Anchor BanCorp Wisconsin Inc. Announces Quarter and Year Results

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| Source: Anchor BanCorp Wisconsin Inc.

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            
Jennifer Ranville, 608-252-8862