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, 2015

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 4,229,061 shares of Common Stock, par value $.01 per share, outstanding as of January 28, 2016.

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	44
ITEM 4. CONTROLS AND PROCEDURES	44
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, 2015 and September 30, 2015

(In Thousands, except share data)

	December 31, 2015			September 30, 2015
	(Unaudited)
Assets
Cash and due from banks	$	23,087		$	9,963
Interest-earning deposits	16,973			6,525
Cash and cash equivalents	40,060			16,488
Securities available-for-sale	84,237			80,286
Securities held to maturity, at amortized cost($2,489 and $2,490fair value at December 31 and September 30, respectively)	2,459			2,459
Loans held for sale, at lower of cost or fair value	973			431
Loans, net of allowance for loan losses of $4,747 and $4,598 at December 31 and September 30, respectively	496,545			493,425
Federal Home Loan Bank stock, at cost	3,350			3,350
Foreclosed real estate	168			283
Real estate held for investment	2,025			2,047
Real estate held for sale	808			882
Office properties and equipment, net	13,732			13,867
Cash surrender value of bank-owned life insurance	13,913			13,167
Mortgage servicing rights	1,136			1,210
Deferred tax asset	7,291			7,546
Other assets	3,880			3,488
Total assets	$	670,577		$	638,929
Liabilities and Stockholders’ Equity
Liabilities
Deposits	$	556,144		$	531,020
Short-term advances from Federal Home Loan Bank	20,500			18,000
Long-term advances from Federal Home Loan Bank	10,000			—
Advance payments by borrowers for property taxes and insurance	146			5,382
Other liabilities	4,669			5,715
Total liabilities	591,459			560,117
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; 5,346,412 and 5,341,114 shares issued at December 31, 2015 and September 30, 2015, respectively	53			53
Additional paid-in capital	50,457			50,145
Retained earnings	49,753			48,714
Unearned Employee Stock Ownership Plan (ESOP) shares	(3,497		)	(3,548		)
Accumulated other comprehensive gain (loss)	(238		)	352
Less common stock repurchased, 1,040,103 shares at cost, at December 31, 2015 and 1,012,109 at September 30, 2015	(17,410		)	(16,904		)
Total stockholders’ equity	79,118			78,812
Total liabilities and stockholders’ equity	$	670,577		$	638,929

See Notes to Unaudited Consolidated Financial Statements.

2

Westbury Bancorp, Inc and Subsidiary
Consolidated Statements of Operations
Three Months Ended December 31, 2015 and 2014 (Unaudited)
(In Thousands, except per share data)
	Three Months Ended   December 31,
	2015		2014
Interest and dividend income:
Loans	$	5,117	$	4,459
Investments - nontaxable	15		17
Investments - taxable	437		392
Interest bearing deposits	26		12
Total interest and dividend income	5,595		4,880
Interest expense:
Deposits	558		425
Short-term advances from the Federal Home Loan Bank	8		4
Long-term advances from the Federal Home Loan Bank	24		—
Total interest expense	590		429
Net interest income before provision for loan losses	5,005		4,451
Provision for loan losses	150		350
Net interest income after provision for loan losses	4,855		4,101
Noninterest income:
Service fees on deposit accounts	1,078		1,156
Gain on sales of loans, net	101		69
Servicing fee income, net of amortization and impairment	37		37
Insurance and securities sales commissions	73		58
Gain on sales of securities	2		70
Gain on sales of branches and other assets	—		18
Increase in cash surrender value of life insurance	110		102
Rental income from real estate operations	113		128
Other income	91		36
Total noninterest income	1,605		1,674
Noninterest expenses:
Salaries and employee benefits	2,316		2,381
Commissions	48		55
Occupancy	298		313
Furniture and equipment	121		103
Data processing	747		781
Advertising	41		60
Real estate held for investment	98		103
Net loss from operations and sale of foreclosed real estate	13		148
FDIC insurance premiums	104		105
Valuation loss on real estate held for sale	47		—
Other expenses	952		1,056
Total noninterest expenses	4,785		5,105
Income before income tax expense	1,675		670
Income tax expense	636		223
Net income	$	1,039	$	447
Earnings per share:
Basic	$	0.27	$	0.10
Diluted	$	0.27	$	0.10

See Notes to Unaudited Consolidated Financial Statements.

3

Westbury Bancorp, Inc. and Subsidiary

Consolidated Statements of Comprehensive Income

Three Months Ended December 31, 2015 and 2014

(Unaudited)

(In Thousands)

	Three Months Ended   December 31,
	2015			2014
Net income	$	1,039		$	447
Other comprehensive income, before tax:
Unrealized gains (losses) on available-for-sale securities	(969		)	255
Reclassification adjustment for realized gains included in net income	(2		)	(70		)
Other comprehensive income (loss), before tax	(971		)	185
Income tax expense (benefit) related to items of other comprehensive income	381			(73		)
Other comprehensive income (loss), net of tax	(590		)	112
Comprehensive income	$	449		$	559

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, 2015 and 2014

(Unaudited)

(In Thousands, except share data)

	Preferred Stock		Common Stock		Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares			Accumulated Other Comprehensive Income (Loss)			Common Stock Repurchased			Total
Balance, September 30, 2015	$	—	$	53	$	50,145	$	48,714	$	(3,548	)	$	352		$	(16,904	)	$	78,812
Net income	—		—		—		1,039		—			—			—			1,039
Other comprehensive loss, net of tax	—		—		—		—		—			(590		)	—			(590		)
Repurchase of 27,994 shares of common stock	—		—		—		—		—			—			(506		)	(506		)
Exercise of 4,298 stock options	—		—		64		—		—			—			—			64
Stock based compensation expense	—		—		208		—		—			—			—			208
Allocation, or commitment to be allocated, of 5,142 shares by ESOP	—		—		40		—		51			—			—			91
Balance, December 31, 2015	$	—	$	53	$	50,457	$	49,753	$	(3,497	)	$	(238	)	$	(17,410	)	$	79,118
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
Allocation,or commitment to be allocated, of 5,142 shares by ESOP	—		—		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, 2015 and 2014 (Unaudited)
(In Thousands)
	Three Months Ended   December 31,
	2015			2014
Cash Flows From Operating Activities
Net income	$	1,039		$	447
Adjustments to reconcile net income to net cash used in operating activities:
Provision for loan losses	150			350
Depreciation and amortization	192			145
Depreciation on real estate held for investment	22			33
Net amortization of securities premiums and discounts	120			149
Amortization and impairment of mortgage servicing rights	74			96
Gain on sales of available-for-sale securities	(2		)	(70		)
Gain on sales of branches and other assets	—			(18		)
Write-down of real estate held-for-sale	47			—
(Gain) loss on sale of foreclosed real estate	(20		)	79
Write-down of foreclosed real estate	26			57
Loans originated for sale	(8,957		)	(6,819		)
Proceeds from sale of loans	8,516			5,132
Gain on sale of loans, net	(101		)	(69		)
ESOP compensation expense	91			112
Stock based compensation expense	208			201
Deferred income taxes	636			224
Increase in cash surrender value of life insurance	(110		)	(102		)
Net change in:
Other assets	(391		)	(243		)
Other liabilities and advance payments by borrowers for property taxes and insurance	(6,282		)	(5,880		)
Net cash used in operating activities	(4,742		)	(6,176		)
Cash Flows From Investing Activities
Purchases of securities available-for-sale	(12,375		)	(8,189		)
Proceeds from sales of securities available-for-sale	5,219			12,084
Proceeds from maturities, prepayments, and calls of securities available-for-sale	2,116			3,376
Purchases of securities held to maturity	—			(3,025		)
Net increase in loans	(3,270		)	(21,967		)
Purchase of bank owned life insurance	(637		)	—
Purchases of office properties and equipment	(57		)	(368		)
Proceeds from sales of real estate held-for-sale	27			—
Proceeds from sales of foreclosed real estate	109			205
Net cash used in investing activities	(8,868		)	(17,884		)
Cash Flows From Financing Activities
Net increase in deposits	25,124			17,760
Proceeds from long-term Federal Home Loan Bank advances	10,000			—
Increase in short-term Federal Home Loan Bank advances	2,500			14,000
Proceeds from exercise of stock options	64			—
Repurchase of common stock	(506		)	(833		)
Net cash provided by financing activities	37,182			30,927
Net increase in cash and cash equivalents	23,572			6,867
Cash and cash equivalents at beginning	16,488			17,608
Cash and cash equivalents at end	$	40,060		$	24,475
Supplemental Disclosures of Cash Flow Information
Interest paid (including amounts credited to deposits)	$	589		$	428
Supplemental Schedules of Non-cash Investing Activities
Loans receivable transferred to foreclosed real estate	$	—		$	319

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, 2015 and September 30, 2015 and the results of operations and cash flows for the interim periods ended December 31, 2015 and 2014.  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, 2015 filed with the U.S. Securities and Exchange Commission as part of Westbury Bancorp, Inc.’s Annual Report on Form 10-K for the year ended September 30, 2015.

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 Company's initial public stock offering in April 2013.

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 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 and interim periods within those annual periods beginning after December 15, 2019. 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.

7

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

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.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 is intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. ASU 2016-01 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods beginning after December 15, 2019. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

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 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,
	2015			2014
Net income	$	1,039		$	447
Basic potential common shares:
Weighted average shares outstanding	4,166,780			4,833,308
Weighted average unallocated ESOP shares	(353,122		)	(373,692		)
Basic weighted average shares outstanding	3,813,658			4,459,616
Dilutive effect of equity awards	30,274			15,975
Diluted weighted average shares outstanding	3,843,932			4,475,591
Basic income per share	$	0.27		$	0.10
Diluted income per share	$	0.27		$	0.10

8

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

Note 4.Investment Securities

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

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
U.S. Government and agency securities	$	24	$	1	$	—		$	25
U.S. Government agency residential mortgage-backed securities	39,027		264		(316		)	38,975
U.S. Government agency collateralized mortgage obligations	1,857		6		(48		)	1,815
U.S. Government agency commercial mortgage-backed securities	16,126		3		(184		)	15,945
Municipal securities	23,709		80		(157		)	23,632
Corporate securities	3,885		4		(44		)	3,845
Total Available for Sale	84,628		358		(749		)	84,237
Held to Maturity
Municipal securities	2,459		30		—			2,489
Total Investment Securities	$	87,087	$	388	$	(749	)	$	86,726
	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
U.S. Government and agency securities	$	24	$	1	$	—		$	25
U.S. Government agency residential mortgage-backed securities	39,380		456		(144		)	39,692
U.S. Government agency collateralized mortgage obligations	1,963		18		(40		)	1,941
U.S. Government agency commercial mortgage-backed securities	13,993		121		(15		)	14,099
Municipal securities	21,494		222		(49		)	21,667
Corporate securities	2,852		12		(2		)	2,862
Total Available for Sale	79,706		830		(250		)	80,286
Held to Maturity
Municipal securities	2,459		31		—			2,490
Total Investment Securities	$	82,165	$	861	$	(250	)	$	82,776

9

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

The amortized cost and fair value of investment securities, by contractual maturity at December 31, 2015 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, 2015
	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	2,218	$	2,222
Due after one year through five years	10,194		10,225
Due after five years through ten years	14,699		14,555
Due after ten years	507		500
U.S. Government agency collateralized mortgage obligations	1,857		1,815
U.S. Government agency residential mortgage-backed securities	39,027		38,975
U.S. Government agency commercial mortgage-backed securities	16,126		15,945
	84,628		84,237
Held to maturity:
Due in one year or less	166		166
Due after one year through five years	690		693
Due after five years through ten years	954		969
Due after ten years	649		661
	2,459		2,489
Total	$	87,087	$	86,726

Proceeds from sales of investment securities during the three months ended December 31, 2015 and 2014, were $5,219 and $12,084, respectively. Gross realized gains, during the three months ended December 31, 2015 and 2014, on these sales amounted to $12 and $111, respectively. Gross realized losses on these sales were $10 and $41, during the three months ended December 31, 2015 and 2014 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, 2015 and September 30, 2015.

10

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

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, 2015
	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	20,528		(174		)	5,319		(142		)	25,847		(316		)
U.S. Government agency collateralized mortgage obligations	—		—			608		(48		)	608		(48		)
U.S Government agency commercial mortgage-backed securities	14,954		(184		)	—		—			14,954		(184		)
Municipal securities	14,659		(151		)	149		(6		)	14,808		(157		)
Corporate securities	2,833		(44		)	—		—			2,833		(44		)
	$	52,974	$	(553	)	$	6,076	$	(196	)	$	59,050	$	(749	)

	September 30, 2015
	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	7,270		(59		)	6,168		(85		)	13,438		(144		)
U.S. Government agency collateralized mortgage obligations	—		—			627		(40		)	627		(40		)
U.S. Government agency commercial mortgage-backed securities	3,511		(15		)	—		—			3,511		(15		)
Municipal securities	3,661		(45		)	151		(4		)	3,812		(49		)
Corporate securities	510		(2		)	—		—			510		(2		)
	$	14,952	$	(121	)	$	6,946	$	(129	)	$	21,898	$	(250	)

At December 31, 2015, the Company's investment portfolio included 8 securities available-for-sale which had been in an unrealized loss position for more than twelve months and 87 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 currently intend to sell these securities prior to any anticipated recovery in fair value.

At September 30, 2015, the investment portfolio included 9 securities available-for-sale which had been in an unrealized loss position for greater than twelve months and 22 securities available-for-sale which had been in an unrealized loss position for less than twelve months.

11

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

Note 5.Loans

A summary of the balances of loans follows:

	December 31, 2015		September 30, 2015
Real estate:
Single family	$	150,990	$	153,141
Multifamily	118,689		105,750
Commercial real estate	163,515		162,957
Construction and land development	17,163		18,831
Total real estate	450,357		440,679
Commercial business	31,866		38,200
Consumer:
Home equity lines of credit	14,977		14,881
Education	3,845		4,106
Other	549		523
Total consumer	19,371		19,510
Total loans	501,594		498,389
Less:
Net deferred loan fees	302		366
Allowance for loan losses	4,747		4,598
Net loans	$	496,545	$	493,425

The following tables present the contractual aging of the Company's recorded investment in past due loans by class of loans as of December 31, 2015 and September 30, 2015:

December 31, 2015	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	149,929	$	696	$	—	$	365	$	150,990
Multifamily	118,689		—		—		—		118,689
Commercial real estate	163,515		—		—		—		163,515
Construction and land development	17,163		—		—		—		17,163
Commercial business	31,860		6		—		—		31,866
Consumer and other:
Home equity lines of credit	14,950		—		—		27		14,977
Education	3,675		24		40		106		3,845
Other	549		—		—		—		549
	$	500,330	$	726	$	40	$	498	$	501,594

12

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

September 30, 2015	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	152,245	$	473	$	83	$	340	$	153,141
Multifamily	105,750		—		—		—		105,750
Commercial real estate	162,957		—		—		—		162,957
Construction and land development	18,827		4		—		—		18,831
Commercial business	38,200		—		—		—		38,200
Consumer and other:
Home equity lines of credit	14,691		—		—		190		14,881
Education	3,782		79		—		245		4,106
Other	523		—		—		—		523
	$	496,975	$	556	$	83	$	775	$	498,389

There were no loans past due ninety days or more and still accruing interest as of December 31, 2015 and September 30, 2015.

The following table presents the recorded investment in nonaccrual loans by class of loans as of December 31, 2015 and September 30, 2015:

	December 31, 2015		September 30, 2015
Single family	$	365	$	340
Multifamily	—		—
Commercial real estate	—		—
Construction and land development	—		—
Commercial business	—		—
Consumer and other:
Home equity lines of credit	39		203
Education	146		260
Other	—		—
	$	550	$	803

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 underlying loan agreements.  The Company considers current financial information, historical payment experience, credit documentation, public information and current economic trends when classifying its loans into risk categories.  Generally, all sizable credits receive a financial review no less than annually to monitor and adjust, if necessary, the credit’s risk profile.  Credits classified as special mention, substandard or doubtful generally receive a review more frequently than annually.

The Company categorizes performing, potential problem, and problem 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 a sub-category of Pass which do not expose the Company to sufficient risk to warrant further classification.

13

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

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 by the Company and the contractual aging as of December 31, 2015 and September 30, 2015:

December 31, 2015	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	148,286	$	937	$	—	$	1,767	$	—	$	150,990
Multifamily	112,272		6,417		—		—		—		118,689
Commercial real estate	159,122		3,682		407		304		—		163,515
Construction and land development	17,163		—		—		—		—		17,163
Commercial business	31,803		—		—		63		—		31,866
Consumer and other:
Home equity lines of credit	14,854		—		—		123		—		14,977
Education	3,845		—		—		—		—		3,845
Other	549		—		—		—		—		549
Total	$	487,894	$	11,036	$	407	$	2,257	$	—	$	501,594

September 30, 2015	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	150,421	$	1,135	$	—	$	1,585	$	—	$	153,141
Multifamily	103,117		2,633		—		—		—		105,750
Commercial real estate	159,104		3,136		410		307		—		162,957
Construction and land development	18,831		—		—		—		—		18,831
Commercial business	36,561		—		—		1,639		—		38,200
Consumer and other:
Home equity lines of credit	14,636		—		—		245		—		14,881
Education	4,106		—		—		—		—		4,106
Other	523		—		—		—		—		523
	$	487,299	$	6,904	$	410	$	3,776	$	—	$	498,389

14

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

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, 2015 and 2014:

Three Months Ended December 31, 2015	Single Family			Multifamily		Commercial Real Estate		Construction and Land Development		Commercial Business			Consumer and Other			Total
Allowance for loan losses:
Beginning balance	$	1,073		$	1,013	$	1,604	$	330	$	498		$	80		$	4,598
Provision for loan losses	(42		)	327		47		14		(200		)	4			150
Loans charged-off	—			—		—		—		—			(10		)	(10		)
Recoveries	—			—		1		—		4			4			9
Ending balance	$	1,031		$	1,340	$	1,652	$	344	$	302		$	78		$	4,747
Period-ended amount allocated for:
Individually evaluated for impairment	$	23		$	—	$	—	$	—	$	—		$	55		$	78
Collectively evaluated for impairment	1,008			1,340		1,652		344		302			23			4,669
Ending Balance	$	1,031		$	1,340	$	1,652	$	344	$	302		$	78		$	4,747
Loans:
Individually evaluated for impairment	$	1,605		$	1,816	$	—	$	—	$	—		$	94		$	3,515
Collectively evaluated for impairment	149,385			116,873		163,515		17,163		31,866			19,277			498,079
Ending Balance	$	150,990		$	118,689	$	163,515	$	17,163	$	31,866		$	19,371		$	501,594

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

15

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

The following tables present additional detail of impaired loans, segregated by segment, as of and for the three month periods ended December 31, 2015 and 2014.  The unpaid principal balance represents the recorded balance prior to any partial charge-offs on the loans.  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 on a loan reported on either a cash or accrual basis after the loan became impaired.

							Three months ended
December 31, 2015	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Single family	$	1,338	$	1,194	$	—	$	1,189	$	14
Multifamily	1,889		1,816		—		1,824		19
Commercial real estate	—		—		—		—		—
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	117		39		—		105		—
With an allowance recorded:
Single family	411		411		23		412		3
Multifamily	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	55		55		55		55		1
	$	3,810	$	3,515	$	78	$	3,585	$	37

							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

16

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

The following is a summary of troubled debt restructured loans (TDRs) at December 31, 2015 and September 30, 2015:

	December 31, 2015		September 30, 2015
Troubled debt restructurings - accrual	$	3,111	$	3,134
Troubled debt restructurings - nonaccrual	—		—
	$	3,111	$	3,134

Modifications of loan terms as 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.

There were no loans modified as a TDR during the three months ended December 31, 2015 and 2014.

There were no re-defaults of TDRs that occurred during the three months ended December 31, 2015 and 2014.

Certain of the Bank’s executive officers, directors, and their associates are loan customers of the Bank.  As of December 31, 2015 and September 30, 2015, loans of approximately $3,628 and $3,334, respectively, were outstanding to such parties.  These loans were underwritten to the same standards as those used 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, 2015
Balance, beginning	$	3,334
New loans originated	—
Draws on lines of credit	47
Principal repayments	(122		)
Other1	369
Balance, ending	$	3,628

¹Officer, with existing loan, was promoted to executive officer position during the period.

17

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

Note 6.Deposits

The following table presents the composition of deposits as of:

	December 31, 2015				September 30, 2015
	Amount		Percent		Amount		Percent
Checking Accounts:
Noninterest bearing	$	108,370	19.48	%	$	101,486	19.11	%
Interest bearing	137,272		24.68	%	131,968		24.85	%
	245,642		44.16	%	233,454		43.96	%
Passbook and Statement Savings	125,836		22.63	%	127,431		24.00	%
Variable Rate Money Market Accounts	55,546		9.99	%	47,876		9.02	%
Certificates of Deposit	129,120		23.22	%	122,259		23.02	%
	$	556,144	100.00	%	$	531,020	100.00	%

Certificates of deposit over one hundred thousand dollars totaled $71,736 and $64,155 as of December 31, 2015 and September 30, 2015, respectively. Of these amounts, $10,498 and $8,775 are equal to or greater than two hundred fifty thousand dollars as of December 31, 2015 and September 30, 2015, respectively.

Note 7.Regulatory Capital

The federal banking agencies have adopted regulations that substantially amend the capital regulations currently applicable to us. These regulations implement the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act.

Effective January 1, 2015 (with some changes transitioned into full effectiveness over two to four years), the Bank became subject to new capital requirements adopted by the OCC. These new requirements (1) create a new required ratio for common equity Tier 1 ("CETI") capital, (2) increase the leverage and Tier 1 capital ratios, (3) change the risk weight of certain assets for purposes of the risk-based capital ratios, (4) create an additional capital conservation buffer over the required capital ratios and (5) change what qualifies as capital for purposes of meeting these various capital requirements. Beginning in 2016, failure to maintain the required capital conservation buffer limits the ability of the Bank to pay dividends, repurchase shares or pay discretionary bonuses. The Company is exempt from consolidated capital requirements as those requirements do not apply to certain small savings and loan holding companies with assets under $1 billion.

Under the new capital regulations, the minimum capital ratios are: (1) CETI capital ratio of 4.5% of risk-weighted assets; (2) a Tier 1 capital ratio of 6.0% of risk-weighted assets: (3) a total capital ratio of 8.0% of risk-weighted assets; and (4) a leverage ratio of 4.0%. CETI generally consists of common stock and retained earnings, subject to applicable regulatory adjustments and deductions.

There are a number of changes imposed under the new regulations in what constitutes regulatory capital, some of which are subject to transition periods. These changes include the phasing-out of certain instruments as qualifying capital. The Bank does not use any of these instruments. Under the new requirements for total capital, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of CETI will be deducted from capital. The Bank has elected to permanently opt-out of the inclusion of accumulated other comprehensive income in our capital calculations, as permitted by the regulations. We believe this opt-out will reduce the impact of market volatility on our regulatory capital levels.

The new requirements also include changes in the risk-weights of assets to better reflect credit risk and other risk exposures. These include a 150% risk weight (increased from 100%) for certain high volatility commercial real estate acquisition, development and construction loans and for non-residential mortgage loans that are 90 days past due or otherwise in non-accrual status; a 20% (increased from 0%) credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable; a 250% risk weight (increased from 100%) for mortgage

18

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

servicing and deferred tax assets that are not deducted from capital; and increased risk weights (0% to 600%) for equity exposures.

In addition to the minimum CETI, Tier 1 and total capital ratios, the Bank will have to maintain a capital conservation buffer consisting of additional CETI capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. This new capital conservation buffer requirement will be phased in beginning in January 2016 at 0.625% of risk-weighted assets and increasing each year until fully implemented in January 2019.

Additionally, the OCC's prompt corrective action standards changed effective January 1, 2015. Under the new standards, in order to be considered well-capitalized, the Bank must have a CETI ratio of 6.5% (new), a Tier 1 ratio of 8.0% (increased from 6.0%), a total risk-based capital ratio of 10.0% (unchanged) and a leverage ratio of 5.0% (unchanged). As of December 31, 2015 the Bank met all these new requirements, including the full capital conservation buffer.

The Bank’s actual capital amounts and ratios and those required by the regulatory standards in effect as of the dates presented were as follows:

At December 31, 2015	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
CETI capital (to risk-weighted assets) - Westbury Bank	$	64,178	12.09	%	$	23,888	4.50	%	$	34,504	6.50	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	64,178		12.09	%	31,850		6.00	%	42,467		8.00	%
Total capital (to risk-weighted assets) - Westbury Bank	68,925		12.99	%	42,448		8.00	%	53,060		10.00	%
Leverage (to adjusted total assets) - Westbury Bank	64,178		9.77	%	26,276		4.00	%	32,844		5.00	%

At September 30, 2015	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
CET1 capital (to risk-weighted assets) - Westbury Bank	$	64,155	12.25	%	$	23,567	4.50	%	$	34,041	6.50	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	64,155		12.25	%	31,423		6.00	%	41,897		8.00	%
Total capital (to risk-weighted assets) - Westbury Bank	68,753		13.12	%	41,923		8.00	%	52,403		10.00	%
Leverage (to adjusted total assets) - Westbury Bank	64,155		10.01	%	25,636		4.00	%	32,045		5.00	%

19

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

The following table reconciles the Bank’s stockholders’ equity to regulatory capital as of December 31, 2015 and September 30, 2015:

	December 31, 2015			September 30, 2015
Stockholder's equity of the Bank	$	70,087		$	70,976
Less: Unrealized (gain) loss on securities	239			(352		)
Disallowed investment in subsidiary	(3,296		)	(3,296		)
Disallowed deferred tax assets	(2,852		)	(3,173		)
Tier 1, CETI and tangible capital	64,178			64,155
Plus: Allowable general valuation allowances	4,747			4,598
Total capital	$	68,925		$	68,753

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 accompanying 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.

Company management has determined that the following instruments were outstanding, whose contract amounts represent credit risk:

	December 31, 2015		September 30, 2015
Commitments to extend mortgage credit:
Fixed rate	$	17,829	$	8,443
Adjustable rate	48		9,929
Unused commercial loan lines of credit	64,378		54,225
Unused home equity line of credit	25,580		26,164
Standby letters of credit	763		884
Commitment to sell loans	973		431

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,

20

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

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, 2015 and September 30, 2015, 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.

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 fair value 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 inputs are not available, securities are classified within Level 3 of the fair value 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 fair value 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:

21

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

			Fair Value Measurements
December 31, 2015	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	$	25	$	—	$	25	$	—
U.S. Government agency residential mortgage-backed securities	38,975		—		38,975		—
U.S. Government agency collateralized mortgage obligations	1,815		—		1,815		—
U.S. Government agency commercial mortgage-backed securities	15,945		—		15,945		—
Municipal securities	23,632		—		23,632		—
Corporate Bonds	3,845		—		3,845		—
Total securities available-for-sale	$	84,237	$	—	$	84,237	$	—
Derivatives	$	108	$	—	$	108	$	—
Liabilities
Derivatives	$	108	$	—	$	108	$	—

			Fair Value Measurements
September 30, 2015	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	$	25	$	—	$	25	$	—
U.S. Government agency residential mortgage-backed securities	39,692		—		39,692		—
U.S. Government agency collateralized mortgage obligations	1,941		—		1,941		—
U.S. Government agency commercial mortgage-backed securities	14,099		—		14,099		—
Municipal securities	21,667		—		21,667		—
Corporate Bonds	2,862		—		2,862		—
Total securities available-for-sale	$	80,286	$	—	$	80,286	$	—
Derivatives	$	110	$	—	$	110	$	—
Liabilities
Derivatives	$	110	$	—	$	110	$	—

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, 2015.  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, therefore, result in a transfer between levels.

22

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

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 $466 and $467 had a valuation allowance of $78 and $77 included in the allowance for loan losses to reflect their fair value as of December 31, 2015 and September 30, 2015, 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, 2015, mortgage servicing rights with a carrying amount of $1,241 had a valuation allowance of $105 to reflect their fair value of $1,136.  As of September 30, 2015, mortgage servicing rights with a carrying amount of $1,315 had a valuation allowance of $105 to reflect their fair value of $1,210.

Real estate held for sale: The Company does not record real estate held for sale at a fair value on a recurring basis. The fair value of real estate held for sale 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. Real estate held for sale is measured at fair value less estimated costs to sell at the time of transfer. Subsequent to transfer, additional writedowns may be recorded based on changes to the fair value of the assets.

			Fair Value Measurements
December 31, 2015	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	$	388	$	—	$	—	$	388
Foreclosed real estate	168		—		—		168
Mortgage servicing rights	1,136		—		—		1,136
Real estate held for sale	808		—		—		808

23

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

			Fair Value Measurements
September 30, 2015	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	$	390	$	—	$	—	$	390
Foreclosed real estate	283		—		—		283
Mortgage servicing rights	1,210		—		—		1,210
Real estate held for sale	882		—		—		882

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.

24

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

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, 2015 and September 30, 2015.

The estimated fair values and related carrying amounts of the Company’s financial instruments as of the dates noted below were as follows:

	December 31, 2015
	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	$	40,060	$	40,060	$	40,060	$	—	$	—
Securities available for sale	84,237		84,237		—		84,237		—
Securities held to maturity	2,459		2,489		—		2,489		—
Loans, net	496,545		496,075		—		—		496,075
Loans held for sale, net	973		973		—		973		—
Federal Home Loan Bank stock	3,350		3,350		—		—		3,350
Mortgage servicing rights	1,136		1,136		—		—		1,136
Accrued interest receivable	1,950		1,950		1,950		—		—
Derivative asset	108		108		—		108		—
Financial liabilities:
Deposits	556,144		530,251		108,370		—		421,881
Short-term advances from Federal Home Loan Bank	20,500		20,500		—		20,500		—
Long-term advances from Federal Home Loan Bank	10,000		9,993		—		—		9,993
Advance payments by borrowers for property taxes and insurance	146		146		146		—		—
Accrued interest payable	6		6		6		—		—
Derivative liability	108		108		—		108		—

25

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

	September 30, 2015
	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	$	16,488	$	16,488	$	16,488	$	—	$	—
Securities available for sale	80,286		80,286		—		80,286		—
Securities held to maturity	2,459		2,490		—		2,490		—
Loans, net	493,425		493,480		—		—		493,480
Loans held for sale, net	431		431		—		431		—
Federal Home Loan Bank stock	3,350		3,350		—		—		3,350
Mortgage servicing rights	1,210		1,210		—		—		1,210
Accrued interest receivable	1,965		1,965		1,965		—		—
Derivative asset	110		110		—		110		—
Financial liabilities:
Deposits	531,020		508,339		101,486		—		406,853
Short-term advances from Federal Home Loan Bank	18,000		18,000		—		18,000		—
Long-term advances from Federal Home Loan Bank	—		—		—		—		—
Advance payments by borrowers for property taxes and insurance	5,382		5,382		5,382		—		—
Accrued interest payable	5		5		5		—		—
Derivative liability	110		110		—		110		—

26

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

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 obligations to the Company. 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 debt repayment and release of shares generally occurs at December 31, the plan year end date. 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 financial statements. The shares pledged as collateral are reported as unearned ESOP shares in the accompanying 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 released shares, and the released shares become outstanding for EPS computations. During each of the three months ended December 31, 2015 and 2014, 5,142 shares were committed to be released. The total ESOP compensation expense recorded for the three months ended December 31, 2015 and 2014 was $91 and $112, respectively.

The ESOP shares as of December 31, 2015 and September 30, 2015 were as follows (in thousands, except share data):

	December 31, 2015		September 30, 2015
Allocated shares to active participants	32,966		34,132
Shares committed to be released	20,570		15,428
Unallocated shares	349,693		354,835
Total ESOP shares	403,229		404,395
Fair value of unallocated shares	$	6,294	$	6,323

Note 11. Equity Compensation 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:

	Three Months Ended December 31,
	2015		2014
Total cost of stock grant plan during the period	$	151	$	155
Total cost of stock option plan during the period	57		46
Total cost of share-based payment plans during the period	$	208	$	201
Amount of related income tax benefit recognized in income	$	82	$	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 issuance under the Plan of up to 203,665 restricted stock awards and up to 509,162 stock options. As of December 31, 2015 there were 4,092 restricted stock awards and 101,753 options available for future grants under the Plan.

27

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

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 common shares at the date of grant: those option awards generally vest pro-rata over five years of service and have 10-year contractual terms. Restricted shares and units typically vest pro-rata 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, 2015:

	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, 2015	406,409	$	15.68
Granted	1,000	17.60
Exercised	4,298	15.20
Expired or canceled	—	—
Forfeited	—	—
Options outstanding as of December 31, 2015	403,111	$	15.69	8.73	$	932
Options exercisable as of December 31, 2015	60,946	$	15.20	8.50	$	171

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 made by Company management. 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 three months ended December 31:

	2015			2014
Risk-free interest rate	1.99		%	—		%
Expected volatility of Company's stock	7.44		%	—		%
Expected dividend yield	—		%	—		%
Expected life of options (years)	7.5			0.0
Weighted average fair value per option of options granted during the period	$	2.89		$	—

The total intrinsic value of options exercised during each of the three months ended December 31, 2015 and 2014 was $10 and $0.

The following is a summary of changes in restricted shares for the three months ended December 31, 2015:

	Number of Shares	Weighted Average Grant Date Fair Value
Shares Outstanding at September 30, 2015	158,052	$	15.20
Granted	1,000	17.60
Vested	—	—
Forfeited	—	—
Shares Outstanding at December 31, 2015	159,052	$	15.22

28

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

The total intrinsic value of restricted shares that vested during the three months ended December 31, 2015 and 2014 was $0.

As of December 31, 2015, there was $3.1 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, 2015, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 3.6 years.

29

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

Note 12. Condensed Parent Company Financial Information

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

Balance Sheets
	December 31,		September 30,
	2015		2015
Assets
Cash and interest bearing deposits	$	3,324	$	1,440
Investments	86		115
Loan to ESOP	3,620		3,778
Investment in subsidiary	73,220		74,201
Other assets	2,127		2,660
Total assets	$	82,377	$	82,194
Liabilities and Stockholders' Equity
Total liabilities	$	125	$	157
Stockholders' equity	82,252		82,037
Total liabilities and stockholders' equity	$	82,377	$	82,194

Statements of Operations
	Three Months Ended December 31,
	2015			2014
Interest and other income	$	32		$	63
Interest and other expense	121			184
Loss before income tax benefit and equity in undistributed net income of subsidiary	(89		)	(121		)
Income tax benefit	(18		)	(30		)
Loss before equity in undistributed net income of subsidiary	(71		)	(91		)
Equity in undistributed net income of subsidiary	1,110			538
Net income	$	1,039		$	447

30

Westbury Bancorp, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial Statements

(Dollars in Thousands, except per share data)

Statements of Cash Flows
	For Three Months Ended December 31,
	2015			2014
Cash Flows From Operating Activities
Net income	$	1,039		$	447
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiary	(1,110		)	(538		)
Net change in other liabilities	(32		)	15
Net change in other assets	742			124
Net cash provided by operating activities	639			48
Cash Flows From Investing Activities
Purchase of securities	—			(376		)
Sales and maturities of securities	29			212
Payments received on ESOP loan	158			153
Dividend received from bank subsidiary	1,500			—
Net cash provided by (used in) investing activities	1,687			(11		)
Cash Flows From Financing Activities
Stock options exercised	64			—
Repurchase of common stock	(506		)	(833		)
Net cash used in financing activities	(442		)	(833		)
Net increase (decrease) in cash	1,884			(796		)
Cash
Beginning of period	1,440			6,878
End of period	$	3,324		$	6,082

31

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 current economic conditions nationally and in our market area;

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

• significant increases in our loan losses, including as a result of our inability to resolve classified assets, and changes in 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 charge-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 multifamily lending while maintaining our asset quality;

• our success in introducing new financial products;

• our ability to attract and maintain deposits;

• our ability to retain customer accounts, achieve increased operating efficiencies and enhance 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 allowance for loan losses, write down assets, change our regulatory capital position, limit our ability to borrow funds or maintain or increase deposits;

32

• changes in the level of government support of housing finance;

• 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 changes in the regulations implementing the Dodd-Frank Act, the JOBS Act and similar future laws, which could result in, among other things, increased deposit insurance premiums and assessments, capital requirements (particularly the new capital regulations), and regulatory fees and compliance costs;

• 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;

• our ability to retain key members of our senior management team and to address staffing needs to respond to demand or to implement our strategic plans;

• loan delinquencies and changes in the underlying cash flows of our borrowers;

• our ability to control costs and expenses, particularly those associated with operating as a publicly traded company;

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

• the ability of third-party service providers to perform their obligations to us;

• the availability, effectiveness and security of our information technology systems and our ability to secure confidential information through the use of our computer and other technology systems and networks;

• other economic, competitive, governmental, regulatory and operational factors affecting our operations, pricing, products and services described elsewhere in this annual report; and

• the impact of reputational risk created by any of the foregoing developments on such matters such as business generation and retention, funding and liquidity.

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.

33

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 fiscal year ended September 30, 2015.

Overview

Our Business. 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. Westbury Bank is a federally-chartered savings bank headquartered in West Bend, Wisconsin.

We provide financial services to individuals, families and businesses through our eight banking offices located in Washington County, Wisconsin and Waukesha County, Wisconsin. We also operate a loan production office in Appleton, Wisconsin, located in Outagamie County. Although our current operations are not focused in Milwaukee County, Wisconsin, we are affected by conditions in Milwaukee County because our loan portfolio includes a significant number of loans that are secured by real estate or that have borrowers located in 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 rate cycles. 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 provision for loan losses, non-interest income and non-interest expense. Non-interest income 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 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.

Comparison of Financial Condition at December 31, 2015 and September 30, 2015

Total Assets.  Total assets increased by $31.6 million, or 5.0%, to $670.6 million at December 31, 2015 from $638.9 million at September 30, 2015.  The increase in total assets was primarily the result of an increase in cash and cash equivalents of $23.6 million, securities available for sale of $4.0 million, net loans of $3.1 million and cash surrender value of life insurance of $746,000.

Cash and Cash Equivalents. Cash and cash equivalents increased by $23.6 million, or 143.0%, to $40.1 million at December 31, 2015 from $16.5 million at September 30, 2015. The increase was the result of growth in deposit balances near the end of the quarter. The increased cash is expected to be allocated to the Bank's loan and investment portfolios in the upcoming quarter.

Net Loans.  Net loans increased by $3.1 million, or 0.6%, to $496.5 million at December 31, 2015 from $493.4 million at September 30, 2015.  Multifamily loans increased by $12.9 million, offset by a decrease in commercial business loans of $6.3 million, construction and land development loans of $1.7 million and single family loans of $2.2 million. The decrease in commercial business loans was the result of seasonal fluctuations in commercial lines of credit and the payoff of a large substandard credit. The decrease in construction and land development loans was the result of the completion of construction and the subsequent transfer of a loan to multifamily loans.

Investment Securities.  Investment securities available for sale increased $4.0 million, or 4.9%, to $84.2 million at December 31, 2015 from $80.3 million at September 30, 2015.  Municipal securities available for sale increased $2.0 million,

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mortgage-backed securities and collateralized mortgage obligations increased $1.0 million, and corporate bonds increased $983,000. These changes occurred as we invested new deposit balances and repositioned the portfolio through normal portfolio management.

Net unrealized loss on securities increased by $971,000 to $391,000 at December 31, 2015 from a net unrealized gain of $580,000 at September 30, 2015, reflecting the effect of an increase in market interest rates.  At December 31, 2015, investment securities classified as available-for-sale consisted entirely of government-sponsored enterprise mortgage-backed securities, municipal securities, and corporate bonds. At December 31, 2015, investment securities classified as held to maturity consisted entirely of municipal securities.

The outstanding balances of investment securities held to maturity were unchanged at December 31, 2015 from September 30, 2015.

Foreclosed Real Estate.  Foreclosed real estate held for sale decreased $115,000, or 40.6%, to $168,000 at December 31, 2015 from $283,000 at September 30, 2015, as we sold $89,000 of foreclosed properties and recorded valuation adjustments of $26,000 during the period.  At December 31, 2015, our foreclosed real estate consisted solely of commercial real estate properties.

Cash Surrender Value of Bank-Owned Life Insurance. Cash surrender value of bank-owned life insurance increased $746,000, or 5.7%, to $13.9 million at December 31, 2015 from $13.2 million at September 30, 2015, as we purchased single premium life insurance on our president and CEO for $637,000 during the quarter.

Deferred Tax Asset. The deferred tax asset decreased $255,000, or 3.4%, to $7.3 million at December 31, 2015 from $7.5 million at September 30, 2015, as the asset was reduced by the accrual of income tax expense as the Company recorded taxable income for the period, offset by an increase in the deferred tax asset related to unrealized gains and losses on investment securities available for sale.

Deposits.  Deposits increased $25.1 million, or 4.7%, to $556.1 million at December 31, 2015 from $531.0 million at September 30, 2015.  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 $18.3 million, or 4.5%, to $427.0 million at December 31, 2015 from $408.8 million at September 30, 2015.  In particular, variable rate money market accounts increased by $7.7 million, or 16.0%, to $55.5 million at December 31, 2015 from $47.9 million at September 30, 2015 and noninterest bearing deposits increased by $6.9 million, or 6.8%, to $108.4 million at December 31, 2015 from $101.5 million at September 30, 2015. Certificates of deposit increased $6.9 million, or 5.6%, to $129.1 million at December 31, 2015 from $122.3 million at September 30, 2015.   Growth in certificates of deposit was generated primarily through the use of Internet listing services to attract balances from other financial institutions.

Advances from FHLB. Short-term advances from the FHLB increased by $2.5 million, or 13.9% to $20.5 million at December 31, 2015 from $18.0 million at September 30, 2015. Long-term advances from the FHLB increased by $10.0 million to $10.0 million at December 31, 2015 from $0 at September 30, 2015. In anticipation of rising interest rates, we locked in long-term advances with terms from three to five years during the quarter.

Advance Payments By Borrowers For Property Taxes and Insurance.  Advance payments by borrowers for property taxes and insurance decreased by $5.2 million, or 97.3%, to $146,000 at December 31, 2015 from $5.4 million at September 30, 2015 due to seasonal disbursements to customers in December 2015 to enable the payment of mortgagees’ property taxes offset by ongoing monthly payments by borrowers. 

Total Stockholders' Equity.  Total stockholders' equity increased $306,000 to $79.1 million at December 31, 2015 from $78.8 million at September 30, 2015.  The increase resulted primarily from net income of $1.0 million, stock based compensation expense of $208,000 and the allocation of ESOP shares of $91,000, offset by the repurchase of 27,994 shares of common stock for $506,000 and a decrease in other comprehensive income of $590,000.

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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, 2015:
Real estate loans:
One- to four-family	9	$	696	—	$	—	5	$	365	14	$	1,061
Multi-family	—	—		—	—		—	—		—	—
Commercial	—	—		—	—		—	—		—	—
Construction and land	—	—		—	—		—	—		—	—
Total real estate	9	696		—	—		5	365		14	1,061
Commercial business loans	1	6		—	—		—	—		1	6
Consumer loans:
Home equity lines of credit	—	—		—	—		1	27		1	27
Education	5	24		5	40		7	106		17	170
Other consumer loans	—	—		—	—		—	—		—	—
Total consumer loans	5	24		5	40		8	133		18	197
Total	15	$	726	5	$	40	13	$	498	33	$	1,264
At September 30, 2015:
Real estate loans:
One- to four-family	10	$	473	1	$	83	5	$	340	16	$	896
Multi-family	—	—		—	—		—	—		—	—
Commercial	—	—		—	—		—	—		—	—
Construction and land	1	4		—	—		—	—		1	4
Total real estate	11	477		1	83		5	340		17	900
Commercial business loans	—	—		—	—		—	—		—	—
Consumer loans:
Home equity lines of credit	—	—		—	—		3	190		3	190
Education	5	79		—	—		10	245		15	324
Other consumer loans	—	—		—	—		—	—		—	—
Total consumer loans	5	79		—	—		13	435		18	514
Total	16	$	556	1	$	83	18	$	775	35	$	1,414

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Classified Assets

The following table details the Company’s assets graded Substandard or Special Mention at the dates indicated:

	At December 31, 2015		At September 30, 2015
	(In thousands)
Classified Loans:
Loss	$	—	$	—
Doubtful	—		—
Substandard — performing:
Real estate loans:
One- to four-family	1,548		1,390
Multi-family	—		—
Commercial	304		307
Construction and land	—		—
Total real estate loans	1,852		1,697
Commercial business loans	63		1,639
Consumer loans:
Home equity lines of credit	96		55
Other consumer loans	—		—
Total consumer loans	96		55
Total substandard — performing	2,011		3,391
Substandard — Nonperforming:
Real estate loans:
One- to four-family	219		195
Multi-family	—		—
Commercial	—		—
Construction and land	—		—
Total real estate loans	219		195
Commercial business loans	—		—
Consumer loans:
Home equity lines of credit	27		190
Other consumer loans	—		—
Total consumer loans	27		190
Total substandard — nonperforming	246		385
Total classified loans	2,257		3,776
Foreclosed real estate	168		283
Total classified assets	$	2,425	$	4,059
Special mention:
Real estate loans:
One- to four-family	$	—	$	—
Multi-family	—		—
Commercial	407		410
Construction and land	—		—
Total real estate loans	407		410
Commercial business loans	—		—
Consumer loans:
Home equity lines of credit	—		—
Other consumer loans	—		—
Total consumer loans	—		—
Total special mention	407		410
Total classified assets and special mention loans	$	2,832	$	4,469

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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, 2015			At September 30, 2015
	(Dollars in thousands)
Nonaccrual loans:
Real estate loans:
One- to four-family	$	365		$	340
Multi family	—			—
Commercial	—			—
Construction and land	—			—
Total real estate	365			340
Commercial business loans	—			—
Consumer loans:
Home equity lines of credit	39			203
Education	146			260
Other consumer loans	—			—
Total consumer loans	185			463
Total nonaccrual loans (1)	550			803
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	550			803
Foreclosed assets:
One- to four-family	—			89
Multi-family	—			—
Commercial real estate	168			194
Construction and land	—			—
Home equity line of credit	—			—
Total foreclosed assets	168			283
Total nonperforming assets	$	718		$	1,086
Performing troubled debt restructurings	$	3,111		$	3,134
Ratios:
Nonperforming loans to total loans	0.11		%	0.16		%
Nonperforming assets to total assets	0.11		%	0.17		%
Nonperforming assets and troubled debt restructurings to total assets	0.57		%	0.66		%

_______________________

⁽¹⁾  There were no troubled debt restructurings that were on non-accrual status at December 31, 2015 or September 30, 2015.

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The decrease in delinquent loans and non-performing assets at December 31, 2015, from September 30, 2015, was primarily due to our collection efforts and the quality of our underwriting, which resulted in reductions in delinquent and non-performing loans. The reduction in classified assets between these dates resulted primarily from the payoff of a Substandard commercial business relationship as a result of the customer refinancing the debt with another financial institution.

Interest income that would have been recorded for the three months ended December 31, 2015, had non-accruing loans been current according to their original terms, amounted to approximately $6,000.  There was no interest related to these loans included in interest income for the three months ended December 31, 2015.

Other Loans of Concern.   There were no other loans at December 31, 2015 that are not already disclosed where there is information about possible credit problems of borrowers available to our management that caused management to have serious doubts about the ability of the borrowers to comply with present loan repayment terms and that are reasonably likely to result in disclosure of such loans in the future.

Comparison of Operating Results for the Three Months Ended December 31, 2015 and December 31, 2014

General.  Net income for the three months ended December 31, 2015 was $1.0 million compared to $447,000 for the three months ended December 31, 2014. The increase in net income of $592,000 was due primarily to increases of $554,000 in net interest income and decreases in noninterest expenses of $320,000 and provision for loan losses of $200,000 offset by an increase in income tax expense of $413,000.

Interest and Dividend Income. Interest and dividend income increased $715,000, or 14.7%, to $5.6 million for the three months ended December 31, 2015 from $4.9 million for the three months ended December 31, 2014. This increase was primarily attributable to an increase of $658,000 in interest income on loans receivable and $43,000 in interest and dividend income on investment securities. 

The average balance of interest-earning assets increased $68.9 million, or 13.3%, to $587.6 million for the three months ended December 31, 2015 from $518.7 million for the three months ended December 31, 2014. The yield on average interest-earning assets increased by 5 basis points to 3.81% for the three months ended December 31, 2015 from 3.76% for the three months ended December 31, 2014.

The average balance of loans increased $72.4 million to $495.7 million for the three months ended December 31, 2015 from $423.3 million for the three months ended December 31, 2014. The average yield on loans decreased by 8 basis points to 4.13% for the three months ended December 31, 2015 from 4.21% for the three months ended December 31, 2014.  The decrease in our average yield on loans reflected 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 average balance of investment securities decreased by $1.1 million, or 1.3%, to $84.4 million for the three months ended December 31, 2015 from $85.4 million for the three months ended December 31, 2014, while the average yield on investment securities increased by 23 basis points to 2.14% for the three months ended December 31, 2015 from 1.91% for the three months ended December 31, 2014. The increase in the average yield on investment securities was due to the inclusion in the investment portfolio of commercial mortgage-backed securities and corporate securities for the three months ended December 31, 2015. These higher yielding types of securities were not part of the portfolio for the three months ended December 31, 2014.  

Interest Expense. Total interest expense increased $161,000, or 37.5%, to $590,000 for the three months ended December 31, 2015 from $429,000 for the three months ended December 31, 2014.  Interest expense on deposit accounts increased $133,000 to $558,000 for the three months ended December 31, 2015 from $425,000 for the three months ended December 31, 2014. 

The average balance of deposits and interest-bearing liabilities increased $92.6 million, or 19.2%, to $575.9 million for the three months ended December 31, 2015 from $483.3 million for the three months ended December 31, 2014. The average cost of deposits and interest-bearing liabilities increased 5 basis points to 0.41% for the three months ended December 31, 2015 from 0.36% for the three months ended December 31, 2014.

The average balance of interest bearing deposits increased $26.9 million to $439.6 million for the three months ended December 31, 2015 from $412.7 million for the three months ended December 31, 2014, and the average cost of interest bearing deposits increased 10 basis points to 0.51% from 0.41%. The increase in the cost of interest bearing deposits was

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caused by a change in the composition of our interest bearing deposits, with the average balance of higher cost certificates of deposit increasing by $26.6 million and the average balance of lower cost checking, savings and money market accounts increasing by only $269,000. Additionally, the average balance of non-interest bearing demand deposits increased by $48.5 million which helped hold the increase in our overall cost of deposits to only 5 basis points.

Interest expense on FHLB advances increased $28,000 to $32,000 for the three months ended December 31, 2015 from $4,000 for the three months ended December 31, 2014. The increase was due to an increase of $10.2 million in the average balance of short-term FHLB advances to $20.6 million for the three months ended December 31, 2015 from $10.4 million for the three months ended December 31, 2014 and an increase in the average balance of long-term FHLB advances to $7.0 million for the three months ended December 31, 2015 from zero at December 31, 2014.

Net Interest Income. Net interest income increased $554,000, or 12.4%, to $5.0 million for the three months ended December 31, 2015 from $4.5 million for the three months ended December 31, 2014.  Average interest-earning assets increased by $68.9 million, or 13.3%, to $587.6 million for the three months ended December 31, 2015, from $518.7 million for the three months ended December 31, 2014. Average deposits and interest-bearing liabilities increased by $92.6 million, or 19.2%, to $575.9 million for the three months ended December 31, 2015, from $483.3 million for the three months ended December 31, 2014.  Our net interest margin decreased 2 basis points to 3.41% for the three months ended December 31, 2015 from 3.43% for the three months ended December 31, 2014.  The decrease in our net interest margin reflected 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 change in asset mix with growth concentrated in the loan portfolio positively impacted the margin between these periods as investment securities generally do not carry yields as high as those on loan products.

Provision for Loan Losses.  We recorded a provision for loan losses of $150,000 for the three months ended December 31, 2015 compared to $350,000 for the three months ended December 31, 2014.  The decrease in the provision resulted from the improvement in our charge-off experience compared to the prior period, offset by the impact of the growth in the loan portfolio compared to the prior year period. The allowance for loan losses was $4.7 million, or 0.95% of total loans, at December 31, 2015, compared to $4.6 million, or 0.92% of total loans, at September 30, 2015, and $4.2 million, or 0.95% of total loans, at December 31, 2014.  Total nonperforming loans were $550,000, or 0.11% of total loans, at December 31, 2015, compared to $803,000, or 0.16% of total loans, at September 30, 2015, and $1.2 million, or 0.27% of total loans, at December 31, 2014.  As a percentage of nonperforming loans, the allowance for loan losses was 863.1% at December 31, 2015, compared to 572.6% at September 30, 2015, and 350.0% at December 31, 2014.  Total classified loans were $2.3 million at December 31, 2015, compared to $3.8 million at September 30, 2015, and $3.7 million at December 31, 2014.

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, 2015 and September 30, 2015.

Non-Interest Income.  Non-interest income decreased $69,000, or 4.1%, to $1.6 million for the three months ended December 31, 2015 from $1.7 million for the three months ended December 31, 2014. The decrease was primarily related to decreases in service fees on deposit accounts of $78,000 and gains on sales of investment securities of $68,000, offset by an increase in other income of $55,000 and gains on sales of loans of $32,000. 

The decrease in service fees on deposit accounts resulted from lower interchange rates paid on debit card transactions and slightly reduced overdraft activity on our checking accounts. The decrease in gains on sales of investment securities resulted from a lower level of sales during the current quarter as compared to the prior year quarter as slower loan growth reduced the need to sell securities to fund growth. The increase in other income resulted from the receipt of a prepayment penalty on the payoff of a commercial real estate loan occurring during the current year quarter. The increase in gain on sales of loans resulted from an increase in the volume of fixed rate mortgage loans sold on the secondary market during the quarter ended December 31, 2015.

Non-Interest Expense.  Non-interest expense decreased $320,000, or 6.3%, to $4.8 million for the three months ended December 31, 2015, from $5.1 million for the three months ended December 31, 2014. The decrease was primarily caused by decreases in net loss from operation and sale of foreclosed real estate of $135,000, other expense of $104,000 and salaries and employee benefits of $65,000. These decreases were offset by an increase in the loss on real estate held for sale of $47,000.

The decrease in net loss from operation and sale of foreclosed real estate resulted from the continued low level of other real estate owned. The decrease in salaries and employee benefits resulted primarily from reductions in staffing due to branches closed during fiscal 2015. The decrease in other expense resulted primarily from the elimination of a service contract which was terminated in June 2015. The loss on real estate held for sale resulted from a valuation allowance recorded based on an updated evaluation of the fair value, less cost to sell, of real estate held for sale and a loss on the ultimate sale of a property.

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Provision for Income Taxes.  Income tax expense was $636,000 for the three months ended December 31, 2015, compared to $223,000 for the three months ended December 31, 2014.  The effective tax rate as a percent of pre-tax income was 38.0% and 33.3% for the three months ended December 31, 2015 and 2014, respectively. The increase in the effective tax rate resulted from tax-exempt income (primarily increases in cash surrender value of life insurance and interest on tax-exempt securities) making up a smaller percentage of pretax income in the current period compared to the prior period.

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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 for the periods indicated.  Average balances are derived from daily average balances for all periods presented in the table.  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.

	For the Three Months Ended December 31,
	2015						2014
	Average Outstanding Balance		Interest		Yield/Cost		Average Outstanding Balance		Interest		Yield/Cost
Assets:
Loans	$	495,742	$	5,117	4.13	%	$	423,319	$	4,459	4.21	%
Securities	84,368		452		2.14		85,437		409		1.91
Fed funds sold and other interest-earning deposits	7,440		26		1.40		9,920		12		0.48
Total interest-earning assets	587,550		5,595		3.81	%	518,676		4,880		3.76	%
Noninterest-earning assets	75,896						61,696
Total assets	$	663,446					$	580,372
Liabilities and stockholders' equity:
Noninterest-bearing demand deposits	$	108,720	$	—	—	%	$	60,207	$	—	—	%
Checking accounts	140,131		99		0.28		167,086		103		0.25
Passbook and statement savings	128,298		45		0.14		122,707		49		0.16
Variable rate money market	47,522		50		0.42		25,889		10		0.15
Certificates of deposit	123,648		364		1.18		97,040		263		1.08
Total interest bearing deposits	439,599		558		0.51		412,722		425		0.41
Total deposits	548,319		558		0.41		472,929		425		0.36
Short-term FHLB advances	20,587		8		0.16		10,353		4		0.15
Long-term FHLB advances	6,956		24		1.38		—		—		—
Total deposits and interest-bearing liabilities	575,862		590		0.41	%	483,282		429		0.36	%
Other liabilities	9,107						9,999
Total liabilities	584,969						493,281
Stockholders' equity	78,477						87,091
Total liabilities and stockholders' equity	$	663,446					$	580,372
Net interest income			$	5,005					$	4,451
Net interest rate spread					3.40	%					3.40	%
Net interest-earning assets	$	11,688					$	35,394
Net interest margin					3.41	%					3.43	%
Average of interest-earning assets to interest-bearing liabilities					102.03	%					107.32	%

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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-earning 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 $4.7 million and $6.2 million for the three months ended December 31, 2015 and December 31, 2014, 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 sale of securities and proceeds from maturing securities and pay downs on mortgage-backed securities, was $8.9 million and $17.9 million for the three months ended December 31, 2015 and December 31, 2014, respectively.  During the three months ended December 31, 2015, we purchased $12.4 million and sold $5.2 million in securities held as available-for-sale, and 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.  Net cash provided by financing activities was $37.2 million and $30.9 million for the three months ended December 31, 2015 and December 31, 2014, respectively, and consisted of increases in deposit accounts and FHLB borrowings offset by the purchase of Company stock.

At December 31, 2015, Westbury Bank exceeded all of its regulatory capital requirements with Tier 1 leverage capital of $64.2 million, or 9.77% of adjusted total assets, which is above the well-capitalized level of $32.8 million, or 5.00%; Common Equity Tier 1 capital of $64.2 million, or 12.09% of adjusted total assets, which is above the well-capitalized level of $34.5 million, or 6.50%; Tier 1 capital of $64.2 million, or 12.09% of risk-weighted assets, which is above the well-capitalized level of $42.5 million, or 8.00%; and total risk-based capital of $68.9 million, or 12.99% of risk-weighted assets, which is above the well-capitalized level of $53.1 million, or 10.00%.  Accordingly, Westbury Bank was categorized as well-capitalized at December 31, 2015 under all Prompt Corrective Action Provisions, as determined by the OCC, our primary regulator. 

At December 31, 2015, we had outstanding commitments to originate loans of $17.9 million, unused commercial lines of credit of $64.4 million, unused home equity lines of credit of $25.6 million, and stand-by letters of credit of $763,000.  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, 2015 totaled $51.5 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 FHLB advances 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. These arrangements are not likely to have a material impact on the Company's financial condition or results of operations. 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.

43

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

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that the information required to be disclosed in reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

In designing and evaluating the disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply judgment in evaluating the cost-benefit relationship of possible controls and procedures. We have designed our disclosure controls and procedures to reach a level of reasonable assurance of achieving the

desired control objectives.

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 of December 31, 2015. 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 as of December 31, 2015 at reaching a level of reasonable assurance.

During the quarter ended December 31, 2015, 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, as amended) that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II

ITEM 1. LEGAL PROCEEDINGS

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, 2015, we were not involved in any legal proceedings, the outcome of which, in our reasonable opinion, 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. 

On May 21, 2015, the Company announced that its Board of Directors had authorized the repurchase of up to 200,000 shares of the Company's common stock, representing 4.52% of the Company's then outstanding shares. In connection with this authorization, the Company announced the completion of the previous authorization to purchase 492,695 shares. The shares

44

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, 2015, 120,670 shares had been purchased under the current plan.

The table below sets forth Westbury Bancorp Inc.'s common stock repurchases during the three months ended December 31. 2015.

Period	(a) Total number of shares purchased1	(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, 2015	4,531	$	17.54	4,531	100,712
November 1- November 30, 2015	1,095	17.74		1,095	99,617
December 1- December 31, 2015	22,368	18.19		22,368	77,249
Total	27,994	$	18.07	27,994

______________________________________________________________________

(1) All shares were repurchased pursuant to the May 21, 2015 authorization.

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 28, 2016

/s/ Greg J. Remus

Greg J. Remus

President and Chief Executive Officer

/s/ Kirk J. Emerich

Kirk J. Emerich

Executive Vice President and Chief Financial Officer

46

INDEX TO EXHIBITS

Exhibit Number	Description
31.1	Certification of Greg J. Remus, President and Chief Executive Officer, Pursuant to Rule 13a-14(a) and Rule 15d-14(a)
31.2	Certification of Kirk J. Emerich, Executive Vice President and Chief Financial Officer, Pursuant to Rule 13a-14(a) and Rule 15d-14(a)
32	Certification of Greg J. Remus, President and Chief Executive Officer, and Kirk J. Emerich, Executive 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, 2015, 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

_

* - This certification is not "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities and Exchange Act of 1934, as amended.

______________________________________

47

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Greg J. Remus, 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 28, 2016

/s/ Greg J. Remus

Greg J. Remus

President 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 28, 2016

/s/ Kirk J. Emerich

Kirk J. Emerich

Executive 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 December 31, 2015 as filed with the Securities and Exchange Commission (the “Report”), the undersigned, Greg J. Remus, Chief Executive Officer of the Company, and Kirk J. Emerich, Executive 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/ Greg J. Remus
	Date: January 28, 2016
Greg J. Remus
President and Chief Executive Officer
/s/ Kirk J. Emerich
	Date: January 28, 2016
Kirk J. Emerich
Executive 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. This certification is made solely for purposes of 18 U.S.C. Section 1350, subject to the knowledge standard contained therein, and not for any other purpose.

XML

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Jan. 28, 2016
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, 2015
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		4,229,061
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Assets
Cash and due from banks	$ 23,087	$ 9,963
Interest-earning deposits	16,973	6,525
Cash and cash equivalents	40,060	16,488
Securities available-for-sale	84,237	80,286
Securities held to maturity, at amortized cost ($2,489 and $2,490 fair value at December 31 and September 30, respectively)	2,459	2,459
Loans held for sale, at lower of cost or fair value	973	431
Loans, net of allowance for loan losses of $4,747 and $4,598 at December 31 and September 30, respectively	496,545	493,425
Federal Home Loan Bank stock, at cost	3,350	3,350
Foreclosed real estate	168	283
Real estate held for investment	2,025	2,047
Real estate held for sale	808	882
Office properties and equipment, net	13,732	13,867
Cash surrender value of bank-owned life insurance	13,913	13,167
Mortgage servicing rights	1,136	1,210
Deferred tax asset	7,291	7,546
Other assets	3,880	3,488
Total assets	670,577	638,929
Liabilities
Deposits	556,144	531,020
Short-term advances from Federal Home Loan Bank	20,500	18,000
Long-term advances from Federal Home Loan Bank	10,000	0
Advance payments by borrowers for property taxes and insurance	146	5,382
Other liabilities	4,669	5,715
Total liabilities	591,459	560,117
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; 5,341,114 shares issued at December 31, 2015 and September 30, 2015	53	53
Additional paid-in capital	50,457	50,145
Retained earnings	49,753	48,714
Unearned Employee Stock Ownership Plan (ESOP) shares	(3,497)	(3,548)
Accumulated other comprehensive gain (loss)	(238)	352
Less common stock repurchased, 1,040,103 shares at cost, at December 31, 2015 and 1,012,109 at September 30, 2015	(17,410)	(16,904)
Total stockholders’ equity	79,118	78,812
Total liabilities and stockholders’ equity	$ 670,577	$ 638,929

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Statement of Financial Position [Abstract]
Securities held to maturity, fair value	$ 2,489	$ 2,490
Allowance for loan losses	$ 4,747	$ 4,598
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	5,346,412	5,341,114
Treasury stock, shares	1,040,103	1,012,109

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Interest and dividend income:
Loans	$ 5,117	$ 4,459
Investments - nontaxable	15	17
Investments - taxable	437	392
Interest bearing deposits	26	12
Total interest and dividend income	5,595	4,880
Interest expense:
Deposits	558	425
Short-term advances from the Federal Home Loan Bank	8	4
Long-term advances from the Federal Home Loan Bank	24	0
Total interest expense	590	429
Net interest income before provision for loan losses	5,005	4,451
Provision for loan losses	150	350
Net interest income after provision for loan losses	4,855	4,101
Noninterest income:
Service fees on deposit accounts	1,078	1,156
Gain on sales of loans, net	101	69
Servicing fee income, net of amortization and impairment	37	37
Insurance and securities sales commissions	73	58
Gain on sales of securities	2	70
Gain on sales of branches and other assets	0	18
Increase in cash surrender value of life insurance	110	102
Rental income from real estate operations	113	128
Other income	91	36
Total noninterest income	1,605	1,674
Noninterest expenses:
Salaries and employee benefits	2,316	2,381
Commissions	48	55
Occupancy	298	313
Furniture and equipment	121	103
Data processing	747	781
Advertising	41	60
Real estate held for investment	98	103
Net loss from operations and sale of foreclosed real estate	(13)	(148)
FDIC insurance premiums	104	105
Valuation loss on real estate held for sale	47	0
Other expenses	952	1,056
Total noninterest expenses	4,785	5,105
Income before income tax expense	1,675	670
Income tax expense	636	223
Net income	$ 1,039	$ 447
Earnings per share:
Basic (in dollars per share)	$ 0.27	$ 0.10
Diluted (in dollars per share)	$ 0.27	$ 0.10

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 1,039	$ 447
Other comprehensive income, before tax:
Unrealized gains (losses) on available-for-sale securities	(969)	255
Reclassification adjustment for realized gains included in net income	(2)	(70)
Other comprehensive income (loss), before tax	(971)	185
Income tax expense (benefit) related to items of other comprehensive income	381	(73)
Other comprehensive income (loss), net of tax	(590)	112
Comprehensive income	$ 449	$ 559

XML

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	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, 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
Exercise of 4,298 stock options	0
Repurchase of 27,994 and 55061 shares, respectively, of common stock	(833)							(833)
Stock based compensation expense	201			201
Allocation,or commitment to be allocated, of 5,142 shares by ESOP	112			61		51
Balance at Dec. 31, 2014	86,526	0	53	49,426	45,637	(3,703)	66	(4,953)
Balance at Sep. 30, 2015	78,812	0	53	50,145	48,714	(3,548)	352	(16,904)
Increase (Decrease) in Stockholders' Equity
Net income	1,039	0			1,039
Other comprehensive income (loss), net of tax	(590)						(590)
Exercise of 4,298 stock options	64			64
Repurchase of 27,994 and 55061 shares, respectively, of common stock	(506)							(506)
Stock based compensation expense	208			208
Allocation,or commitment to be allocated, of 5,142 shares by ESOP	91	0		40		51
Balance at Dec. 31, 2015	$ 79,118	$ 0	$ 53	$ 50,457	$ 49,753	$ (3,497)	$ (238)	$ (17,410)

XML

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Number of shares allocated by ESOP	5,142	5,142
Exercised (shares)	4,298
Number of shares repurchased during period	27,994	55,061

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities
Net income	$ 1,039	$ 447
Adjustments to reconcile net income to net cash used in operating activities:
Provision for loan losses	150	350
Depreciation and amortization	192	145
Depreciation on real estate held for investment	22	33
Net amortization of securities premiums and discounts	120	149
Amortization and impairment of mortgage servicing rights	74	96
Gain on sales of available-for-sale securities	(2)	(70)
Gain on sales of branches and other assets	0	(18)
Write-down of real estate held-for-sale	47	0
(Gain) loss on sale of foreclosed real estate	(20)	79
Write-down of foreclosed real estate	26	57
Loans originated for sale	(8,957)	(6,819)
Proceeds from sale of loans	8,516	5,132
Gain on sale of loans, net	(101)	(69)
ESOP compensation expense	91	112
Stock based compensation expense	208	201
Deferred income taxes	636	224
Increase in cash surrender value of life insurance	(110)	(102)
Net change in:
Other assets	(391)	(243)
Other liabilities and advance payments by borrowers for property taxes and insurance	(6,282)	(5,880)
Net cash used in operating activities	(4,742)	(6,176)
Cash Flows From Investing Activities
Purchases of securities available-for-sale	(12,375)	(8,189)
Proceeds from sales of securities available-for-sale	5,219	12,084
Proceeds from maturities, prepayments, and calls of securities available-for-sale	2,116	3,376
Purchases of securities held to maturity	0	(3,025)
Net increase in loans	(3,270)	(21,967)
Purchase of bank owned life insurance	637	0
Purchases of office properties and equipment	(57)	(368)
Proceeds from sales of real estate held-for-sale	27	0
Proceeds from sales of foreclosed real estate	109	205
Net cash used in investing activities	(8,868)	(17,884)
Cash Flows From Financing Activities
Net increase in deposits	25,124	17,760
Proceeds from long-term Federal Home Loan Bank advances	10,000	0
Increase in short-term Federal Home Loan Bank advances	2,500	14,000
Exercise of 4,298 stock options	64	0
Repurchase of common stock	(506)	(833)
Net cash provided by financing activities	37,182	30,927
Net increase in cash and cash equivalents	23,572	6,867
Cash and cash equivalents at beginning	16,488	17,608
Cash and cash equivalents at end	40,060	24,475
Supplemental Disclosures of Cash Flow Information
Interest paid (including amounts credited to deposits)	589	428
Supplemental Schedules of Non-cash Investing Activities
Loans receivable transferred to foreclosed real estate	$ 0	$ 319

XML

Basis of Presentation

3 Months Ended

Dec. 31, 2015

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, 2015 and September 30, 2015 and the results of operations and cash flows for the interim periods ended December 31, 2015 and 2014.  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, 2015 filed with the U.S. Securities and Exchange Commission as part of Westbury Bancorp, Inc.’s Annual Report on Form 10-K for the year ended September 30, 2015.

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 Company's initial public stock offering in April 2013.

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.

XML

Recent Accounting Developments

3 Months Ended

Dec. 31, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Developments

Recent Accounting Developments

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 and interim periods within those annual periods beginning after December 15, 2019. 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.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 is intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. ASU 2016-01 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods beginning after December 15, 2019. Adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures.

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Earnings Per Share

3 Months Ended

Dec. 31, 2015

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 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,
	2015			2014
Net income	$	1,039		$	447
Basic potential common shares:
Weighted average shares outstanding	4,166,780			4,833,308
Weighted average unallocated ESOP shares	(353,122		)	(373,692		)
Basic weighted average shares outstanding	3,813,658			4,459,616
Dilutive effect of equity awards	30,274			15,975
Diluted weighted average shares outstanding	3,843,932			4,475,591
Basic income per share	$	0.27		$	0.10
Diluted income per share	$	0.27		$	0.10

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Investment Securitites

3 Months Ended

Dec. 31, 2015

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, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
U.S. Government and agency securities	$	24	$	1	$	—		$	25
U.S. Government agency residential mortgage-backed securities	39,027		264		(316		)	38,975
U.S. Government agency collateralized mortgage obligations	1,857		6		(48		)	1,815
U.S. Government agency commercial mortgage-backed securities	16,126		3		(184		)	15,945
Municipal securities	23,709		80		(157		)	23,632
Corporate securities	3,885		4		(44		)	3,845
Total Available for Sale	84,628		358		(749		)	84,237
Held to Maturity
Municipal securities	2,459		30		—			2,489
Total Investment Securities	$	87,087	$	388	$	(749	)	$	86,726
	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
U.S. Government and agency securities	$	24	$	1	$	—		$	25
U.S. Government agency residential mortgage-backed securities	39,380		456		(144		)	39,692
U.S. Government agency collateralized mortgage obligations	1,963		18		(40		)	1,941
U.S. Government agency commercial mortgage-backed securities	13,993		121		(15		)	14,099
Municipal securities	21,494		222		(49		)	21,667
Corporate securities	2,852		12		(2		)	2,862
Total Available for Sale	79,706		830		(250		)	80,286
Held to Maturity
Municipal securities	2,459		31		—			2,490
Total Investment Securities	$	82,165	$	861	$	(250	)	$	82,776

The amortized cost and fair value of investment securities, by contractual maturity at December 31, 2015 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, 2015
	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	2,218	$	2,222
Due after one year through five years	10,194		10,225
Due after five years through ten years	14,699		14,555
Due after ten years	507		500
U.S. Government agency collateralized mortgage obligations	1,857		1,815
U.S. Government agency residential mortgage-backed securities	39,027		38,975
U.S. Government agency commercial mortgage-backed securities	16,126		15,945
	84,628		84,237
Held to maturity:
Due in one year or less	166		166
Due after one year through five years	690		693
Due after five years through ten years	954		969
Due after ten years	649		661
	2,459		2,489
Total	$	87,087	$	86,726

Proceeds from sales of investment securities during the three months ended December 31, 2015 and 2014, were $5,219 and $12,084, respectively. Gross realized gains, during the three months ended December 31, 2015 and 2014, on these sales amounted to $12 and $111, respectively. Gross realized losses on these sales were $10 and $41, during the three months ended December 31, 2015 and 2014 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, 2015 and September 30, 2015.

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, 2015
	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	20,528		(174		)	5,319		(142		)	25,847		(316		)
U.S. Government agency collateralized mortgage obligations	—		—			608		(48		)	608		(48		)
U.S Government agency commercial mortgage-backed securities	14,954		(184		)	—		—			14,954		(184		)
Municipal securities	14,659		(151		)	149		(6		)	14,808		(157		)
Corporate securities	2,833		(44		)	—		—			2,833		(44		)
	$	52,974	$	(553	)	$	6,076	$	(196	)	$	59,050	$	(749	)

	September 30, 2015
	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	7,270		(59		)	6,168		(85		)	13,438		(144		)
U.S. Government agency collateralized mortgage obligations	—		—			627		(40		)	627		(40		)
U.S. Government agency commercial mortgage-backed securities	3,511		(15		)	—		—			3,511		(15		)
Municipal securities	3,661		(45		)	151		(4		)	3,812		(49		)
Corporate securities	510		(2		)	—		—			510		(2		)
	$	14,952	$	(121	)	$	6,946	$	(129	)	$	21,898	$	(250	)

At December 31, 2015, the Company's investment portfolio included 8 securities available-for-sale which had been in an unrealized loss position for more than twelve months and 87 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 currently intend to sell these securities prior to any anticipated recovery in fair value.

At September 30, 2015, the investment portfolio included 9 securities available-for-sale which had been in an unrealized loss position for greater than twelve months and 22 securities available-for-sale which had been in an unrealized loss position for less than twelve months.

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Loans

3 Months Ended

Dec. 31, 2015

Loans and Leases Receivable Disclosure [Abstract]

Loans

Loans

A summary of the balances of loans follows:

	December 31, 2015		September 30, 2015
Real estate:
Single family	$	150,990	$	153,141
Multifamily	118,689		105,750
Commercial real estate	163,515		162,957
Construction and land development	17,163		18,831
Total real estate	450,357		440,679
Commercial business	31,866		38,200
Consumer:
Home equity lines of credit	14,977		14,881
Education	3,845		4,106
Other	549		523
Total consumer	19,371		19,510
Total loans	501,594		498,389
Less:
Net deferred loan fees	302		366
Allowance for loan losses	4,747		4,598
Net loans	$	496,545	$	493,425

The following tables present the contractual aging of the Company's recorded investment in past due loans by class of loans as of December 31, 2015 and September 30, 2015:

December 31, 2015	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	149,929	$	696	$	—	$	365	$	150,990
Multifamily	118,689		—		—		—		118,689
Commercial real estate	163,515		—		—		—		163,515
Construction and land development	17,163		—		—		—		17,163
Commercial business	31,860		6		—		—		31,866
Consumer and other:
Home equity lines of credit	14,950		—		—		27		14,977
Education	3,675		24		40		106		3,845
Other	549		—		—		—		549
	$	500,330	$	726	$	40	$	498	$	501,594

September 30, 2015	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	152,245	$	473	$	83	$	340	$	153,141
Multifamily	105,750		—		—		—		105,750
Commercial real estate	162,957		—		—		—		162,957
Construction and land development	18,827		4		—		—		18,831
Commercial business	38,200		—		—		—		38,200
Consumer and other:
Home equity lines of credit	14,691		—		—		190		14,881
Education	3,782		79		—		245		4,106
Other	523		—		—		—		523
	$	496,975	$	556	$	83	$	775	$	498,389

There were no loans past due ninety days or more and still accruing interest as of December 31, 2015 and September 30, 2015.

The following table presents the recorded investment in nonaccrual loans by class of loans as of December 31, 2015 and September 30, 2015:

	December 31, 2015		September 30, 2015
Single family	$	365	$	340
Multifamily	—		—
Commercial real estate	—		—
Construction and land development	—		—
Commercial business	—		—
Consumer and other:
Home equity lines of credit	39		203
Education	146		260
Other	—		—
	$	550	$	803

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 underlying loan agreements.  The Company considers current financial information, historical payment experience, credit documentation, public information and current economic trends when classifying its loans into risk categories.  Generally, all sizable credits receive a financial review no less than annually to monitor and adjust, if necessary, the credit’s risk profile.  Credits classified as special mention, substandard or doubtful generally receive a review more frequently than annually.

The Company categorizes performing, potential problem, and problem 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 a sub-category of Pass which do not expose the Company to sufficient risk to warrant further 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 by the Company and the contractual aging as of December 31, 2015 and September 30, 2015:

December 31, 2015	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	148,286	$	937	$	—	$	1,767	$	—	$	150,990
Multifamily	112,272		6,417		—		—		—		118,689
Commercial real estate	159,122		3,682		407		304		—		163,515
Construction and land development	17,163		—		—		—		—		17,163
Commercial business	31,803		—		—		63		—		31,866
Consumer and other:
Home equity lines of credit	14,854		—		—		123		—		14,977
Education	3,845		—		—		—		—		3,845
Other	549		—		—		—		—		549
Total	$	487,894	$	11,036	$	407	$	2,257	$	—	$	501,594

September 30, 2015	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	150,421	$	1,135	$	—	$	1,585	$	—	$	153,141
Multifamily	103,117		2,633		—		—		—		105,750
Commercial real estate	159,104		3,136		410		307		—		162,957
Construction and land development	18,831		—		—		—		—		18,831
Commercial business	36,561		—		—		1,639		—		38,200
Consumer and other:
Home equity lines of credit	14,636		—		—		245		—		14,881
Education	4,106		—		—		—		—		4,106
Other	523		—		—		—		—		523
	$	487,299	$	6,904	$	410	$	3,776	$	—	$	498,389

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, 2015 and 2014:

Three Months Ended December 31, 2015	Single Family			Multifamily		Commercial Real Estate		Construction and Land Development		Commercial Business			Consumer and Other			Total
Allowance for loan losses:
Beginning balance	$	1,073		$	1,013	$	1,604	$	330	$	498		$	80		$	4,598
Provision for loan losses	(42		)	327		47		14		(200		)	4			150
Loans charged-off	—			—		—		—		—			(10		)	(10		)
Recoveries	—			—		1		—		4			4			9
Ending balance	$	1,031		$	1,340	$	1,652	$	344	$	302		$	78		$	4,747
Period-ended amount allocated for:
Individually evaluated for impairment	$	23		$	—	$	—	$	—	$	—		$	55		$	78
Collectively evaluated for impairment	1,008			1,340		1,652		344		302			23			4,669
Ending Balance	$	1,031		$	1,340	$	1,652	$	344	$	302		$	78		$	4,747
Loans:
Individually evaluated for impairment	$	1,605		$	1,816	$	—	$	—	$	—		$	94		$	3,515
Collectively evaluated for impairment	149,385			116,873		163,515		17,163		31,866			19,277			498,079
Ending Balance	$	150,990		$	118,689	$	163,515	$	17,163	$	31,866		$	19,371		$	501,594

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

The following tables present additional detail of impaired loans, segregated by segment, as of and for the three month periods ended December 31, 2015 and 2014.  The unpaid principal balance represents the recorded balance prior to any partial charge-offs on the loans.  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 on a loan reported on either a cash or accrual basis after the loan became impaired.

							Three months ended
December 31, 2015	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Single family	$	1,338	$	1,194	$	—	$	1,189	$	14
Multifamily	1,889		1,816		—		1,824		19
Commercial real estate	—		—		—		—		—
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	117		39		—		105		—
With an allowance recorded:
Single family	411		411		23		412		3
Multifamily	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	55		55		55		55		1
	$	3,810	$	3,515	$	78	$	3,585	$	37

							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

The following is a summary of troubled debt restructured loans (TDRs) at December 31, 2015 and September 30, 2015:

	December 31, 2015		September 30, 2015
Troubled debt restructurings - accrual	$	3,111	$	3,134
Troubled debt restructurings - nonaccrual	—		—
	$	3,111	$	3,134

Modifications of loan terms as 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.

There were no loans modified as a TDR during the three months ended December 31, 2015 and 2014.

There were no re-defaults of TDRs that occurred during the three months ended December 31, 2015 and 2014.

Certain of the Bank’s executive officers, directors, and their associates are loan customers of the Bank.  As of December 31, 2015 and September 30, 2015, loans of approximately $3,628 and $3,334, respectively, were outstanding to such parties.  These loans were underwritten to the same standards as those used 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, 2015
Balance, beginning	$	3,334
New loans originated	—
Draws on lines of credit	47
Principal repayments	(122		)
Other1	369
Balance, ending	$	3,628

¹Officer, with existing loan, was promoted to executive officer position during the period.

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Deposits

3 Months Ended

Dec. 31, 2015

Deposits [Abstract]

Deposits

Deposits

The following table presents the composition of deposits as of:

	December 31, 2015				September 30, 2015
	Amount		Percent		Amount		Percent
Checking Accounts:
Noninterest bearing	$	108,370	19.48	%	$	101,486	19.11	%
Interest bearing	137,272		24.68	%	131,968		24.85	%
	245,642		44.16	%	233,454		43.96	%
Passbook and Statement Savings	125,836		22.63	%	127,431		24.00	%
Variable Rate Money Market Accounts	55,546		9.99	%	47,876		9.02	%
Certificates of Deposit	129,120		23.22	%	122,259		23.02	%
	$	556,144	100.00	%	$	531,020	100.00	%

Certificates of deposit over one hundred thousand dollars totaled $71,736 and $64,155 as of December 31, 2015 and September 30, 2015, respectively. Of these amounts, $10,498 and $8,775 are equal to or greater than two hundred fifty thousand dollars as of December 31, 2015 and September 30, 2015, respectively.

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Regulatory Capital

3 Months Ended

Dec. 31, 2015

Regulatory Capital Requirements [Abstract]

Regulatory Capital

Regulatory Capital

The federal banking agencies have adopted regulations that substantially amend the capital regulations currently applicable to us. These regulations implement the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act.

Effective January 1, 2015 (with some changes transitioned into full effectiveness over two to four years), the Bank became subject to new capital requirements adopted by the OCC. These new requirements (1) create a new required ratio for common equity Tier 1 ("CETI") capital, (2) increase the leverage and Tier 1 capital ratios, (3) change the risk weight of certain assets for purposes of the risk-based capital ratios, (4) create an additional capital conservation buffer over the required capital ratios and (5) change what qualifies as capital for purposes of meeting these various capital requirements. Beginning in 2016, failure to maintain the required capital conservation buffer limits the ability of the Bank to pay dividends, repurchase shares or pay discretionary bonuses. The Company is exempt from consolidated capital requirements as those requirements do not apply to certain small savings and loan holding companies with assets under $1 billion.

Under the new capital regulations, the minimum capital ratios are: (1) CETI capital ratio of 4.5% of risk-weighted assets; (2) a Tier 1 capital ratio of 6.0% of risk-weighted assets: (3) a total capital ratio of 8.0% of risk-weighted assets; and (4) a leverage ratio of 4.0%. CETI generally consists of common stock and retained earnings, subject to applicable regulatory adjustments and deductions.

There are a number of changes imposed under the new regulations in what constitutes regulatory capital, some of which are subject to transition periods. These changes include the phasing-out of certain instruments as qualifying capital. The Bank does not use any of these instruments. Under the new requirements for total capital, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of CETI will be deducted from capital. The Bank has elected to permanently opt-out of the inclusion of accumulated other comprehensive income in our capital calculations, as permitted by the regulations. We believe this opt-out will reduce the impact of market volatility on our regulatory capital levels.

The new requirements also include changes in the risk-weights of assets to better reflect credit risk and other risk exposures. These include a 150% risk weight (increased from 100%) for certain high volatility commercial real estate acquisition, development and construction loans and for non-residential mortgage loans that are 90 days past due or otherwise in non-accrual status; a 20% (increased from 0%) credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable; a 250% risk weight (increased from 100%) for mortgage servicing and deferred tax assets that are not deducted from capital; and increased risk weights (0% to 600%) for equity exposures.

In addition to the minimum CETI, Tier 1 and total capital ratios, the Bank will have to maintain a capital conservation buffer consisting of additional CETI capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. This new capital conservation buffer requirement will be phased in beginning in January 2016 at 0.625% of risk-weighted assets and increasing each year until fully implemented in January 2019.

Additionally, the OCC's prompt corrective action standards changed effective January 1, 2015. Under the new standards, in order to be considered well-capitalized, the Bank must have a CETI ratio of 6.5% (new), a Tier 1 ratio of 8.0% (increased from 6.0%), a total risk-based capital ratio of 10.0% (unchanged) and a leverage ratio of 5.0% (unchanged). As of December 31, 2015 the Bank met all these new requirements, including the full capital conservation buffer.

The Bank’s actual capital amounts and ratios and those required by the regulatory standards in effect as of the dates presented were as follows:

At December 31, 2015	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
CETI capital (to risk-weighted assets) - Westbury Bank	$	64,178	12.09	%	$	23,888	4.50	%	$	34,504	6.50	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	64,178		12.09	%	31,850		6.00	%	42,467		8.00	%
Total capital (to risk-weighted assets) - Westbury Bank	68,925		12.99	%	42,448		8.00	%	53,060		10.00	%
Leverage (to adjusted total assets) - Westbury Bank	64,178		9.77	%	26,276		4.00	%	32,844		5.00	%

At September 30, 2015	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
CET1 capital (to risk-weighted assets) - Westbury Bank	$	64,155	12.25	%	$	23,567	4.50	%	$	34,041	6.50	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	64,155		12.25	%	31,423		6.00	%	41,897		8.00	%
Total capital (to risk-weighted assets) - Westbury Bank	68,753		13.12	%	41,923		8.00	%	52,403		10.00	%
Leverage (to adjusted total assets) - Westbury Bank	64,155		10.01	%	25,636		4.00	%	32,045		5.00	%

The following table reconciles the Bank’s stockholders’ equity to regulatory capital as of December 31, 2015 and September 30, 2015:

	December 31, 2015			September 30, 2015
Stockholder's equity of the Bank	$	70,087		$	70,976
Less: Unrealized (gain) loss on securities	239			(352		)
Disallowed investment in subsidiary	(3,296		)	(3,296		)
Disallowed deferred tax assets	(2,852		)	(3,173		)
Tier 1, CETI and tangible capital	64,178			64,155
Plus: Allowable general valuation allowances	4,747			4,598
Total capital	$	68,925		$	68,753

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Commitments

3 Months Ended

Dec. 31, 2015

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 accompanying 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.

Company management has determined that the following instruments were outstanding, whose contract amounts represent credit risk:

	December 31, 2015		September 30, 2015
Commitments to extend mortgage credit:
Fixed rate	$	17,829	$	8,443
Adjustable rate	48		9,929
Unused commercial loan lines of credit	64,378		54,225
Unused home equity line of credit	25,580		26,164
Standby letters of credit	763		884
Commitment to sell loans	973		431

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, 2015 and September 30, 2015, 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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Fair Value Measurements

3 Months Ended

Dec. 31, 2015

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 fair value 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 inputs are not available, securities are classified within Level 3 of the fair value 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 fair value 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, 2015	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	$	25	$	—	$	25	$	—
U.S. Government agency residential mortgage-backed securities	38,975		—		38,975		—
U.S. Government agency collateralized mortgage obligations	1,815		—		1,815		—
U.S. Government agency commercial mortgage-backed securities	15,945		—		15,945		—
Municipal securities	23,632		—		23,632		—
Corporate Bonds	3,845		—		3,845		—
Total securities available-for-sale	$	84,237	$	—	$	84,237	$	—
Derivatives	$	108	$	—	$	108	$	—
Liabilities
Derivatives	$	108	$	—	$	108	$	—

			Fair Value Measurements
September 30, 2015	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	$	25	$	—	$	25	$	—
U.S. Government agency residential mortgage-backed securities	39,692		—		39,692		—
U.S. Government agency collateralized mortgage obligations	1,941		—		1,941		—
U.S. Government agency commercial mortgage-backed securities	14,099		—		14,099		—
Municipal securities	21,667		—		21,667		—
Corporate Bonds	2,862		—		2,862		—
Total securities available-for-sale	$	80,286	$	—	$	80,286	$	—
Derivatives	$	110	$	—	$	110	$	—
Liabilities
Derivatives	$	110	$	—	$	110	$	—

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, 2015.  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, therefore, 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 $466 and $467 had a valuation allowance of $78 and $77 included in the allowance for loan losses to reflect their fair value as of December 31, 2015 and September 30, 2015, 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, 2015, mortgage servicing rights with a carrying amount of $1,241 had a valuation allowance of $105 to reflect their fair value of $1,136.  As of September 30, 2015, mortgage servicing rights with a carrying amount of $1,315 had a valuation allowance of $105 to reflect their fair value of $1,210.

Real estate held for sale: The Company does not record real estate held for sale at a fair value on a recurring basis. The fair value of real estate held for sale 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. Real estate held for sale is measured at fair value less estimated costs to sell at the time of transfer. Subsequent to transfer, additional writedowns may be recorded based on changes to the fair value of the assets.

			Fair Value Measurements
December 31, 2015	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	$	388	$	—	$	—	$	388
Foreclosed real estate	168		—		—		168
Mortgage servicing rights	1,136		—		—		1,136
Real estate held for sale	808		—		—		808

			Fair Value Measurements
September 30, 2015	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	$	390	$	—	$	—	$	390
Foreclosed real estate	283		—		—		283
Mortgage servicing rights	1,210		—		—		1,210
Real estate held for sale	882		—		—		882

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, 2015 and September 30, 2015.

The estimated fair values and related carrying amounts of the Company’s financial instruments as of the dates noted below were as follows:

	December 31, 2015
	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	$	40,060	$	40,060	$	40,060	$	—	$	—
Securities available for sale	84,237		84,237		—		84,237		—
Securities held to maturity	2,459		2,489		—		2,489		—
Loans, net	496,545		496,075		—		—		496,075
Loans held for sale, net	973		973		—		973		—
Federal Home Loan Bank stock	3,350		3,350		—		—		3,350
Mortgage servicing rights	1,136		1,136		—		—		1,136
Accrued interest receivable	1,950		1,950		1,950		—		—
Derivative asset	108		108		—		108		—
Financial liabilities:
Deposits	556,144		530,251		108,370		—		421,881
Short-term advances from Federal Home Loan Bank	20,500		20,500		—		20,500		—
Long-term advances from Federal Home Loan Bank	10,000		9,993		—		—		9,993
Advance payments by borrowers for property taxes and insurance	146		146		146		—		—
Accrued interest payable	6		6		6		—		—
Derivative liability	108		108		—		108		—

	September 30, 2015
	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	$	16,488	$	16,488	$	16,488	$	—	$	—
Securities available for sale	80,286		80,286		—		80,286		—
Securities held to maturity	2,459		2,490		—		2,490		—
Loans, net	493,425		493,480		—		—		493,480
Loans held for sale, net	431		431		—		431		—
Federal Home Loan Bank stock	3,350		3,350		—		—		3,350
Mortgage servicing rights	1,210		1,210		—		—		1,210
Accrued interest receivable	1,965		1,965		1,965		—		—
Derivative asset	110		110		—		110		—
Financial liabilities:
Deposits	531,020		508,339		101,486		—		406,853
Short-term advances from Federal Home Loan Bank	18,000		18,000		—		18,000		—
Long-term advances from Federal Home Loan Bank	—		—		—		—		—
Advance payments by borrowers for property taxes and insurance	5,382		5,382		5,382		—		—
Accrued interest payable	5		5		5		—		—
Derivative liability	110		110		—		110		—

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Employee Stock Ownership Plan

3 Months Ended

Dec. 31, 2015

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 obligations to the Company. 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 debt repayment and release of shares generally occurs at December 31, the plan year end date. 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 financial statements. The shares pledged as collateral are reported as unearned ESOP shares in the accompanying 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 released shares, and the released shares become outstanding for EPS computations. During each of the three months ended December 31, 2015 and 2014, 5,142 shares were committed to be released. The total ESOP compensation expense recorded for the three months ended December 31, 2015 and 2014 was $91 and $112, respectively.

The ESOP shares as of December 31, 2015 and September 30, 2015 were as follows (in thousands, except share data):

	December 31, 2015		September 30, 2015
Allocated shares to active participants	32,966		34,132
Shares committed to be released	20,570		15,428
Unallocated shares	349,693		354,835
Total ESOP shares	403,229		404,395
Fair value of unallocated shares	$	6,294	$	6,323

Equity Compensation 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:

	Three Months Ended December 31,
	2015		2014
Total cost of stock grant plan during the period	$	151	$	155
Total cost of stock option plan during the period	57		46
Total cost of share-based payment plans during the period	$	208	$	201
Amount of related income tax benefit recognized in income	$	82	$	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 issuance under the Plan of up to 203,665 restricted stock awards and up to 509,162 stock options. As of December 31, 2015 there were 4,092 restricted stock awards and 101,753 options available for future grants under the Plan.

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 common shares at the date of grant: those option awards generally vest pro-rata over five years of service and have 10-year contractual terms. Restricted shares and units typically vest pro-rata 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, 2015:

	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, 2015	406,409	$	15.68
Granted	1,000	17.60
Exercised	4,298	15.20
Expired or canceled	—	—
Forfeited	—	—
Options outstanding as of December 31, 2015	403,111	$	15.69	8.73	$	932
Options exercisable as of December 31, 2015	60,946	$	15.20	8.50	$	171

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 made by Company management. 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 three months ended December 31:

	2015			2014
Risk-free interest rate	1.99		%	—		%
Expected volatility of Company's stock	7.44		%	—		%
Expected dividend yield	—		%	—		%
Expected life of options (years)	7.5			0.0
Weighted average fair value per option of options granted during the period	$	2.89		$	—

The total intrinsic value of options exercised during each of the three months ended December 31, 2015 and 2014 was $10 and $0.

The following is a summary of changes in restricted shares for the three months ended December 31, 2015:

	Number of Shares	Weighted Average Grant Date Fair Value
Shares Outstanding at September 30, 2015	158,052	$	15.20
Granted	1,000	17.60
Vested	—	—
Forfeited	—	—
Shares Outstanding at December 31, 2015	159,052	$	15.22

The total intrinsic value of restricted shares that vested during the three months ended December 31, 2015 and 2014 was $0.

As of December 31, 2015, there was $3.1 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, 2015, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 3.6 years.

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Compensation Equity Plans

3 Months Ended

Dec. 31, 2015

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 obligations to the Company. 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 debt repayment and release of shares generally occurs at December 31, the plan year end date. 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 financial statements. The shares pledged as collateral are reported as unearned ESOP shares in the accompanying 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 released shares, and the released shares become outstanding for EPS computations. During each of the three months ended December 31, 2015 and 2014, 5,142 shares were committed to be released. The total ESOP compensation expense recorded for the three months ended December 31, 2015 and 2014 was $91 and $112, respectively.

The ESOP shares as of December 31, 2015 and September 30, 2015 were as follows (in thousands, except share data):

	December 31, 2015		September 30, 2015
Allocated shares to active participants	32,966		34,132
Shares committed to be released	20,570		15,428
Unallocated shares	349,693		354,835
Total ESOP shares	403,229		404,395
Fair value of unallocated shares	$	6,294	$	6,323

Equity Compensation 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:

	Three Months Ended December 31,
	2015		2014
Total cost of stock grant plan during the period	$	151	$	155
Total cost of stock option plan during the period	57		46
Total cost of share-based payment plans during the period	$	208	$	201
Amount of related income tax benefit recognized in income	$	82	$	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 issuance under the Plan of up to 203,665 restricted stock awards and up to 509,162 stock options. As of December 31, 2015 there were 4,092 restricted stock awards and 101,753 options available for future grants under the Plan.

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 common shares at the date of grant: those option awards generally vest pro-rata over five years of service and have 10-year contractual terms. Restricted shares and units typically vest pro-rata 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, 2015:

	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, 2015	406,409	$	15.68
Granted	1,000	17.60
Exercised	4,298	15.20
Expired or canceled	—	—
Forfeited	—	—
Options outstanding as of December 31, 2015	403,111	$	15.69	8.73	$	932
Options exercisable as of December 31, 2015	60,946	$	15.20	8.50	$	171

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 made by Company management. 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 three months ended December 31:

	2015			2014
Risk-free interest rate	1.99		%	—		%
Expected volatility of Company's stock	7.44		%	—		%
Expected dividend yield	—		%	—		%
Expected life of options (years)	7.5			0.0
Weighted average fair value per option of options granted during the period	$	2.89		$	—

The total intrinsic value of options exercised during each of the three months ended December 31, 2015 and 2014 was $10 and $0.

The following is a summary of changes in restricted shares for the three months ended December 31, 2015:

	Number of Shares	Weighted Average Grant Date Fair Value
Shares Outstanding at September 30, 2015	158,052	$	15.20
Granted	1,000	17.60
Vested	—	—
Forfeited	—	—
Shares Outstanding at December 31, 2015	159,052	$	15.22

The total intrinsic value of restricted shares that vested during the three months ended December 31, 2015 and 2014 was $0.

As of December 31, 2015, there was $3.1 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, 2015, the weighted-average period over which the unrecognized compensation expense is expected to be recognized was approximately 3.6 years.

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Condensed Parent Company Financial Information

3 Months Ended

Dec. 31, 2015

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
	December 31,		September 30,
	2015		2015
Assets
Cash and interest bearing deposits	$	3,324	$	1,440
Investments	86		115
Loan to ESOP	3,620		3,778
Investment in subsidiary	73,220		74,201
Other assets	2,127		2,660
Total assets	$	82,377	$	82,194
Liabilities and Stockholders' Equity
Total liabilities	$	125	$	157
Stockholders' equity	82,252		82,037
Total liabilities and stockholders' equity	$	82,377	$	82,194

Statements of Operations
	Three Months Ended December 31,
	2015			2014
Interest and other income	$	32		$	63
Interest and other expense	121			184
Loss before income tax benefit and equity in undistributed net income of subsidiary	(89		)	(121		)
Income tax benefit	(18		)	(30		)
Loss before equity in undistributed net income of subsidiary	(71		)	(91		)
Equity in undistributed net income of subsidiary	1,110			538
Net income	$	1,039		$	447

Statements of Cash Flows
	For Three Months Ended December 31,
	2015			2014
Cash Flows From Operating Activities
Net income	$	1,039		$	447
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiary	(1,110		)	(538		)
Net change in other liabilities	(32		)	15
Net change in other assets	742			124
Net cash provided by operating activities	639			48
Cash Flows From Investing Activities
Purchase of securities	—			(376		)
Sales and maturities of securities	29			212
Payments received on ESOP loan	158			153
Dividend received from bank subsidiary	1,500			—
Net cash provided by (used in) investing activities	1,687			(11		)
Cash Flows From Financing Activities
Stock options exercised	64			—
Repurchase of common stock	(506		)	(833		)
Net cash used in financing activities	(442		)	(833		)
Net increase (decrease) in cash	1,884			(796		)
Cash
Beginning of period	1,440			6,878
End of period	$	3,324		$	6,082

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Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2015

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,
	2015			2014
Net income	$	1,039		$	447
Basic potential common shares:
Weighted average shares outstanding	4,166,780			4,833,308
Weighted average unallocated ESOP shares	(353,122		)	(373,692		)
Basic weighted average shares outstanding	3,813,658			4,459,616
Dilutive effect of equity awards	30,274			15,975
Diluted weighted average shares outstanding	3,843,932			4,475,591
Basic income per share	$	0.27		$	0.10
Diluted income per share	$	0.27		$	0.10

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Investment Securitites (Tables)

3 Months Ended

Dec. 31, 2015

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, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
U.S. Government and agency securities	$	24	$	1	$	—		$	25
U.S. Government agency residential mortgage-backed securities	39,027		264		(316		)	38,975
U.S. Government agency collateralized mortgage obligations	1,857		6		(48		)	1,815
U.S. Government agency commercial mortgage-backed securities	16,126		3		(184		)	15,945
Municipal securities	23,709		80		(157		)	23,632
Corporate securities	3,885		4		(44		)	3,845
Total Available for Sale	84,628		358		(749		)	84,237
Held to Maturity
Municipal securities	2,459		30		—			2,489
Total Investment Securities	$	87,087	$	388	$	(749	)	$	86,726
	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
U.S. Government and agency securities	$	24	$	1	$	—		$	25
U.S. Government agency residential mortgage-backed securities	39,380		456		(144		)	39,692
U.S. Government agency collateralized mortgage obligations	1,963		18		(40		)	1,941
U.S. Government agency commercial mortgage-backed securities	13,993		121		(15		)	14,099
Municipal securities	21,494		222		(49		)	21,667
Corporate securities	2,852		12		(2		)	2,862
Total Available for Sale	79,706		830		(250		)	80,286
Held to Maturity
Municipal securities	2,459		31		—			2,490
Total Investment Securities	$	82,165	$	861	$	(250	)	$	82,776

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, 2015 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, 2015
	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	2,218	$	2,222
Due after one year through five years	10,194		10,225
Due after five years through ten years	14,699		14,555
Due after ten years	507		500
U.S. Government agency collateralized mortgage obligations	1,857		1,815
U.S. Government agency residential mortgage-backed securities	39,027		38,975
U.S. Government agency commercial mortgage-backed securities	16,126		15,945
	84,628		84,237
Held to maturity:
Due in one year or less	166		166
Due after one year through five years	690		693
Due after five years through ten years	954		969
Due after ten years	649		661
	2,459		2,489
Total	$	87,087	$	86,726

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, 2015
	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	20,528		(174		)	5,319		(142		)	25,847		(316		)
U.S. Government agency collateralized mortgage obligations	—		—			608		(48		)	608		(48		)
U.S Government agency commercial mortgage-backed securities	14,954		(184		)	—		—			14,954		(184		)
Municipal securities	14,659		(151		)	149		(6		)	14,808		(157		)
Corporate securities	2,833		(44		)	—		—			2,833		(44		)
	$	52,974	$	(553	)	$	6,076	$	(196	)	$	59,050	$	(749	)

	September 30, 2015
	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	7,270		(59		)	6,168		(85		)	13,438		(144		)
U.S. Government agency collateralized mortgage obligations	—		—			627		(40		)	627		(40		)
U.S. Government agency commercial mortgage-backed securities	3,511		(15		)	—		—			3,511		(15		)
Municipal securities	3,661		(45		)	151		(4		)	3,812		(49		)
Corporate securities	510		(2		)	—		—			510		(2		)
	$	14,952	$	(121	)	$	6,946	$	(129	)	$	21,898	$	(250	)

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Loans (Tables)

3 Months Ended

Dec. 31, 2015

Loans

Summary of balances of loans

A summary of the balances of loans follows:

	December 31, 2015		September 30, 2015
Real estate:
Single family	$	150,990	$	153,141
Multifamily	118,689		105,750
Commercial real estate	163,515		162,957
Construction and land development	17,163		18,831
Total real estate	450,357		440,679
Commercial business	31,866		38,200
Consumer:
Home equity lines of credit	14,977		14,881
Education	3,845		4,106
Other	549		523
Total consumer	19,371		19,510
Total loans	501,594		498,389
Less:
Net deferred loan fees	302		366
Allowance for loan losses	4,747		4,598
Net loans	$	496,545	$	493,425

Schedule of contractual aging of recorded investment in past due loans

The following tables present the contractual aging of the Company's recorded investment in past due loans by class of loans as of December 31, 2015 and September 30, 2015:

December 31, 2015	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	149,929	$	696	$	—	$	365	$	150,990
Multifamily	118,689		—		—		—		118,689
Commercial real estate	163,515		—		—		—		163,515
Construction and land development	17,163		—		—		—		17,163
Commercial business	31,860		6		—		—		31,866
Consumer and other:
Home equity lines of credit	14,950		—		—		27		14,977
Education	3,675		24		40		106		3,845
Other	549		—		—		—		549
	$	500,330	$	726	$	40	$	498	$	501,594

September 30, 2015	Current		30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90 Days or More		Total
Single family	$	152,245	$	473	$	83	$	340	$	153,141
Multifamily	105,750		—		—		—		105,750
Commercial real estate	162,957		—		—		—		162,957
Construction and land development	18,827		4		—		—		18,831
Commercial business	38,200		—		—		—		38,200
Consumer and other:
Home equity lines of credit	14,691		—		—		190		14,881
Education	3,782		79		—		245		4,106
Other	523		—		—		—		523
	$	496,975	$	556	$	83	$	775	$	498,389

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 by the Company and the contractual aging as of December 31, 2015 and September 30, 2015:

December 31, 2015	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	148,286	$	937	$	—	$	1,767	$	—	$	150,990
Multifamily	112,272		6,417		—		—		—		118,689
Commercial real estate	159,122		3,682		407		304		—		163,515
Construction and land development	17,163		—		—		—		—		17,163
Commercial business	31,803		—		—		63		—		31,866
Consumer and other:
Home equity lines of credit	14,854		—		—		123		—		14,977
Education	3,845		—		—		—		—		3,845
Other	549		—		—		—		—		549
Total	$	487,894	$	11,036	$	407	$	2,257	$	—	$	501,594

September 30, 2015	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Single family	$	150,421	$	1,135	$	—	$	1,585	$	—	$	153,141
Multifamily	103,117		2,633		—		—		—		105,750
Commercial real estate	159,104		3,136		410		307		—		162,957
Construction and land development	18,831		—		—		—		—		18,831
Commercial business	36,561		—		—		1,639		—		38,200
Consumer and other:
Home equity lines of credit	14,636		—		—		245		—		14,881
Education	4,106		—		—		—		—		4,106
Other	523		—		—		—		—		523
	$	487,299	$	6,904	$	410	$	3,776	$	—	$	498,389

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, 2015 and 2014:

Three Months Ended December 31, 2015	Single Family			Multifamily		Commercial Real Estate		Construction and Land Development		Commercial Business			Consumer and Other			Total
Allowance for loan losses:
Beginning balance	$	1,073		$	1,013	$	1,604	$	330	$	498		$	80		$	4,598
Provision for loan losses	(42		)	327		47		14		(200		)	4			150
Loans charged-off	—			—		—		—		—			(10		)	(10		)
Recoveries	—			—		1		—		4			4			9
Ending balance	$	1,031		$	1,340	$	1,652	$	344	$	302		$	78		$	4,747
Period-ended amount allocated for:
Individually evaluated for impairment	$	23		$	—	$	—	$	—	$	—		$	55		$	78
Collectively evaluated for impairment	1,008			1,340		1,652		344		302			23			4,669
Ending Balance	$	1,031		$	1,340	$	1,652	$	344	$	302		$	78		$	4,747
Loans:
Individually evaluated for impairment	$	1,605		$	1,816	$	—	$	—	$	—		$	94		$	3,515
Collectively evaluated for impairment	149,385			116,873		163,515		17,163		31,866			19,277			498,079
Ending Balance	$	150,990		$	118,689	$	163,515	$	17,163	$	31,866		$	19,371		$	501,594

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

Schedule of impaired loans

							Three months ended
December 31, 2015	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Single family	$	1,338	$	1,194	$	—	$	1,189	$	14
Multifamily	1,889		1,816		—		1,824		19
Commercial real estate	—		—		—		—		—
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	117		39		—		105		—
With an allowance recorded:
Single family	411		411		23		412		3
Multifamily	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Construction and land development	—		—		—		—		—
Commercial business	—		—		—		—		—
Consumer and other	55		55		55		55		1
	$	3,810	$	3,515	$	78	$	3,585	$	37

							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

Schedule of loans modified in a TDR, by class

Schedule of Loans and Leases Receivable, Related Parties

An analysis of such loans is as follows:

	Three Months Ended December 31, 2015
Balance, beginning	$	3,334
New loans originated	—
Draws on lines of credit	47
Principal repayments	(122		)
Other1	369
Balance, ending	$	3,628

¹Officer, with existing loan, was promoted to executive officer position during the period.

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, 2015 and September 30, 2015:

	December 31, 2015		September 30, 2015
Single family	$	365	$	340
Multifamily	—		—
Commercial real estate	—		—
Construction and land development	—		—
Commercial business	—		—
Consumer and other:
Home equity lines of credit	39		203
Education	146		260
Other	—		—
	$	550	$	803

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, 2015 and September 30, 2015:

	December 31, 2015		September 30, 2015
Troubled debt restructurings - accrual	$	3,111	$	3,134
Troubled debt restructurings - nonaccrual	—		—
	$	3,111	$	3,134

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Deposits (Tables)

3 Months Ended

Dec. 31, 2015

Deposits [Abstract]

Schedule of composition of deposits

The following table presents the composition of deposits as of:

	December 31, 2015				September 30, 2015
	Amount		Percent		Amount		Percent
Checking Accounts:
Noninterest bearing	$	108,370	19.48	%	$	101,486	19.11	%
Interest bearing	137,272		24.68	%	131,968		24.85	%
	245,642		44.16	%	233,454		43.96	%
Passbook and Statement Savings	125,836		22.63	%	127,431		24.00	%
Variable Rate Money Market Accounts	55,546		9.99	%	47,876		9.02	%
Certificates of Deposit	129,120		23.22	%	122,259		23.02	%
	$	556,144	100.00	%	$	531,020	100.00	%

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Regulatory Capital (Tables)

3 Months Ended

Dec. 31, 2015

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 regulatory standards in effect as of the dates presented were as follows:

At December 31, 2015	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
CETI capital (to risk-weighted assets) - Westbury Bank	$	64,178	12.09	%	$	23,888	4.50	%	$	34,504	6.50	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	64,178		12.09	%	31,850		6.00	%	42,467		8.00	%
Total capital (to risk-weighted assets) - Westbury Bank	68,925		12.99	%	42,448		8.00	%	53,060		10.00	%
Leverage (to adjusted total assets) - Westbury Bank	64,178		9.77	%	26,276		4.00	%	32,844		5.00	%

At September 30, 2015	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
CET1 capital (to risk-weighted assets) - Westbury Bank	$	64,155	12.25	%	$	23,567	4.50	%	$	34,041	6.50	%
Tier 1 capital (to risk-weighted assets) - Westbury Bank	64,155		12.25	%	31,423		6.00	%	41,897		8.00	%
Total capital (to risk-weighted assets) - Westbury Bank	68,753		13.12	%	41,923		8.00	%	52,403		10.00	%
Leverage (to adjusted total assets) - Westbury Bank	64,155		10.01	%	25,636		4.00	%	32,045		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, 2015 and September 30, 2015:

	December 31, 2015			September 30, 2015
Stockholder's equity of the Bank	$	70,087		$	70,976
Less: Unrealized (gain) loss on securities	239			(352		)
Disallowed investment in subsidiary	(3,296		)	(3,296		)
Disallowed deferred tax assets	(2,852		)	(3,173		)
Tier 1, CETI and tangible capital	64,178			64,155
Plus: Allowable general valuation allowances	4,747			4,598
Total capital	$	68,925		$	68,753

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Commitments (Tables)

3 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of financial instruments whose contract amounts represent credit risk

he following instruments were outstanding, whose contract amounts represent credit risk:

	December 31, 2015		September 30, 2015
Commitments to extend mortgage credit:
Fixed rate	$	17,829	$	8,443
Adjustable rate	48		9,929
Unused commercial loan lines of credit	64,378		54,225
Unused home equity line of credit	25,580		26,164
Standby letters of credit	763		884
Commitment to sell loans	973		431

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Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2015

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, 2015	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	$	25	$	—	$	25	$	—
U.S. Government agency residential mortgage-backed securities	38,975		—		38,975		—
U.S. Government agency collateralized mortgage obligations	1,815		—		1,815		—
U.S. Government agency commercial mortgage-backed securities	15,945		—		15,945		—
Municipal securities	23,632		—		23,632		—
Corporate Bonds	3,845		—		3,845		—
Total securities available-for-sale	$	84,237	$	—	$	84,237	$	—
Derivatives	$	108	$	—	$	108	$	—
Liabilities
Derivatives	$	108	$	—	$	108	$	—

			Fair Value Measurements
September 30, 2015	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	$	25	$	—	$	25	$	—
U.S. Government agency residential mortgage-backed securities	39,692		—		39,692		—
U.S. Government agency collateralized mortgage obligations	1,941		—		1,941		—
U.S. Government agency commercial mortgage-backed securities	14,099		—		14,099		—
Municipal securities	21,667		—		21,667		—
Corporate Bonds	2,862		—		2,862		—
Total securities available-for-sale	$	80,286	$	—	$	80,286	$	—
Derivatives	$	110	$	—	$	110	$	—
Liabilities
Derivatives	$	110	$	—	$	110	$	—

Schedule of assets measured at fair value on a nonrecurring basis

			Fair Value Measurements
December 31, 2015	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	$	388	$	—	$	—	$	388
Foreclosed real estate	168		—		—		168
Mortgage servicing rights	1,136		—		—		1,136
Real estate held for sale	808		—		—		808

			Fair Value Measurements
September 30, 2015	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	$	390	$	—	$	—	$	390
Foreclosed real estate	283		—		—		283
Mortgage servicing rights	1,210		—		—		1,210
Real estate held for sale	882		—		—		882

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 as of the dates noted below were as follows:

	December 31, 2015
	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	$	40,060	$	40,060	$	40,060	$	—	$	—
Securities available for sale	84,237		84,237		—		84,237		—
Securities held to maturity	2,459		2,489		—		2,489		—
Loans, net	496,545		496,075		—		—		496,075
Loans held for sale, net	973		973		—		973		—
Federal Home Loan Bank stock	3,350		3,350		—		—		3,350
Mortgage servicing rights	1,136		1,136		—		—		1,136
Accrued interest receivable	1,950		1,950		1,950		—		—
Derivative asset	108		108		—		108		—
Financial liabilities:
Deposits	556,144		530,251		108,370		—		421,881
Short-term advances from Federal Home Loan Bank	20,500		20,500		—		20,500		—
Long-term advances from Federal Home Loan Bank	10,000		9,993		—		—		9,993
Advance payments by borrowers for property taxes and insurance	146		146		146		—		—
Accrued interest payable	6		6		6		—		—
Derivative liability	108		108		—		108		—

	September 30, 2015
	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	$	16,488	$	16,488	$	16,488	$	—	$	—
Securities available for sale	80,286		80,286		—		80,286		—
Securities held to maturity	2,459		2,490		—		2,490		—
Loans, net	493,425		493,480		—		—		493,480
Loans held for sale, net	431		431		—		431		—
Federal Home Loan Bank stock	3,350		3,350		—		—		3,350
Mortgage servicing rights	1,210		1,210		—		—		1,210
Accrued interest receivable	1,965		1,965		1,965		—		—
Derivative asset	110		110		—		110		—
Financial liabilities:
Deposits	531,020		508,339		101,486		—		406,853
Short-term advances from Federal Home Loan Bank	18,000		18,000		—		18,000		—
Long-term advances from Federal Home Loan Bank	—		—		—		—		—
Advance payments by borrowers for property taxes and insurance	5,382		5,382		5,382		—		—
Accrued interest payable	5		5		5		—		—
Derivative liability	110		110		—		110		—

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Employee Stock Ownership Plan Disclosure of (Tables)

3 Months Ended

Dec. 31, 2015

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

Employee Stock Ownership Plan (ESOP) Disclosures

The ESOP shares as of December 31, 2015 and September 30, 2015 were as follows (in thousands, except share data):

	December 31, 2015		September 30, 2015
Allocated shares to active participants	32,966		34,132
Shares committed to be released	20,570		15,428
Unallocated shares	349,693		354,835
Total ESOP shares	403,229		404,395
Fair value of unallocated shares	$	6,294	$	6,323

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Compensation Equity Plans (Tables)

3 Months Ended

Dec. 31, 2015

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:

	Three Months Ended December 31,
	2015		2014
Total cost of stock grant plan during the period	$	151	$	155
Total cost of stock option plan during the period	57		46
Total cost of share-based payment plans during the period	$	208	$	201
Amount of related income tax benefit recognized in income	$	82	$	79

Schedule of Stock Options Activity

The following table summarizes stock options outstanding for the three months ended December 31, 2015:

	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, 2015	406,409	$	15.68
Granted	1,000	17.60
Exercised	4,298	15.20
Expired or canceled	—	—
Forfeited	—	—
Options outstanding as of December 31, 2015	403,111	$	15.69	8.73	$	932
Options exercisable as of December 31, 2015	60,946	$	15.20	8.50	$	171

Schedule of Stock Options Valuation Assumptions

The following assumptions were used for options granted during the three months ended December 31:

	2015			2014
Risk-free interest rate	1.99		%	—		%
Expected volatility of Company's stock	7.44		%	—		%
Expected dividend yield	—		%	—		%
Expected life of options (years)	7.5			0.0
Weighted average fair value per option of options granted during the period	$	2.89		$	—

Schedule of Restricted Stock Units Award Activity

The following is a summary of changes in restricted shares for the three months ended December 31, 2015:

	Number of Shares	Weighted Average Grant Date Fair Value
Shares Outstanding at September 30, 2015	158,052	$	15.20
Granted	1,000	17.60
Vested	—	—
Forfeited	—	—
Shares Outstanding at December 31, 2015	159,052	$	15.22

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Condensed Parent Company Financial Information (Tables)

3 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

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

Balance Sheets
	December 31,		September 30,
	2015		2015
Assets
Cash and interest bearing deposits	$	3,324	$	1,440
Investments	86		115
Loan to ESOP	3,620		3,778
Investment in subsidiary	73,220		74,201
Other assets	2,127		2,660
Total assets	$	82,377	$	82,194
Liabilities and Stockholders' Equity
Total liabilities	$	125	$	157
Stockholders' equity	82,252		82,037
Total liabilities and stockholders' equity	$	82,377	$	82,194

Condensed Income Statement

Statements of Operations
	Three Months Ended December 31,
	2015			2014
Interest and other income	$	32		$	63
Interest and other expense	121			184
Loss before income tax benefit and equity in undistributed net income of subsidiary	(89		)	(121		)
Income tax benefit	(18		)	(30		)
Loss before equity in undistributed net income of subsidiary	(71		)	(91		)
Equity in undistributed net income of subsidiary	1,110			538
Net income	$	1,039		$	447

Condensed Cash Flow Statement

Statements of Cash Flows
	For Three Months Ended December 31,
	2015			2014
Cash Flows From Operating Activities
Net income	$	1,039		$	447
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiary	(1,110		)	(538		)
Net change in other liabilities	(32		)	15
Net change in other assets	742			124
Net cash provided by operating activities	639			48
Cash Flows From Investing Activities
Purchase of securities	—			(376		)
Sales and maturities of securities	29			212
Payments received on ESOP loan	158			153
Dividend received from bank subsidiary	1,500			—
Net cash provided by (used in) investing activities	1,687			(11		)
Cash Flows From Financing Activities
Stock options exercised	64			—
Repurchase of common stock	(506		)	(833		)
Net cash used in financing activities	(442		)	(833		)
Net increase (decrease) in cash	1,884			(796		)
Cash
Beginning of period	1,440			6,878
End of period	$	3,324		$	6,082

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Net income	$ 1,039	$ 447
Basic potential common shares:
Weighted average shares outstanding (in shares)	4,166,780	4,833,308
Weighted average unallocated ESOP shares (in shares)	(353,122)	(373,692)
Basic weighted average shares outstanding (in shares)	3,813,658	4,459,616
Dilutive potential common shares (in shares)	30,274	15,975
Diluted weighted average shares outstanding (in shares)	3,843,932	4,475,591
Basic loss per share (in dollars per share)	$ 0.27	$ 0.10
Diluted loss per share (in dollars per share)	$ 0.27	$ 0.10

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Investment Securitites (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Securities Available for Sale
Amortized Cost	$ 84,628	$ 79,706
Gross Unrealized Gains	358	830
Gross Unrealized (Losses)	(749)	(250)
Fair Value	84,237	80,286
Held-to-maturity Securities [Abstract]
Amortized Cost	2,459	2,459
Fair Value	2,489	2,490
Total Investment Securities
Amortized Cost	87,087	82,165
Gross Unrealized Gains	388	861
Gross Unrealized Losses	(749)	(250)
Fair Value	86,726	82,776
U.S. Government and agency securities
Securities Available for Sale
Amortized Cost	24	24
Gross Unrealized Gains	1	1
Gross Unrealized (Losses)	0	0
Fair Value	25	25
U.S. Government agency residential mortgage-backed securities
Securities Available for Sale
Amortized Cost	39,027	39,380
Gross Unrealized Gains	264	456
Gross Unrealized (Losses)	(316)	(144)
Fair Value	38,975	39,692
U.S. Government agency collateralized mortgage obligations
Securities Available for Sale
Amortized Cost	1,857	1,963
Gross Unrealized Gains	6	18
Gross Unrealized (Losses)	(48)	(40)
Fair Value	1,815	1,941
U.S. Government agency commercial mortgage-backed securities
Securities Available for Sale
Amortized Cost	16,126	13,993
Gross Unrealized Gains	3	121
Gross Unrealized (Losses)	(184)	(15)
Fair Value	15,945	14,099
Municipal securities
Securities Available for Sale
Amortized Cost	23,709	21,494
Gross Unrealized Gains	80	222
Gross Unrealized (Losses)	(157)	(49)
Fair Value	23,632	21,667
Held-to-maturity Securities [Abstract]
Amortized Cost	2,459	2,459
Gross Unrealized Gains	30	31
Gross Unrealized Losses	0	0
Fair Value	2,489	2,490
Corporate Debt Securities [Member]
Securities Available for Sale
Amortized Cost	3,885	2,852
Gross Unrealized Gains	4	12
Gross Unrealized (Losses)	(44)	(2)
Fair Value	$ 3,845	$ 2,862

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Investment Securitites (Details 2) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Available for Sale, Amortized Cost
Due in one year or less	$ 2,218,000
Due after one year through five years	10,194,000
Due after five years through ten years	14,699,000
Due after ten years	507,000
Total	84,628,000
Available for Sale, Fair Value
Due in one year or less	2,222,000
Due after one year through five years	10,225,000
Due after five years through ten years	14,555,000
Due after ten years	500,000
Fair Value	84,237,000		$ 80,286,000
Other disclosures
Proceeds from sales of securities available-for-sale	5,219,000	$ 12,084,000
Gross realized gains on the sale of securities available-for-sale	12,000	111,000
Gross realized losses on the sale of securities available-for-sale	10,000	$ 41,000
Securities pledged to secure treasury, tax, and loan deposits and other purposes	0		0
Held to maturity, Amortized Cost
Due in one year or less	166,000
Due after one year through five years	690,000
Due after five years through ten years	954,000
Due after five years through ten years	649,000
Amortized Cost	2,459,000		2,459,000
Amortized Cost	87,087,000		82,165,000
Held to maturity, Fair Value
Due in one year or less	166,000
Due after one year through five years	693,000
Due after five years through ten years	969,000
Due after ten years	661,000
Fair Value	2,489,000		2,490,000
Investment Securities	86,726,000		82,776,000
U.S. Government agency collateralized mortgage obligations
Available for Sale, Amortized Cost
U.S. Government agency securities	1,857,000
Available for Sale, Fair Value
U.S. Government agency securities	1,815,000
Fair Value	1,815,000		1,941,000
U.S. Government agency residential mortgage-backed securities
Available for Sale, Amortized Cost
U.S. Government agency securities	39,027,000
Available for Sale, Fair Value
U.S. Government agency securities	38,975,000
Fair Value	38,975,000		39,692,000
U.S. Government agency commercial mortgage-backed securities
Available for Sale, Amortized Cost
U.S. Government agency securities	16,126,000
Available for Sale, Fair Value
U.S. Government agency securities	15,945,000
Fair Value	$ 15,945,000		$ 14,099,000

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Investment Securitites (Details 3) $ in Thousands	Dec. 31, 2015 USD ($) security	Sep. 30, 2015 USD ($) security
Total temporary impaired securities
Less than 12 months, Fair Value	$ 52,974	$ 14,952
Less than 12 months, Unrealized Losses	(553)	(121)
12 months or longer, Fair Value	6,076	6,946
12 months or longer, Unrealized Losses	(196)	(129)
Total, Fair Value	59,050	21,898
Total, Unrealized Losses	$ (749)	$ (250)
Number of securities in an unrealized loss position, greater than twelve months | security	8	9
Number of securities in an unrealized loss position, less than twelve months | security	87	22
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	0
12 months or longer, Unrealized Losses	0	0
Total, Fair Value	0	0
Total, Unrealized Losses	0	0
U.S. Government agency residential mortgage-backed securities
Total temporary impaired securities
Less than 12 months, Fair Value	20,528	7,270
Less than 12 months, Unrealized Losses	(174)	(59)
12 months or longer, Fair Value	5,319	6,168
12 months or longer, Unrealized Losses	(142)	(85)
Total, Fair Value	25,847	13,438
Total, Unrealized Losses	(316)	(144)
U.S. Government agency collateralized mortgage obligations
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	608	627
12 months or longer, Unrealized Losses	(48)	(40)
Total, Fair Value	608	627
Total, Unrealized Losses	(48)	(40)
U.S. Government agency commercial mortgage-backed securities
Total temporary impaired securities
Less than 12 months, Fair Value	14,954	3,511
Less than 12 months, Unrealized Losses	(184)	(15)
12 months or longer, Fair Value	0	0
12 months or longer, Unrealized Losses	0	0
Total, Fair Value	14,954	3,511
Total, Unrealized Losses	(184)	(15)
Municipal securities
Total temporary impaired securities
Less than 12 months, Fair Value	14,659	3,661
Less than 12 months, Unrealized Losses	(151)	(45)
12 months or longer, Fair Value	149	151
12 months or longer, Unrealized Losses	(6)	(4)
Total, Fair Value	14,808	3,812
Total, Unrealized Losses	(157)	(49)
Corporate Debt Securities [Member]
Total temporary impaired securities
Less than 12 months, Fair Value	2,833	510
Less than 12 months, Unrealized Losses	(44)	(2)
12 months or longer, Fair Value	0	0
12 months or longer, Unrealized Losses	0	0
Total, Fair Value	2,833	510
Total, Unrealized Losses	$ (44)	$ (2)

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Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Loans
Loans	$ 501,594	$ 498,389	$ 442,720
Less: Net deferred loan fees	302	366
Less: Allowance for loan losses	4,747	4,598	4,224	$ 4,072
Net loans	496,545	493,425
Real Estate
Loans
Loans	450,357	440,679
Single family
Loans
Loans	150,990	153,141	148,067
Less: Allowance for loan losses	1,031	1,073	1,025	1,072
Multifamily
Loans
Loans	118,689	105,750	82,981
Less: Allowance for loan losses	1,340	1,013	932	757
Commercial real estate
Loans
Loans	163,515	162,957	139,554
Less: Allowance for loan losses	1,652	1,604	1,388	1,412
Construction and land development
Loans
Loans	17,163	18,831	19,127
Less: Allowance for loan losses	344	330	367	301
Commercial business
Loans
Loans	31,866	38,200	32,477
Less: Allowance for loan losses	302	498	412	454
Consumer
Loans
Loans	19,371	19,510	20,514
Less: Allowance for loan losses	78	80	$ 100	$ 76
Home equity lines of credit
Loans
Loans	14,977	14,881
Education
Loans
Loans	3,845	4,106
Other
Loans
Loans	$ 549	$ 523

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Loans (Details 2) - USD ($)	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Contractual aging of the recorded investment in past due loans
Current	$ 500,330,000	$ 496,975,000
Total Loans	501,594,000	498,389,000	$ 442,720,000
Troubled debt restructurings - accrual	0	0
Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	550,000	803,000
Single family
Contractual aging of the recorded investment in past due loans
Current	149,929,000	152,245,000
Total Loans	150,990,000	153,141,000	148,067,000
Single family | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	365,000	340,000
Multifamily
Contractual aging of the recorded investment in past due loans
Current	118,689,000	105,750,000
Total Loans	118,689,000	105,750,000	82,981,000
Multifamily | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	0	0
Construction and land development
Contractual aging of the recorded investment in past due loans
Current	17,163,000	18,827,000
Total Loans	17,163,000	18,831,000	19,127,000
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	31,860,000	38,200,000
Total Loans	31,866,000	38,200,000	32,477,000
Commercial business | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	0	0
Home equity lines of credit
Contractual aging of the recorded investment in past due loans
Current	14,950,000	14,691,000
Total Loans	14,977,000	14,881,000
Home equity lines of credit | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	39,000	203,000
Commercial real estate
Contractual aging of the recorded investment in past due loans
Current	163,515,000	162,957,000
Total Loans	163,515,000	162,957,000	$ 139,554,000
Commercial real estate | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	0	0
Education
Contractual aging of the recorded investment in past due loans
Current	3,675,000	3,782,000
Total Loans	3,845,000	4,106,000
Education | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	146,000	260,000
Other
Contractual aging of the recorded investment in past due loans
Current	549,000	523,000
Total Loans	549,000	523,000
Other | Past due loans
Contractual aging of the recorded investment in past due loans
Recorded investment in nonaccrual loans	0	0
Financing Receivables, 60 to 89 Days Past Due
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	40,000	83,000
Financing Receivables, 60 to 89 Days Past Due | Single family
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	83,000
Financing Receivables, 60 to 89 Days Past Due | Multifamily
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due | Construction and land development
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due | Commercial business
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due | Home equity lines of credit
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due | Commercial real estate
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due | Education
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	40,000	0
Financing Receivables, 60 to 89 Days Past Due | Other
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	726,000	556,000
Financing Receivables, 30 to 59 Days Past Due | Single family
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	696,000	473,000
Financing Receivables, 30 to 59 Days Past Due | Multifamily
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due | Construction and land development
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	4,000
Financing Receivables, 30 to 59 Days Past Due | Commercial business
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	6,000	0
Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due | Commercial real estate
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due | Education
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	24,000	79,000
Financing Receivables, 30 to 59 Days Past Due | Other
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	498,000	775,000
Financing Receivables, Equal to Greater than 90 Days Past Due | Single family
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	365,000	340,000
Financing Receivables, Equal to Greater than 90 Days Past Due | Multifamily
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due | Construction and land development
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial business
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due | Home equity lines of credit
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	27,000	190,000
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial real estate
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due | Education
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	106,000	245,000
Financing Receivables, Equal to Greater than 90 Days Past Due | Other
Contractual aging of the recorded investment in past due loans
Financing Receivable, Recorded Investment, Past Due	$ 0	$ 0

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Loans (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Risk category of loans evaluated by internal asset classification
Total	$ 501,594	$ 498,389	$ 442,720
Single family
Risk category of loans evaluated by internal asset classification
Total	150,990	153,141	148,067
Multifamily
Risk category of loans evaluated by internal asset classification
Total	118,689	105,750	82,981
Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	163,515	162,957	139,554
Construction and land development
Risk category of loans evaluated by internal asset classification
Total	17,163	18,831	19,127
Commercial business
Risk category of loans evaluated by internal asset classification
Total	31,866	38,200	$ 32,477
Home equity lines of credit
Risk category of loans evaluated by internal asset classification
Total	14,977	14,881
Education
Risk category of loans evaluated by internal asset classification
Total	3,845	4,106
Other
Risk category of loans evaluated by internal asset classification
Total	549	523
Pass
Risk category of loans evaluated by internal asset classification
Total	487,894	487,299
Pass | Single family
Risk category of loans evaluated by internal asset classification
Total	148,286	150,421
Pass | Multifamily
Risk category of loans evaluated by internal asset classification
Total	112,272	103,117
Pass | Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	159,122	159,104
Pass | Construction and land development
Risk category of loans evaluated by internal asset classification
Total	17,163	18,831
Pass | Commercial business
Risk category of loans evaluated by internal asset classification
Total	31,803	36,561
Pass | Home equity lines of credit
Risk category of loans evaluated by internal asset classification
Total	14,854	14,636
Pass | Education
Risk category of loans evaluated by internal asset classification
Total	3,845	4,106
Pass | Other
Risk category of loans evaluated by internal asset classification
Total	549	523
Watch
Risk category of loans evaluated by internal asset classification
Total	11,036	6,904
Watch | Single family
Risk category of loans evaluated by internal asset classification
Total	937	1,135
Watch | Multifamily
Risk category of loans evaluated by internal asset classification
Total	6,417	2,633
Watch | Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	3,682	3,136
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	0	0
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	407	410
Special Mention | Single family
Risk category of loans evaluated by internal asset classification
Total	0	0
Special Mention | Multifamily
Risk category of loans evaluated by internal asset classification
Total	0	0
Special Mention | Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	407	410
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	2,257	3,776
Substandard | Single family
Risk category of loans evaluated by internal asset classification
Total	1,767	1,585
Substandard | Multifamily
Risk category of loans evaluated by internal asset classification
Total	0	0
Substandard | Commercial real estate
Risk category of loans evaluated by internal asset classification
Total	304	307
Substandard | Construction and land development
Risk category of loans evaluated by internal asset classification
Total	0	0
Substandard | Commercial business
Risk category of loans evaluated by internal asset classification
Total	63	1,639
Substandard | Home equity lines of credit
Risk category of loans evaluated by internal asset classification
Total	123	245
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	0
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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Loans (Details 4) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Allowance for loan losses
Balance, beginning	$ 4,598	$ 4,072
Provision for loan losses	150	350
Loans charge-off	(10)	(225)
Recoveries	9	27
Balance, ending	4,747	4,224
Period-ended amount allocated for:
Individually evaluated for impairment			$ 78		$ 103
Collectively evaluated for impairment			4,669		4,121
Ending Balance	4,598	4,072	4,747	$ 4,598	4,224
Loans:
Individually evaluated for impairment			3,515		4,354
Collectively evaluated for impairment			498,079		438,366
Total Loans			501,594	498,389	442,720
Real Estate
Loans:
Total Loans			450,357	440,679
Single family
Allowance for loan losses
Balance, beginning	1,073	1,072
Provision for loan losses	(42)	103
Loans charge-off	0	(161)
Recoveries	0	11
Balance, ending	1,031	1,025
Period-ended amount allocated for:
Individually evaluated for impairment			23		45
Collectively evaluated for impairment			1,008		980
Ending Balance	1,073	1,072	1,031	1,073	1,025
Loans:
Individually evaluated for impairment			1,605		1,542
Collectively evaluated for impairment			149,385		146,525
Total Loans			150,990	153,141	148,067
Multifamily
Allowance for loan losses
Balance, beginning	1,013	757
Provision for loan losses	327	175
Loans charge-off	0	0
Recoveries	0	0
Balance, ending	1,340	932
Period-ended amount allocated for:
Individually evaluated for impairment			0		0
Collectively evaluated for impairment			1,340		932
Ending Balance	1,013	757	1,340	1,013	932
Loans:
Individually evaluated for impairment			1,816		1,894
Collectively evaluated for impairment			116,873		81,087
Total Loans			118,689	105,750	82,981
Commercial real estate
Allowance for loan losses
Balance, beginning	1,604	1,412
Provision for loan losses	47	15
Loans charge-off	0	(48)
Recoveries	1	9
Balance, ending	1,652	1,388
Period-ended amount allocated for:
Individually evaluated for impairment			0		0
Collectively evaluated for impairment			1,652		1,388
Ending Balance	1,604	1,412	1,652	1,604	1,388
Loans:
Individually evaluated for impairment			0		558
Collectively evaluated for impairment			163,515		138,996
Total Loans			163,515	162,957	139,554
Construction and land development
Allowance for loan losses
Balance, beginning	330	301
Provision for loan losses	14	66
Loans charge-off	0	0
Recoveries	0	0
Balance, ending	344	367
Period-ended amount allocated for:
Individually evaluated for impairment			0		0
Collectively evaluated for impairment			344		367
Ending Balance	330	301	344	330	367
Loans:
Individually evaluated for impairment			0		0
Collectively evaluated for impairment			17,163		19,127
Total Loans			17,163	18,831	19,127
Commercial business
Allowance for loan losses
Balance, beginning	498	454
Provision for loan losses	(200)	(34)
Loans charge-off	0	(14)
Recoveries	4	6
Balance, ending	302	412
Period-ended amount allocated for:
Individually evaluated for impairment			0		0
Collectively evaluated for impairment			302		412
Ending Balance	498	454	302	498	412
Loans:
Individually evaluated for impairment			0		0
Collectively evaluated for impairment			31,866		32,477
Total Loans			31,866	38,200	32,477
Consumer and other
Allowance for loan losses
Balance, beginning	80	76
Provision for loan losses	4	25
Loans charge-off	(10)	(2)
Recoveries	4	1
Balance, ending	78	100
Period-ended amount allocated for:
Individually evaluated for impairment			55		58
Collectively evaluated for impairment			23		42
Ending Balance	$ 80	$ 76	78	80	100
Loans:
Individually evaluated for impairment			94		360
Collectively evaluated for impairment			19,277		20,154
Total Loans			$ 19,371	$ 19,510	$ 20,514

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Loans (Details 5) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Unpaid Principal Balance
Total	$ 3,810	$ 4,866
Recorded Investment
Total	3,515	4,354
Allowance for Loan Losses Allocated
With an allowance recorded	78	103
Average Recorded Investment
Total	3,585	7,189
Interest Income Recognized
Total	37	43
Single family
Unpaid Principal Balance
With no related allowance recorded	1,338	1,363
With an allowance recorded	411	417
Recorded Investment
With no related allowance recorded	1,194	1,148
With an allowance recorded	411	394
Allowance for Loan Losses Allocated
With an allowance recorded	23	45
Average Recorded Investment
With no related allowance recorded	1,189	1,274
With an allowance recorded	412	758
Interest Income Recognized
With no related allowance	14	11
With related allowance	3	3
Multifamily
Unpaid Principal Balance
With no related allowance recorded	1,889	1,998
With an allowance recorded	0	0
Recorded Investment
With no related allowance recorded	1,816	1,894
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	1,824	3,484
With an allowance recorded	0	86
Interest Income Recognized
With no related allowance	19	20
With related allowance	0	0
Commercial real estate
Unpaid Principal Balance
With no related allowance recorded	0	629
With an allowance recorded	0	0
Recorded Investment
With no related allowance recorded	0	558
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	1,118
With an allowance recorded	0	90
Interest Income Recognized
With no related allowance	0	8
With related allowance	0	0
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	0	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	117	401
With an allowance recorded	55	58
Recorded Investment
With no related allowance recorded	39	302
With an allowance recorded	55	58
Allowance for Loan Losses Allocated
With an allowance recorded	55	58
Average Recorded Investment
With no related allowance recorded	105	223
With an allowance recorded	55	60
Interest Income Recognized
With no related allowance	0	0
With related allowance	$ 1	$ 1

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Loans (Details 6)	3 Months Ended
	Dec. 31, 2015 USD ($) contract	Dec. 31, 2014 USD ($) contract	Sep. 30, 2015 USD ($)
Troubled debt restructured loans
Troubled debt restructurings - accrual	$ 0		$ 0
Modified Trouble Debt Restructurings
Number of Modifications | contract	0	0
Unpaid Principal Balance (at end of period)	$ 0	$ 0
Interest Rate Reduction
Total	$ 0	$ 0
Number of re-defaults of TDR | contract	0	0
Past due loans
Troubled debt restructured loans
Troubled debt restructurings - accrual	$ 3,111,000		3,134,000
Troubled debt restructurings - nonaccrual	0		0
Troubled debt restructurings	$ 3,111,000		$ 3,134,000

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Loans Loans (Details 7) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Loans and Leases Receivable, Related Parties [Roll Forward]
Loans outstanding to officers, employees, directors, and their associates	$ 3,628	$ 3,334
Loans and Leases Receivable, Related Parties, Additions	0
Loans and Leases Receivable, Related Parties, Amount Drawn Upon During Period	47
Loans and Leases Receivable, Related Parties, Collections	(122)
Loans and Leases Receivable, Related Parties, Other	$ 369

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Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Negotiable order for withdrawal accounts:
Noninterest bearing	$ 108,370	$ 101,486
Interest bearing	137,272	131,968
Gross total	245,642	233,454
Passbook and Statement Savings	125,836	127,431
Variable Rate Money Market Accounts	55,546	47,876
Certificates of Deposit	129,120	122,259
Deposits	$ 556,144	$ 531,020
Negotiable order for withdrawal accounts:
Noninterest bearing (as a percent)	19.48%	19.11%
Interest bearing (as a percent)	24.68%	24.85%
Gross total (as a percent)	44.16%	43.96%
Passbook and Statement Savings (as a percent)	22.63%	24.00%
Variable Rate Money Market Accounts (as a percent)	9.99%	9.02%
Certificates of Deposit (as a percent)	23.22%	23.02%
Deposits (as a percent)	100.00%	100.00%
Certificates of Deposit over one hundred thousand dollars	$ 71,736	$ 64,155
Certificates of Deposit over two hundred fifty thousand dollars	$ 10,498	$ 8,775

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Regulatory Capital (Details) - Westbury Bank - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Total capital (to risk-weighted assets), Amount
Actual	$ 68,925	$ 68,753
For Capital Adequacy Purposes	42,448	41,923
To be Well Capitalized Under Prompt Corrective Action Provisions	$ 53,060	$ 52,403
Total capital (to risk-weighted assets), Ratio
Actual (as a percent)	12.99%	13.12%
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	$ 64,178	$ 64,155
For Capital Adequacy Purposes	31,850	31,423
To be Well Capitalized Under Prompt Corrective Action Provisions	$ 42,467	$ 41,897
Tier 1 capital (to risk-weighted assets), Ratio
Actual (as a percent)	12.09%	12.25%
For Capital Adequacy Purposes (as a percent)	6.00%	6.00%
To be Well Capitalized Under Prompt Corrective Action Provisions (as a percent)	8.00%	8.00%
CETI capital (to risk-weighted assets), Amount
Actual	$ 64,178	$ 64,155
For Capital Adequacy Purposes	23,888	23,567
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 34,504	$ 34,041
CETI capital (to risk-weighted assets), Ratio
Actual (as a percent)	12.09%	12.25%
For Capital Adequacy Purposes (as a percent)	4.50%	4.50%
To Be Well Capitalized Under Prompt Corrective Action Provisions (as a percent)	6.50%	6.50%
Tier 1 capital (to adjusted total assets), Amount
Actual	$ 64,178	$ 64,155
For Capital Adequacy Purposes	26,276	25,636
To be Well Capitalized Under Prompt Corrective Action Provisions	$ 32,844	$ 32,045
Tier 1 capital (to adjusted total assets), Ratio
Actual (as a percent)	9.77%	10.01%
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%

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Regulatory Capital- Stockholders' equity of the Bank (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Regulatory Capital
Stockholders' equity	$ 79,118	$ 78,812	$ 86,526	$ 86,487
Less: Disallowed servicing assets	(1,136)	(1,210)
Westbury Bank
Regulatory Capital
Stockholders' equity	70,087	70,976
Unrealized (gain) loss on securities	239	(352)
Investment in subsidiary	3,296	3,296
Disallowed deferred tax assets	(2,852)	(3,173)
Tier 1 and tangible capital	64,178	64,155
Plus: Allowable general valuation allowances	4,747	4,598
Actual	$ 68,925	$ 68,753

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Commitments (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
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	17,829,000	8,443,000
Adjustable rate commitments to extend mortgage credit
Financial Instruments with Off-Balance Sheet Risk
Financial instruments whose contract amounts represent credit risk	48,000	9,929,000
Standby letters of credit
Financial Instruments with Off-Balance Sheet Risk
Financial instruments whose contract amounts represent credit risk	$ 763,000	884,000
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	$ 973,000	431,000
Commercial Loan [Member] | Unused commercial loan lines of credit
Financial Instruments with Off-Balance Sheet Risk
Financial instruments whose contract amounts represent credit risk	64,378,000	54,225,000
Home Equity Loan [Member] | Unused commercial loan lines of credit
Financial Instruments with Off-Balance Sheet Risk
Financial instruments whose contract amounts represent credit risk	$ 25,580,000	$ 26,164,000

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Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Assets
Securities available-for-sale	$ 84,237	$ 80,286
U.S. Government and agency securities
Assets
Securities available-for-sale	25	25
U.S. Government agency residential mortgage-backed securities
Assets
Securities available-for-sale	38,975	39,692
U.S. Government agency collateralized mortgage obligations
Assets
Securities available-for-sale	1,815	1,941
U.S. Government agency commercial mortgage-backed securities
Assets
Securities available-for-sale	15,945	14,099
Municipal securities
Assets
Securities available-for-sale	23,632	21,667
Corporate Debt Securities [Member]
Assets
Securities available-for-sale	3,845	2,862
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	$ 84,237	80,286
Derivatives	108	110
Liabilities
Derivatives	108	110
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 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Debt Securities [Member]
Assets
Securities available-for-sale	0	0
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	84,237	80,286
Derivatives	108	110
Liabilities
Derivatives	108	110
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government and agency securities
Assets
Securities available-for-sale	25	25
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government agency residential mortgage-backed securities
Assets
Securities available-for-sale	38,975	39,692
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government agency collateralized mortgage obligations
Assets
Securities available-for-sale	1,815	1,941
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government agency commercial mortgage-backed securities
Assets
Securities available-for-sale	15,945	14,099
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal securities
Assets
Securities available-for-sale	23,632	21,667
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate Debt Securities [Member]
Assets
Securities available-for-sale	3,845	2,862
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
Recurring basis | Significant Other Unobservable Inputs (Level 3) | Corporate Debt Securities [Member]
Assets
Securities available-for-sale	0	0
Total
Assets
Securities available-for-sale	84,237	80,286
Derivatives	108	110
Liabilities
Derivatives	108	110
Total | Recurring basis
Assets
Securities available-for-sale	84,237	80,286
Derivatives	108	110
Liabilities
Derivatives	108	110
Total | Recurring basis | U.S. Government and agency securities
Assets
Securities available-for-sale	25	25
Total | Recurring basis | U.S. Government agency residential mortgage-backed securities
Assets
Securities available-for-sale	38,975	39,692
Total | Recurring basis | U.S. Government agency collateralized mortgage obligations
Assets
Securities available-for-sale	1,815	1,941
Total | Recurring basis | U.S. Government agency commercial mortgage-backed securities
Assets
Securities available-for-sale	15,945	14,099
Total | Recurring basis | Municipal securities
Assets
Securities available-for-sale	23,632	21,667
Total | Recurring basis | Corporate Debt Securities [Member]
Assets
Securities available-for-sale	$ 3,845	$ 2,862

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Fair Value Measurements (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Assets measured at fair value on a nonrecurring basis
Impaired loans, valuation allowance	$ 78		$ 103
Foreclosed real estate	168	$ 283
Real estate held for sale	808	882
Significant Other Unobservable Inputs (Level 3)
Assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	1,136	1,210
Carrying Amount
Assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	1,136	1,210
Total
Assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	1,136	1,210
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
Real estate held for sale	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
Real estate held for sale	0	0
Nonrecurring Basis | Significant Other Unobservable Inputs (Level 3)
Assets measured at fair value on a nonrecurring basis
Impaired loans, valuation allowance	78	77
Mortgage servicing rights, valuation allowance	105	105
Impaired loans	388	390
Foreclosed real estate	168	283
Mortgage servicing rights	1,136	1,210
Real estate held for sale	808	882
Nonrecurring Basis | Carrying Amount | Significant Other Unobservable Inputs (Level 3)
Assets measured at fair value on a nonrecurring basis
Impaired loans	466	467
Mortgage servicing rights	1,241	1,315
Nonrecurring Basis | Total
Assets measured at fair value on a nonrecurring basis
Impaired loans	388	390
Foreclosed real estate	168	283
Mortgage servicing rights	1,136	1,210
Real estate held for sale	$ 808	$ 882

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Fair Value Measurements (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Financial assets:
Securities available-for-sale	$ 84,237	$ 80,286
Securities held to maturity	2,459	2,459
Federal Home Loan Bank stock	3,350	3,350
Financial liabilities:
Short-term advances from Federal Home Loan Bank	20,500	18,000
Advances from Federal Home Loan Bank	10,000	0
Advance payments by borrowers for property taxes and insurance	146	5,382
Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	40,060	16,488
Securities held to maturity	0	0
Accrued interest receivable	1,950	1,965
Financial liabilities:
Deposits	108,370	101,486
Short-term advances from Federal Home Loan Bank	0	0
Advances from Federal Home Loan Bank	0	0
Advance payments by borrowers for property taxes and insurance	146	5,382
Accrued interest payable	6	5
Derivative liability	0	0
Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	84,237	80,286
Securities held to maturity	2,489	2,490
Loans held for sale, net	973	431
Derivative asset	108	110
Financial liabilities:
Deposits	0	0
Short-term advances from Federal Home Loan Bank	20,500	18,000
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	108	110
Significant Other Unobservable Inputs (Level 3)
Financial assets:
Securities held to maturity	0	0
Loans, net	496,075	493,480
Federal Home Loan Bank stock	3,350	3,350
Mortgage servicing rights	1,136	1,210
Financial liabilities:
Deposits	421,881	406,853
Short-term advances from Federal Home Loan Bank	0	0
Advances from Federal Home Loan Bank	9,993	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	40,060	16,488
Securities available-for-sale	84,237	80,286
Securities held to maturity	2,459	2,459
Loans, net	496,545	493,425
Loans held for sale, net	973	431
Federal Home Loan Bank stock	3,350	3,350
Mortgage servicing rights	1,136	1,210
Accrued interest receivable	1,950	1,965
Derivative asset	108	110
Financial liabilities:
Deposits	556,144	531,020
Short-term advances from Federal Home Loan Bank	20,500	18,000
Advances from Federal Home Loan Bank	10,000	0
Advance payments by borrowers for property taxes and insurance	146	5,382
Accrued interest payable	6	5
Derivative liability	108	110
Estimated Fair Value
Financial assets:
Cash and cash equivalents	40,060	16,488
Securities available-for-sale	84,237	80,286
Securities held to maturity	2,489	2,490
Loans, net	496,075	493,480
Loans held for sale, net	973	431
Federal Home Loan Bank stock	3,350	3,350
Mortgage servicing rights	1,136	1,210
Accrued interest receivable	1,950	1,965
Derivative asset	108	110
Financial liabilities:
Deposits	530,251	508,339
Short-term advances from Federal Home Loan Bank	20,500	18,000
Advances from Federal Home Loan Bank	9,993	0
Advance payments by borrowers for property taxes and insurance	146	5,382
Accrued interest payable	6	5
Derivative liability	$ 108	$ 110

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Employee Stock Ownership Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Apr. 11, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Employee Stock Ownership Plan (ESOP), Debt Structure, Indirect Loan, Amount				$ 4,100
employee stock ownership plan, price per share				$ 10.00
ESOP committed-to-be-released shares, during period	5,142
ESOP compensation expense	$ 91	$ 112
Allocated shares to active participants	32,966		34,132
Shares committed to be released	20,570		15,428
Unallocated shares	349,693		354,835
Total ESOP shares	403,229		404,395	411,403
Fair value of unallocated shares	$ 6,294		$ 6,323

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Compensation Equity Plans Cost of Share-based Payment Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total cost of stock grant plan during the period	$ 151	$ 155
Total cost of stock option plan during the period	57	46
Total cost of share-based payment plans during the period	208	201
Amount of related income tax benefit recognized in income	$ 82	$ 79

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Compensation Equity Plans Stock Option Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015 USD ($) $ / shares shares
Number of Options
Options outstanding, beginning balance (shares) | shares	406,409
Granted (shares) | shares	1,000
Exercised (shares) | shares	4,298
Expired or canceled (shares) | shares	0
Forfeited (shares) | shares	0
Options outstanding, ending balance (shares) | shares	403,111
Options exercisable as of June 30, 2015 (shares) | shares	60,946
Weighted Average Exercise Price
Options outstanding, beginning balance (in dollars per share) | $ / shares	$ 15.68
Granted (in dollars per share) | $ / shares	17.60
Exercised (in dollars per share) | $ / shares	15.20
Expired or canceled (in dollars per share) | $ / shares	0.00
Forfeited (in dollars per share) | $ / shares	0.00
Options outstanding, ending balance (in dollars per share) | $ / shares	15.69
Options exercisable as of March 31, 2015 (in dollars per share) | $ / shares	$ 15.20
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, Weighted Average Remaining Contractual Term	8 years 8 months 23 days
Outstanding, Aggregate Intrinsic Value | $	$ 932
Options Exercisable, Weighted Average Remaining Contractual Term	8 years 6 months
Options Exercisable, Aggregate Intrinsic Value | $	$ 171

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Compensation Equity Plans Assumptions (Details) - $ / shares	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free interest rate	1.99%	0.00%
Expected volatility of Company's stock	7.44%	0.00%
Expected dividend yield	0.00%	0.00%
Expected life of options (years)	7 years 6 months	0 months
Weighted average fair value per option of options granted during the period	$ 2.89	$ 0.00

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Compensation Equity Plans Restricted Shares (Details) - Restricted Shares and Units	3 Months Ended
	Dec. 31, 2015 $ / shares shares
Number of Shares
Shares Outstanding at September 30, 2014 | shares	158,052
Granted | shares	1,000
Vested | shares	0
Forfeited | shares	0
Shares Outstanding at June 30, 2015 | shares	159,052
Weighted Average Grant Date Fair Value
Shares Outstanding at September 30, 2014 (in dollars per share) | $ / shares	$ 15.20
Granted (in dollars per share) | $ / shares	17.60
Vested (in dollars per share) | $ / shares	0.00
Forfeited (in dollars per share) | $ / shares	0.00
Shares Outstanding at March 31, 2015 (in dollars per share) | $ / shares	$ 15.22

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Compensation Equity Plans Narrative (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	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	$ 10,000	$ 0
Intrinsic value of restricted shares vested during the period		$ 0
Compensation cost not yet recognized	$ 3,100,000
Period for recognition	3 years 7 months 2 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	4,092
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	101,753

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Condensed Parent Company Financial Information Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and interest bearing deposits	$ 40,060	$ 16,488	$ 24,475	$ 17,608
Other assets	3,880	3,488
Total assets	670,577	638,929
Other liabilities	4,669	5,715
Stockholders' equity	79,118	78,812	$ 86,526	$ 86,487
Liabilities and Equity	670,577	638,929
Parent Company
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and interest bearing deposits	3,324	1,440
Investments	86	115
Loan to ESOP	3,620	3,778
Investment in subsidiary	73,220	74,201
Other assets	2,127	2,660
Total assets	82,377	82,194
Other liabilities	125	157
Stockholders' equity	82,252	82,037
Liabilities and Equity	$ 82,377	$ 82,194

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Condensed Parent Company Financial Information Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Condensed Income Statements, Captions [Line Items]
Net income	$ 1,039	$ 447
Parent Company
Condensed Income Statements, Captions [Line Items]
Interest and other income	32	63
Interest and other expense	121	184
Loss before income tax benefit and equity in undistributed net income of subsidiary	(89)	(121)
Income tax benefit	(18)	(30)
Loss before equity in undistributed net income of subsidiary	(71)	(91)
Equity in undistributed net income of subsidiary	1,110	538
Net income	$ 1,039	$ 447

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Condensed Parent Company Financial Information Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	$ 1,039	$ 447
Net change in other assets	(391)	(243)
Net cash provided by operating activities	(4,742)	(6,176)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchase of securities	(12,375)	(8,189)
Net cash provided by (used in) investing activities	(8,868)	(17,884)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Stock options exercised	64	0
Repurchase of common stock	(506)	(833)
Net cash used in financing activities	37,182	30,927
Parent Company
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	1,039	447
Equity in undistributed net income of subsidiary	(1,110)	(538)
Net change in other liabilities	(32)	15
Net change in other assets	742	124
Net cash provided by operating activities	639	48
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchase of securities	0	(376)
Sales and maturities of securities	29	212
Payments received on ESOP loan	158	153
Dividend received from bank subsidiary	(1,500)	0
Net cash provided by (used in) investing activities	1,687	(11)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Stock options exercised	64	0
Repurchase of common stock	(506)	(833)
Net cash used in financing activities	(442)	(833)
Net increase (decrease) in cash	1,884	(796)
Beginning of period	1,440	6,878
End of period	$ 3,324	$ 6,082