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Anchor BanCorp Wisconsin Inc. Announces First Quarter Earnings MADISON, Wis., Aug. 11, 2008 (PRIME NEWSWIRE) -- Anchor
BanCorp Wisconsin Inc. (NasdaqGS:ABCW - News) announced net income
of $5.5 million for the quarter ended June 30, 2008. This
compares to net income for the same quarter of the previous
fiscal year of $9.9 million. ``While our profit this quarter
is down versus last year, we do feel that in the current
environment this is a respectable result,'' said Douglas
J. Timmerman, Chairman and CEO. ``Conservative management of deposit rates helped us lower our cost of funds and improve our interest rate spread,'' said Timmerman. Cost of funds decreased to 3.22 percent for the quarter ended June 30, 2008, versus 4.05 percent for the same period last year. Interest rate spread improved as well, at 2.83 percent for the quarter ended June 30, 2008, versus 2.75 percent for the same period last year. The effect of these improvements was a decrease in interest expense of 10.9 percent to $37.1 million for the first fiscal quarter of this year, and an increase of 7.8 percent in net interest income to $33.4 million for the quarter ended June 30, 2008. ``While net interest income was up, this was offset by our decision to increase our provision for loan losses, which we felt sensible given the continued sluggish performance of the real estate market and the increase in our non-performing assets,'' added Timmerman. The loan loss provision was $9.4 million for the quarter compared to $2.3 million a year ago. Timmerman went on to say that, ``We will continue to work diligently with our loan customers currently experiencing repayment issues, utilizing all available resources to resolve our non-performing assets favorably.'' Total assets stood at $4.95 billion as of June 30, 2008, up 9.2 percent versus a year ago, and total deposits are $3.41 billion, up 4.9 percent from the previous year, which includes the impact of the merger with S&C Banco in January 2008. Anchor BanCorp's stock is traded on the NASDAQ exchange under the symbol ABCW. AnchorBank fsb, the wholly-owned subsidiary, has 74 full service offices and two loan origination only offices. All are located in Wisconsin. This news release contains certain forward-looking statements based on unaudited financial statements, results of operations and business of Anchor BanCorp. Forward-looking statements are subject to various factors which could cause actual results to differ materially from these estimates. These factors include changes in general economic conditions, deposit flows, loan demand, asset quality, competition, legislation or regulation and accounting principles, policies or guidelines affecting reports filed with the Securities and Exchange Commission for financial and business information regarding Anchor BanCorp, including information which could affect Anchor BanCorp's forward-looking statements.
ANCHOR BANCORP WISCONSIN INC.
FINANCIAL HIGHLIGHTS
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(Dollars in thousands - except per share amounts)
(Unaudited)
Three Months Ended
June 30,
--------------------------
2008 2007
--------------------------
Operations Data:
Net interest income $ 33,421 $ 31,017
Provision for loan losses 9,400 2,271
Net gain on sale of loans 2,243 1,587
Real estate investment
partnership revenue -- 4,726
Other non-interest income 9,566 8,327
Real estate investment
partnership cost of sales -- 4,340
Other non-interest expense 26,791 22,547
Minority interest in loss of
consolidated real estate
partnerships (39) (75)
Income before income taxes 9,078 16,574
Income taxes 3,566 6,688
Net income 5,512 9,886
Selected Financial Ratios (1):
Yield on earning assets 6.05% 6.80%
Cost of funds 3.22 4.05
Interest rate spread 2.83 2.75
Net interest margin 2.87 2.90
Return on average assets 0.44 0.88
Return on average equity 6.37 11.77
Average equity to average assets 6.93 7.49
Non-interest expense to average
assets 2.15 2.40
Per Share:
Basic earnings per share $ 0.26 $ 0.47
Diluted earnings per share 0.26 0.46
Dividends per share 0.18 0.17
Book value per share 16.00 15.54
June 30,
-------------------------- Percent
2008 2007 Change
-------------------------- -------
Financial Condition:
Total assets $ 4,949,335 $ 4,532,758 9.2%
Loans receivable, net
Held for sale 6,619 9,062 (27.0)
Held for investment 4,129,075 3,890,053 6.1
Investment securities available
for sale, at fair value 97,707 74,814 30.6
Mortgage-related securities
available for sale, at fair
value 270,042 240,630 12.2
Mortgage-related securities held
to maturity, at amortized cost 57 66 (13.6)
Deposits 3,406,975 3,248,964 4.9
Borrowings 1,147,329 891,016 28.8
Stockholders' equity 343,599 331,593 3.6
Allowance for loan losses 40,265 22,220 81.2
Non-performing assets 144,137 53,180 171.0
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(1) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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(Unaudited)
June 30, March 31,
2008 2008
--------------------------
(In Thousands)
Assets
Cash and cash equivalents $ 102,784 $ 257,743
Investment securities available
for sale, at fair value 97,707 87,036
Mortgage-related securities
available for sale, at fair value 270,042 269,370
Mortgage-related securities held
to maturity, at amortized cost 57 59
Loans receivable, net
Held for sale 6,619 9,669
Held for investment 4,129,075 4,202,833
Foreclosed properties and
repossessed assets, net 24,006 8,247
Real estate held for development
and sale 59,808 59,002
Office properties and equipment 47,937 47,916
Other assets 211,300 207,682
Total assets $ 4,949,335 $ 5,149,557
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Liabilities and Stockholders' Equity
Deposits
Non-interest bearing $ 302,011 $ 280,897
Interest bearing 3,104,964 3,259,097
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Total deposits 3,406,975 3,539,994
Short-term borrowings 273,015 232,289
Long-term borrowings 874,314 974,472
Other liabilities 45,391 51,605
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Total liabilities 4,599,695 4,798,360
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Minority interest in real estate
partnerships 6,041 6,081
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Preferred stock, $.10 par value,
5,000,000 shares authorized,
none outstanding -- --
Common stock, $.10 par value,
100,000,000 shares authorized,
25,363,339 shares issued 2,536 2,536
Additional paid-in capital 72,313 72,300
Retained earnings, substantially
restricted 374,578 374,593
Accumulated other comprehensive loss (3,035) 1,864
Treasury stock (3,882,380 and
4,015,169 shares, respectively),
at cost (97,441) (100,930)
Deferred compensation obligation (5,352) (5,247)
----------- -----------
Total stockholders' equity 343,599 345,116
Total liabilities, minority
interest and stockholders'
equity $ 4,949,335 $ 5,149,557
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ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited)
Three Months Ended
June 30,
--------------------------
2008 2007
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(In Thousands - except per share amounts)
Interest income:
Loans $ 65,711 $ 68,031
Mortgage-related securities 3,669 3,006
Investment securities and Federal
Home Loan Bank stock 800 1,215
Interest-bearing deposits 328 395
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Total interest income 70,508 72,647
Interest expense:
Deposits 26,842 31,446
Short-term borrowings 1,743 6,658
Long-term borrowings 8,502 3,526
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Total interest expense 37,087 41,630
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Net interest income 33,421 31,017
Provision for loan losses 9,400 2,271
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Net interest income after
provision for loan losses 24,021 28,746
Non-interest income:
Real estate investment partnership
revenue -- 4,726
Loan servicing income 1,201 1,480
Credit enhancement income 417 421
Service charges on deposits 3,859 3,091
Investment and insurance
commissions 1,181 982
Net gain on sale of loans 2,243 1,587
Net gain on sale of investments
and mortgage-related securities -- 12
Other revenue from real estate
partnership operations 1,473 1,223
Other 1,435 1,118
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Total non-interest income 11,809 14,640
Non-interest expense:
Compensation 13,307 11,270
Real estate investment partnership
cost of sales -- 4,340
Occupancy 2,417 1,937
Furniture and equipment 2,126 1,481
Data processing 1,812 1,487
Marketing 587 1,084
Other expenses from real estate
partnership operations 2,191 2,085
Other 4,351 3,203
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Total non-interest expense 26,791 26,887
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Minority interest in loss of
consolidated real estate
partnerships (39) (75)
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Income before income taxes 9,078 16,574
Income taxes 3,566 6,688
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Net income $ 5,512 $ 9,886
=========== ===========
Earnings per share:
Basic $ 0.26 $ 0.47
Diluted 0.26 0.46
Contact: AnchorBank
Dale Ringgenberg, CFO
(608) 252-1810
Mark D. Timmerman, President and CEO
(608) 252-8784
AnchorBanCorp Wisconsin
Douglas J. Timmerman, President, Chairman and CEO
(608) 252-8782
Source: Anchor BanCorp Wisconsin, Inc.
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