MADISON, Wis., Nov. 4, 2014 (GLOBE NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (the "Company") (Nasdaq:ABCW), today announced its financial results for the quarter ended September 30, 2014. Net income was $5.0 million for the quarter compared to $2.6 million in the quarter ended June 30, 2014 and compared to net income of $113.3 million for the quarter ended September 30, 2013. Earnings per share were $0.55 for the quarter compared to $0.29 for the quarter ended June 30, 2014, and $5.47 per share for the quarter ended September 30, 2013. Income per share available to common equity was $10.24 for the quarter ended September 30, 2013. The prior year quarter income includes non-recurring extinguishment of debt income of $134.5 million which occurred as part of the recapitalization transaction we completed in September, 2013.
"We are encouraged by AnchorBank's continued, steady progress since the recapitalization," stated Chris Bauer, President & CEO for AnchorBank. "We are pleased that as of July 31, 2014, all regulatory orders were lifted and we remain focused on our overall financial health and profitability, with a strategic focus on expanded commercial banking and lending capabilities. To that end, we are pleased to have added six experienced commercial bankers to our team during the first nine months of this year. Looking to the future, we will continue our work toward improved asset quality, increased core deposits and a more efficient operating model across all lines of business."
Highlights for the quarter ended September 30, 2014, include:
- Net income of $5.0 million for the third quarter of 2014 compared to $113.3 million in the prior year quarter ended September 30, 2013 and an increase of $2.4 million, or 90.3%, over the quarter ended June 30, 2014.
- Non-interest expense of $21.9 million for the third quarter of 2014 compared to $45.2 million in the prior year quarter ended September 30, 2013. The prior year quarter included a non-recurring debt prepayment penalty of $16.1 million and expenses related to the reorganization. Non-interest expense was reduced in the September 2014 quarter by the reversal of $2.7 million of provision for unfunded loan commitments.
- Capital ratios ,at the Bank, continue to increase as Tier 1 capital was 10.07% at September 30, 2014 compared to 9.06% as of September 30, 2013. The total risk-based capital ratio was 17.96% as of September 30, 2014, compared to 16.30% at September 30, 2013.
- Total non-performing loans decreased $30.1 million, or 44.0%, to $38.4 million at September 30, 2014 from $68.5 million at December 31, 2013.
- Total non-performing assets (total non-performing loans and other real estate owned) decreased $46.9 million, or 35.5 %, to $85.1 million at September 30, 2014 from $132.0 million at December 31, 2013; as the Bank continues to reduce problem asset levels. Total non-performing assets to assets declined to 4.04% from 4.64% in the June quarter compared to 7.43% in the year ago quarter. There was a reversal of provision for loan losses for the quarter ended September 30, 2014 of $1.3 million compared to no provision expense in the prior year period. Total reserves remain adequate at 3.00% of total loans.
- Loan delinquencies (loans past due 30 days or more) decreased $29.4 million, or 45.1%, to $35.8 million at September 30, 2014 from $65.2 million at December 31, 2013.
"We have made tremendous strides over the last four quarters, and look forward to continuing this momentum," Bauer said. "The Company recently offered Anchor BanCorp common stock in a public offering and we are pleased with the success of the offering. As always, we remain extremely grateful for the opportunity to provide banking services to our Wisconsin customers and clients, as we have done for 95 years. "
About Anchor BanCorp Wisconsin Inc.
AnchorBank, fsb has 54 offices, all of which are located in Wisconsin.
Forward-Looking Statements
This news release contains certain forward-looking statements, as that term is defined in the U.S. federal securities laws. In the normal course of business, we, in an effort to help keep our shareholders and the public informed about our operations, may from time to time issue or make certain statements, either in writing or orally, that are or contain forward-looking statements. Generally, these statements relate to business plans or strategies, projections involving anticipated revenues, earnings, liquidity, capital levels, profitability or other aspects of operating results or other future developments in our affairs or the industry in which we conduct business. Although we believe that the anticipated results or other expectations reflected in our forward-looking statements are based on reasonable assumptions, we can give no assurance that those results or expectations will be attained. You should not put undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update them in light of new information or future events, except to the extent required by federal securities laws.
| Anchor BanCorp Wisconsin Inc. | |||||||||
| CONSOLIDATED FINANCIAL SUMMARY | |||||||||
| (Unaudited) | |||||||||
| Qtr ended | |||||||||
| ($ in 000's, except per share data) | Quarter ended | Year-to-Date | 09/14-09/13 | ||||||
| INCOME STATEMENT | 9/30/2014 | 6/30/2014 | 9/30/2013 | 9/30/2014 | 9/30/2013 | Incr(Decr) | |||
| Net interest income | $ 17,558 | $ 17,862 | $ 15,812 | $ 53,735 | $ 44,049 | 11% | |||
| Provision for loan losses | (1,304) | -- | -- | (1,304) | 950 | N/M | |||
| Non-interest income: | |||||||||
| Loan servicing income, net | 705 | 740 | 646 | 2,219 | 756 | 9% | |||
| Service charges on deposits | 2,626 | 2,523 | 2,667 | 7,415 | 7,616 | (2%) | |||
| Investment and insurance commissions | 1,015 | 1,131 | 893 | 3,002 | 2,908 | 14% | |||
| Net gain on sale of loans | 837 | 698 | 1,565 | 2,127 | 7,388 | (47%) | |||
| Net gain on sale of investments | 482 | -- | -- | 783 | (200) | N/M | |||
| Net gain on sale of OREO | 987 | 1,040 | 1,217 | 2,188 | 3,479 | (19%) | |||
| Extingushment of debt | -- | 134,514 | -- | 134,514 | N/M | ||||
| Other | 1,363 | 1,478 | 1,177 | 3,823 | 2,573 | 16% | |||
| Total non-interest income | 8,015 | 7,610 | 142,679 | 21,557 | 159,034 | (94%) | |||
| Non-interest expense: | |||||||||
| Personnel costs | 10,872 | 10,739 | 10,727 | 32,773 | 31,999 | 1% | |||
| Net occupancy and equipment expense | 2,443 | 2,405 | 3,605 | 7,852 | 9,514 | (32%) | |||
| Data processing expense | 1,340 | 1,315 | 1,264 | 4,026 | 4,546 | 6% | |||
| OREO expense | 2,999 | 2,267 | 3,214 | 6,451 | 19,762 | (7%) | |||
| Professional fees | 906 | 953 | 1,925 | 2,619 | 5,450 | (53%) | |||
| Debt prepayment penalty | -- | -- | 16,149 | -- | 16,149 | N/M | |||
| Reorganization costs | -- | -- | 1,866 | -- | 1,866 | N/M | |||
| Other | 3,355 | 5,176 | 6,482 | 13,366 | 18,989 | (48%) | |||
| Total non-interest expense | 21,915 | 22,855 | 45,232 | 67,087 | 108,275 | (52%) | |||
| Net income before taxes | 4,962 | 2,617 | 113,259 | 9,509 | 93,858 | (96%) | |||
| Income tax expense | -- | 10 | 9 | 10 | 9 | 100% | |||
| Net income | 4,962 | 2,607 | 113,250 | 9,499 | 93,849 | (96%) | |||
| Preferred stock dividends in arrears | -- | -- | (837) | -- | (4,200) | N/M | |||
| Preferred stock discount accretion | -- | -- | (4,304) | -- | (8,010) | N/M | |||
| Retirement of preferred shares | -- | -- | 104,000 | -- | 104,000 | N/M | |||
| Net income available to common equity | $ 4,962 | $ 2,607 | $ 212,109 | $ 9,499 | $ 185,639 | (98%) | |||
| SHARE DATA | |||||||||
| Diluted earnings per share: | |||||||||
| Net income | $ 0.55 | $ 0.29 | $ 5.47 | $ 1.05 | $ 4.45 | (90%) | |||
| Net income available to common equity | 0.55 | 0.29 | 10.24 | 1.05 | 8.81 | (95%) | |||
| Cash dividends | -- | -- | -- | -- | -- | -- | |||
| Book value | 23.22 | 23.37 | 22.21 | 5% | |||||
| Average diluted shares outstanding | 9,058,000 | 9,050,000 | 20,717,000 | 9,058,000 | 21,069,000 | (56%) | |||
| KEY RATIOS AND DATA | |||||||||
| Net interest margin (FTE) | 3.40% | 3.51% | 2.80% | 3.52% | 2.58% | 0.60 | |||
| Return on average assets | 0.93% | 0.49% | 19.60% | 0.60% | (5.37%) | (18.67) | |||
| Average equity (deficit) to average assets | 9.99% | 9.88% | (2.67%) | 9.89% | (2.44%) | 12.66 | |||
| Total risk based capital | 17.96% | 17.40% | 16.30% | 1.66 | |||||
| Tier 1 risk-based capital | 16.68% | 16.12% | 14.99% | 1.69 | |||||
| Tier 1 leverage | 10.07% | 9.75% | 9.06% | 1.01 | |||||
| N/M = not meaningful | |||||||||
| Anchor BanCorp Wisconsin Inc. | ||||||||||
| (Unaudited) | ||||||||||
| Ending | ||||||||||
| balances | ||||||||||
| (in 000's) | Quarter ended Averages | Ending balances | 09/14-12/13 | |||||||
| BALANCE SHEET | 9/30/14 | 12/31/13 | 9/30/13 | 9/30/14 | 12/31/13 | Incr(Decr) | ||||
| Assets: | ||||||||||
| Investment securities | $ 294,105 | $ 287,797 | $ 292,406 | $ 291,867 | $ 277,872 | 5% | ||||
| Loans held for sale | 5,145 | 4,137 | 12,503 | 4,937 | 3,085 | 60% | ||||
| Loans: Mortgage | 1,185,377 | 1,242,172 | 1,258,891 | 1,211,271 | 1,232,132 | (2%) | ||||
| Consumer | 346,236 | 371,332 | 386,613 | 343,224 | 367,831 | (7%) | ||||
| Commercial | 16,252 | 21,863 | 25,679 | 14,443 | 21,591 | (33%) | ||||
| Total loans | $ 1,547,865 | $ 1,635,367 | $ 1,671,183 | $ 1,568,938 | $ 1,621,554 | (3%) | ||||
| Allowance for loan losses | (49,377) | (69,854) | (74,633) | (47,037) | (65,182) | (28%) | ||||
| Interest earning deposits in banks | 162,329 | 144,748 | 195,774 | 145,218 | 99,257 | 46% | ||||
| Other assets | 160,877 | 177,792 | 195,734 | 142,597 | 175,888 | (19%) | ||||
| Total assets | $ 2,120,944 | $ 2,179,987 | $ 2,292,967 | $ 2,106,520 | $ 2,112,474 | (0%) | ||||
| Liabilities and Stockholders' Equity (Deficit): | ||||||||||
| Total deposits | $ 1,872,362 | $ 1,932,837 | $ 1,968,536 | $ 1,858,807 | $ 1,875,293 | (1%) | ||||
| Other borrowed funds | 14,520 | 19,167 | 297,716 | 13,060 | 12,877 | 1% | ||||
| Other liabilities | 22,186 | 24,724 | 87,835 | 19,944 | 22,106 | (10%) | ||||
| Total liabilities | $ 1,909,068 | $ 1,976,728 | $ 2,354,087 | $ 1,891,811 | $ 1,910,276 | (1%) | ||||
| Total stockholders' equity (deficit) | 211,876 | 203,259 | (61,120) | 214,709 | 202,198 | 6% | ||||
| Total liabilities & stockholders' equity (deficit) | $ 2,120,944 | $ 2,179,987 | $ 2,292,967 | $ 2,106,520 | $ 2,112,474 | (0%) | ||||
| Qtr ended | ||||||||||
| Quarter ended | Year-to-Date | 09/14-09/13 | ||||||||
| CREDIT QUALITY | 9/30/14 | 12/31/13 | 9/30/13 | 9/30/2014 | 9/30/2013 | Incr(Decr) | ||||
| Provision for loan losses | $ (1,304) | $ -- | $ -- | $ (1,304) | $ 950 | N/M | ||||
| Net charge-offs | 834 | 6,671 | 4,019 | 16,841 | 12,858 | (79%) | ||||
| Ending allowance for loan losses | 47,037 | 65,182 | 71,853 | (35%) | ||||||
| Key Metrics | ||||||||||
| Loans 30 to 89 days past due | $ 9,979 | $ 16,165 | $ 18,127 | (45%) | ||||||
| Non-performing loans (NPL) | 38,352 | 68,497 | 97,002 | (60%) | ||||||
| Other real estate owned | 46,725 | 63,460 | 65,897 | (29%) | ||||||
| Non-performing assets | 85,077 | 131,957 | 162,899 | (48%) | ||||||
| Allowance for loan losses to NPL | 122.65% | 95.16% | 74.07% | 48.58 | ||||||
| N/M = not meaningful | ||||||||||