MADISON, Wis., Feb. 5, 2008 (PRIME NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (Nasdaq:ABCW) announced net income of $6.3 million for the quarter ended December 31, 2007, and net income of $25.5 million for the nine-month period ended December 31, 2007. This compares to $10.4 million for the same quarter in 2006 and $30.7 million for the nine-month period ended December 31, 2006.
Douglas J. Timmerman, Chairman, noted, "The decline in our net income for the quarter was driven by an increase in our provision for loan losses of $4.4 million. Reserves were increased in recognition of the challenging environment presented by the softening economy and downturn in the real estate market." During the quarter ended December 31, 2007 loan loss provisions were increased to $7.8 million versus $3.4 million for the same period a year ago. Net income declined by $4.1 million.
"While we face a difficult economic environment right now, we continue to strategically grow our strong franchise," continued Timmerman. "In January 2008 we opened new branches in Ashwaubenon, near Green Bay, in Brookfield, near Milwaukee, and completed our acquisition of S&C Bank in Northwest Wisconsin. The addition of the S&C Bank offices will add approximately $438 million to our asset base. All of these new offices will help expand our lending and deposit generating base."
Diluted earnings per share were $.30 for the quarter ended December 31, 2007, as compared to $.48 for the same quarter last year. Diluted earnings per share were $1.21 for the nine-month period ended December 31, 2007, which compares to $1.42 for the nine-month period for the same period last year. Book value increased to $15.98 as of December 31, 2007, up 3.43% versus the prior year.
During the quarter ended December 31, 2007, 60,000 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.
Anchor BanCorp's stock is traded on the over-the-counter market under the NASDAQ symbol ABCW. AnchorBank fsb, the wholly-owned subsidiary, has 61 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 Nine Months Ended
December 31, December 31,
------------------ ------------------
2007 2006 2007 2006
------------------ ------------------
Operations Data:
Net interest income $ 31,338 $ 32,529 $ 93,939 $ 98,212
Provision for loan losses 7,792 3,375 12,158 7,205
Net gain on sale of loans 1,468 776 3,869 2,995
Real estate investment
partnership revenue 1,012 8,009 8,166 16,126
Other non-interest income 9,430 7,331 25,453 23,358
Real estate investment
partnership cost of
sales 932 7,115 7,941 14,454
Other non-interest
expense 24,180 22,443 69,386 68,457
Minority interest in
income (loss) of real
estate partnership
operations (81) (31) (359) 332
Income before income
taxes 10,425 15,743 42,301 50,243
Income taxes 4,096 5,308 16,812 19,500
Net income 6,329 10,435 25,489 30,743
Selected Financial Ratios
(a):
Yield on earning assets 6.68% 6.81% 6.79% 6.70%
Cost of funds 4.01 3.92 4.06 3.70
Interest rate spread 2.67 2.89 2.73 3.00
Net interest margin 2.83 3.05 2.88 3.14
Return on average assets 0.54 0.93 0.74 0.94
Return on average equity 7.44 12.51 10.06 12.45
Average equity to average
assets 7.31 7.45 7.40 7.53
Non-interest expense to
average assets 2.16 2.64 2.26 2.53
Per Share:
Basic earnings per share $ 0.30 $ 0.49 $ 1.22 $ 1.43
Diluted earnings per
share 0.30 0.48 1.21 1.42
Dividends per share 0.18 0.17 0.53 0.50
Book value per share 15.98 15.45 15.98 15.45
December 31,
----------------------- Percent
2007 2006 Change
----------------------- ----------
Financial Condition:
Total assets $4,725,773 $4,505,896 4.9%
Loans receivable, net
Held for sale 6,170 4,470 38.0
Held for investment 3,941,891 3,834,381 2.8
Investment securities available
for sale, at fair value 146,496 41,990 248.9
Mortgage-related securities
available for sale, at fair
value 270,528 258,685 4.6
Mortgage-related securities
held to maturity, at amortized
cost 62 70 (11.4)
Deposits 3,145,551 3,240,540 (2.9)
Borrowings 1,150,914 841,219 36.8
Stockholders' equity 341,084 336,522 1.4
Allowance for loan losses 28,761 20,031 43.6
Non-performing assets 87,002 39,484 120.3
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(a) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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December 31, March 31,
2007 2007
(Unaudited)
------------------------
(In Thousands)
Assets
Cash and cash equivalents $ 120,102 $ 122,038
Investment securities available for sale,
at fair value 146,496 73,545
Mortgage-related securities available for
sale, at fair value 270,528 247,971
Mortgage-related securities held to
maturity, at amortized cost 62 68
Loans receivable, net
Held for sale 6,170 4,474
Held for investment 3,941,891 3,874,049
Foreclosed properties and repossessed
assets, net 7,620 7,411
Real estate held for development and sale 59,170 60,303
Office properties and equipment 32,360 32,034
Other assets 141,374 117,792
----------- -----------
Total assets $ 4,725,773 $ 4,539,685
=========== ===========
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing $ 217,094 $ 241,234
Interest bearing 2,928,457 3,007,012
----------- -----------
Total deposits 3,145,551 3,248,246
Short-term borrowings 543,265 472,400
Long-term borrowings 607,649 428,077
Other liabilities 82,027 46,610
----------- -----------
Total liabilities 4,378,492 4,195,333
----------- -----------
Minority interest in real estate
partnerships 6,197 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 72,140 72,122
Retained earnings, substantially
restricted 372,807 359,570
Accumulated other comprehensive income
(loss) 339 (542)
Treasury stock (4,025,382 shares and
3,394,245 shares, respectively), at cost (101,372) (91,751)
Deferred compensation obligation (5,366) (5,069)
----------- -----------
Total stockholders' equity 341,084 336,866
----------- -----------
Total liabilities, minority interest and
stockholders' equity $ 4,725,773 $ 4,539,685
=========== ===========
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
2007 2006 2007 2006
-------------------- --------------------
(In Thousands - except per share amounts)
Interest income:
Loans $ 68,732 $ 67,265 $ 206,477 $ 194,779
Mortgage-related
securities 3,143 3,112 9,177 9,078
Investment securities 1,060 1,386 3,619 3,583
Interest-bearing deposits 1,102 814 2,134 1,884
--------- --------- --------- ---------
Total interest income 74,037 72,577 221,407 209,324
Interest expense:
Deposits 31,036 30,746 93,906 84,720
Short-term borrowings 8,048 4,220 23,180 10,032
Long-term borrowings 3,615 5,082 10,382 16,360
--------- --------- --------- ---------
Total interest expense 42,699 40,048 127,468 111,112
--------- --------- --------- ---------
Net interest income 31,338 32,529 93,939 98,212
Provision for loan losses 7,792 3,375 12,158 7,205
--------- --------- --------- ---------
Net interest income
after provision for
loan losses 23,546 29,154 81,781 91,007
Non-interest income:
Real estate investment
partnership revenue 1,012 8,009 8,166 16,126
Loan servicing income 1,380 1,155 4,235 3,569
Credit enhancement income 426 418 1,271 1,252
Service charges on deposits 3,191 2,684 9,430 7,629
Investment and insurance
commissions 1,016 1,002 3,056 2,800
Net gain on sale of loans 1,468 776 3,869 2,995
Net gain (loss) on sale of
investments and mortgage-
related securities -- -- 15 (283)
Other revenue from real
estate operations 2,750 863 4,965 4,585
Other 667 1,209 2,481 3,806
--------- --------- --------- ---------
Total non-interest income 11,910 16,116 37,488 42,479
Non-interest expense:
Compensation 11,358 11,340 33,929 33,645
Real estate investment
partnership cost of sales 932 7,115 7,941 14,454
Occupancy 1,882 1,904 5,756 5,888
Furniture and equipment 1,626 1,418 4,650 4,465
Data processing 1,510 1,445 4,518 4,505
Marketing 1,086 1,152 3,256 3,463
Other expenses from real
estate partnership
operations 2,894 1,878 6,776 6,635
Other 3,824 3,306 10,501 9,856
--------- --------- --------- ---------
Total non-interest
expense 25,112 29,558 77,327 82,911
--------- --------- --------- ---------
Minority interest in
income (loss) of real
estate partnership
operations (81) (31) (359) 332
--------- --------- --------- ---------
Income before income
taxes 10,425 15,743 42,301 50,243
Income taxes 4,096 5,308 16,812 19,500
--------- --------- --------- ---------
Net income $ 6,329 $ 10,435 $ 25,489 $ 30,743
========= ========= ========= =========
Earnings per share:
Basic $ 0.30 $ 0.49 $ 1.22 $ 1.43
Diluted 0.30 0.48 1.21 1.42