MADISON, Wis., June 7, 2007 (PRIME NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (Nasdaq:ABCW) announced net income of $8.2 million for the quarter ended March 31, 2007, and net income of $39.0 million for the twelve-month period ended March 31, 2007. This compares to net income for the same quarter of the previous fiscal year of $11.5 million and net income for the previous full fiscal year of $44.7 million.
Diluted earnings per share were $.38 for the quarter ended March 31, 2007, as compared to $.53 for the same quarter last year. Diluted earnings per share were $1.80 for the twelve-month period ended March 31, 2007, which compares to $2.03 for the same twelve-month period last year.
Interest income increased 13.4% for the quarter ended March 31, 2007 to $71.4 million and increased 17.7% to $280.7 million for the entire fiscal year ended on the same date. "The sluggish housing market, general slow down in the economy as well as the flat and at times inverted yield curve over this past fiscal year has put pressure on our earnings," said Douglas J. Timmerman, President. Cost of funds rose to 4.08% from 3.11% a year ago for the quarter ended March 31, 2007 and to 3.80% for the full fiscal year ended March 31, 2007 from 2.80% the previous year. With strong competition holding loan rates down, net interest margin declined from 3.35% to 2.81% for the quarter ended March 31, 2007, and from 3.36% to 3.06% for the twelve-month period ended March 31, 2007. "In addition, due to the cooling economy and the increase in classified assets, we added to our allowance for loan losses," said Timmerman. The provision for loan losses was increased by $7.4 million during the fiscal year ended March 31, 2007 to $11.3 million from $3.9 million for the fiscal year ended March 31, 2006. This increase, offset by net charge-offs of $6.3 million during the fiscal year, brings the allowance for loan losses to $20.5 million as of March 31, 2007. "All these factors contributed to our earnings decline," added Timmerman.
"However, our strong growth continued this past fiscal year, with total assets increasing 6.2% to over $4.5 billion and total deposits increasing 6.8% to over $3.2 billion," said Timmerman.
Continued growth will be supported by the recent re-location of AnchorBank's grocery store-based location on the far west side of Madison to a full-service, stand-alone office. This full-service branch will better position AnchorBank to capitalize on brisk population growth in this area. New branches are also planned in 2007 for Ashwaubenon, WI and Brookfield, WI, extending AnchorBank's growing franchise in the greater Green Bay and Milwaukee markets.
During the quarter ended March 31, 2007, 276,600 shares were purchased under a previously authorized repurchase program. The repurchases are made from time to time in open-market and/or negotiated transactions as, in the opinion of management, market conditions may warrant.
A dividend of $.17 per share was declared by the Board of Directors and paid to shareholders of record as of April 30, 2007.
Anchor BanCorp's stock is traded on the over-the-counter market under the NASDAQ symbol ABCW. AnchorBank fsb, the wholly owned subsidiary, has 59 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 (Dollars in thousands - except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended March 31, March 31, ------------------- ------------------- 2007 2006 2007 2006 ------------------- ------------------- Operations Data: Net interest income $ 29,834 $ 33,294 $128,046 $132,704 Provision for loan losses 4,050 1,450 11,255 3,900 Net gain on sale of loans 465 1,348 3,459 2,808 Real estate investment partnership revenue 2,851 4,524 18,977 33,974 Other non-interest income 8,205 8,063 31,563 30,194 Real estate investment partnership cost of sales 3,153 3,791 17,607 28,509 Other non-interest expense 21,410 22,534 89,866 89,938 Minority interest in income (loss) of real estate partnership operations (573) 29 (241) 1,723 Income before income taxes 13,315 19,425 63,558 75,610 Income taxes 5,086 7,973 24,586 30,927 Net income 8,229 11,452 38,972 44,683 Selected Financial Ratios (a): Yield on earning assets 6.73% 6.34% 6.71% 6.05% Cost of funds 4.08 3.11 3.80 2.80 Interest rate spread 2.65 3.23 2.91 3.25 Net interest margin 2.81 3.35 3.06 3.36 Return on average assets 0.74 1.10 0.89 1.08 Return on average equity 9.72 14.46 11.75 14.16 Average equity to average assets 7.61 7.59 7.55 7.62 Non-interest expense to average assets 2.21 2.52 2.45 2.86 Per Share: Basic earnings per share $ 0.39 $ 0.54 $ 1.82 $ 2.07 Diluted earnings per share 0.38 0.53 1.80 2.03 Dividends per share 0.17 0.16 0.67 0.62 Book value per share 15.55 14.69 15.55 14.69 March 31, ------------------------------------ Percent 2007 2006 Change ------------------------------------ Financial Condition: Total assets $ 4,539,685 $ 4,275,140 6.2% Loans receivable, net Held for sale 4,474 5,509 (18.8) Held for investment 3,874,049 3,614,265 7.2 Investment securities available for sale, at fair value 73,545 49,521 48.5 Mortgage-related securities available for sale, at fair value 247,971 247,438 0.2 Mortgage-related securities held to maturity, at amortized cost 68 77 (11.7) Deposits 3,248,246 3,040,217 6.8 Borrowings 900,477 861,861 4.5 Stockholders' equity 336,866 321,025 4.9 Allowance for loan losses 20,517 15,570 31.8 Non-performing assets 54,452 15,721 246.4 (a) Annualized when appropriate. ANCHOR BANCORP WISCONSIN INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) March 31, March 31, 2007 2006 -------------------------- (In Thousands) Assets Cash and cash equivalents $ 122,038 $ 152,544 Investment securities available for sale, at fair value 73,545 49,521 Mortgage-related securities available for sale, at fair value 247,971 247,438 Mortgage-related securities held to maturity, at amortized cost 68 77 Loans receivable, net Held for sale 4,474 5,509 Held for investment 3,874,049 3,614,265 Foreclosed properties and repossessed assets, net 7,411 2,192 Real estate held for development and sale 60,303 54,330 Office properties and equipment 32,034 29,867 Other assets 117,792 119,397 ----------- ----------- Total assets $ 4,539,685 $ 4,275,140 =========== =========== Liabilities and Stockholders' Equity Deposits Non-interest bearing $ 241,234 $ 242,924 Interest bearing 3,007,012 2,797,293 ----------- ----------- Total Deposits 3,248,246 3,040,217 Short-term borrowings 472,400 186,200 Long-term borrowings 428,077 675,661 Other liabilities 46,610 45,040 ----------- ----------- Total liabilities 4,195,333 3,947,118 ----------- ----------- Minority interest in real estate partnerships 7,486 6,997 ----------- ----------- 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 72,122 70,517 Retained earnings, substantially restricted 359,570 340,364 Accumulated other comprehensive loss (542) (2,558) Treasury stock (3,694,245 shares and 3,509,036 shares, respectively), at cost (91,751) (82,144) Deferred compensation obligation (5,069) (7,690) ----------- ----------- Total stockholders' equity 336,866 321,025 ----------- ----------- Total liabilities, minority interest and stockholders' equity $ 4,539,685 $ 4,275,140 =========== =========== ANCHOR BANCORP WISCONSIN INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Twelve Months Ended March 31, March 31, 2007 2006 2007 2006 ------------------- ------------------- (In Thousands - except per share amounts) Interest income: Loans $ 66,876 $ 58,811 $261,655 $220,004 Mortgage-related securities 3,061 2,910 12,139 11,548 Investment securities 999 742 4,581 3,649 Interest-bearing deposits 433 461 2,317 3,349 -------- -------- -------- -------- Total interest income 71,369 62,924 280,692 238,550 Interest expense: Deposits 31,684 21,704 116,404 76,550 Short-term borrowings 5,506 2,193 15,537 9,918 Long-term borrowings 4,345 5,733 20,705 19,378 -------- -------- -------- -------- Total interest expense 41,535 29,630 152,646 105,846 -------- -------- -------- -------- Net interest income 29,834 33,294 128,046 132,704 Provision for loan losses 4,050 1,450 11,255 3,900 -------- -------- -------- -------- Net interest income after provision for loan losses 25,784 31,844 116,791 128,804 Non-interest income: Real estate investment partnership revenue 2,851 4,524 18,977 33,974 Loan servicing income 1,279 1,405 4,847 5,084 Credit enhancement income 419 415 1,672 1,632 Service charges on deposits 2,594 2,206 10,223 9,290 Investment and insurance commissions 819 776 3,620 2,673 Net gain on sale of loans 465 1,348 3,459 2,808 Net (loss) gain on sale of investments and mortgage- related securities -- (112) (283) 282 Other revenue from real estate operations 1,975 1,921 6,560 5,304 Other 1,119 1,452 4,924 5,929 Total non-interest income 11,521 13,935 53,999 66,976 Non-interest expense: Compensation 9,892 10,761 43,537 44,793 Real estate investment partnership cost of sales 3,153 3,791 17,607 28,509 Occupancy 2,111 1,963 7,999 7,107 Furniture and equipment 1,452 1,652 5,918 6,261 Data processing 1,526 1,578 6,031 5,652 Marketing 771 641 4,234 3,935 Other expenses from real estate partnership operations 2,196 2,739 8,831 9,460 Other 3,462 3,200 13,316 12,730 -------- -------- -------- -------- Total non-interest expense 24,563 26,325 107,473 118,447 -------- -------- -------- -------- Minority interest in income (loss) of real estate partnership operations (573) 29 (241) 1,723 -------- -------- -------- -------- Income before income taxes 13,315 19,425 63,558 75,610 Income taxes 5,086 7,973 24,586 30,927 -------- -------- -------- -------- Net income $ 8,229 $ 11,452 $ 38,972 $ 44,683 ======== ======== ======== ======== Earnings per share: Basic $ 0.39 $ 0.54 $ 1.82 $ 2.07 Diluted 0.38 0.53 1.80 2.03