Source : Anchor BanCorp Wisconsin Inc.
Anchor BanCorp Wisconsin Inc. Announces Quarter and Year Results
MADISON, Wis., March 20, 2014 (GLOBE NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (the "Company") today announced its financial results for the quarter and nine months ended December 31, 2013. The Board of Directors of the Company approved a change in its fiscal year to a calendar year end. As a result, we are reporting on a transitional nine month period for the period ended December 31, 2013.
Net income was $3.8 million for the three months ended December 31, 2013 compared to a net loss of $11.6 million for the same period a year ago. For the nine months ended December 31, 2013, net income was $111.6 million, compared to a net loss of $20.2 million for the nine months ended December 31, 2012. The Company had a net loss of $34.2 million for the fiscal year ended March 31, 2013.
On September 27, 2013, the Company announced the completion of a $175 million recapitalization. The Company received gross proceeds of $175 million related to the issuance of new common equity and settled all of its obligations with respect to the short term credit agreement and the preferred stock. The transaction resulted in income from extinguishment of debt of $134.5 million during the quarter ended September 30, 2013 which contributed to net income for the transitional nine month period.
"We are excited about the many opportunities presented by the recapitalization, and we are pleased to have ended the year on a positive note," stated Chris Bauer, President & CEO for AnchorBank. "We continue to make steady progress in improving our financial health, profitability and growth and we have implemented new strategies to develop a relationship-focused, service-driven franchise with expanded commercial lending, improved asset quality, increased core deposits and a more efficient operating model, which we believe positions us well for success."
Highlights for the quarter ended December 31, 2013, include:
- The total risk-based capital ratio for the Bank was 17.07% as of December 31, 2013, compared to 9.02% at March 31, 2013. Tier 1 capital was 9.60% as of December 31, 2013, compared to 4.53% at March 31, 2013. As a result of the recapitalization, the Bank's total risk based capital ratio exceeds the 12% level required under the terms of the Cease and Desist Order for the second consecutive quarter.
- Total non-performing loans decreased $50.3 million, or 42.3% to $68.5 million at December 31, 2013 from $118.8 million at March 31, 2013;
- Total non-performing assets (total non-performing loans and other real estate owned) decreased $71.1 million, or 35.0 %, to $132.0 million at December 31, 2013 from $203.1 million at March 31, 2013; as the Bank continues to reduce problem asset levels. Non-performing assets have steadily declined for more than three years from over $455.0 million at March 31, 2010 to the current balance, a 71.0% decrease as a result of continued efforts by management to reduce such problem assets.
- The provision for loan losses was zero and $275,000 for the three and nine months ended December 31, 2013, respectively. This was a decrease when compared to $4.8 million and $7.1 million for the three and nine months ended December 31, 2012, respectively; and
- Loan delinquencies (loans past due 30 days or more) decreased $51.4 million or 44.1%, to $65.2 million at December 31, 2013 from $116.6 million at March 31, 2013.
"We continue to look forward to 2014 and the opportunities for AnchorBank, its customers, its employees, and the communities we serve," Bauer said. "We remain grateful for the opportunity to provide banking services to our Wisconsin customers and clients, as we have done for 95 years."
About Anchor BanCorp Wisconsin Inc.
AnchorBank, fsb has 54 offices, all of which are located in Wisconsin.
Forward-Looking Statements
This news release contains certain forward-looking statements, as that term is defined in the U.S. federal securities laws. In the normal course of business, we, in an effort to help keep our shareholders and the public informed about our operations, may from time to time issue or make certain statements, either in writing or orally, that are or contain forward-looking statements. Generally, these statements relate to business plans or strategies, projections involving anticipated revenues, earnings, liquidity, capital levels, profitability or other aspects of operating results or other future developments in our affairs or the industry in which we conduct business. Although we believe that the anticipated results or other expectations reflected in our forward-looking statements are based on reasonable assumptions, we can give no assurance that those results or expectations will be attained. You should not put undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update them in light of new information or future events, except to the extent required by federal securities laws.
| Anchor BanCorp Wisconsin Inc. | ||||||
| CONSOLIDATED FINANCIAL SUMMARY | ||||||
| (Unaudited) | ||||||
| Qtr ended | ||||||
| ($ in 000's, except per share data) | Quarter ended | Nine months ended | 12/2013-12/2012 | |||
| INCOME STATEMENT | 12/31/2013 | 9/30/2013 | 12/31/2012 | 12/31/2013 | 12/31/2012 | Incr(Decr) |
| Net interest income | $ 18,877 | $ 15,812 | $ 15,205 | $ 48,106 | $ 47,663 | 24% |
| Provision for loan losses | -- | -- | 4,832 | 275 | 7,058 | (100%) |
| Non-interest income: | ||||||
| Loan servicing income (loss), net | 681 | 646 | (951) | 1,382 | (1,947) | N/M |
| Service charges on deposits | 2,504 | 2,667 | 2,691 | 7,751 | 8,066 | (7%) |
| Investment and insurance commissions | 1,009 | 893 | 952 | 2,965 | 2,942 | 6% |
| Net gain on sale of loans | 728 | 1,565 | 7,153 | 5,086 | 20,165 | (90%) |
| Net gain on sale of investments | 292 | -- | (120) | 292 | (47) | N/M |
| Net gain on sale of OREO | 1,118 | 1,217 | 767 | 3,260 | 5,539 | 46% |
| Extinguishment of debt | -- | 134,514 | -- | 134,514 | -- | -- |
| Other | 1,670 | 1,177 | 1,352 | 4,283 | 3,680 | 24% |
| Total non-interest income | 8,002 | 142,679 | 11,844 | 159,533 | 38,398 | (32%) |
| Operating expenses: | ||||||
| Personnel costs | 10,569 | 10,727 | 10,088 | 32,426 | 30,594 | 5% |
| Net occupancy and equipment expense | 2,586 | 3,605 | 3,003 | 9,027 | 9,623 | (14%) |
| Data processing expense | 1,616 | 1,264 | 1,337 | 4,300 | 4,361 | 21% |
| OREO expense | 2,294 | 3,214 | 10,190 | 9,797 | 25,312 | (77%) |
| Professional fees | 781 | 1,925 | 1,622 | 4,472 | 5,843 | (52%) |
| Debt prepayment penalty | -- | 16,149 | 3,549 | 16,149 | 3,549 | (100%) |
| Reorganization costs | 63 | 1,866 | -- | 1,929 | -- | -- |
| Other | 5,216 | 6,482 | 4,060 | 17,632 | 20,054 | 28% |
| Total operating expenses | 23,125 | 45,232 | 33,849 | 95,732 | 99,336 | (32%) |
| Net income (loss) before taxes | 3,754 | 113,259 | (11,632) | 111,632 | (20,333) | 132% |
| Income tax expense (benefit) | -- | 9 | 10 | 9 | (181) | 100% |
| Net income (loss) | 3,754 | 113,250 | (11,642) | 111,623 | (20,152) | 132% |
| Preferred stock dividends in arrears | N/A | (837) | (1,654) | (2,538) | (4,898) | N/M |
| Preferred stock discount accretion | N/A | (4,304) | (1,853) | (6,167) | (5,569) | N/M |
| Retirement of preferred shares | N/A | 104,000 | -- | 104,000 | -- | N/M |
| Net income (loss) available to common equity | $ 3,754 | $ 212,109 | $ (15,149) | $ 206,918 | $ (30,619) | 125% |
| SHARE DATA | ||||||
| Diluted earnings (loss) per share: | ||||||
| Net income (loss) | $ 0.41 | $ 5.47 | $ (0.55) | $ 6.57 | $ (0.95) | 176% |
| Net income (loss) available to common equity | $ 0.41 | $ 10.24 | $ (0.71) | $ 12.18 | $ (1.44) | 158% |
| Cash dividends | $ -- | $ -- | $ -- | $ -- | $ -- | -- |
| Book value | $ 22.34 | $ 22.21 | $ (7.37) | $ 22.34 | $ (7.37) | 403% |
| Average diluted shares outstanding | 9,050 | 20,717 | 21,247 | 16,989 | 21,247 | (57%) |
| KEY RATIOS AND DATA | ||||||
| Loan servicing income (loss), net | $ 681 | $ 646 | $ (951) | $ 1,382 | $ (1,947) | 172% |
| Gain on sale of mortgages | 728 | 1,565 | 7,153 | 5,086 | 20,165 | (90%) |
| OMSR (impairment) / recovery | (60) | 466 | 1,570 | 1,664 | (1,787) | (104%) |
| Resident mortgage banking gross returns | $ 1,349 | $ 2,677 | $ 7,772 | $ 8,132 | $ 16,431 | (83%) |
| Key Metrics | ||||||
| Origination volume (closed loans) | $ 53,600 | $ 84,500 | $ 283,300 | $ 310,300 | $ 827,600 | (81%) |
| Serviced loan portfolio | 2,714,000 | 2,798,000 | 2,974,000 | -- | -- | (9%) |
| Net interest margin (FTE) | 3.61% | 2.88% | 2.42% | 2.94% | 2.44% | 1.19 |
| Return on average assets | 0.17% | 9.25% | -0.58% | 6.54% | -0.99% | 0.75 |
| Average equity (deficit) to average assets | 9.32% | -2.67% | -1.34% | 1.19% | -1.12% | 10.66 |
| Total risk based capital | 17.07% | 16.30% | 9.33% | -- | -- | 7.74 |
| Tier 1 risk-based capital | 15.77% | 14.99% | 8.03% | -- | -- | 7.74 |
| Tier 1 leverage | 9.60% | 9.06% | 4.84% | -- | -- | 4.76 |
| N/M = not meaningful | ||||||
| Anchor BanCorp Wisconsin Inc. | ||||||
| (Unaudited) | ||||||
| As of or for the | Ending balances | |||||
| (in 000's) | Quarter ended Averages | nine months ended | 12/2013-12/2012 | |||
| BALANCE SHEET | 12/31/13 | 9/30/13 | 12/31/12 | 12/31/13 | 12/31/12 | Incr(Decr) |
| Assets: | ||||||
| Investment securities | $ 287,797 | $ 292,406 | $ 250,739 | $ 277,872 | $ 261,487 | 6% |
| Loans held for sale | 4,137 | 12,503 | 32,329 | 3,085 | 31,483 | (90%) |
| Loans: Mortgage | 1,467,796 | 1,489,456 | 1,667,255 | 1,232,132 | 1,364,562 | (10%) |
| Consumer | 145,708 | 156,048 | 207,443 | 367,831 | 444,396 | (17%) |
| Commercial | 21,863 | 25,679 | 23,650 | 21,591 | 30,499 | (29%) |
| Total loans | $ 1,635,367 | $ 1,671,183 | $ 1,898,348 | $ 1,621,554 | $ 1,839,457 | (12%) |
| Allowance for loan losses | (69,854) | (74,633) | (88,566) | (65,182) | (83,761) | (22%) |
| Interest earning deposits in banks | 144,748 | 195,774 | 305,535 | 99,257 | 135,665 | (27%) |
| Other assets | 177,792 | 195,734 | 225,107 | 175,888 | 228,048 | (23%) |
| Total assets | $ 2,179,987 | $ 2,292,967 | $ 2,623,492 | $ 2,112,474 | $ 2,412,379 | (12%) |
| Liabilities and Stockholders' Equity (Deficit): | ||||||
| Total deposits | $ 1,932,837 | $ 1,968,536 | $ 2,114,110 | $ 1,875,293 | $ 2,055,049 | (9%) |
| Other borrowed funds | 19,167 | 297,716 | 450,826 | 12,877 | 317,102 | (96%) |
| Other liabilities | 24,724 | 87,835 | 93,730 | 22,106 | 86,850 | (75%) |
| Total liabilities | $ 1,976,728 | $ 2,354,087 | $ 2,658,666 | $ 1,910,276 | $ 2,459,001 | (22%) |
| Total stockholders' equity (deficit) | 203,259 | (61,120) | (35,174) | 202,198 | (46,622) | N/M |
| Total liabilities & stockholders' equity (deficit) | $ 2,179,987 | $ 2,292,967 | $ 2,623,492 | $ 2,112,474 | $ 2,412,379 | (12%) |
| Qtr ended | ||||||
| CREDIT QUALITY | Incr(Decr) | |||||
| Provision for loan losses | $ -- | $ -- | $ 4,832 | $ 275 | $ 7,058 | (100%) |
| Net charge-offs | 6,671 | 4,019 | 11,750 | 14,908 | 34,512 | (43%) |
| Ending allowance for loan losses | 65,182 | 71,853 | 83,761 | -- | -- | (22%) |
| Key Metrics (at period end) | ||||||
| Loans 30 to 89 days past due | $ 16,165 | $ 18,127 | $ 31,633 | -- | -- | (49%) |
| Non-performing loans (NPL) | 68,497 | 97,002 | 146,355 | -- | -- | (53%) |
| Other real estate owned | 63,460 | 65,897 | 90,000 | -- | -- | (29%) |
| Non-performing assets | 131,957 | 162,899 | 236,355 | -- | -- | (44%) |
| Allowance for loan losses to NPL | 95.16% | 74.07% | 57.23% | -- | -- | 37.93 |
| N/M = not meaningful | ||||||