MADISON, Wis., June 16, 2008 (PRIME NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (Nasdaq:ABCW) announced net income of $5.6 million for the quarter ended March 31, 2008, and net income of $31.1 million for the twelve-month period ended March 31, 2008. This compares to $8.2 million for the same quarter in 2007 and $39.0 million for the twelve-month period ended March 31, 2007.
During the quarter ended March 31, 2008, loan loss provisions were increased to $10.4 million versus $4.1 million for the same period a year ago. Net interest income rose to $35.1 million for the quarter ended March 31, 2008, as compared to $29.8 million for the same period in 2007 and increased to $129.0 million for the twelve-month period ended March 31, 2008, versus $128.0 million for the same period in 2007.
Douglas J. Timmerman, Chairman, stated, "Like our peers, we are facing an increase in the number of non-performing, or "substandard," loans in our portfolio, making it prudent for us to add funds to our reserve for possible loan losses. However, as of March 31, 2008, a total of only seven borrowers accounted for nearly 50 percent of our total substandard loan exposure. In addition, as of March 31, 2008, our rate of residential delinquencies and foreclosures stands at 0.43 percent, and this level compares favorably with the 4.10 percent in the state of Wisconsin and 6.35 percent in the Nation as a whole, as reported by the Mortgage Bankers Association for the same period."
Benefitting from lower interest rates, cost of funds declined to 3.31 percent for the quarter ending March 31, 2008, from 4.08 percent the previous year.
"With the successful integration of S&C Banco's 13 Northwest Wisconsin branches into AnchorBank, along with organic growth, our total assets crossed the $5 billion mark. The addition of this presence in the Northwest region of the State allows AnchorBank to truly serve the homes and businesses across the majority of Wisconsin," said Timmerman. Total assets ended the fiscal year at $5.1 billion, a 13.4 percent increase over the previous fiscal year. Deposits increased to $3.5 billion as of March 31, 2008, up 9.0 percent from the previous year.
Diluted earnings per share were $.27 for the quarter ended March 31, 2008, as compared to $.38 for the same quarter last year. Diluted earnings per share were $1.48 for the twelve-month period ended March 31, 2008, which compares to $1.80 for the same twelve-month period last year. Book value increased to $16.17 as of March 31, 2008, up 3.99 percent versus the prior year.
Anchor BanCorp's stock is traded on the over-the-counter market under the NASDAQ symbol ABCW. AnchorBank fsb, the wholly-owned subsidiary, has 74 full service offices and two loan origination only offices. All are located in Wisconsin.
For more information, contact Dale C. Ringgenberg, CFO, at (608) 252-1810 or Douglas J. Timmerman, Chairman, at (608) 252-8782.
This news release contains certain forward-looking statements with respect to the financial condition, 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 Twelve Months Ended
March 31, March 31,
------------------ --------------------
2008 2007 2008 2007
------------------ --------------------
Operations Data:
Net interest income $ 35,066 $ 29,834 $ 129,005 $ 128,046
Provision for loan
losses 10,393 4,050 22,551 11,255
Net gain on sale of
loans 2,984 465 6,853 3,459
Real estate investment
partnership revenue 457 2,851 8,623 18,977
Other non-interest
income 10,121 8,205 36,111 31,563
Real estate investment
partnership cost of
sales 548 3,153 8,489 17,607
Other non-interest
expense 29,249 21,410 99,172 89,866
Minority interest in
loss of real estate
partnership
operations (43) (573) (402) (241)
Income before income
taxes 8,481 13,315 50,782 63,558
Income taxes 2,838 5,086 19,650 24,586
Net income 5,643 8,229 31,132 38,972
Selected Financial
Ratios (1):
Yield on earning
assets 6.10% 6.73% 6.25% 6.71%
Cost of funds 3.31 4.08 3.65 3.80
Interest rate spread 2.79 2.65 2.60 2.91
Net interest margin 2.84 2.81 2.72 3.06
Return on average
assets 0.43 0.74 0.63 0.89
Return on average
equity 6.56 9.72 9.17 11.75
Average equity to
average assets 6.55 7.61 6.82 7.55
Non-interest expense
to average assets 2.27 2.21 2.16 2.45
Per Share:
Basic earnings per
share $ 0.27 $ 0.39 $ 1.48 $ 1.82
Diluted earnings per
share 0.27 0.38 1.48 1.80
Dividends per share 0.18 0.17 0.71 0.67
Book value per share 16.17 15.55 16.17 15.55
March 31,
----------------------- Percent
2008 2007 Change
----------------------- --------
Financial Condition:
Total assets $5,149,557 $4,539,685 13.4%
Loans receivable, net
Held for sale 9,669 4,474 116.1
Held for investment 4,202,833 3,874,049 8.5
Investment securities available
for sale, at fair value 87,036 73,545 18.3
Mortgage-related securities
available for sale, at fair
value 269,370 247,971 8.6
Mortgage-related securities held
to maturity, at amortized cost 59 68 (13.2)
Deposits 3,539,994 3,248,246 9.0
Borrowings 1,206,761 900,477 34.0
Stockholders' equity 345,116 336,866 2.4
Allowance for loan losses 38,285 20,517 86.6
Non-performing assets 109,979 54,452 102.0
---------------------------------
(1) Annualized when appropriate.
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ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
------------------------------------------------------------------
(Unaudited)
March 31, March 31,
2008 2007
----------------------
(In Thousands)
Assets
Cash and cash equivalents $ 257,743 $ 122,038
Investment securities available for sale,
at fair value 87,036 73,545
Mortgage-related securities available for
sale, at fair value 269,370 247,971
Mortgage-related securities held to
maturity, at amortized cost 59 68
Loans receivable, net
Held for sale 9,669 4,474
Held for investment 4,202,833 3,874,049
Foreclosed properties and repossessed
assets, net 8,247 7,411
Real estate held for development and sale 59,002 60,303
Office properties and equipment 47,916 32,034
Other assets 207,682 117,792
---------- ----------
Total assets $5,149,557 $4,539,685
========== ==========
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing $ 280,897 $ 241,234
Interest bearing 3,259,097 3,007,012
---------- ----------
Total deposits 3,539,994 3,248,246
Short-term borrowings 232,289 472,400
Long-term borrowings 974,472 428,077
Other liabilities 51,605 46,610
---------- ----------
Total liabilities 4,798,360 4,195,333
---------- ----------
Minority interest in real estate
partnerships 6,081 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 72,300 72,122
Retained earnings, substantially
restricted 374,593 359,570
Accumulated other comprehensive income
(loss) 1,864 (542)
Treasury stock (4,015,169 shares and
3,694,245 shares, respectively), at cost (100,930) (91,751)
Deferred compensation obligation (5,247) (5,069)
---------- ----------
Total stockholders' equity 345,116 336,866
---------- ----------
Total liabilities, minority interest
and stockholders' equity $5,149,557 $4,539,685
========== ==========
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ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
------------------------------------------------------------------
(Unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
2008 2007 2008 2007
------------------ ------------------
(In Thousands - except per share
amounts)
Interest income:
Loans $ 70,229 $ 66,876 $276,706 $261,655
Mortgage-related
securities 3,523 3,061 12,701 12,139
Investment securities 947 999 4,566 4,581
Interest-bearing deposits 569 433 2,702 2,317
-------- -------- -------- --------
Total interest income 75,268 71,369 296,675 280,692
Interest expense:
Deposits 29,363 31,684 123,269 116,404
Short-term borrowings 2,397 5,506 25,577 15,537
Long-term borrowings 8,442 4,345 18,824 20,705
-------- -------- -------- --------
Total interest expense 40,202 41,535 167,670 152,646
-------- -------- -------- --------
Net interest income 35,066 29,834 129,005 128,046
Provision for loan losses 10,393 4,050 22,551 11,255
-------- -------- -------- --------
Net interest income after
provision for loan losses 24,673 25,784 106,454 116,791
Non-interest income:
Real estate investment
partnership revenue 457 2,851 8,623 18,977
Loan servicing income 796 1,279 5,031 4,847
Credit enhancement income 434 419 1,705 1,672
Service charges on deposits 3,609 2,594 13,039 10,223
Investment and insurance
commissions 904 819 3,961 3,620
Net gain on sale of loans 2,984 465 6,853 3,459
Net gain (loss) on sale of
investments and mortgage-
related securities 499 -- 514 (283)
Other revenue from real
estate partnership
operations 2,475 1,975 7,440 6,560
Other 1,404 1,119 4,421 4,924
-------- -------- -------- --------
Total non-interest income 13,562 11,521 51,587 53,999
Non-interest expense:
Compensation 12,921 9,892 46,850 43,537
Real estate investment
partnership cost of sales 548 3,153 8,489 17,607
Occupancy 2,999 2,111 8,755 7,999
Furniture and equipment 1,980 1,452 6,629 5,918
Data processing 1,756 1,526 6,274 6,031
Marketing 791 771 4,047 4,234
Other expenses from real
estate partnership
operations 3,396 2,196 10,172 8,831
Other 5,406 3,462 16,445 13,316
-------- -------- -------- --------
Total non-interest
expense 29,797 24,563 107,661 107,473
-------- -------- -------- --------
Minority interest in loss
of real estate
partnership operations (43) (573) (402) (241)
-------- -------- -------- --------
Income before income
taxes 8,481 13,315 50,782 63,558
Income taxes 2,838 5,086 19,650 24,586
-------- -------- -------- --------
Net income $ 5,643 $ 8,229 $ 31,132 $ 38,972
======== ======== ======== ========
Earnings per share:
Basic $ 0.27 $ 0.39 $ 1.48 $ 1.82
Diluted 0.27 0.38 1.48 1.80