 31, 2014 from $4.1 million for the three months ended December 31, 2013.  Average interest-earning assets increased by $48.4 million, or 10.3%, to $518.7 million for the three months ended December 31, 2014, from $470.3 million for the three months ended December 31, 2013. Average deposits and interest-bearing liabilities decreased by $36.2 million, or 8.1%, to $483.3 million for the three months ended December 31, 2014, from $447.1 million for the three months ended December 31, 2013.  Our net interest margin decreased 6 basis points to 3.43% for the three months ended December 31, 2014 from 3.49% for the three months ended December 31, 2013.  The decrease in our net interest margin reflects the growth in our loan portfolio at current market rates and the effects of downward pressure on loan pricing caused by the prolonged low interest rate environment. The prolonged low interest rate environment also has an adverse impact on our ability to further reduce rates on transaction accounts. 

Provision for Loan Losses.  We recorded a provision for loan losses of $350,000 for the three months ended December 31, 2014 compared to $150,000 for the three months ended December 31, 2013.  The increase in the provision corresponds with the growth in the loan portfolio compared to the prior year period partially offset by improvement in our charge-off experience compared to the prior year period. The allowance for loan losses was $4.2 million, or 0.95% of total

40

loans, at December 31, 2014, compared to $4.1 million, or 0.97% of total loans, at September 30, 2014, and $3.7 million, or 1.07% of total loans, at December 31, 2013.  Total nonperforming loans were $1.2 million at December 31, 2014, compared to $1.4 million at September 30, 2014, and $5.0 million at December 31, 2013.  As a percentage of nonperforming loans, the allowance for loan losses was 350.0% at December 31, 2014, compared to 284.8% at September 30, 2014, and 75.6% at December 31, 2013.  Total classified loans were $3.7 million at December 31, 2014, compared to $4.1 million at September 30, 2014, and $9.7 million at December 31, 2013.

The allowance for loan losses reflects the balance we believe to be appropriate to cover incurred probable losses which were inherent in the loan portfolio at December 31, 2014, September 30, 2014, and December 31, 2013.

Non-Interest Income.  Non-interest income decreased $84,000, or 4.8%, to $1.7 million for the three months ended December 31, 2014 from $1.8 million for the three months ended December 31, 2013. The decrease was primarily related to decreases in servicing fee income of $210,000, insurance and securities sales commissions of $37,000 and rental income from real estate operations of $32,000; offset by increases in service fees on deposit accounts of $91,000, gain on the sale of securities of $70,000 and gain on sales of loans of $22,000.  The decrease in servicing fee income resulted from the partial recovery, in the prior year period, of valuation reserves on our mortgage servicing asset as a result of an increase in the expected life of our serviced loan portfolio due to an increase in market interest rates. The decrease in insurance and securities sales commissions resulted from the Bank's restructuring of this business line to improve its performance. The decrease in rental income from real estate operations was the result of the sale of real estate in the second half of fiscal 2014. The increase in service fees on deposit accounts resulted from an increase in debit card interchange income and overdraft fees on checking accounts. The increase in gain on sales of securities resulted from the sale of investment securities to partially fund the growth of the loan portfolio during the quarter.

Non-Interest Expense.  Non-interest expense decreased $539,000, or 9.5%, to $5.1 million for the three months ended December 31, 2014, from $5.6 million for the three months ended December 31, 2013. The decrease was primarily caused by decreases of $186,000 in net loss from operation and sale of foreclosed real estate, $114,000 in occupancy expense, $96,000 in other expenses, $80,000 in data processing expense, $68,000 in FDIC insurance premiums expense and $49,000 in real estate held for investment expenses. These reductions were offset by an increase of $84,000 in salaries and employee benefits. The decrease in net loss from operation and sale of foreclosed real estate resulted from lower levels of foreclosed real estate being managed, on average during the period, compared to the prior period. The decreases in occupancy expense and real estate held for investment expenses resulted from the closing of three branches and the sale of related real estate in the second half of fiscal 2014. The decrease in FDIC insurance premium expense was a result of the reduction of the rate the Bank is charged for this insurance due to the termination of the formal agreement with the OCC in fiscal 2014. The increase in salaries and employee benefits resulted primarily from the awards made under our equity incentive plan in June 2014.

Provision for Income Taxes.  Income tax expense was $223,000 for the three months ended December 31, 2014, compared to benefit of $2,000 for the three months ended December 31, 2013.  The effective tax rate as a percent of pre-tax income was 33.3% and (3.0)% for the three months ended December 31, 2014 and 2013, respectively. The effective tax rate increased for the three months ended December 31, 2014 due to the impact of tax-exempt income on the effective rate calculation in a tax loss scenario such as occurred in the three months ended December 31, 2013.

Analysis of Net Interest Income

Net interest income represents the difference between the income we earn on interest-earning assets and the interest expense we pay on interest-bearing liabilities. Net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on them.  The following tables set forth average balance sheets, average yields and costs, and certain other information at or for the periods indicated.  Average balances are derived from daily average balances for all periods.  Non-accrual loans were included in the computation of average balances, but have been reflected in the tables as loans carrying a zero yield. No tax equivalent yield adjustments have been made.  The yields set forth below include the effect of loan fees, discounts and premiums that are amortized or accreted to interest income.

41

	For the Three Months Ended December 31,
	2014						2013
	Average Outstanding Balance		Interest		Yield/Cost		Average Outstanding Balance		Interest		Yield/Cost
Assets:
Loans	$	423,319	$	4,459	4.21	%	$	339,988	$	3,978	4.68	%
Securities	85,437		409		1.91		106,172		511		1.93
Fed funds sold and other interest-earning deposits	9,920		12		0.48		24,096		37		0.61
Total interest-earning assets	518,676		4,880		3.76	%	470,256		4,526		3.85	%
Noninterest-earning assets	61,696						78,226
Total assets	$	580,372					$	548,482
Liabilities and stockholders' equity:
Noninterest-bearing demand deposits	$	60,207	—		—	%	$	20,088	$	—	—	%
Checking accounts	167,086		103		0.25		194,100		$	114	0.23
Passbook and statement savings	122,707		49		0.16		118,824		45		0.15
Variable rate money market	25,889		10		0.15		26,241		12		0.18
Certificates of deposit	97,040		263		1.08		87,819		253		1.15
Total interest bearing deposits	412,722		425		0.41		426,984		424		0.40
Total deposits	472,929		425		0.36		447,072		424		0.38
FHLB advances	10,353		4		0.15		—		—		—
Notes payable	—		—		—		—		—		—
Total deposits and interest-bearing liabilities	483,282		429		0.36	%	447,072		424		0.38	%
Other liabilities	9,999						10,238
Total liabilities	493,281						457,310
Stockholders' equity	87,091						91,172
Total liabilities and stockholders' equity	$	580,372					$	548,482
Net interest income			$	4,451					$	4,102
Net interest rate spread					3.40	%					3.47	%
Net interest-earning assets	$	35,394					$	23,184
Net interest margin					3.43	%					3.49	%
Average of interest-earning assets to interest-bearing liabilities					107.32	%					105.19	%

Liquidity and Capital Resources

Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from the sale of loans, proceeds from maturities and calls of securities, Federal Home Loan Bank advances and, to a lesser extent, short-term borrowings from other financial institutions. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments including interest-bearing demand deposits. The levels of these assets are dependent on our operating, financing, lending, and investing activities during any given period.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities.  Net cash used in operating activities was $6.2 million and $4.1 million for the three months ended December 31, 2014 and December 31, 2013, respectively.  Net cash used in investing activities, which consists primarily of disbursements for loan originations and the purchase of securities, offset by principal collections on loans, proceeds from the

42

sale of securities and proceeds from maturing securities and pay downs on mortgage-backed securities, was $17.9 million and $7.5 million for the three months ended December 31, 2014 and December 31, 2013, respectively.  During the three months ended December 31, 2014, we purchased $8.2 million and sold $12.1 million in securities held as available-for-sale, and during the three months ended December 31, 2013, we purchased $6.4 million and sold $0 in securities held as available-for-sale.  Net cash provided by (used in) financing activities was $30.9 million and $(2.4) million for the three months ended December 31, 2014 and December 31, 2013, respectively and consisted of increases (decreases) in deposit accounts, increases in FHLB borrowings, and the purchases of Company treasury stock.

At December 31, 2014, Westbury Bank exceeded all of its regulatory capital requirements with Tier 1 leverage capital of $62.1 million, or 10.79% of adjusted total assets, which is above the well-capitalized level of $28.8 million, or 5.00%; and total risk-based capital of $66.3 million, or 15.81% of risk-weighted assets, which is above the well-capitalized level of $41.9 million, or 10.00%.  Accordingly, Westbury Bank was categorized as well-capitalized at December 31, 2014. 

At December 31, 2014, we had outstanding commitments to originate loans of $2.4 million, unused commercial and home equity lines of credit of $90.4 million and stand-by letters of credit of $967,000.  We anticipate that we will have sufficient funds available to meet our current loan origination commitments.  Certificates of deposit that are scheduled to mature in less than one year from December 31, 2014 totaled $38.4 million.  Management expects that a substantial portion of the maturing certificates of deposit will be renewed.  However, if a substantial portion of these deposits is not retained, we may utilize Federal Home Loan Bank advances or the proceeds from our recent stock offering or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

Off-Balance Sheet Arrangements.  In the normal course of operations, we engage in a variety of financial transactions that, in accordance with U.S. Generally Accepted Accounting Principles are not recorded in our financial statements.  These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk.  Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments, lines of credit and standby letters of credit.

We have not engaged in any other off-balance-sheet transactions in the normal course of our lending activities.

Impact of Inflation and Changing Prices

The financial statements and related data presented herein have been prepared in accordance with U.S. Generally Accepted Accounting Principles which require the measurement of financial position and operating results in terms of historical dollars without considering changes in the relative purchasing power of money over time due to inflation.  The primary impact of inflation on our operations is reflected in increased operating costs. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates, generally, have a more significant impact on a financial institution’s performance than does inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Disclosures of quantitative and qualitative market risk are not required by smaller reporting companies, such as the Company.

ITEM 4. CONTROLS AND PROCEDURES

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of December 31, 2014. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.

During the quarter ended December 31, 2014, there have been no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Securities and Exchange Act of 1934, amended) that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

43

PART II

ITEM 1. LEGAL PROCEEDINGS

On December 3, 2012, a civil suit was filed in the United States District Court for the Eastern District of Wisconsin, Civil Action Number 12-CV-1210, by First American Title Insurance Company against Westbury Bank.  The plaintiffs seek actual damages of $3.6 million and additional treble or such punitive or other damages as determined by the court, as well as plaintiffs’ fees, costs and expenses.  The suit alleges that Westbury Bank should have been aware of the misappropriation of funds deposited into an escrow account maintained by a commercial customer of Westbury Bank, New Horizon Title, LLC.  The suit also alleges that Westbury Bank improperly deducted overdraft fees from the escrow account, that Westbury Bank aided and abetted its customer in the misappropriation of escrowed funds and in its customer’s breach of fiduciary duty to plaintiffs and lenders to whom the escrowed funds belonged, that Westbury Bank’s conduct amounted to commercial bad faith under state commercial law and that Westbury Bank was unjustly enriched as a result of its actions.

Westbury Bank believes that the lawsuit is without merit and intends to defend itself vigorously.  Based on the information available to Westbury Bank’s litigation counsel at this time, they believe that the claims in this case are legally and factually without merit.  Counsel is unable to give an opinion as to the likely outcome.  Other than the foregoing, we are not involved in any pending legal proceedings as a plaintiff or defendant other than routine legal proceedings occurring in the ordinary course of business, and at December 31, 2014, we were not involved in any legal proceedings, the outcome of which would be material to our financial condition or results of operations.

ITEM 1A. RISK FACTORS

Disclosures of risk factors are not required by smaller reporting companies, such as the Company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) Unregistered Sales of Equity Securities.  None.

(b) Use of Proceeds.  None.

(c) Repurchase of Equity Securities. 

The table below sets forth Westbury Bancorp Inc.'s common stock repurchases during the three months ended December 31, 2014.

Period	(a) Total number of shares purchased	(b) Average price paid per share		(c) Total number of shares purchased as part of publicly announced plans or programs	(d) Maximum number of shares that may yet be purchased under the plans or programs
October 1 - October 31, 2014	32,482	$	15.02	32,482	196,222
November 1 - November 30, 2014	15,492	15.13		15,492	180,730
December 1 - December 31, 2014	7,087	15.24		7,087	173,643
Total	55,061	$	15.08	55,061

On August 20, 2014, the Company announced that its Board of Directors had authorized the repurchase of up to 250,000 shares of the Company's common stock, representing 4.9% of the Company's outstanding shares. The shares may be purchased in the open market or in privately negotiated transactions from time to time depending on market conditions and other factors. As of December 31, 2014, 76,357 shares had been purchased.

44

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The exhibits required by Item 601 of Regulation S-K are included with this Form 10-Q and are listed on the “Index to Exhibits” immediately following the Signatures.

45

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Westbury Bancorp, Inc.

Date: January 30, 2015

/s/ Raymond F. Lipman

Raymond F. Lipman

Chairman and Chief Executive Officer

/s/ Kirk J. Emerich

Kirk J. Emerich

Senior Vice President and Chief Financial Officer

46

INDEX TO EXHIBITS

Exhibit Number	Description
3.1	Articles of Incorporation of Westbury Bancorp, Inc.*
3.2	Amended and Restated Bylaws of Westbury Bancorp, Inc.**
31.1	Certification of Raymond F. Lipman, Chairman and Chief Executive Officer, Pursuant to Rule 13a-14(a) and Rule 15d-14(a)
31.2	Certification of Kirk J. Emerich, Senior Vice President and Chief Financial Officer, Pursuant to Rule 13a-14(a) and Rule 15d-14(a)
32	Certification of Raymond F. Lipman, Chairman and Chief Executive Officer, and Kirk J. Emerich, Senior Vice President and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2014, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements of Comprehensive Income (Loss); (iv) Consolidated Statements of Changes in Stockholders' Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Unaudited Consolidated Financial Statements

_______________________________________

* Incorporated herein by reference to the Registrant’s Registration Statement on Form S-1, as amended (File No. 333-184594).

** Incorporated herein by reference to Exhibit 3.2 to the Registrant's Annual Report on Form 10-K for the fiscal year ended September 30, 2014.

47

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Raymond F. Lipman, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Westbury Bancorp, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 30, 2015

/s/ Raymond F. Lipman

Raymond F. Lipman

Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Kirk J. Emerich, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Westbury Bancorp, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 30, 2015

/s/ Kirk J. Emerich

Kirk J. Emerich

Senior Vice President and Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Westbury Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2014 as filed with the Securities and Exchange Commission (the “Report”), the undersigned, Raymond F. Lipman, Chief Executive Officer of the Company, and Kirk J. Emerich, Senior Vice President and Chief Financial Officer of the Company, each certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to best of his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Raymond F. Lipman
	Date: January 30, 2015
Raymond F. Lipman
Chief Executive Officer
/s/ Kirk J. Emerich
	Date: January 30, 2015
Kirk J. Emerich
Senior Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Westbury Bancorp, Inc. and will be retained by Westbury Bancorp, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Investment Securitites (Details 2) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
Available for Sale, Amortized Cost
Due in one year or less	$ 2,562,000
Due after one year through five years	14,064,000
Due after five years through ten years	7,600,000
Due after ten years	2,669,000
Total	83,071,000
Available for Sale, Fair Value
Due in one year or less	2,565,000
Due after one year through five years	14,056,000
Due after five years through ten years	7,582,000
Due after ten years	2,624,000
Fair Value	83,180,000		90,346,000
Other disclosures
Proceeds from sales of securities available-for-sale	12,084,000	0
Gross realized gains on the sale of securities available-for-sale	111,000	0
Gross realized losses on the sale of securities available-for-sale	0	0
Securities pledged to secure treasury, tax, and loan deposits and other purposes	0		0
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount	566,000
Held-to-maturity Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value	566,000
Held-to-maturity Securities, Debt Maturities, Year Two Through Five, Fair Value	679,000
Held-to-maturity Securities, Debt Maturities, Year Two Through Five, Fair Value	679,000
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount	929,000
Held-to-maturity Securities, Debt Maturities, Year Six Through Ten, Fair Value	929,000
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	851,000
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value	851,000
Held-to-maturity Securities	3,025,000		0
Investment Securities, Amortized Cost Basis	86,096,000		90,422,000
Investment Securities	86,205,000		90,346,000
U.S. Government agency collateralized mortgage obligations
Available for Sale, Amortized Cost
U.S. Government agency securities	5,233,000
Available for Sale, Fair Value
U.S. Government agency securities	5,203,000
Fair Value	5,203,000		3,432,000
U.S. Government agency residential mortgage-backed securities
Available for Sale, Amortized Cost
U.S. Government agency securities	38,329,000
Available for Sale, Fair Value
U.S. Government agency securities	38,593,000
Fair Value	38,593,000		37,196,000
Commercial Mortgage Backed Securities [Member]
Available for Sale, Amortized Cost
U.S. Government agency securities	12,614,000
Available for Sale, Fair Value
U.S. Government agency securities	12,557,000
Fair Value	12,557,000		10,752,000
Municipal securities
Available for Sale, Fair Value
Fair Value	26,827,000		33,787,000
Other disclosures
Held-to-maturity Securities	$ 3,025,000		$ 0

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Fair Value Measurements (Details 3) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Financial assets
Securities available-for-sale	$ 83,180	$ 90,346
Held-to-maturity Securities	3,025	0
Federal Home Loan Bank stock	2,670	2,670
Financial liabilities
Advance payments by borrowers for property taxes and insurance	255	5,869
Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets
Cash and cash equivalents	24,475	17,608
Held-to-maturity Securities	0
Accrued interest receivable	1,748	1,784
Financial liabilities
Deposits	88,628	77,790
Advances from Federal Home Loan Bank	0	0
Advance payments by borrowers for property taxes and insurance	255	5,869
Accrued interest payable	4	3
Derivative liability	0	0
Significant Other Observable Inputs (Level 2)
Financial assets
Securities available-for-sale	83,180	90,346
Held-to-maturity Securities	3,025
Loans held for sale, net	2,082	326
Derivative asset	146	87
Financial liabilities
Deposits	0	0
Advances from Federal Home Loan Bank	31,000	17,000
Advance payments by borrowers for property taxes and insurance	0	0
Accrued interest payable	0	0
Derivative liability	146	87
Significant Other Unobservable Inputs (Level 3)
Financial assets
Held-to-maturity Securities	0
Loans, net	440,204	415,857
Federal Home Loan Bank stock	2,670	2,670
Mortgage servicing rights	1,528	1,624
Financial liabilities
Deposits	371,676	364,552
Advances from Federal Home Loan Bank	0	0
Advance payments by borrowers for property taxes and insurance	0	0
Accrued interest payable	0	0
Derivative liability	0	0
Carrying Amount
Financial assets
Cash and cash equivalents	24,475	17,608
Securities available-for-sale	83,180	90,346
Held-to-maturity Securities	3,025
Loans, net	438,172	416,874
Loans held for sale, net	2,082	326
Federal Home Loan Bank stock	2,670	2,670
Mortgage servicing rights	1,528	1,624
Accrued interest receivable	1,748	1,784
Derivative asset	146	87
Financial liabilities
Deposits	472,688	454,928
Advances from Federal Home Loan Bank	31,000	17,000
Advance payments by borrowers for property taxes and insurance	255	5,869
Accrued interest payable	4	3
Derivative liability	146	87
Estimated Fair Value
Financial assets
Cash and cash equivalents	24,475	17,608
Securities available-for-sale	83,180	90,346
Held-to-maturity Securities	3,025
Loans, net	440,204	415,857
Loans held for sale, net	2,082	326
Federal Home Loan Bank stock	2,670	2,670
Mortgage servicing rights	1,528	1,624
Accrued interest receivable	1,748	1,784
Derivative asset	146	87
Financial liabilities
Deposits	460,304	442,342
Advances from Federal Home Loan Bank	31,000	17,000
Advance payments by borrowers for property taxes and insurance	255	5,869
Accrued interest payable	4	3
Derivative liability	$ 146	$ 87

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Real Estate Held for Sale and Branch Closings (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2014 property	Jun. 30, 2014	Mar. 31, 2014
Real Estate [Abstract]
Number of office properties designated as available for sale	2
Transfer to real estate held-for-sale from held-for-investment, fair value			$ 810
Transfer to real estate held-for-sale from office properties and equipment, fair value			1,932
Valuation loss on real estate held for sale	2,216	0	1,964
Branch realignment	$ 619	$ 0

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Condensed Parent Company Financial Information Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and interest bearing deposits	$ 24,475	$ 17,608	$ 33,664	$ 47,665
Other assets	3,765	3,504
Total assets	594,614	568,695
Other liabilities	4,145	4,411
Stockholders' equity	86,526	86,487	90,702	90,602
Total liabilities and stockholders' equity	594,614	568,695
Parent Company [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and interest bearing deposits	6,082	6,878
Investments	6,754	6,590
Loan to ESOP	3,778	3,931
Investment in subsidiary	71,771	71,131
Other assets	1,761	1,674
Total assets	90,146	90,204
Other liabilities	130	115
Stockholders' equity	90,016	90,089
Total liabilities and stockholders' equity	$ 90,146	$ 90,204

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Loans (Details 6) (USD $)	3 Months Ended
	Dec. 31, 2014 contract		Dec. 31, 2013 contract		Sep. 30, 2014
Troubled debt restructured loans
Troubled debt restructurings - accrual	$ 0				$ 0
Number of Modifications	0		1
Unpaid Principal Balance (at end of period)	0		88,000
Balance in the ALLL, At Period End	0		0
Principal and Interest to Interest Only	0		0
Interest Rate Reduction
To Below Market Rate	0		0
To Interest Only	0		0
Adjusted Amortization Period	0		0
Reduced Principal Balance	0		0
Other	0	[1]	88,000	[1]
Total	0		88,000
Number of re-defaults of TDR	0		0
Loans outstanding to officers, employees, directors, and their associates	5,120,000				4,653,000
Troubled debt restructurings
Troubled debt restructured loans
Troubled debt restructurings - accrual	3,480,000				3,507,000
Troubled debt restructurings - nonaccrual	0				195,000
Troubled debt restructurings	3,480,000				3,702,000
Single family
Troubled debt restructured loans
Number of Modifications	0		1
Unpaid Principal Balance (at end of period)	0		88,000
Balance in the ALLL, At Period End	0		0
Principal and Interest to Interest Only	0		0
Interest Rate Reduction
To Below Market Rate	0		0
To Interest Only	0		0
Adjusted Amortization Period	0		0
Reduced Principal Balance	0		0
Other	0	[1]	88,000	[1]
Total	$ 0		$ 88,000

[1] Other modifications primarily include capitalization of property taxes.

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Compensation Equity Plans Cost of Share-based Payment Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total cost of stock grant plan during the year	$ 155	$ 0
Total cost of stock option plan during the year	46	0
Total cost of share-based payment plans during the year	201	0
Amount of related income tax benefit recognized in income	$ 79	$ 0

XML

Condensed Parent Company Financial Information Statement of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	$ 447	$ 68
Deferred income taxes	224	22
Stock based compensation expense	201	0
Net change in other assets	(243)	(579)
Net cash provided by operating activities	(6,176)	(4,099)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchase of securities	(8,189)	(6,394)
Net cash provided by (used in) investing activities	(17,884)	(7,549)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Purchase of Company treasury stock	(833)	0
Net cash used in financing activities	30,927	(2,353)
Parent Company [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	447	68
Equity in undistributed net income of subsidiary	(538)	(153)
Net change in other liabilities	15	(19)
Net change in other assets	124	130
Net cash provided by operating activities	48	26
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchase of securities	(376)	(100)
Sales and maturities of securities	212	405
Payments received on ESOP loan	153	183
Net cash provided by (used in) investing activities	(11)	488
Net Cash Provided by (Used in) Financing Activities [Abstract]
Purchase of Company treasury stock	(833)	0
Net cash used in financing activities	(833)	0
Net increase (decrease) in cash	(796)	514
Beginning of year	6,878	9,271
End of year	$ 6,082	$ 9,785

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Loans (Tables)

3 Months Ended

Dec. 31, 2014

Loans

Summary of balances of loans

A summary of the balances of loans follows:

	December 31, 2014		September 30, 2014
Real estate:
Single family	$	148,067	$	135,337
Multifamily	82,981		76,396
Commercial real estate	139,554		135,121
Construction and land development	19,127		16,362
Total real estate	389,729		363,216
Commercial business	32,477		37,675
Consumer:
Home equity lines of credit	14,126		14,275
Education	4,560		4,694
Other	1,828		1,321
Total consumer	20,514		20,290
Total loans	442,720		421,181
Less:
Net deferred loan fees	324		235
Allowance for loan losses	4,224		4,072
Net loans	$	438,172	$	416,874

Schedule of contractual aging of recorded investment in past due loans

The following tables present the contractual aging of the recorded investment in past due loans by class of loans as of December 31, 2014 and September 30, 2014:

December 31, 2014	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	146,817	$	746	$	119	$	385	$	148,067
Multifamily	82,981		—		—		—		82,981
Commercial real estate	139,428		—		—		126		139,554
Construction and land development	19,096		31		—		—		19,127
Commercial business	32,477		—		—		—		32,477
Consumer and other:
Home equity lines of credit	13,816		24		—		286		14,126
Education	4,310		73		77		100		4,560
Other	1,828		—		—		—		1,828
	$	440,753	$	874	$	196	$	897	$	442,720

September 30, 2014	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	133,102	$	1,623	$	162	$	450	$	135,337
Multifamily	76,396		—		—		—		76,396
Commercial real estate	134,584		178		163		196		135,121
Construction and land development	16,362		—		—		—		16,362
Commercial business	37,653		—		—		22		37,675
Consumer and other:
Home equity lines of credit	13,918		228		—		129		14,275
Education	4,502		28		44		120		4,694
Other	1,319		—		—		2		1,321
	$	417,836	$	2,057	$	369	$	919	$	421,181

Schedule of Loans and Leases Receivable, Related Parties [Table Text Block]

An analysis of such loans is as follows:

	Three Months Ended December 31, 2014
Balance, beginning	$	4,653
New loans originated	511
Draws on lines of credit	99
Principal repayments	(143		)
Balance, ending	$	5,120

Schedule of risk category of loans

The following tables present the risk category of loans evaluated by internal asset classification based on the most recent analysis performed and the contractual aging as of December 31, 2014 and September 30, 2014:

December 31, 2014	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	145,083	$	1,309	$	117	$	1,558	$	—	$	148,067
Multifamily	79,640		2,742		442		157		—		82,981
Commercial real estate	131,737		5,385		853		1,579		—		139,554
Construction and land development	19,122		—		—		5		—		19,127
Commercial business	28,988		3,419		—		70		—		32,477
Consumer and other:
Home equity lines of credit	13,782		—		—		344		—		14,126
Education	4,560		—		—		—		—		4,560
Other	1,828		—		—		—		—		1,828
Total	$	424,740	$	12,855	$	1,412	$	3,713	$	—	$	442,720

September 30, 2014	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	132,067	$	1,317	$	118	$	1,835	$	—	$	135,337
Multifamily	73,876		1,915		445		160		—		76,396
Commercial real estate	126,319		6,117		858		1,827		—		135,121
Construction and land development	16,357		—		—		5		—		16,362
Commercial business	34,112		3,459		—		104		—		37,675
Consumer and other:
Home equity lines of credit	14,088		—		—		187		—		14,275
Education	4,694		—		—		—		—		4,694
Other	1,319		—		—		2		—		1,321
	$	402,832	$	12,808	$	1,421	$	4,120	$	—	$	421,181

Schedule of activity in the allowance for loan losses, by portfolio segment

The following tables provide additional detail of the activity in the allowance for loan losses, by portfolio segment, for the three months ended December 31, 2014 and 2013:

Three Months Ended December 31, 2014	Single Family			Multifamily		Commercial Real Estate			Construction and Land Development		Commercial Business			Consumer and Other			Total
Allowance for loan losses:
Beginning balance	$	1,072		$	757	$	1,412		$	301	$	454		$	76		$	4,072
Provision for loan losses	103			175		15			66		(34		)	25			350
Loans charged-off	(161		)	—		(48		)	—		(14		)	(2		)	(225		)
Recoveries	11			—		9			—		6			1			27
Ending balance	$	1,025		$	932	$	1,388		$	367	$	412		$	100		$	4,224
Period-ended amount allocated for:
Individually evaluated for impairment	$	45		$	—	$	—		$	—	$	—		$	58		$	103
Collectively evaluated for impairment	980			932		1,388			367		412			42			4,121
Ending Balance	$	1,025		$	932	$	1,388		$	367	$	412		$	100		$	4,224
Loans:
Individually evaluated for impairment	$	1,542		$	1,894	$	558		$	—	$	—		$	360		$	4,354
Collectively evaluated for impairment	146,525			81,087		138,996			19,127		32,477			20,154			438,366
Ending Balance	$	148,067		$	82,981	$	139,554		$	19,127	$	32,477		$	20,514		$	442,720

Three Months Ended December 31, 2013	Single Family			Multifamily			Commercial Real Estate			Construction and Land Development			Commercial Business			Consumer and Other			Total
Allowance for loan losses:
Beginning balance	$	1,873		$	165		$	1,501		$	374		$	211		$	142		$	4,266
Provision for loan losses	6			(27		)	213			(203		)	154			7			150
Loans charged-off	(296		)	—			(232		)	—			(159		)	(27		)	(714		)
Recoveries	15			—			11			—			14			1			41
Ending balance	$	1,598		$	138		$	1,493		$	171		$	220		$	123		$	3,743
Period-ended amount allocated for:
Individually evaluated for impairment	$	—		$	66		$	198		$	—		$	—		$	60		$	324
Collectively evaluated for impairment	1,598			72			1,295			171			220			63			3,419
Ending Balance	$	1,598		$	138		$	1,493		$	171		$	220		$	123		$	3,743
Loans:
Individually evaluated for impairment	$	2,598		$	3,202		$	2,068		$	—		$	—		$	179		$	8,047
Collectively evaluated for impairment	131,021			46,516			112,843			10,014			24,040			17,872			$	342,306
Ending Balance	$	133,619		$	49,718		$	114,911		$	10,014		$	24,040		$	18,051		$	350,353

Schedule of impaired loans

							Three months ended
December 31, 2014	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Single family	$	1,363	$	1,148	$	—	$	1,274	$	11
Multifamily	1,998		1,894		—		3,484		20
Commercial real estate	629		558		—		1,118		8
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	401		302		—		223		—
With an allowance recorded:
Single family	417		394		45		758		3
Multifamily	—		—		—		86		—
Commercial real estate	—		—		—		90		—
Construction and land development	—		—		—		96		—
Commercial business	—		—		—		—		—
Consumer and other	58		58		58		60		1
	$	4,866	$	4,354	$	103	$	7,189	$	43

							Three months ended
December 31, 2013	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Single family	$	3,718	$	2,598	$	—	$	1,999	$	32
Multifamily	3,399		3,033		—		4,053		28
Commercial real estate	1,939		1,870		—		1,773		54
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	336		119		—		131		—
With an allowance recorded:
Single family	—		—		—		561		—
Multifamily	169		169		66		171		7
Commercial real estate	198		198		198		189		4
Construction and land development	—		—		—		96		—
Commercial business	—		—		—		—		—
Consumer and other	60		60		60		61		3
	$	9,819	$	8,047	$	324	$	9,034	$	128

Schedule of loans modified in a TDR, by class

The following tables presents information related to loans modified in a TDR, by class, during the three months ended December 31, 2014 and 2013:

	Three Months Ended December 31, 2014
		Unpaid Principal Balance (at End of Period)		Balance in the ALLL
	Number of Modifications			Prior to Modification		At Period End
Single family	—	$	—	$	—	$	—
	—	$	—	$	—	$	—

	Three Months Ended December 31, 2013
		Unpaid Principal Balance (at End of Period)		Balance in the ALLL
	Number of Modifications			Prior to Modification		At Period End
Single family	1	$	88	$	—	$	—
	1	$	88	$	—	$	—

The following table presents a summary of loans modified in a TDR during the three months ended December 31, 2014 and 2013 by class and by type of modification:

Principal and Interest to Interest Only

Interest Rate Reduction

Adjusted Amortization Period

Reduced Principal Balance

Three Months Ended December 31, 2014

To Below Market Rate

To Interest Only

Other (1)

Total

Single family

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

	Principal and Interest to Interest Only		Interest Rate Reduction				Adjusted Amortization Period		Reduced Principal Balance
Three Months Ended December 31, 2013			To Below Market Rate		To Interest Only						Other (1)		Total
Single family	$	—	$	—	$	—	$	—	$	—	$	88	$	88
	$	—	$	—	$	—	$	—	$	—	$	88	$	88

___________________________________________________________

(1) Other modifications primarily include capitalization of property taxes.

Past due loans

Loans

Schedule of recorded investment by accrual status

The following table presents the recorded investment in nonaccrual loans by class of loans as of December 31, 2014 and September 30, 2014:

	December 31, 2014		September 30, 2014
Single family	$	530	$	791
Multifamily	—		—
Commercial real estate	275		350
Construction and land development	—		—
Commercial business	—		22
Consumer and other:
Home equity lines of credit	302		145
Education	100		120
Other	—		2
	$	1,207	$	1,430

Troubled debt restructurings

Loans

Schedule of recorded investment by accrual status

The following is a summary of troubled debt restructured loans (TDRs) at December 31, 2014 and September 30, 2014:

	December 31, 2014		September 30, 2014
Troubled debt restructurings - accrual	$	3,480	$	3,507
Troubled debt restructurings - nonaccrual	—		195
	$	3,480	$	3,702

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Regulatory Capital (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Reconciliation of stockholders' equity to regulatory capital
Stockholders' equity of the Bank	$ 86,526	$ 86,487	$ 90,702	$ 90,602
Less: Disallowed servicing assets	(1,528)	(1,624)
Westbury Bank
Total capital (to risk-weighted assets), Amount
Actual	66,312	65,181
For Capital Adequacy Purposes	33,554	32,228
To be Well Capitalized Under Prompt Corrective Action Provisions	41,943	40,285
Total capital (to risk-weighted assets), Ratio
Actual (as a percent)	15.81%	16.18%
For Capital Adequacy Purposes (as a percent)	8.00%	8.00%
To be Well Capitalized Under Prompt Corrective Action Provisions (as a percent)	10.00%	10.00%
Tier 1 capital (to risk-weighted assets), Amount
Actual	62,088	61,109
For Capital Adequacy Purposes	16,769	16,113
To be Well Capitalized Under Prompt Corrective Action Provisions	25,154	24,170
Tier 1 capital (to risk-weighted assets), Ratio
Actual (as a percent)	14.81%	15.17%
For Capital Adequacy Purposes (as a percent)	4.00%	4.00%
To be Well Capitalized Under Prompt Corrective Action Provisions (as a percent)	6.00%	6.00%
Tier 1 capital (to adjusted total assets), Amount
Actual	62,088	61,109
For Capital Adequacy Purposes	23,017	21,962
To be Well Capitalized Under Prompt Corrective Action Provisions	28,771	27,452
Tier 1 capital (to adjusted total assets), Ratio
Actual (as a percent)	10.79%	11.13%
For Capital Adequacy Purposes (as a percent)	4.00%	4.00%
To be Well Capitalized Under Prompt Corrective Action Provisions (as a percent)	5.00%	5.00%
Reconciliation of stockholders' equity to regulatory capital
Stockholders' equity of the Bank	68,282	67,529
Less: Disallowed servicing assets	(153)	(162)
Unrealized (gain) loss on securities	(69)	33
Disallowed investment in subsidiary	(3,296)	(3,296)
Disallowed deferred tax assets	(2,676)	(2,995)
Tier 1 and tangible capital	62,088	61,109
Plus: Allowable general valuation allowances	4,224	4,072
Risk-based capital	$ 66,312	$ 65,181

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Loans (Details 2) (USD $)	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Contractual aging of the recorded investment in past due loans
Current	$ 440,753,000	$ 417,836,000
30-59 Days Past Due	874,000	2,057,000
60-89 Days Past Due	196,000	369,000
Loans Past Due 90 Days or More	897,000	919,000
Total Loans	442,720,000	421,181,000	350,353,000
Troubled debt restructurings - accrual	0	0
Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	1,207,000	1,430,000
Single family
Contractual aging of the recorded investment in past due loans
Current	146,817,000	133,102,000
30-59 Days Past Due	746,000	1,623,000
60-89 Days Past Due	119,000	162,000
Loans Past Due 90 Days or More	385,000	450,000
Total Loans	148,067,000	135,337,000	133,619,000
Single family | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	530,000	791,000
Multifamily
Contractual aging of the recorded investment in past due loans
Current	82,981,000	76,396,000
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Loans Past Due 90 Days or More	0	0
Total Loans	82,981,000	76,396,000	49,718,000
Multifamily | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	0	0
Commercial real estate
Contractual aging of the recorded investment in past due loans
Current	139,428,000	134,584,000
30-59 Days Past Due	0	178,000
60-89 Days Past Due	0	163,000
Loans Past Due 90 Days or More	126,000	196,000
Total Loans	139,554,000	135,121,000	114,911,000
Commercial real estate | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	275,000	350,000
Construction and land development
Contractual aging of the recorded investment in past due loans
Current	19,096,000	16,362,000
30-59 Days Past Due	31,000	0
60-89 Days Past Due	0	0
Loans Past Due 90 Days or More	0	0
Total Loans	19,127,000	16,362,000	10,014,000
Construction and land development | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	0	0
Commercial business
Contractual aging of the recorded investment in past due loans
Current	32,477,000	37,653,000
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Loans Past Due 90 Days or More	0	22,000
Total Loans	32,477,000	37,675,000	24,040,000
Commercial business | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	0	22,000
Home equity lines of credit
Contractual aging of the recorded investment in past due loans
Current	13,816,000	13,918,000
30-59 Days Past Due	24,000	228,000
60-89 Days Past Due	0	0
Loans Past Due 90 Days or More	286,000	129,000
Total Loans	14,126,000	14,275,000
Home equity lines of credit | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	302,000	145,000
Education
Contractual aging of the recorded investment in past due loans
Current	4,310,000	4,502,000
30-59 Days Past Due	73,000	28,000
60-89 Days Past Due	77,000	44,000
Loans Past Due 90 Days or More	100,000	120,000
Total Loans	4,560,000	4,694,000
Education | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	100,000	120,000
Other
Contractual aging of the recorded investment in past due loans
Current	1,828,000	1,319,000
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Loans Past Due 90 Days or More	0	2,000
Total Loans	1,828,000	1,321,000
Other | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	$ 0	$ 2,000

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Compensation Equity Plans Narrative (Details) (USD $)	3 Months Ended
	Dec. 31, 2014	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, minimum	5 years
Vesting period, maximum	10 years
Restricted share vesting period	5 years
Intrinsic value of options exercised during the period	$ 0
Compensation cost not yet recognized	3,600,000
Period for recognition	4 years 5 months 13 days
Restricted Shares and Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of restricted shares vested during the period	$ 0
Westbury Bancorp Inc 2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		509,162
Westbury Bancorp Inc 2014 Equity Incentive Plan | Restricted Shares and Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		203,665
Number of shares available for grant-stock grants	0
Westbury Bancorp Inc 2014 Equity Incentive Plan | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant-stock options	182,938

XML

Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Assets
Securities available-for-sale	$ 83,180	$ 90,346
U.S. Government and agency securities
Assets
Securities available-for-sale	0	5,179
U.S. Government agency residential mortgage-backed securities
Assets
Securities available-for-sale	38,593	37,196
U.S. Government agency collateralized mortgage obligations
Assets
Securities available-for-sale	5,203	3,432
Commercial Mortgage Backed Securities [Member]
Assets
Securities available-for-sale	12,557	10,752
Municipal securities
Assets
Securities available-for-sale	26,827	33,787
Quoted Prices in Active Markets for Identical Assets (Level 1)
Liabilities
Derivatives	0	0
Significant Other Observable Inputs (Level 2)
Assets and liabilities measured at fair value
Period of U.S. Treasury rate	10 years
Assets
Securities available-for-sale	83,180	90,346
Derivatives	146	87
Liabilities
Derivatives	146	87
Significant Other Unobservable Inputs (Level 3)
Liabilities
Derivatives	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Securities available-for-sale	0	0
Derivatives	0	0
Liabilities
Derivatives	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government and agency securities
Assets
Securities available-for-sale	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government agency residential mortgage-backed securities
Assets
Securities available-for-sale	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government agency collateralized mortgage obligations
Assets
Securities available-for-sale	0	0
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	83,180	90,346
Derivatives	146	87
Liabilities
Derivatives	146	87
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government and agency securities
Assets
Securities available-for-sale	0	5,179
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government agency residential mortgage-backed securities
Assets
Securities available-for-sale	38,593	37,196
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government agency collateralized mortgage obligations
Assets
Securities available-for-sale	5,203	3,432
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial Mortgage Backed Securities [Member]
Assets
Securities available-for-sale	12,557	10,752
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal securities
Assets
Securities available-for-sale	26,827	33,787
Recurring basis | Significant Other Unobservable Inputs (Level 3)
Assets
Securities available-for-sale	0	0
Derivatives	0	0
Liabilities
Derivatives	0	0
Recurring basis | Significant Other Unobservable Inputs (Level 3) | U.S. Government and agency securities
Assets
Securities available-for-sale	0	0
Recurring basis | Significant Other Unobservable Inputs (Level 3) | U.S. Government agency residential mortgage-backed securities
Assets
Securities available-for-sale	0	0
Recurring basis | Significant Other Unobservable Inputs (Level 3) | U.S. Government agency collateralized mortgage obligations
Assets
Securities available-for-sale	0	0
Total
Assets
Securities available-for-sale	83,180	90,346
Derivatives	146	87
Liabilities
Derivatives	146	87
Total | U.S. Government and agency securities
Assets
Securities available-for-sale		5,179
Total | U.S. Government agency residential mortgage-backed securities
Assets
Securities available-for-sale		37,196
Total | U.S. Government agency collateralized mortgage obligations
Assets
Securities available-for-sale		3,432
Total | Commercial Mortgage Backed Securities [Member]
Assets
Securities available-for-sale		10,752
Total | Municipal securities
Assets
Securities available-for-sale		33,787
Total | Recurring basis
Assets
Securities available-for-sale	83,180
Derivatives	146
Liabilities
Derivatives	146
Total | Recurring basis | U.S. Government and agency securities
Assets
Securities available-for-sale	0
Total | Recurring basis | U.S. Government agency residential mortgage-backed securities
Assets
Securities available-for-sale	38,593
Total | Recurring basis | U.S. Government agency collateralized mortgage obligations
Assets
Securities available-for-sale	5,203
Total | Recurring basis | Commercial Mortgage Backed Securities [Member]
Assets
Securities available-for-sale	12,557
Total | Recurring basis | Municipal securities
Assets
Securities available-for-sale	$ 26,827

XML

Loans Loans (Details 7) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Loans [Abstract]
Loans outstanding to officers, employees, directors, and their associates	$ 5,120	$ 4,653
Loans and Leases Receivable, Related Parties, Additions	511
Loans and Leases Receivable, Related Parties, Amount Drawn Upon During Period	99
Loans and Leases Receivable, Related Parties, Collections	$ (143)

XML

Basis of Presentation

3 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

 The accompanying unaudited consolidated financial statements of Westbury Bancorp, Inc. and its wholly-owned subsidiary, Westbury Bank, (the "Bank", and collectively, the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X.  Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Estimates used in the preparation of the financial statements are based on various factors including the current interest rate environment and the general strength of the local economy.  Changes in the overall interest rate environment can significantly affect the Company’s net interest income and the value of its recorded assets and liabilities.  Actual results could differ from those estimates used in the preparation of the financial statements.  Certain prior period amounts have been reclassified to conform to current period presentation.  These reclassifications did not result in any changes to previously reported net income or stockholders’ equity.

In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company’s financial condition as of December 31, 2014 and September 30, 2014 and the results of operations and cash flows for the interim periods ended December 31, 2014 and 2013.  All interim amounts are unaudited, and the results of operations for the interim periods herein are not necessarily indicative of the results of operations to be expected for the year.  These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended September 30, 2014 filed as part of Westbury Bancorp, Inc.’s Annual Report on Form 10-K for the year ended September 30, 2014.

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Loans (Details 3) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Risk category of loans evaluated by internal asset classification
Total	$ 442,720	$ 421,181	$ 350,353
Single family
Risk category of loans evaluated by internal asset classification
Total	148,067	135,337	133,619
Multifamily
Risk category of loans evaluated by internal asset classification
Total	82,981	76,396	49,718
Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	139,554	135,121	114,911
Construction and land development
Risk category of loans evaluated by internal asset classification
Total	19,127	16,362	10,014
Commercial business
Risk category of loans evaluated by internal asset classification
Total	32,477	37,675	24,040
Home equity lines of credit
Risk category of loans evaluated by internal asset classification
Total	14,126	14,275
Education
Risk category of loans evaluated by internal asset classification
Total	4,560	4,694
Other
Risk category of loans evaluated by internal asset classification
Total	1,828	1,321
Pass
Risk category of loans evaluated by internal asset classification
Total	424,740	402,832
Pass | Single family
Risk category of loans evaluated by internal asset classification
Total	145,083	132,067
Pass | Multifamily
Risk category of loans evaluated by internal asset classification
Total	79,640	73,876
Pass | Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	131,737	126,319
Pass | Construction and land development
Risk category of loans evaluated by internal asset classification
Total	19,122	16,357
Pass | Commercial business
Risk category of loans evaluated by internal asset classification
Total	28,988	34,112
Pass | Home equity lines of credit
Risk category of loans evaluated by internal asset classification
Total	13,782	14,088
Pass | Education
Risk category of loans evaluated by internal asset classification
Total	4,560	4,694
Pass | Other
Risk category of loans evaluated by internal asset classification
Total	1,828	1,319
Watch
Risk category of loans evaluated by internal asset classification
Total	12,855	12,808
Watch | Single family
Risk category of loans evaluated by internal asset classification
Total	1,309	1,317
Watch | Multifamily
Risk category of loans evaluated by internal asset classification
Total	2,742	1,915
Watch | Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	5,385	6,117
Watch | Construction and land development
Risk category of loans evaluated by internal asset classification
Total	0	0
Watch | Commercial business
Risk category of loans evaluated by internal asset classification
Total	3,419	3,459
Watch | Home equity lines of credit
Risk category of loans evaluated by internal asset classification
Total	0	0
Watch | Education
Risk category of loans evaluated by internal asset classification
Total	0	0
Watch | Other
Risk category of loans evaluated by internal asset classification
Total	0	0
Special Mention
Risk category of loans evaluated by internal asset classification
Total	1,412	1,421
Special Mention | Single family
Risk category of loans evaluated by internal asset classification
Total	117	118
Special Mention | Multifamily
Risk category of loans evaluated by internal asset classification
Total	442	445
Special Mention | Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	853	858
Special Mention | Construction and land development
Risk category of loans evaluated by internal asset classification
Total	0	0
Special Mention | Commercial business
Risk category of loans evaluated by internal asset classification
Total	0	0
Special Mention | Home equity lines of credit
Risk category of loans evaluated by internal asset classification
Total	0	0
Special Mention | Education
Risk category of loans evaluated by internal asset classification
Total	0	0
Special Mention | Other
Risk category of loans evaluated by internal asset classification
Total	0	0
Substandard
Risk category of loans evaluated by internal asset classification
Total	3,713	4,120
Substandard | Single family
Risk category of loans evaluated by internal asset classification
Total	1,558	1,835
Substandard | Multifamily
Risk category of loans evaluated by internal asset classification
Total	157	160
Substandard | Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	1,579	1,827
Substandard | Construction and land development
Risk category of loans evaluated by internal asset classification
Total	5	5
Substandard | Commercial business
Risk category of loans evaluated by internal asset classification
Total	70	104
Substandard | Home equity lines of credit
Risk category of loans evaluated by internal asset classification
Total	344	187
Substandard | Education
Risk category of loans evaluated by internal asset classification
Total	0	0
Substandard | Other
Risk category of loans evaluated by internal asset classification
Total	0	2
Doubtful
Risk category of loans evaluated by internal asset classification
Total	0	0
Doubtful | Single family
Risk category of loans evaluated by internal asset classification
Total	0	0
Doubtful | Multifamily
Risk category of loans evaluated by internal asset classification
Total	0	0
Doubtful | Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	0	0
Doubtful | Construction and land development
Risk category of loans evaluated by internal asset classification
Total	0	0
Doubtful | Commercial business
Risk category of loans evaluated by internal asset classification
Total	0	0
Doubtful | Home equity lines of credit
Risk category of loans evaluated by internal asset classification
Total	0	0
Doubtful | Education
Risk category of loans evaluated by internal asset classification
Total	0	0
Doubtful | Other
Risk category of loans evaluated by internal asset classification
Total	$ 0	$ 0

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Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table summarizes assets measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value as of:

			Fair Value Measurements
December 31, 2014	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Securities available-for-sale
U.S. Government and agency securities	$	—	$	—	$	—	$	—
U.S. Government agency residential mortgage-backed securities	38,593		—		38,593		—
U.S. Government agency collateralized mortgage obligations	5,203		—		5,203		—
U.S. Government agency commercial mortgage-backed securities	12,557		—		12,557		—
Municipal securities	26,827				26,827
Total securities available-for-sale	$	83,180	$	—	$	83,180	$	—
Derivatives	$	146	$	—	$	146	$	—
Liabilities
Derivatives	$	146	$	—	$	146	$	—

			Fair Value Measurements
September 30, 2014	Total		Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Securities available-for-sale
U.S. Government and agency securities	$	5,179	$	—	$	5,179	$	—
U.S. Government agency residential mortgage-backed securities	37,196		—		37,196		—
U.S. Government agency collateralized mortgage obligations	3,432		—		3,432		—
U.S. Government agency commercial mortgage-backed securities	10,752		—		10,752		—
Municipal securities	33,787				33,787
Total securities available-for-sale	$	90,346	$	—	$	90,346	$	—
Derivatives	$	87	$	—	$	87	$	—
Liabilities
Derivatives	$	87	$	—	$	87	$	—

Schedule of assets measured at fair value on a nonrecurring basis

			Fair Value Measurements
December 31, 2014	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Impaired loans	$	349	$	—	$	—	$	349
Foreclosed real estate	2,333		—		—		2,333
Mortgage servicing rights	1,528		—		—		1,528

			Fair Value Measurements
September 30, 2014	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Impaired loans	$	405	$	—	$	—	$	405
Foreclosed real estate	2,355		—		—		2,355
Mortgage servicing rights	1,624		—		—		1,624

Schedule of estimated fair values and related carrying amounts of the entity's financial instruments

The estimated fair values and related carrying amounts of the Company’s financial instruments are as follows:

	December 31, 2014
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	24,475	$	24,475	$	24,475	$	—	$	—
Securities available for sale	83,180		83,180		—		83,180		—
Securities held to maturity	3,025		3,025		—		3,025		—
Loans, net	438,172		440,204		—		—		440,204
Loans held for sale, net	2,082		2,082		—		2,082		—
Federal Home Loan Bank stock	2,670		2,670		—		—		2,670
Mortgage servicing rights	1,528		1,528		—		—		1,528
Accrued interest receivable	1,748		1,748		1,748		—		—
Derivative asset	146		146		—		146		—
Financial liabilities:
Deposits	472,688		460,304		88,628		—		371,676
Advances from Federal Home Loan Bank	31,000		31,000		—		31,000		—
Advance payments by borrowers for property taxes and insurance	255		255		255		—		—
Accrued interest payable	4		4		4		—		—
Derivative liability	146		146		—		146		—

	September 30, 2014
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	17,608	$	17,608	$	17,608	$	—	$	—
Securities available for sale	90,346		90,346		—		90,346		—
Loans, net	416,874		415,857		—		—		415,857
Loans held for sale, net	326		326		—		326		—
Federal Home Loan Bank stock	2,670		2,670		—		—		2,670
Mortgage servicing rights	1,624		1,624		—		—		1,624
Accrued interest receivable	1,784		1,784		1,784		—		—
Derivative asset	87		87		—		87		—
Financial liabilities:
Deposits	454,928		442,342		77,790		—		364,552
Advances from Federal Home Loan Bank	17,000		17,000		—		17,000		—
Advance payments by borrowers for property taxes and insurance	5,869		5,869		5,869		—		—
Accrued interest payable	3		3		3		—		—
Derivative liability	87		87		—		87		—

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Commitments (Tables)

3 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Schedule of financial instruments whose contract amounts represent credit risk

The following instruments were outstanding whose contract amounts represent credit risk:

	December 31, 2014		September 30, 2014
Commitments to extend mortgage credit:
Fixed rate	$	938	$	960
Adjustable rate	1,437		3,339
Unused commercial loan and home equity lines of credit	90,444		61,325
Standby letters of credit	967		422
Commitment to sell loans	2,082		326

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Condensed Parent Company Financial Information Statements of Operations (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Condensed Income Statements, Captions [Line Items]
Net income	$ 447	$ 68
Parent Company [Member]
Condensed Income Statements, Captions [Line Items]
Interest and other income	63	70
Interest and other expense	184	187
Loss before income tax benefit and equity in undistributed net income of subsidiary	(121)	(117)
Income tax benefit	(30)	(32)
Loss before equity in undistributed net income of subsidiary	(91)	(85)
Equity in undistributed net income of subsidiary	538	153
Net income	$ 447	$ 68

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Loans (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
Allowance for loan losses
Balance, beginning	$ 4,072	$ 4,266
Provision for loan losses	350	150
Loans charge-off	(225)	(714)
Recoveries	27	41
Balance, ending	4,224	3,743
Period-ended amount allocated for:
Individually evaluated for impairment	103	324
Collectively evaluated for impairment	4,121	3,419
Ending Balance	4,224	3,743
Loans:
Individually evaluated for impairment	4,354	8,047
Collectively evaluated for impairment	438,366	342,306
Total Loans	442,720	350,353	421,181
Real Estate
Loans:
Total Loans	389,729		363,216
Single family
Allowance for loan losses
Balance, beginning	1,072	1,873
Provision for loan losses	103	6
Loans charge-off	(161)	(296)
Recoveries	11	15
Balance, ending	1,025	1,598
Period-ended amount allocated for:
Individually evaluated for impairment	45	0
Collectively evaluated for impairment	980	1,598
Ending Balance	1,025	1,598
Loans:
Individually evaluated for impairment	1,542	2,598
Collectively evaluated for impairment	146,525	131,021
Total Loans	148,067	133,619	135,337
Multifamily
Allowance for loan losses
Balance, beginning	757	165
Provision for loan losses	175	(27)
Loans charge-off	0	0
Recoveries	0	0
Balance, ending	932	138
Period-ended amount allocated for:
Individually evaluated for impairment	0	66
Collectively evaluated for impairment	932	72
Ending Balance	932	138
Loans:
Individually evaluated for impairment	1,894	3,202
Collectively evaluated for impairment	81,087	46,516
Total Loans	82,981	49,718	76,396
Commercial real estate
Allowance for loan losses
Balance, beginning	1,412	1,501
Provision for loan losses	15	213
Loans charge-off	(48)	(232)
Recoveries	9	11
Balance, ending	1,388	1,493
Period-ended amount allocated for:
Individually evaluated for impairment	0	198
Collectively evaluated for impairment	1,388	1,295
Ending Balance	1,388	1,493
Loans:
Individually evaluated for impairment	558	2,068
Collectively evaluated for impairment	138,996	112,843
Total Loans	139,554	114,911	135,121
Construction and land development
Allowance for loan losses
Balance, beginning	301	374
Provision for loan losses	66	(203)
Loans charge-off	0	0
Recoveries	0	0
Balance, ending	367	171
Period-ended amount allocated for:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	367	171
Ending Balance	367	171
Loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	19,127	10,014
Total Loans	19,127	10,014	16,362
Commercial business
Allowance for loan losses
Balance, beginning	454	211
Provision for loan losses	(34)	154
Loans charge-off	(14)	(159)
Recoveries	6	14
Balance, ending	412	220
Period-ended amount allocated for:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	412	220
Ending Balance	412	220
Loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	32,477	24,040
Total Loans	32,477	24,040	37,675
Consumer and other
Allowance for loan losses
Balance, beginning	76	142
Provision for loan losses	25	7
Loans charge-off	(2)	(27)
Recoveries	1	1
Balance, ending	100	123
Period-ended amount allocated for:
Individually evaluated for impairment	58	60
Collectively evaluated for impairment	42	63
Ending Balance	100	123
Loans:
Individually evaluated for impairment	360	179
Collectively evaluated for impairment	20,154	17,872
Total Loans	$ 20,514	$ 18,051	$ 20,290

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Condensed Parent Company Financial Information (Tables)

3 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

Balance Sheets
(In thousands)
	December 31,		September 30,
	2014		2014
Assets
Cash and interest bearing deposits	$	6,082	$	6,878
Investments	6,754		6,590
Loan to ESOP	3,778		3,931
Investment in subsidiary	71,771		71,131
Other assets	1,761		1,674
Total assets	$	90,146	$	90,204
Liabilities and Stockholders' Equity
Total liabilities	$	130	$	115
Stockholders' equity	90,016		90,089
Total liabilities and stockholders' equity	$	90,146	$	90,204

Condensed Income Statement

Statements of Operations
(In thousands)
	Three Months Ended December 31,
	2014			2013
Interest and other income	$	63		$	70
Interest and other expense	184			187
Loss before income tax benefit and equity in undistributed net income of subsidiary	(121		)	(117		)
Income tax benefit	(30		)	(32		)
Loss before equity in undistributed net income of subsidiary	(91		)	(85		)
Equity in undistributed net income of subsidiary	538			153
Net income	$	447		$	68

Condensed Cash Flow Statement

Statements of Cash Flows
(in thousands)
	For Three Months Ended December 31,
	2014			2013
Cash Flows From Operating Activities
Net income	$	447		$	68
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiary	(538		)	(153		)
Net change in other liabilities	15			(19		)
Net change in other assets	124			130
Net cash provided by operating activities	48			26
Cash Flows From Investing Activities
Purchase of securities	(376		)	(100		)
Sales and maturities of securities	212			405
Payments received on ESOP loan	153			183
Net cash provided by (used in) investing activities	(11		)	488
Cash Flows From Financing Activities
Treasury stock transactions, net	(833		)	—
Net cash used in financing activities	(833		)	—
Net increase (decrease) in cash	(796		)	514
Cash
Beginning of year	6,878			9,271
End of year	$	6,082		$	9,785

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Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Net income	$ 447	$ 68	[1]
Basic potential common shares:
Weighted average shares outstanding (in shares)	4,833,308	5,142,541	[1]
Weighted average unallocated ESOP shares (in shares)	(373,692)	(393,119)	[1]
Basic weighted average shares outstanding (in shares)	4,459,616	4,749,422	[1]
Dilutive potential common shares (in shares)	15,975	0	[1]
Diluted weighted average shares outstanding (in shares)	4,475,591	4,749,422	[1]
Basic loss per share (in dollars per share)	$ 0.10	$ 0.01	[1]
Diluted loss per share (in dollars per share)	$ 0.10	$ 0.01	[1]

[1] Three Months EndedDecember 31, 2014 2013Net income$447 $68Basic potential common shares: Weighted average shares outstanding4,833,308 5,142,541Weighted average unallocated ESOP shares(373,692) (393,119)Basic weighted average shares outstanding4,459,616 4,749.422Dilutive effect of equity awards15,975 —Diluted weighted average shares outstanding4,475,591 4,749,422Basic income per share$0.10 $0.01Diluted income per share$0.10 $0.01

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash Flows From Operating Activities
Net income	$ 447	$ 68
Adjustments to reconcile net income to net cash used in operating activities:
Provision for loan losses	350	150
Depreciation and amortization	145	200
Depreciation on real estate held for investment	33	49
Net amortization of securities premiums and discounts	149	180
Amortization and impairment of mortgage servicing rights	96	(94)
Capitalization of mortgage servicing rights	0	(1)
Gain on sales of available-for-sale securities	(70)	0
Gain on sales of branches and other assets	(18)	0
Loss on sale of foreclosed real estate	79	150
Write-down of foreclosed real estate	57	115
Loans originated for sale	(6,819)	(2,490)
Proceeds from sale of loans	5,132	3,437
Gain on sale of loans, net	(69)	(47)
ESOP compensation expense	112	95
Stock based compensation expense	201	0
Deferred income taxes	224	22
Increase in cash surrender value of life insurance	(102)	(105)
Net change in:
Other assets	(243)	(579)
Other liabilities and advance payments by borrowers for property taxes and insurance	(5,880)	(5,249)
Net cash used in operating activities	(6,176)	(4,099)
Cash Flows From Investing Activities
Purchases of securities available-for-sale	(8,189)	(6,394)
Proceeds from sales of securities available-for-sale	12,084	0
Proceeds from maturities, prepayments, and calls of securities available-for-sale	3,376	2,508
Purchases of securities held to maturity	(3,025)	0
Proceeds from sale of real estate held for investment	0	49
Net increase in loans	(21,967)	(4,150)
Purchases of office properties and equipment	(368)	(131)
Proceeds from sales of foreclosed real estate	205	569
Net cash used in investing activities	(17,884)	(7,549)
Cash Flows From Financing Activities
Net increase (decrease) in deposits	17,760	(2,353)
Increase in Federal Home Loan Bank borrowings	14,000	0
Purchase of Company treasury stock	(833)	0
Net cash provided by (used in) financing activities	30,927	(2,353)
Net increase (decrease) in cash and cash equivalents	6,867	(14,001)
Cash and cash equivalents at beginning	17,608	47,665
Cash and cash equivalents at end	24,475	33,664
Supplemental Disclosures of Cash Flow Information
Interest paid (including amounts credited to deposits)	428	422
Supplemental Schedules of Noncash Investing Activities
Loans receivable transferred to foreclosed real estate	$ 319	$ 369

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Employee Stock Ownership Plan (Details) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014	Apr. 11, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Employee Stock Ownership Plan (ESOP), Debt Structure, Indirect Loan, Amount				$ 4,100,000
ESOP committed-to-be-released shares, during period	5,142
ESOP compensation expense	112,000	95,000
Allocated shares	17,392		20,570
Shares released and available for allocation	20,570		0
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares	0		15,428
Unreleased shares	370,263		375,405
Total ESOP shares	408,225		411,403	411,403
employee stock ownership plan, price per share				$ 10.00
Fair value of unreleased shares	$ 6,072,000		$ 5,650,000

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Investment Securitites (Details 3) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014 security	Sep. 30, 2014 security
Total temporary impaired securities
Less than 12 months, Fair Value	$ 24,614	$ 18,898
Less than 12 months, Unrealized Losses	(118)	(135)
12 months or longer, Fair Value	21,835	33,799
12 months or longer, Unrealized Losses	(379)	(651)
Total, Fair Value	46,449	52,697
Total, Unrealized Losses	(497)	(786)
Number of securities in an unrealized loss position, greater than twelve months	45	63
Number of securities in an unrealized loss position, less than twelve months	43	25
U.S. Government and agency securities
Total temporary impaired securities
Less than 12 months, Fair Value	0	0
Less than 12 months, Unrealized Losses	0	0
12 months or longer, Fair Value	0	5,179
12 months or longer, Unrealized Losses	0	(71)
Total, Fair Value	0	5,179
Total, Unrealized Losses	0	(71)
U.S. Government agency residential mortgage-backed securities
Total temporary impaired securities
Less than 12 months, Fair Value	7,262	9,617
Less than 12 months, Unrealized Losses	(17)	(54)
12 months or longer, Fair Value	10,169	13,075
12 months or longer, Unrealized Losses	(164)	(283)
Total, Fair Value	17,431	22,692
Total, Unrealized Losses	(181)	(337)
U.S. Government agency collateralized mortgage obligations
Total temporary impaired securities
Less than 12 months, Fair Value	2,047	0
Less than 12 months, Unrealized Losses	(11)	0
12 months or longer, Fair Value	844	891
12 months or longer, Unrealized Losses	(45)	(56)
Total, Fair Value	2,891	891
Total, Unrealized Losses	(56)	(56)
Commercial Mortgage Backed Securities [Member]
Total temporary impaired securities
Less than 12 months, Fair Value	8,035	6,235
Less than 12 months, Unrealized Losses	(65)	(73)
12 months or longer, Fair Value	1,033	1,033
12 months or longer, Unrealized Losses	(17)	(21)
Total, Fair Value	9,068	7,268
Total, Unrealized Losses	(82)	(94)
Municipal securities
Total temporary impaired securities
Less than 12 months, Fair Value	7,270	3,046
Less than 12 months, Unrealized Losses	(25)	(8)
12 months or longer, Fair Value	9,789	13,621
12 months or longer, Unrealized Losses	(153)	(220)
Total, Fair Value	17,059	16,667
Total, Unrealized Losses	$ (178)	$ (228)

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Fair Value Measurements (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Assets measured at fair value on a nonrecurring basis
Foreclosed real estate	$ 2,333	$ 2,355
Impaired loans, valuation allowance	103		324
Significant Other Unobservable Inputs (Level 3)
Assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	1,528	1,624
Carrying Amount
Assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	1,528	1,624
Total
Assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	1,528	1,624
Nonrecurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets measured at fair value on a nonrecurring basis
Impaired loans	0	0
Foreclosed real estate	0	0
Mortgage servicing rights	0	0
Nonrecurring Basis | Significant Other Observable Inputs (Level 2)
Assets measured at fair value on a nonrecurring basis
Impaired loans	0	0
Foreclosed real estate	0	0
Mortgage servicing rights	0	0
Nonrecurring Basis | Significant Other Unobservable Inputs (Level 3)
Assets measured at fair value on a nonrecurring basis
Impaired loans	349	405
Foreclosed real estate	2,333	2,355
Mortgage servicing rights	1,528	1,624
Impaired loans, valuation allowance	103	136
Mortgage servicing rights, valuation allowance	160	160
Nonrecurring Basis | Carrying Amount | Significant Other Unobservable Inputs (Level 3)
Assets measured at fair value on a nonrecurring basis
Impaired loans	452	541
Mortgage servicing rights	1,688	1,784
Nonrecurring Basis | Total
Assets measured at fair value on a nonrecurring basis
Impaired loans	349	405
Foreclosed real estate	2,333	2,355
Mortgage servicing rights	$ 1,528	$ 1,624

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Assets
Cash and due from banks	$ 10,688	$ 9,369
Interest-bearing deposits	13,787	8,239
Cash and cash equivalents	24,475	17,608
Securities available-for-sale	83,180	90,346
Held-to-maturity Securities	3,025	0
Loans held for sale, at lower of cost or fair value	2,082	326
Loans, net of allowance for loan losses of $4,224 and $4,072 at December 31 and September 30, respectively	438,172	416,874
Federal Home Loan Bank stock, at cost	2,670	2,670
Foreclosed real estate	2,333	2,355
Real estate held for investment	3,730	3,763
Office properties and equipment, net	11,404	11,181
Cash surrender value of bank-owned life insurance	12,844	12,742
Mortgage servicing rights	1,528	1,624
Deferred tax asset	5,406	5,702
Other assets	3,765	3,504
Total assets	594,614	568,695
Liabilities
Deposits	472,688	454,928
Advances from Federal Home Loan Bank	31,000	17,000
Advance payments by borrowers for property taxes and insurance	255	5,869
Other liabilities	4,145	4,411
Total liabilities	508,088	482,208
Stockholders’ Equity
Preferred stock $0.01 par value, 50,000,000 shares authorized; none issued or outstanding	0	0
Common stock $0.01 par value, 100,000,000 shares authorized; 5,346,206 shares issued at December 31, 2014 and September 30, 2014	53	53
Additional paid-in capital	49,426	49,164
Retained earnings	45,637	45,190
Unearned Employee Stock Ownership Plan (ESOP) shares	(3,703)	(3,754)
Accumulated other comprehensive income (loss)	66	(46)
Less treasury stock, 326,357 shares at cost, at December 31, 2014 and 271,296 at September 30, 2014	(4,953)	(4,120)
Total stockholders’ equity	86,526	86,487
Total liabilities and stockholders’ equity	$ 594,614	$ 568,695

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Loans (Details 5) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Unpaid Principal Balance
Total	$ 4,866	$ 9,819
Recorded Investment
Total	4,354	8,047
Allowance for Loan Losses Allocated
With an allowance recorded	103	324
Average Recorded Investment
Total	7,189	9,034
Interest Income Recognized
Total	43	128
Single family
Unpaid Principal Balance
With no related allowance recorded	1,363	3,718
With an allowance recorded	417	0
Recorded Investment
With no related allowance recorded	1,148	2,598
With an allowance recorded	394	0
Allowance for Loan Losses Allocated
With an allowance recorded	45	0
Average Recorded Investment
With no related allowance recorded	1,274	1,999
With an allowance recorded	758	561
Interest Income Recognized
With no related allowance	11	32
With related allowance	3	0
Multifamily
Unpaid Principal Balance
With no related allowance recorded	1,998	3,399
With an allowance recorded	0	169
Recorded Investment
With no related allowance recorded	1,894	3,033
With an allowance recorded	0	169
Allowance for Loan Losses Allocated
With an allowance recorded	0	66
Average Recorded Investment
With no related allowance recorded	3,484	4,053
With an allowance recorded	86	171
Interest Income Recognized
With no related allowance	20	28
With related allowance	0	7
Commercial real estate
Unpaid Principal Balance
With no related allowance recorded	629	1,939
With an allowance recorded	0	198
Recorded Investment
With no related allowance recorded	558	1,870
With an allowance recorded	0	198
Allowance for Loan Losses Allocated
With an allowance recorded	0	198
Average Recorded Investment
With no related allowance recorded	1,118	1,773
With an allowance recorded	90	189
Interest Income Recognized
With no related allowance	8	54
With related allowance	0	4
Construction and land development
Unpaid Principal Balance
With no related allowance recorded	0	0
With an allowance recorded	0	0
Recorded Investment
With no related allowance recorded	0	0
With an allowance recorded	0	0
Allowance for Loan Losses Allocated
With an allowance recorded	0	0
Average Recorded Investment
With no related allowance recorded	0	0
With an allowance recorded	96	96
Interest Income Recognized
With no related allowance	0	0
With related allowance	0	0
Commercial business
Unpaid Principal Balance
With no related allowance recorded	0	0
With an allowance recorded	0	0
Recorded Investment
With no related allowance recorded	0	0
With an allowance recorded	0	0
Allowance for Loan Losses Allocated
With an allowance recorded	0	0
Average Recorded Investment
With no related allowance recorded	0	0
With an allowance recorded	0	0
Interest Income Recognized
With no related allowance	0	0
With related allowance	0	0
Consumer and other
Unpaid Principal Balance
With no related allowance recorded	401	336
With an allowance recorded	58	60
Recorded Investment
With no related allowance recorded	302	119
With an allowance recorded	58	60
Allowance for Loan Losses Allocated
With an allowance recorded	58	60
Average Recorded Investment
With no related allowance recorded	223	131
With an allowance recorded	60	61
Interest Income Recognized
With no related allowance	0	0
With related allowance	$ 1	$ 3

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Consolidated Statements of Changes in Stockholders' Equity (USD $) In Thousands, unless otherwise specified	Total	Preferred Stock	Common Stock	Additional Paid In Capital	Retained Earnings	Unearned ESOP Shares	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance at Sep. 30, 2013	$ 90,602	$ 0	$ 51	$ 48,800	$ 46,625	$ (4,114)	$ (760)
Increase (Decrease) in Stockholders' Equity
Net income	68	0			68
Other comprehensive income (loss), net of tax	(255)						(255)
Allocation of 5,142 shares by ESOP	287			81		206
Balance at Dec. 31, 2013	90,702	0	51	48,881	46,693	(3,908)	(1,015)	0
Balance at Sep. 30, 2014	86,487	0	53	49,164	45,190	(3,754)	(46)	(4,120)
Increase (Decrease) in Stockholders' Equity
Net income	447	0			447
Other comprehensive income (loss), net of tax	112						112
Repurchase of 55,061 shares of common stock	(833)							(833)
Stock based compensation expense	201			201
Commitment to be allocated of 5,142 ESOP shares	112			61		51
Balance at Dec. 31, 2014	$ 86,526	$ 0	$ 53	$ 49,426	$ 45,637	$ (3,703)	$ 66	$ (4,953)

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Compensation Equity Plans Assumptions (Details) (USD $)	3 Months Ended
	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free interest rate	2.10%
Expected volatility of Company's stock	9.49%
Expected dividend yield	0.00%
Expected life of options (years)	7 years 6 months
Weighted average fair value per option of options granted during the year	$ 2.82

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Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Schedule of calculated earnings per share, basic and diluted

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (in thousands, except share and per share data).

	Three Months Ended December 31,
	2014			2013
Net income	$	447		$	68
Basic potential common shares:
Weighted average shares outstanding	4,833,308			5,142,541
Weighted average unallocated ESOP shares	(373,692		)	(393,119		)
Basic weighted average shares outstanding	4,459,616			4,749.422
Dilutive effect of equity awards	15,975			—
Diluted weighted average shares outstanding	4,475,591			4,749,422
Basic income per share	$	0.10		$	0.01
Diluted income per share	$	0.10		$	0.01

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Compensation Equity Plans Restricted Shares (Details) (Restricted Shares and Units, USD $)	3 Months Ended
	Dec. 31, 2014
Restricted Shares and Units
Number of Shares
Shares and Units Outstanding at September 30, 2014	203,665
Granted	0
Vested	0
Forfeited	0
Shares and Units Outstanding at December 31, 2014	203,665
Weighted Average Grant Date Fair Value
Shares and Units Outstanding at September 30, 2014	$ 15.20
Granted	$ 0.00
Vested	$ 0.00
Forfeited	$ 0.00
Shares and Units Outstanding at December 31, 2014	$ 15.20

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Investment Securitites (Tables)

3 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Schedule of amortized costs and fair values of securities available-for-sale

The amortized cost and fair value of investment securities are summarized as follows:

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale
U.S. Government and agency securities	$	—	$	—	$	—		$	—
U.S. Government agency residential mortgage-backed securities	38,329		445		(181		)	38,593
U.S. Government agency collateralized mortgage obligations	5,233		26		(56		)	5,203
U.S. Government agency commercial mortgage-backed securities	12,614		25		(82		)	12,557
Municipal securities	26,895		110		(178		)	26,827
Total Available for Sale	83,071		606		(497		)	83,180
Held to Maturity
Municipal securities	3,025		—		—			3,025
Total Investment Securities	$	86,096	$	606	$	(497	)	$	86,205
	September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale
U.S. Government and agency securities	$	5,250	$	—	$	(71	)	$	5,179
U.S. Government agency residential mortgage-backed securities	37,144		389		(337		)	37,196
U.S. Government agency collateralized mortgage obligations	3,458		30		(56		)	3,432
U.S. Government agency commercial mortgage-backed securities	10,835		11		(94		)	10,752
Municipal securities	33,735		280		(228		)	33,787
Total Available for Sale	90,422		710		(786		)	90,346
Held to Maturity
Municipal securities	—		—		—			—
Total Investment Securities	$	90,422	$	710	$	(786	)	$	90,346

Schedule of amortized cost and estimated fair value of investment securities by contractual maturity

The amortized cost and fair value of investment securities, by contractual maturity at December 31, 2014 are shown in the following table.  Actual maturities differ from contractual maturities for mortgage-backed securities because the mortgages underlying the securities may be called or repaid without penalty.  Therefore, these securities are not presented in the maturity categories in the table below.

	December 31, 2014
	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	2,562	$	2,565
Due after one year through five years	14,064		14,056
Due after five years through ten years	7,600		7,582
Due after ten years	2,669		2,624
U.S. Government agency collateralized mortgage obligations	5,233		5,203
U.S. Government agency residential mortgage-backed securities	38,329		38,593
U.S. Government agency commercial mortgage-backed securities	12,614		12,557
	83,071		83,180
Held to maturity:
Due in one year or less	566		566
Due after one year through five years	679		679
Due after five years through ten years	929		929
Due after ten years	851		851
	3,025		3,025
Total	$	86,096	$	86,205

Schedule of investment securities in an unrealized loss position

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:

	December 31, 2014
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Government and agency securities	$	—	$	—		$	—	$	—		$	—	$	—
U.S. Government agency residential mortgage-backed securities	7,262		(17		)	10,169		(164		)	17,431		(181		)
U.S. Government agency collateralized mortgage obligations	2,047		(11		)	844		(45		)	2,891		(56		)
U.S Government agency commercial mortgage-backed securities	8,035		(65		)	1,033		(17		)	9,068		(82		)
Municipal securities	7,270		(25		)	9,789		(153		)	17,059		(178		)
	$	24,614	$	(118	)	$	21,835	$	(379	)	$	46,449	$	(497	)

	September 30, 2014
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Government and agency securities	$	—	$	—		$	5,179	$	(71	)	$	5,179	$	(71	)
U.S. Government agency residential mortgage-backed securities	9,617		(54		)	13,075		(283		)	22,692		(337		)
U.S. Government agency collateralized mortgage obligations	—		—			891		(56		)	891		(56		)
U.S. Government agency commercial mortgage-backed securities	6,235		(73		)	1,033		(21		)	7,268		(94		)
Municipal securities	3,046		(8		)	13,621		(220		)	16,667		(228		)
	$	18,898	$	(135	)	$	33,799	$	(651	)	$	52,697	$	(786	)

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Consolidated Statements of Changes in Stockholders' Equity (Parenthetical)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Statement of Stockholders' Equity [Abstract]
Number of shares purchased by ESOP	0	0
Number of shares repurchased during period	326,357	0
Number of restricted shares issued during period	203,665	0
Number of shares allocated by ESOP	41,140	20,570
Number of shares committed to be allocated by ESOP	10,285	0

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Statement of Financial Position [Abstract]
Allowance for loan losses (in dollars)	$ 4,224	$ 4,072
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	5,346,206	5,346,206
Treasury stock, shares	326,357

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Deposits

3 Months Ended

Dec. 31, 2014

Deposits [Abstract]

Deposits

Deposits

The following table presents the composition of deposits as of:

	December 31, 2014				September 30, 2014
	Amount		Percent		Amount		Percent
Checking Accounts:
Noninterest bearing	$	88,628	18.75	%	$	77,790	17.10	%
Interest bearing	134,486		28.45	%	132,925		29.22	%
	223,114		47.20	%	210,715		46.32	%
Passbook and Statement Savings	120,422		25.48	%	122,227		26.87	%
Variable Rate Money Market Accounts	31,901		6.75	%	25,615		5.63	%
Certificates of Deposit	97,251		20.57	%	96,371		21.18	%
	$	472,688	100.00	%	$	454,928	100.00	%

Certificates of deposit over one hundred thousand dollars totaled $38,460 and $34,853 as of December 31, 2014 and September 30, 2014, respectively.

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Document and Entity Information	3 Months Ended
	Dec. 31, 2014	Jan. 30, 2015
Document and Entity Information
Entity Registrant Name	Westbury Bancorp, Inc.
Entity Central Index Key	0001553326
Document Type	10-Q
Document Period End Date	Dec. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,924,749
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

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Regulatory Capital

3 Months Ended

Dec. 31, 2014

Regulatory Capital Requirements [Abstract]

Regulatory Capital

Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices.  The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.  Prompt corrective action provisions are not applicable to bank holdings companies.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined).  As of December 31, 2014 and September 30, 2014, the Bank is well capitalized under prompt corrective action regulations.

The Bank’s actual capital amounts and ratios and those required by the above regulatory standards are as follows:

At December 31, 2014	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets) - Westbury Bank	$	66,312	15.81	%	$	33,554	8.00	%	$	41,943	10.00	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	62,088		14.81	%	16,769		4.00	%	25,154		6.00	%
Tier 1 capital (to adjusted total assets) - Westbury Bank	62,088		10.79	%	23,017		4.00	%	28,771		5.00	%

At September 30, 2014	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets) - Westbury Bank	$	65,181	16.18	%	$	32,228	8.00	%	$	40,285	10.00	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	61,109		15.17	%	16,113		4.00	%	24,170		6.00	%
Tier 1 capital (to adjusted total assets) - Westbury Bank	61,109		11.13	%	21,962		4.00	%	27,452		5.00	%

The following table reconciles the Bank’s stockholders’ equity to regulatory capital as of December 31, 2014 and September 30, 2014:

	December 31, 2014			September 30, 2014
Stockholders’ equity of the Bank	$	68,282		$	67,529
Less: Disallowed servicing assets	(153		)	(162		)
Unrealized gain (loss) on securities	(69		)	33
Disallowed investment in subsidiary	(3,296		)	(3,296		)
Disallowed deferred tax assets	(2,676		)	(2,995		)
Tier 1 capital and tangible capital	62,088			61,109
Plus: Allowable general valuation allowances	4,224			4,072
Risk-based capital	$	66,312		$	65,181

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Interest and dividend income:
Loans	$ 4,459	$ 3,978
Investments - nontaxable	17	16
Investments - taxable	392	495
Interest bearing deposits	12	37
Total interest and dividend income	4,880	4,526
Interest expense:
Deposits	425	424
Advances from the Federal Home Loan Bank	4	0
Total interest expense	429	424
Net interest income before provision for loan losses	4,451	4,102
Provision for loan losses	350	150
Net interest income after provision for loan losses	4,101	3,952
Noninterest income:
Service fees on deposit accounts	1,156	1,065
Gain on sales of loans, net	69	47
Servicing fee income, net of amortization and impairment	37	247
Insurance and securities sales commissions	58	95
Gain on sales of securities	70	0
Gain on sales of branches and other assets	18	0
Increase in cash surrender value of life insurance	102	105
Rental income from real estate operations	128	160
Other income	36	39
Total noninterest income	1,674	1,758
Noninterest expenses:
Salaries and employee benefits	2,381	2,297
Commissions	55	51
Occupancy	313	427
Furniture and equipment	103	130
Data processing	781	861
Advertising	60	67
Real estate held for investment	103	152
Net loss from operations and sale of foreclosed real estate	148	334
FDIC insurance premiums	105	173
Other expenses	1,056	1,152
Total noninterest expenses	5,105	5,644
Income before income tax expense (benefit)	670	66
Income tax expense (benefit)	223	(2)
Net income	$ 447	$ 68
Earnings per share:
Basic (in dollars per share)	$ 0.10	$ 0.01	[1]
Diluted (in dollars per share)	$ 0.10	$ 0.01	[1]

[1] Three Months EndedDecember 31, 2014 2013Net income$447 $68Basic potential common shares: Weighted average shares outstanding4,833,308 5,142,541Weighted average unallocated ESOP shares(373,692) (393,119)Basic weighted average shares outstanding4,459,616 4,749.422Dilutive effect of equity awards15,975 —Diluted weighted average shares outstanding4,475,591 4,749,422Basic income per share$0.10 $0.01Diluted income per share$0.10 $0.01

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Employee Stock Ownership Plan

3 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Stock Ownership Plan

Employee Stock Ownership Plan

The Bank maintains a leveraged employee stock ownership plan ("ESOP") that covers all employees meeting certain minimum age and service requirements. The ESOP was established in conjunction with the Company's stock offering completed in April 2013 and operates on a plan year ending December 31. The ESOP initially borrowed $4.1 million from the Company and used those funds to acquire 411,403 shares, or 8.0%, of the total number of shares issued by the Company in its initial public offering. The shares were acquired at a price of $10.00 per share. The Bank makes annual contributions to the ESOP equal to the ESOP's debt service. The ESOP shares were pledged as collateral for its debt. As the debt is repaid, shares are released from collateral and allocated to active participants, based on the proportion of debt service paid in the year. The Company accounts for its ESOP in accordance with ASC 718-40. Accordingly, because the debt is intercompany, it is eliminated in consolidation for presentation in these statements. The shares pledged as collateral are reported as unearned ESOP shares in the balance sheet. Total ESOP shares may be reduced as a result of employees leaving the Company as shares that have previously been released to those exiting employees may be removed from the ESOP and transferred to that employee. As shares are committed to be released from collateral, the Company reports compensation expense equal to the current market price of the shares, and the shares become outstanding for EPS computations. During the three months ended December 31, 2014, 5,142 shares were committed to be released. The total ESOP compensation expense recorded for the three months ended December 31, 2014 and 2013 was $112 and $95 respectively.

The ESOP shares as of December 31, 2014 and September 30, 2014 were as follows (in thousands, except share data):

	December 31, 2014		September 30, 2014
Allocated shares to active participants	17,392		20,570
Shares released and available for allocation	20,570		—
Shares committed to be released	—		15,428
Unallocated shares	370,263		375,405
Total ESOP shares	408,225		411,403
Fair value of unallocated shares	$	6,072	$	5,650

Compensation Equity Plans

ASC Topic 718 requires that the grant date fair value of equity awards to employees be recognized as compensation expense over the period during which an employee is required to provide service in exchange for such award.

The following table summarizes the impact of the Company's share-based payment plans in the financial statements for the periods shown (in thousands):

	Three Months Ended December 31,
	2014		2013
	(In thousands)
Total cost of stock grant plan during the year	$	155	$	—
Total cost of stock option plan during the year	46		—
Total cost of share-based payment plans during the year	$	201	—
Amount of related income tax benefit recognized in income	$	79	$	—

The Company adopted the Westbury Bancorp Inc 2014 Equity Incentive Plan (the "Plan") in 2014. In June 2014, the Company's stockholders approved the Plan which authorized the issue of up to 203,665 restricted stock awards and up to 509,162 stock options. As of December 31, 2014 there were no restricted stock awards and 182,938 options available for future grants.

Annual equity-based incentive awards are typically granted to selected officers and employees mid-year. Options are granted with an exercise price equal to no less than the market price of the Company's shares at the date of grant: those option awards generally vest over five years of service and have 10-year contractual terms. Restricted shares and units typically vest over a five year period. Equity awards may also be granted at other times throughout the year in connection with the recruitment and retention of officers and employees.

The following table summarizes stock options outstanding for the three months ended December 31, 2014:

	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Options outstanding as of September 30, 2014	326,224	$	15.20
Granted	—	—
Exercised	—	—
Expired or canceled	—	—
Forfeited	—	—
Options outstanding as of December 31, 2014	326,224	$	15.20	9.5	$	391
Options exercisable as of December 31, 2014	—	$	—	—	$	—

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model based on certain assumptions. Expected volatility is based on historical volatility and the expectations of future volatility of Company shares. The risk free interest rate for periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of options is estimated based on historical employee behavior and represents the period of time that options granted are expected to remain outstanding.

The following assumptions were used for options granted during the year ended September 30, 2014:

Risk-free interest rate	2.10		%
Expected volatility of Company's stock	9.49		%
Expected dividend yield	—		%
Expected life of options (years)	7.5
Weighted average fair value per option of options granted during the year	$	2.82

The total intrinsic value of options exercised during the three months ended December 31, 2014 was $0.

The following is a summary of changes in restricted shares and units for the three months ended December 31, 2014:

	Number of Shares	Weighted Average Grant Date Fair Value
Shares and Units Outstanding at September 30, 2014	203,665	$	15.20
Granted	—	—
Vested	—	—
Forfeited	—	—
Shares and Units Outstanding at December 31, 2014	203,665	$	15.20

The total intrinsic value of restricted shares that vested during the period ended December 31, 2014 was $0.

As of December 31, 2014, there was $3.6 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements (including share option and nonvested share awards) granted under the Plan. At December 31, 2014, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 4.5 years.

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Earnings Per Share

3 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding, adjusted for weighted average unallocated ESOP shares, during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards and restricted stock units, though no actual shares of common stock related to restricted stock units are issued until the settlement of such units, to the extent holders of these securities receive non-forfeitable dividends or dividend equivalents at the same rate as holders of the Company's common stock. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method.

The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (in thousands, except share and per share data).

	Three Months Ended December 31,
	2014			2013
Net income	$	447		$	68
Basic potential common shares:
Weighted average shares outstanding	4,833,308			5,142,541
Weighted average unallocated ESOP shares	(373,692		)	(393,119		)
Basic weighted average shares outstanding	4,459,616			4,749.422
Dilutive effect of equity awards	15,975			—
Diluted weighted average shares outstanding	4,475,591			4,749,422
Basic income per share	$	0.10		$	0.01
Diluted income per share	$	0.10		$	0.01

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Compensation Equity Plans (Tables)

3 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Allocation of Share-based Compensation Costs by Plan

The following table summarizes the impact of the Company's share-based payment plans in the financial statements for the periods shown (in thousands):

	Three Months Ended December 31,
	2014		2013
	(In thousands)
Total cost of stock grant plan during the year	$	155	$	—
Total cost of stock option plan during the year	46		—
Total cost of share-based payment plans during the year	$	201	—
Amount of related income tax benefit recognized in income	$	79	$	—

Schedule of Stock Options Activity

The following table summarizes stock options outstanding for the three months ended December 31, 2014:

	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Options outstanding as of September 30, 2014	326,224	$	15.20
Granted	—	—
Exercised	—	—
Expired or canceled	—	—
Forfeited	—	—
Options outstanding as of December 31, 2014	326,224	$	15.20	9.5	$	391
Options exercisable as of December 31, 2014	—	$	—	—	$	—

Schedule of Stock Options Valuation Assumptions

The following assumptions were used for options granted during the year ended September 30, 2014:

Risk-free interest rate	2.10		%
Expected volatility of Company's stock	9.49		%
Expected dividend yield	—		%
Expected life of options (years)	7.5
Weighted average fair value per option of options granted during the year	$	2.82

Schedule of Restricted Stock Units Award Activity

The following is a summary of changes in restricted shares and units for the three months ended December 31, 2014:

	Number of Shares	Weighted Average Grant Date Fair Value
Shares and Units Outstanding at September 30, 2014	203,665	$	15.20
Granted	—	—
Vested	—	—
Forfeited	—	—
Shares and Units Outstanding at December 31, 2014	203,665	$	15.20

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Commitments

3 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments

Commitments

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.  The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit is represented by the contractual amount of those instruments.  The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

The following instruments were outstanding whose contract amounts represent credit risk:

	December 31, 2014		September 30, 2014
Commitments to extend mortgage credit:
Fixed rate	$	938	$	960
Adjustable rate	1,437		3,339
Unused commercial loan and home equity lines of credit	90,444		61,325
Standby letters of credit	967		422
Commitment to sell loans	2,082		326

Commitments to extend credit are agreements to lend funds to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  As some such commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The Company evaluates each customer’s creditworthiness on a case-by-case basis.  The Company generally extends credit only on a secured basis.  Collateral obtained varies but consists primarily of single family residences.

Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers.  These lines of credit may be uncollateralized and ultimately may not be drawn upon to the total extent to which the Company is committed.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party.  Those letters of credit are primarily issued to support public and private borrowing arrangements, and, generally, have terms of one year or less.  The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.  The Company holds collateral supporting those commitments if deemed necessary.  In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment.  The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the summary above.  If the commitment is funded, the Company would be entitled to seek recovery from the customer.  At December 31, 2014 and September 30, 2014, no amounts have been recorded as liabilities for the Company’s potential obligations under these guarantees.

Commitments to sell loans are commitments to sell single family mortgage loans to investors on the secondary market.

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Loans

3 Months Ended

Dec. 31, 2014

Loans and Leases Receivable Disclosure [Abstract]

Loans

Loans

A summary of the balances of loans follows:

	December 31, 2014		September 30, 2014
Real estate:
Single family	$	148,067	$	135,337
Multifamily	82,981		76,396
Commercial real estate	139,554		135,121
Construction and land development	19,127		16,362
Total real estate	389,729		363,216
Commercial business	32,477		37,675
Consumer:
Home equity lines of credit	14,126		14,275
Education	4,560		4,694
Other	1,828		1,321
Total consumer	20,514		20,290
Total loans	442,720		421,181
Less:
Net deferred loan fees	324		235
Allowance for loan losses	4,224		4,072
Net loans	$	438,172	$	416,874

The following tables present the contractual aging of the recorded investment in past due loans by class of loans as of December 31, 2014 and September 30, 2014:

December 31, 2014	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	146,817	$	746	$	119	$	385	$	148,067
Multifamily	82,981		—		—		—		82,981
Commercial real estate	139,428		—		—		126		139,554
Construction and land development	19,096		31		—		—		19,127
Commercial business	32,477		—		—		—		32,477
Consumer and other:
Home equity lines of credit	13,816		24		—		286		14,126
Education	4,310		73		77		100		4,560
Other	1,828		—		—		—		1,828
	$	440,753	$	874	$	196	$	897	$	442,720

September 30, 2014	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	133,102	$	1,623	$	162	$	450	$	135,337
Multifamily	76,396		—		—		—		76,396
Commercial real estate	134,584		178		163		196		135,121
Construction and land development	16,362		—		—		—		16,362
Commercial business	37,653		—		—		22		37,675
Consumer and other:
Home equity lines of credit	13,918		228		—		129		14,275
Education	4,502		28		44		120		4,694
Other	1,319		—		—		2		1,321
	$	417,836	$	2,057	$	369	$	919	$	421,181

There were no loans past due ninety days or more still accruing interest as of December 31, 2014 and September 30, 2014.

The following table presents the recorded investment in nonaccrual loans by class of loans as of December 31, 2014 and September 30, 2014:

	December 31, 2014		September 30, 2014
Single family	$	530	$	791
Multifamily	—		—
Commercial real estate	275		350
Construction and land development	—		—
Commercial business	—		22
Consumer and other:
Home equity lines of credit	302		145
Education	100		120
Other	—		2
	$	1,207	$	1,430

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt and comply with various terms of their loan agreements.  The Company considers current financial information, historical payment experience, credit documentation, public information and current economic trends.  Generally, all sizeable credits receive a financial review no less than annually to monitor and adjust, if necessary, the credit’s risk profile.  Credits classified as watch and special mention generally receive a review more frequently than annually.

The Company categorizes loans into the following risk categories based on relevant information about the ability of borrowers to service their debt:

Pass — A pass asset is well protected by the current worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell in a timely manner, of any underlying collateral.

Watch — A watch asset has potential weaknesses that deserve management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.  Watch assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Special Mention — A special mention asset has characteristics of deterioration in quality exhibited by any number of well-defined weaknesses requiring significant corrective action.  The repayment ability of the borrower has not been validated, or has become marginal or weak and the loan may have exhibited some overdue payments or payment extensions and/or renewals.

Substandard — A substandard asset is an asset with a well-defined weakness that jeopardizes repayment in whole or in part, of the debt.  These credits are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged.  These assets are characterized by the distinct possibility that the Company will or has sustained some loss of principal and/or interest if the deficiencies are not corrected.

Doubtful — A doubtful asset is an asset that has all the weaknesses inherent in the substandard classification with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.  These credits have a high probability for loss, yet because certain important and reasonably specific pending factors may work toward the strengthening of the asset, its classification of loss is deferred until its more exact status can be determined.

Homogeneous loan types are assessed for credit quality based on the contractual aging status of the loan and payment activity.  In certain cases, based upon payment performance, the loan being related with another commercial type loan or for other reasons, a loan may be categorized into one of the risk categories noted above, unless such loan carries private mortgage insurance (PMI).  Such assessment is completed at the end of each reporting period.

The following tables present the risk category of loans evaluated by internal asset classification based on the most recent analysis performed and the contractual aging as of December 31, 2014 and September 30, 2014:

December 31, 2014	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	145,083	$	1,309	$	117	$	1,558	$	—	$	148,067
Multifamily	79,640		2,742		442		157		—		82,981
Commercial real estate	131,737		5,385		853		1,579		—		139,554
Construction and land development	19,122		—		—		5		—		19,127
Commercial business	28,988		3,419		—		70		—		32,477
Consumer and other:
Home equity lines of credit	13,782		—		—		344		—		14,126
Education	4,560		—		—		—		—		4,560
Other	1,828		—		—		—		—		1,828
Total	$	424,740	$	12,855	$	1,412	$	3,713	$	—	$	442,720

September 30, 2014	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	132,067	$	1,317	$	118	$	1,835	$	—	$	135,337
Multifamily	73,876		1,915		445		160		—		76,396
Commercial real estate	126,319		6,117		858		1,827		—		135,121
Construction and land development	16,357		—		—		5		—		16,362
Commercial business	34,112		3,459		—		104		—		37,675
Consumer and other:
Home equity lines of credit	14,088		—		—		187		—		14,275
Education	4,694		—		—		—		—		4,694
Other	1,319		—		—		2		—		1,321
	$	402,832	$	12,808	$	1,421	$	4,120	$	—	$	421,181

The following tables provide additional detail of the activity in the allowance for loan losses, by portfolio segment, for the three months ended December 31, 2014 and 2013:

Three Months Ended December 31, 2014	Single Family			Multifamily		Commercial Real Estate			Construction and Land Development		Commercial Business			Consumer and Other			Total
Allowance for loan losses:
Beginning balance	$	1,072		$	757	$	1,412		$	301	$	454		$	76		$	4,072
Provision for loan losses	103			175		15			66		(34		)	25			350
Loans charged-off	(161		)	—		(48		)	—		(14		)	(2		)	(225		)
Recoveries	11			—		9			—		6			1			27
Ending balance	$	1,025		$	932	$	1,388		$	367	$	412		$	100		$	4,224
Period-ended amount allocated for:
Individually evaluated for impairment	$	45		$	—	$	—		$	—	$	—		$	58		$	103
Collectively evaluated for impairment	980			932		1,388			367		412			42			4,121
Ending Balance	$	1,025		$	932	$	1,388		$	367	$	412		$	100		$	4,224
Loans:
Individually evaluated for impairment	$	1,542		$	1,894	$	558		$	—	$	—		$	360		$	4,354
Collectively evaluated for impairment	146,525			81,087		138,996			19,127		32,477			20,154			438,366
Ending Balance	$	148,067		$	82,981	$	139,554		$	19,127	$	32,477		$	20,514		$	442,720

Three Months Ended December 31, 2013	Single Family			Multifamily			Commercial Real Estate			Construction and Land Development			Commercial Business			Consumer and Other			Total
Allowance for loan losses:
Beginning balance	$	1,873		$	165		$	1,501		$	374		$	211		$	142		$	4,266
Provision for loan losses	6			(27		)	213			(203		)	154			7			150
Loans charged-off	(296		)	—			(232		)	—			(159		)	(27		)	(714		)
Recoveries	15			—			11			—			14			1			41
Ending balance	$	1,598		$	138		$	1,493		$	171		$	220		$	123		$	3,743
Period-ended amount allocated for:
Individually evaluated for impairment	$	—		$	66		$	198		$	—		$	—		$	60		$	324
Collectively evaluated for impairment	1,598			72			1,295			171			220			63			3,419
Ending Balance	$	1,598		$	138		$	1,493		$	171		$	220		$	123		$	3,743
Loans:
Individually evaluated for impairment	$	2,598		$	3,202		$	2,068		$	—		$	—		$	179		$	8,047
Collectively evaluated for impairment	131,021			46,516			112,843			10,014			24,040			17,872			$	342,306
Ending Balance	$	133,619		$	49,718		$	114,911		$	10,014		$	24,040		$	18,051		$	350,353

The following tables present additional detail of impaired loans, segregated by segment, as of and for the three month periods ended December 31, 2014 and 2013.  The unpaid principal balance represents the recorded balance prior to any partial charge-offs.  The recorded investment represents customer balances net of any partial charge-offs recognized on the loans.  The interest income recognized column represents all interest income reported on either a cash or accrual basis after the loan became impaired.

							Three months ended
December 31, 2014	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Single family	$	1,363	$	1,148	$	—	$	1,274	$	11
Multifamily	1,998		1,894		—		3,484		20
Commercial real estate	629		558		—		1,118		8
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	401		302		—		223		—
With an allowance recorded:
Single family	417		394		45		758		3
Multifamily	—		—		—		86		—
Commercial real estate	—		—		—		90		—
Construction and land development	—		—		—		96		—
Commercial business	—		—		—		—		—
Consumer and other	58		58		58		60		1
	$	4,866	$	4,354	$	103	$	7,189	$	43

							Three months ended
December 31, 2013	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Single family	$	3,718	$	2,598	$	—	$	1,999	$	32
Multifamily	3,399		3,033		—		4,053		28
Commercial real estate	1,939		1,870		—		1,773		54
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	336		119		—		131		—
With an allowance recorded:
Single family	—		—		—		561		—
Multifamily	169		169		66		171		7
Commercial real estate	198		198		198		189		4
Construction and land development	—		—		—		96		—
Commercial business	—		—		—		—		—
Consumer and other	60		60		60		61		3
	$	9,819	$	8,047	$	324	$	9,034	$	128

The following is a summary of troubled debt restructured loans (TDRs) at December 31, 2014 and September 30, 2014:

	December 31, 2014		September 30, 2014
Troubled debt restructurings - accrual	$	3,480	$	3,507
Troubled debt restructurings - nonaccrual	—		195
	$	3,480	$	3,702

Modifications of loan terms in a TDR are generally in the form of an extension of payment terms or lowering of the interest rate, although occasionally the Company has reduced the outstanding principal balance.

The following tables presents information related to loans modified in a TDR, by class, during the three months ended December 31, 2014 and 2013:

	Three Months Ended December 31, 2014
		Unpaid Principal Balance (at End of Period)		Balance in the ALLL
	Number of Modifications			Prior to Modification		At Period End
Single family	—	$	—	$	—	$	—
	—	$	—	$	—	$	—

	Three Months Ended December 31, 2013
		Unpaid Principal Balance (at End of Period)		Balance in the ALLL
	Number of Modifications			Prior to Modification		At Period End
Single family	1	$	88	$	—	$	—
	1	$	88	$	—	$	—

The following table presents a summary of loans modified in a TDR during the three months ended December 31, 2014 and 2013 by class and by type of modification:

Principal and Interest to Interest Only

Interest Rate Reduction

Adjusted Amortization Period

Reduced Principal Balance

Three Months Ended December 31, 2014

To Below Market Rate

To Interest Only

Other (1)

Total

Single family

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

	Principal and Interest to Interest Only		Interest Rate Reduction				Adjusted Amortization Period		Reduced Principal Balance
Three Months Ended December 31, 2013			To Below Market Rate		To Interest Only						Other (1)		Total
Single family	$	—	$	—	$	—	$	—	$	—	$	88	$	88
	$	—	$	—	$	—	$	—	$	—	$	88	$	88

___________________________________________________________

(1) Other modifications primarily include capitalization of property taxes.

There were no re-defaults of TDR that occurred during the three months ended December 31, 2014 and 2013.

Certain of the Bank’s officers, employees, directors, and their associates are loan customers of the Bank.  As of December 31, 2014 and September 30, 2014, loans of approximately $5,120 and $4,653, respectively, were outstanding to such parties.  These loans were made on substantially the same terms as those prevailing for comparable transactions with other persons and do not involve more than the normal risk of collectability.

An analysis of such loans is as follows:

	Three Months Ended December 31, 2014
Balance, beginning	$	4,653
New loans originated	511
Draws on lines of credit	99
Principal repayments	(143		)
Balance, ending	$	5,120

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Compensation Equity Plans (Notes)

3 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Compensation Equity Plans

Employee Stock Ownership Plan

The Bank maintains a leveraged employee stock ownership plan ("ESOP") that covers all employees meeting certain minimum age and service requirements. The ESOP was established in conjunction with the Company's stock offering completed in April 2013 and operates on a plan year ending December 31. The ESOP initially borrowed $4.1 million from the Company and used those funds to acquire 411,403 shares, or 8.0%, of the total number of shares issued by the Company in its initial public offering. The shares were acquired at a price of $10.00 per share. The Bank makes annual contributions to the ESOP equal to the ESOP's debt service. The ESOP shares were pledged as collateral for its debt. As the debt is repaid, shares are released from collateral and allocated to active participants, based on the proportion of debt service paid in the year. The Company accounts for its ESOP in accordance with ASC 718-40. Accordingly, because the debt is intercompany, it is eliminated in consolidation for presentation in these statements. The shares pledged as collateral are reported as unearned ESOP shares in the balance sheet. Total ESOP shares may be reduced as a result of employees leaving the Company as shares that have previously been released to those exiting employees may be removed from the ESOP and transferred to that employee. As shares are committed to be released from collateral, the Company reports compensation expense equal to the current market price of the shares, and the shares become outstanding for EPS computations. During the three months ended December 31, 2014, 5,142 shares were committed to be released. The total ESOP compensation expense recorded for the three months ended December 31, 2014 and 2013 was $112 and $95 respectively.

The ESOP shares as of December 31, 2014 and September 30, 2014 were as follows (in thousands, except share data):

	December 31, 2014		September 30, 2014
Allocated shares to active participants	17,392		20,570
Shares released and available for allocation	20,570		—
Shares committed to be released	—		15,428
Unallocated shares	370,263		375,405
Total ESOP shares	408,225		411,403
Fair value of unallocated shares	$	6,072	$	5,650

Compensation Equity Plans

ASC Topic 718 requires that the grant date fair value of equity awards to employees be recognized as compensation expense over the period during which an employee is required to provide service in exchange for such award.

The following table summarizes the impact of the Company's share-based payment plans in the financial statements for the periods shown (in thousands):

	Three Months Ended December 31,
	2014		2013
	(In thousands)
Total cost of stock grant plan during the year	$	155	$	—
Total cost of stock option plan during the year	46		—
Total cost of share-based payment plans during the year	$	201	—
Amount of related income tax benefit recognized in income	$	79	$	—

The Company adopted the Westbury Bancorp Inc 2014 Equity Incentive Plan (the "Plan") in 2014. In June 2014, the Company's stockholders approved the Plan which authorized the issue of up to 203,665 restricted stock awards and up to 509,162 stock options. As of December 31, 2014 there were no restricted stock awards and 182,938 options available for future grants.

Annual equity-based incentive awards are typically granted to selected officers and employees mid-year. Options are granted with an exercise price equal to no less than the market price of the Company's shares at the date of grant: those option awards generally vest over five years of service and have 10-year contractual terms. Restricted shares and units typically vest over a five year period. Equity awards may also be granted at other times throughout the year in connection with the recruitment and retention of officers and employees.

The following table summarizes stock options outstanding for the three months ended December 31, 2014:

	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Options outstanding as of September 30, 2014	326,224	$	15.20
Granted	—	—
Exercised	—	—
Expired or canceled	—	—
Forfeited	—	—
Options outstanding as of December 31, 2014	326,224	$	15.20	9.5	$	391
Options exercisable as of December 31, 2014	—	$	—	—	$	—

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model based on certain assumptions. Expected volatility is based on historical volatility and the expectations of future volatility of Company shares. The risk free interest rate for periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of options is estimated based on historical employee behavior and represents the period of time that options granted are expected to remain outstanding.

The following assumptions were used for options granted during the year ended September 30, 2014:

Risk-free interest rate	2.10		%
Expected volatility of Company's stock	9.49		%
Expected dividend yield	—		%
Expected life of options (years)	7.5
Weighted average fair value per option of options granted during the year	$	2.82

The total intrinsic value of options exercised during the three months ended December 31, 2014 was $0.

The following is a summary of changes in restricted shares and units for the three months ended December 31, 2014:

	Number of Shares	Weighted Average Grant Date Fair Value
Shares and Units Outstanding at September 30, 2014	203,665	$	15.20
Granted	—	—
Vested	—	—
Forfeited	—	—
Shares and Units Outstanding at December 31, 2014	203,665	$	15.20

The total intrinsic value of restricted shares that vested during the period ended December 31, 2014 was $0.

As of December 31, 2014, there was $3.6 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements (including share option and nonvested share awards) granted under the Plan. At December 31, 2014, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 4.5 years.

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Investment Securitites

3 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The amortized cost and fair value of investment securities are summarized as follows:

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale
U.S. Government and agency securities	$	—	$	—	$	—		$	—
U.S. Government agency residential mortgage-backed securities	38,329		445		(181		)	38,593
U.S. Government agency collateralized mortgage obligations	5,233		26		(56		)	5,203
U.S. Government agency commercial mortgage-backed securities	12,614		25		(82		)	12,557
Municipal securities	26,895		110		(178		)	26,827
Total Available for Sale	83,071		606		(497		)	83,180
Held to Maturity
Municipal securities	3,025		—		—			3,025
Total Investment Securities	$	86,096	$	606	$	(497	)	$	86,205
	September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available for Sale
U.S. Government and agency securities	$	5,250	$	—	$	(71	)	$	5,179
U.S. Government agency residential mortgage-backed securities	37,144		389		(337		)	37,196
U.S. Government agency collateralized mortgage obligations	3,458		30		(56		)	3,432
U.S. Government agency commercial mortgage-backed securities	10,835		11		(94		)	10,752
Municipal securities	33,735		280		(228		)	33,787
Total Available for Sale	90,422		710		(786		)	90,346
Held to Maturity
Municipal securities	—		—		—			—
Total Investment Securities	$	90,422	$	710	$	(786	)	$	90,346

The amortized cost and fair value of investment securities, by contractual maturity at December 31, 2014 are shown in the following table.  Actual maturities differ from contractual maturities for mortgage-backed securities because the mortgages underlying the securities may be called or repaid without penalty.  Therefore, these securities are not presented in the maturity categories in the table below.

	December 31, 2014
	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	2,562	$	2,565
Due after one year through five years	14,064		14,056
Due after five years through ten years	7,600		7,582
Due after ten years	2,669		2,624
U.S. Government agency collateralized mortgage obligations	5,233		5,203
U.S. Government agency residential mortgage-backed securities	38,329		38,593
U.S. Government agency commercial mortgage-backed securities	12,614		12,557
	83,071		83,180
Held to maturity:
Due in one year or less	566		566
Due after one year through five years	679		679
Due after five years through ten years	929		929
Due after ten years	851		851
	3,025		3,025
Total	$	86,096	$	86,205

Proceeds from sales of investment securities during the three months ended December 31, 2014 and 2013, were $12,084 and $0, respectively. Gross realized gains, during the three months ended December 31, 2014 and 2013, on these sales amount to $111 and $0, respectively. Gross realized losses on theses sales were $41 and $0, during the three months ended December 31, 2014 and 2013 respectively.

There were nosecurities that were pledged to secure treasury, tax, and loan deposits and other purposes required or permitted by law at December 31, 2014 and September 30, 2014.

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:

	December 31, 2014
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Government and agency securities	$	—	$	—		$	—	$	—		$	—	$	—
U.S. Government agency residential mortgage-backed securities	7,262		(17		)	10,169		(164		)	17,431		(181		)
U.S. Government agency collateralized mortgage obligations	2,047		(11		)	844		(45		)	2,891		(56		)
U.S Government agency commercial mortgage-backed securities	8,035		(65		)	1,033		(17		)	9,068		(82		)
Municipal securities	7,270		(25		)	9,789		(153		)	17,059		(178		)
	$	24,614	$	(118	)	$	21,835	$	(379	)	$	46,449	$	(497	)

	September 30, 2014
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Government and agency securities	$	—	$	—		$	5,179	$	(71	)	$	5,179	$	(71	)
U.S. Government agency residential mortgage-backed securities	9,617		(54		)	13,075		(283		)	22,692		(337		)
U.S. Government agency collateralized mortgage obligations	—		—			891		(56		)	891		(56		)
U.S. Government agency commercial mortgage-backed securities	6,235		(73		)	1,033		(21		)	7,268		(94		)
Municipal securities	3,046		(8		)	13,621		(220		)	16,667		(228		)
	$	18,898	$	(135	)	$	33,799	$	(651	)	$	52,697	$	(786	)

At December 31, 2014, the investment portfolio included 45 securities available-for-sale which had been in an unrealized loss position for more than twelve months and 43 securities available-for-sale which had been in an unrealized loss position for less than twelve months. These securities are considered to be acceptable credit risks.  Based upon an evaluation of the available evidence, including recent changes in market rates, credit rating information and information obtained from regulatory filings, management believes the decline in fair value for these securities is temporary.  The Company does not have any current requirement to sell and does not intend to sell these securities prior to any anticipated recovery in fair value.

At September 30, 2014, the investment portfolio included 63 securities available-for-sale which had been in an unrealized loss position for greater than twelve months and 25 securities available-for-sale which had been in an unrealized loss position for less than twelve months.

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Real Estate Held for Sale and Branch Closings

3 Months Ended

Dec. 31, 2014

Real Estate [Abstract]

Real Estate Held for Sale and Branch Closings

Real Estate Held for Sale and Branch Closings

The Company designated two office properties as available for sale as of March 31, 2014, one of which housed a branch office which was closed in May 2014. The property was designated as held for sale and transferred from real estate held for investment at its fair value of $810 as of March 31, 2014. The second property, an administrative facility, was transferred from office properties and equipment to real estate held for sale at its fair value of $1,932 as of March 31, 2014. The net loss recognized upon transfer during the quarter ended March 31, 2014 was $1,964. The fair values of the properties were reduced by an additional $0 during the three months ending June 30, 2014, based on pending offers to purchase after exposure to the market. The net loss of $0 and $2,216 is reported as valuation loss on real estate held for sale in the statement of operations for the three and nine months ended June 30, 2014, respectively.

During the three months ended June 30, 2014, the Company closed an additional branch office, which was operated in a leased facility for which the lease expired in June 2014. The write-off of undepreciated leasehold improvements was $0 and is reported as branch realignment expense in the statement of operations for the three months ended June 30, 2014. Total expenses of $619 for lease buyouts, write-off of undepreciated leasehold improvements and severance pay for the nine months ended June 30, 2014 were included in branch realignment expense.

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Compensation Equity Plans Stock Option Activity (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Dec. 31, 2014
Number of Options
Options outstanding as of September 30, 2014	326,224
Granted	0
Exercised	0
Expired or canceled	0
Forfeited	0
Options outstanding as of December 31, 2014	326,224
Options exercisable as of December 31, 2014	0
Weighted Average Exercise Price
Options outstanding as of September 30, 2014	$ 15.20
Granted	$ 0.00
Exercised	$ 0.00
Expired or canceled	$ 0.00
Forfeited	$ 0.00
Options outstanding as of December 31, 2014	$ 15.20
Options exercisable as of December 31, 2014	$ 0.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, Weighted Average Remaining Contractual Term	9 years 6 months
Outstanding, Aggregate Intrinsic Value	$ 391
Options Exercisable, Aggregate Intrinsic Value	$ 0

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Commitments (Details) (USD $)	3 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Financial Instruments with Off-Balance Sheet Risk
Liabilities recorded for company's potential obligations	$ 0	$ 0
Fixed rate commitments to extend mortgage credit
Financial Instruments with Off-Balance Sheet Risk
Financial instruments whose contract amounts represent credit risk	938,000	960,000
Adjustable rate commitments to extend mortgage credit
Financial Instruments with Off-Balance Sheet Risk
Financial instruments whose contract amounts represent credit risk	1,437,000	3,339,000
Unused commercial loan and home equity lines of credit
Financial Instruments with Off-Balance Sheet Risk
Financial instruments whose contract amounts represent credit risk	90,444,000	61,325,000
Standby letters of credit and financial guarantees written
Financial Instruments with Off-Balance Sheet Risk
Financial instruments whose contract amounts represent credit risk	967,000	422,000
Maximum period of letters of credit primarily issued to support public and private borrowing arrangements	1 year
Commitment to sell loans
Financial Instruments with Off-Balance Sheet Risk
Financial instruments whose contract amounts represent credit risk	$ 2,082,000	$ 326,000

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Condensed Parent Company Financial Information (Notes)

3 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Parent Company Financial Information

Condensed Parent Company Financial Information

The condensed financial statements of Westbury Bancorp, Inc. (parent company only) are presented below:

Balance Sheets
(In thousands)
	December 31,		September 30,
	2014		2014
Assets
Cash and interest bearing deposits	$	6,082	$	6,878
Investments	6,754		6,590
Loan to ESOP	3,778		3,931
Investment in subsidiary	71,771		71,131
Other assets	1,761		1,674
Total assets	$	90,146	$	90,204
Liabilities and Stockholders' Equity
Total liabilities	$	130	$	115
Stockholders' equity	90,016		90,089
Total liabilities and stockholders' equity	$	90,146	$	90,204

Statements of Operations
(In thousands)
	Three Months Ended December 31,
	2014			2013
Interest and other income	$	63		$	70
Interest and other expense	184			187
Loss before income tax benefit and equity in undistributed net income of subsidiary	(121		)	(117		)
Income tax benefit	(30		)	(32		)
Loss before equity in undistributed net income of subsidiary	(91		)	(85		)
Equity in undistributed net income of subsidiary	538			153
Net income	$	447		$	68

Statements of Cash Flows
(in thousands)
	For Three Months Ended December 31,
	2014			2013
Cash Flows From Operating Activities
Net income	$	447		$	68
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiary	(538		)	(153		)
Net change in other liabilities	15			(19		)
Net change in other assets	124			130
Net cash provided by operating activities	48			26
Cash Flows From Investing Activities
Purchase of securities	(376		)	(100		)
Sales and maturities of securities	212			405
Payments received on ESOP loan	153			183
Net cash provided by (used in) investing activities	(11		)	488
Cash Flows From Financing Activities
Treasury stock transactions, net	(833		)	—
Net cash used in financing activities	(833		)	—
Net increase (decrease) in cash	(796		)	514
Cash
Beginning of year	6,878			9,271
End of year	$	6,082		$	9,785

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Deposits (Tables)

3 Months Ended

Dec. 31, 2014

Deposits [Abstract]

Schedule of composition of deposits

The following table presents the composition of deposits as of:

	December 31, 2014				September 30, 2014
	Amount		Percent		Amount		Percent
Checking Accounts:
Noninterest bearing	$	88,628	18.75	%	$	77,790	17.10	%
Interest bearing	134,486		28.45	%	132,925		29.22	%
	223,114		47.20	%	210,715		46.32	%
Passbook and Statement Savings	120,422		25.48	%	122,227		26.87	%
Variable Rate Money Market Accounts	31,901		6.75	%	25,615		5.63	%
Certificates of Deposit	97,251		20.57	%	96,371		21.18	%
	$	472,688	100.00	%	$	454,928	100.00	%

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Deposits (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Negotiable order for withdrawal accounts:
Noninterest bearing	$ 88,628	$ 77,790
Interest bearing	134,486	132,925
Gross total	223,114	210,715
Passbook and Statement Savings	120,422	122,227
Variable Rate Money Market Accounts	31,901	25,615
Certificates of Deposit	97,251	96,371
Deposits	472,688	454,928
Negotiable order for withdrawal accounts:
Noninterest bearing (as a percent)	18.75%	17.10%
Interest bearing (as a percent)	28.45%	29.22%
Gross total (as a percent)	47.20%	46.32%
Passbook and Statement Savings (as a percent)	25.48%	26.87%
Variable Rate Money Market Accounts (as a percent)	6.75%	5.63%
Certificates of Deposit (as a percent)	20.57%	21.18%
Deposits (as a percent)	100.00%	100.00%
Certificates of Deposit over one hundred thousand dollars	$ 38,460	$ 34,853

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Loans (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Loans
Loans	$ 442,720	$ 421,181	$ 350,353
Less: Net deferred loan fees	324	235
Less: Allowance for loan losses	4,224	4,072	3,743	4,266
Net loans	438,172	416,874
Real Estate
Loans
Loans	389,729	363,216
Single family
Loans
Loans	148,067	135,337	133,619
Less: Allowance for loan losses	1,025	1,072	1,598	1,873
Multifamily
Loans
Loans	82,981	76,396	49,718
Less: Allowance for loan losses	932	757	138	165
Commercial real estate
Loans
Loans	139,554	135,121	114,911
Less: Allowance for loan losses	1,388	1,412	1,493	1,501
Construction and land development
Loans
Loans	19,127	16,362	10,014
Less: Allowance for loan losses	367	301	171	374
Commercial business
Loans
Loans	32,477	37,675	24,040
Less: Allowance for loan losses	412	454	220	211
Consumer
Loans
Loans	20,514	20,290	18,051
Less: Allowance for loan losses	100	76	123	142
Home equity lines of credit
Loans
Loans	14,126	14,275
Education
Loans
Loans	4,560	4,694
Other
Loans
Loans	$ 1,828	$ 1,321

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Consolidated Statements of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 447	$ 68
Other comprehensive income (loss), before tax:
Unrealized gains (losses) on available-for-sale securities	255	(496)
Reclassification adjustment for realized gains included in net income	(70)	0
Other comprehensive income (loss), before tax	185	(496)
Income tax benefit (expense) related to items of other comprehensive income (loss)	(73)	241
Other comprehensive income (loss), net of tax	112	(255)
Comprehensive income (loss)	$ 559	$ (187)

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Recent Accounting Developments

3 Months Ended

Dec. 31, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Developments

Recent Accounting Developments

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss or a Tax Credit Carrryforward Exists. ASU 2013-11 is intended to clarify the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carrryforward exists. This presentation had not been addressed in Topic 740 and there was diversity in reporting practices in those instances. ASU 2013-11 requires an unrecognized tax benefit to be presented as a liability and not netted against a deferred tax asset. ASU 2013-11 is effective for reporting periods beginning after December 15, 2014. Adoption by the Company is not expected to have an impact on the consolidated financial statements and related disclosures.

In January 2014, the FASB issued ASU 2014-04, Receivables (Topic 310) - Troubled Debt Restructurings by Creditors. ASU 2014-04 is intended to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU 2014-04 is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is intended to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 and interim periods within annual periods beginning after December 15, 2018. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860) - Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. ASU 2014-11 is intended to clarify the accounting for and improve the disclosures related to repurchase-to-maturity transactions and repurchase financings. ASU 2014-11 is effective for the first interim or annual period beginning after December 15, 2015. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period. ASU 2014-12 is intended to clarify the accounting for the timing of expense recognition related to employee share-based payments in which a performance target that effects vesting could be achieved after the requisite service period. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

In August 2014, the FASB issued ASU 2014-14, Receivables - Troubled Debt Restructuring by Creditors (Topic 310) - Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure. ASU 2014-14 is intended to clarify the accounting for and improve the consistency of balance sheet classification of certain foreclosed mortgage loans that are either fully or partially guaranteed under government programs. Greater consistency in classification of such mortgage loans upon foreclosure is expected to provide more decision-useful information about a creditor's foreclosed mortgage loans that are expected to be recovered, at least in part, through government guarantees. ASU 2014-14 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

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Regulatory Capital (Tables)

3 Months Ended

Dec. 31, 2014

Regulatory Capital Requirements [Abstract]

Schedule of actual capital amounts and ratios and those required by the above regulatory standards

The Bank’s actual capital amounts and ratios and those required by the above regulatory standards are as follows:

At December 31, 2014	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets) - Westbury Bank	$	66,312	15.81	%	$	33,554	8.00	%	$	41,943	10.00	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	62,088		14.81	%	16,769		4.00	%	25,154		6.00	%
Tier 1 capital (to adjusted total assets) - Westbury Bank	62,088		10.79	%	23,017		4.00	%	28,771		5.00	%

At September 30, 2014	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets) - Westbury Bank	$	65,181	16.18	%	$	32,228	8.00	%	$	40,285	10.00	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	61,109		15.17	%	16,113		4.00	%	24,170		6.00	%
Tier 1 capital (to adjusted total assets) - Westbury Bank	61,109		11.13	%	21,962		4.00	%	27,452		5.00	%

Schedule of reconciliation of the Bank's stockholders' equity to regulatory capital

The following table reconciles the Bank’s stockholders’ equity to regulatory capital as of December 31, 2014 and September 30, 2014:

	December 31, 2014			September 30, 2014
Stockholders’ equity of the Bank	$	68,282		$	67,529
Less: Disallowed servicing assets	(153		)	(162		)
Unrealized gain (loss) on securities	(69		)	33
Disallowed investment in subsidiary	(3,296		)	(3,296		)
Disallowed deferred tax assets	(2,676		)	(2,995		)
Tier 1 capital and tangible capital	62,088			61,109
Plus: Allowable general valuation allowances	4,224			4,072
Risk-based capital	$	66,312		$	65,181

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Investment Securitites (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Securities Available for Sale
Amortized Cost	$ 83,071	$ 90,422
Gross Unrealized Gains	606	710
Gross Unrealized (Losses)	(497)	(786)
Fair Value	83,180	90,346
Held-to-maturity Securities	3,025	0
Investment Securities, Amortized Cost Basis	86,096	90,422
Investment Securities, Accumulated Gross Unrealized Gain, before Tax	606	710
Investment Securities, Accumulated Gross Unrealized Loss, before Tax	(497)	(786)
Investment Securities	86,205	90,346
U.S. Government and agency securities
Securities Available for Sale
Amortized Cost	0	5,250
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	(71)
Fair Value	0	5,179
U.S. Government agency residential mortgage-backed securities
Securities Available for Sale
Amortized Cost	38,329	37,144
Gross Unrealized Gains	445	389
Gross Unrealized (Losses)	(181)	(337)
Fair Value	38,593	37,196
U.S. Government agency collateralized mortgage obligations
Securities Available for Sale
Amortized Cost	5,233	3,458
Gross Unrealized Gains	26	30
Gross Unrealized (Losses)	(56)	(56)
Fair Value	5,203	3,432
Commercial Mortgage Backed Securities [Member]
Securities Available for Sale
Amortized Cost	12,614	10,835
Gross Unrealized Gains	25	11
Gross Unrealized (Losses)	(82)	(94)
Fair Value	12,557	10,752
Municipal securities
Securities Available for Sale
Amortized Cost	26,895	33,735
Gross Unrealized Gains	110	280
Gross Unrealized (Losses)	(178)	(228)
Fair Value	26,827	33,787
Held-to-maturity Securities	3,025	0
Held to Maturity Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Held to Maturity, Accumulated Gross Unrealized Loss, before Tax	$ 0	$ 0

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Fair Value Measurements

3 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.  ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach.  Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability.  Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.  In that regard, ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1:  Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2:  Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3:  Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Securities available-for-sale:  The fair value of the Company’s securities available-for-sale is determined using Level 2 inputs, which are derived from readily available pricing sources and third-party pricing services for comparable instruments.  The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, treasury yield curves, trading levels, credit information and credit terms, among other factors. In certain cases where Level 1 or Level 2 are not available, securities are classified within Level 3 of the hierarchy.

Derivatives:  The fair values of the Company’s embedded derivatives related to certain certificates of deposit are determined using inputs that are observable or that can be corroborated by observable market data (such as the S&P 500 Index and the 10- year U.S. Treasury rate) and, therefore, are classified within Level 2 of the valuation hierarchy.

Assets and liabilities recorded at fair value on a recurring basis:  The following table summarizes assets measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value as of:

			Fair Value Measurements
December 31, 2014	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Securities available-for-sale
U.S. Government and agency securities	$	—	$	—	$	—	$	—
U.S. Government agency residential mortgage-backed securities	38,593		—		38,593		—
U.S. Government agency collateralized mortgage obligations	5,203		—		5,203		—
U.S. Government agency commercial mortgage-backed securities	12,557		—		12,557		—
Municipal securities	26,827				26,827
Total securities available-for-sale	$	83,180	$	—	$	83,180	$	—
Derivatives	$	146	$	—	$	146	$	—
Liabilities
Derivatives	$	146	$	—	$	146	$	—

			Fair Value Measurements
September 30, 2014	Total		Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Securities available-for-sale
U.S. Government and agency securities	$	5,179	$	—	$	5,179	$	—
U.S. Government agency residential mortgage-backed securities	37,196		—		37,196		—
U.S. Government agency collateralized mortgage obligations	3,432		—		3,432		—
U.S. Government agency commercial mortgage-backed securities	10,752		—		10,752		—
Municipal securities	33,787				33,787
Total securities available-for-sale	$	90,346	$	—	$	90,346	$	—
Derivatives	$	87	$	—	$	87	$	—
Liabilities
Derivatives	$	87	$	—	$	87	$	—

The Company did not have any transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the three months ended December 31, 2014.  The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in a transfer between levels.

Assets recorded at fair value on a nonrecurring basis:  The Company may be required, from time to time, to measure certain instruments at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles.

Impaired loans:  The Company does not record loans at fair value on a recurring basis.  The specific reserves for collateral-dependent impaired loans are based on the fair value of the collateral less estimated costs to sell. The fair value of collateral is determined based on appraisals.  In some cases, adjustments were made to the appraised values due to various factors including age of the appraisal, age of comparables included in the appraisal, and known changes in the market and in the collateral.  When significant adjustments were based on unobservable inputs, the resulting fair value measurement has been categorized as a Level 3 measurement.  Impaired loans with a carrying amount of $452 and $541 have a valuation allowance of $103 and $136 included in the allowance for loan losses to reflect their fair value as of December 31, 2014 and September 30, 2014, respectively.

Foreclosed real estate:  The Company does not record foreclosed real estate owned at a fair value on a recurring basis.  The fair value of foreclosed real estate was determined using Level 3 inputs based on appraisals or broker pricing opinions.  In some cases, adjustments were made to these values due to various factors including the age of the appraisal, age of comparables included in the appraisal, and known changes in the market and in collateral.  Foreclosed real estate is measured at fair value less estimated costs to sell at the date of foreclosure.  Subsequent to foreclosure, additional writedowns may be recorded based on changes to the fair value of the assets.

Mortgage servicing rights:  Mortgage servicing rights ("MSRs") do not trade in an active, open market with readily observable prices.  While sales of MSRs do occur, the precise terms and conditions typically are not readily available.  Accordingly, the Company estimates the fair value of MSRs using discounted cash flow models incorporating numerous assumptions from the perspective of market participants including servicing income, servicing costs, market discount rates, prepayments speeds, and default rates.  Due to the nature of the valuation inputs, MSRs are classified within Level 3 of the valuation hierarchy.  As of December 31, 2014, mortgage servicing rights with a carrying amount of $1,688 have a valuation allowance of $160 to reflect their fair value of $1,528.  As of September 30, 2014, mortgage servicing rights with a carrying amount of $1,784 have a valuation allowance of $160 to reflect their fair value of $1,624.

			Fair Value Measurements
December 31, 2014	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Impaired loans	$	349	$	—	$	—	$	349
Foreclosed real estate	2,333		—		—		2,333
Mortgage servicing rights	1,528		—		—		1,528

			Fair Value Measurements
September 30, 2014	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Assets
Impaired loans	$	405	$	—	$	—	$	405
Foreclosed real estate	2,355		—		—		2,355
Mortgage servicing rights	1,624		—		—		1,624

Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the consolidated balance sheets.  In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments.  Certain financial instruments with a fair value that is not practicable to estimate and all non-financial instruments are excluded from the disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Company for assets and liabilities not previously described.  The Company, in estimating its fair value disclosures for financial instruments not described above, used the following methods and assumptions:

Cash and cash equivalents:  The carrying amounts of cash and cash equivalents reported in the consolidated balance sheets approximate those assets’ fair values.

Securities held to maturity: The fair values of securities held to maturity are based on quoted market prices for similar securities, adjusted for differences in security characteristics.

Loans:  For variable-rate mortgage loans that re-price frequently and with no significant change in credit risk, fair values are based on carrying values.  The fair values for fixed rate residential mortgage loans are based on quoted market prices for similar loans sold in conjunction with sale transactions, adjusted for differences in loan characteristics.  The fair values for commercial real estate loans, rental property mortgage loans, and consumer and other loans are estimated using discounted cash flow analyses and using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

Loans held for sale:  Fair value of loans held for sale are based on commitments on hand from investors or prevailing market prices.

Federal Home Loan Bank stock:  The carrying amount of FHLB stock approximates its fair value based on the redemption provisions of the FHLB.

Accrued interest receivable and payable:  The carrying amounts of accrued interest receivable and payable approximate their fair values.

Deposits:  The fair value disclosed for interest-bearing and non-interest-bearing checking accounts, savings accounts, and money market accounts are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts).  The fair values of fixed rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities of the outstanding certificates of deposit.

Advances from the Federal Home Loan Bank:  The fair values of FHLB advances are estimated using discounted cash flow analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements.

Advance payments by borrowers for property taxes and insurance:  The carrying amounts of the advance payments by borrowers for property taxes and insurance approximate their fair values.

Mortgage banking derivatives:  The fair value of commitments to originate mortgage loans held for sale is estimated by comparing the Company’s cost to acquire mortgages and the current price for similar mortgage loans, taking into account the terms of the commitments and the credit worthiness of the counterparties.  The fair value of forward commitments to sell residential mortgage loans is the estimated amount that the Bank would receive or pay to terminate the forward delivery contract at the reporting date based on market prices for similar financial instruments.  The fair value of these derivative financial instruments was not material at December 31, 2014 and September 30, 2014.

The estimated fair values and related carrying amounts of the Company’s financial instruments are as follows:

	December 31, 2014
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	24,475	$	24,475	$	24,475	$	—	$	—
Securities available for sale	83,180		83,180		—		83,180		—
Securities held to maturity	3,025		3,025		—		3,025		—
Loans, net	438,172		440,204		—		—		440,204
Loans held for sale, net	2,082		2,082		—		2,082		—
Federal Home Loan Bank stock	2,670		2,670		—		—		2,670
Mortgage servicing rights	1,528		1,528		—		—		1,528
Accrued interest receivable	1,748		1,748		1,748		—		—
Derivative asset	146		146		—		146		—
Financial liabilities:
Deposits	472,688		460,304		88,628		—		371,676
Advances from Federal Home Loan Bank	31,000		31,000		—		31,000		—
Advance payments by borrowers for property taxes and insurance	255		255		255		—		—
Accrued interest payable	4		4		4		—		—
Derivative liability	146		146		—		146		—

	September 30, 2014
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	17,608	$	17,608	$	17,608	$	—	$	—
Securities available for sale	90,346		90,346		—		90,346		—
Loans, net	416,874		415,857		—		—		415,857
Loans held for sale, net	326		326		—		326		—
Federal Home Loan Bank stock	2,670		2,670		—		—		2,670
Mortgage servicing rights	1,624		1,624		—		—		1,624
Accrued interest receivable	1,784		1,784		1,784		—		—
Derivative asset	87		87		—		87		—
Financial liabilities:
Deposits	454,928		442,342		77,790		—		364,552
Advances from Federal Home Loan Bank	17,000		17,000		—		17,000		—
Advance payments by borrowers for property taxes and insurance	5,869		5,869		5,869		—		—
Accrued interest payable	3		3		3		—		—
Derivative liability	87		87		—		87		—