MADISON, Wis., Aug. 3, 2007 (PRIME NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (Nasdaq:ABCW) announced net income of $9.9 million for the quarter ended June 30, 2007. This compares to net income for the same quarter of the previous fiscal year of $10.6 million. The loan loss provision was $2.3 million for the quarter compared to $1.2 million a year ago, an increase of $1.1 million.
Diluted earnings per share were $.46 for the quarter ended June 30, 2007, as compared to $.49 for the same quarter last year. However, the $.46 per share level represents a 21.1% increase versus the previous quarter, during which diluted earnings per share were $.38.
Total assets grew to $4.53 billion as of June 30, 2007, up 4.0% versus a year ago, while total deposits grew to $3.25 billion, an increase of 2.3%.
Interest income rose 9.6% versus a year ago to $72.6 million for the quarter ended June 30, 2007, while interest expense rose 24.6% to $41.6 million during the same period.
"Margin compression, driven by the current interest rate environment and aggressive competition, continues to put downward pressure on our earnings," said Douglas J. Timmerman, Chairman and CEO. Yield on earning assets increased from 6.52% a year ago to 6.80% for the quarter. Cost of funds rose to 4.05% for the quarter ended June 30, 2007, from 3.43% a year ago and net interest margin declined from 3.23% to 2.90%.
In July, 2007 the board of directors voted to increase the dividend to $.18 per share for shareholders of record as of August 1, 2007, up from $.17 per share, a 5.9% increase. Also, the board of directors approved an additional common stock repurchase program. The program, which runs through July 25, 2008, authorizes the repurchase of up to an additional 5% of its common stock, representing approximately 1,068,000 of outstanding shares. During the quarter ended June 30, 2007, 382,100 shares were repurchased, leaving approximately 580,000 shares remaining on the current repurchase program. With the July, 2007 authorization approved by the board of directors, the total amount authorized for additional repurchase amounts to approximately 1,650,000 shares. The extent to which the company repurchases its shares and the timing of such repurchases will depend upon market conditions and other corporate considerations.
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
June 30,
-----------------------
2007 2006
-----------------------
Operations Data:
Net interest income $ 31,017 $ 32,845
Provision for loan losses 2,271 1,205
Net gain on sale of loans 1,587 869
Real estate investment partnership revenue 4,726 4,486
Other non-interest income 8,327 7,952
Real estate investment partnership cost
of sales 4,340 3,853
Other non-interest expense 22,547 22,586
Minority interest in income (loss) of real
estate partnership operations (75) 438
Income before income taxes 16,574 18,070
Income taxes 6,688 7,423
Net income 9,886 10,647
Selected Financial Ratios (1):
Yield on earning assets 6.80% 6.52%
Cost of funds 4.05 3.43
Interest rate spread 2.75 3.09
Net interest margin 2.90 3.23
Return on average assets 0.88 1.00
Return on average equity 11.77 13.14
Average equity to average assets 7.49 7.60
Non-interest expense to average assets 2.40 2.48
Per Share:
Basic earnings per share $ 0.47 $ 0.50
Diluted earnings per share 0.46 0.49
Dividends per share 0.17 0.16
Book value per share 15.54 14.91
June 30,
--------------------------- Percent
2007 2006 Change
--------------------------- --------
Financial Condition:
Total assets $ 4,532,758 $ 4,356,921 4.0%
Loans receivable, net
Held for sale 9,062 4,118 120.1
Held for investment 3,890,053 3,709,745 4.9
Investment securities available
for sale, at fair value 74,814 67,999 10.0
Mortgage-related securities
available for sale, at fair
value 240,630 252,052 (4.5)
Mortgage-related securities
held to maturity, at
amortized cost 66 74 (10.8)
Deposits 3,248,964 3,177,220 2.3
Borrowings 891,016 791,098 12.6
Stockholders' equity 331,593 326,495 1.6
Allowance for loan losses 22,220 15,636 42.1
Non-performing assets 53,180 18,836 182.3
--------------------------------
(1) Annualized when appropriate
---------------------------------------------------------------------
ANCHOR BANCORP WISCONSIN INC
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
---------------------------------------------------------------------
(Unaudited)
June 30, March 31,
2007 2007
---------------------------
(In Thousands)
Assets
Cash and cash equivalents $ 103,777 $ 122,038
Investment securities available for sale,
at fair value 74,814 73,545
Mortgage-related securities available
for sale, at fair value 240,630 247,971
Mortgage-related securities held to
maturity, at amortized cost 66 68
Loans receivable, net
Held for sale 9,062 4,474
Held for investment 3,890,053 3,874,049
Foreclosed properties and repossessed
assets, net 4,358 7,411
Real estate held for development and sale 58,862 60,303
Office properties and equipment 32,357 32,034
Other assets 118,779 117,792
----------- -----------
Total assets $ 4,532,758 $ 4,539,685
=========== ===========
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing $ 262,878 $ 241,234
Interest bearing 2,986,086 3,007,012
----------- -----------
Total deposits 3,248,964 3,248,246
Short-term borrowings 545,065 472,400
Long-term borrowings 345,951 428,077
Other liabilities 54,204 46,610
----------- -----------
Total liabilities 4,194,184 4,195,333
----------- -----------
Minority interest in real estate
partnerships 6,981 7,486
----------- -----------
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 72,125 72,122
Retained earnings, substantially
restricted 365,175 359,570
Accumulated other comprehensive loss (2,434) (542)
Treasury stock (4,018,646 shares and
3,694,245 shares, respectively), at cost (100,644) (91,751)
Deferred compensation obligation (5,165) (5,069)
----------- -----------
Total stockholders' equity 331,593 336,866
----------- -----------
Total liabilities, minority interest
and stockholders' equity $ 4,532,758 $ 4,539,685
=========== ===========
---------------------------------------------------------------------
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------------------------------------------
(Unaudited)
Three Months Ended
June 30,
-------------------------
2007 2006
-------------------------
(In Thousands - except
per share amounts)
Interest income:
Loans $ 68,031 $ 61,774
Mortgage-related securities 3,006 2,904
Investment securities 1,215 957
Interest-bearing deposits 395 631
---------- ----------
Total interest income 72,647 66,266
Interest expense:
Deposits 31,446 25,356
Short-term borrowings 6,658 2,262
Long-term borrowings 3,526 5,803
---------- ----------
Total interest expense 41,630 33,421
---------- ----------
Net interest income 31,017 32,845
Provision for loan losses 2,271 1,205
---------- ----------
Net interest income after provision for
loan losses 28,746 31,640
Non-interest income:
Real estate investment partnership revenue 4,726 4,486
Loan servicing income 1,480 997
Credit enhancement income 421 417
Service charges on deposits 3,091 2,428
Investment and insurance commissions 982 826
Net gain on sale of loans 1,587 869
Net gain (loss) on sale of investments and
mortgage-related securities 12 (283)
Other revenue from real estate operations 1,223 2,147
Other 1,118 1,420
---------- ----------
Total non-interest income 14,640 13,307
Non-interest expense:
Compensation 11,270 10,726
Real estate investment partnership cost
of sales 4,340 3,853
Occupancy 1,937 1,999
Furniture and equipment 1,481 1,453
Data processing 1,487 1,421
Marketing 1,084 1,152
Other expenses from real estate
partnership operations 2,085 2,578
Other 3,203 3,257
---------- ----------
Total non-interest expense 26,887 26,439
---------- ----------
Minority interest in income (loss) of real
estate partnership operations (75) 438
---------- ----------
Income before income taxes 16,574 18,070
Income taxes 6,688 7,423
---------- ----------
Net income $ 9,886 $ 10,647
========== ==========
Earnings per share:
Basic $ 0.47 $ 0.50
Diluted 0.46 0.49