MADISON, Wis., Nov. 7, 2008 (GLOBE NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (Nasdaq:ABCW) announced a net loss of $23.3 million for the quarter ended September 30, 2008. This compares to net income for the same quarter of the previous fiscal year of $9.3 million. For the six months ended September 30, 2008 the net loss is $17.8 million versus income of $19.2 million for the same period last year.
Loan loss provisions were $47.0 million for the quarter ended September 30, 2008. "This action was necessary due to the deterioration in a portion of our loan portfolio, driven primarily by the current condition of the real estate market and the challenges this presents to some of our borrowers," said Douglas J. Timmerman, President and CEO. "In addition to increasing our reserve level, we have a team working on a case-by-case basis with our borrowers who have troubled assets to resolve the situation in a mutually beneficial way," added Timmerman.
"On the positive side, the current interest rate environment helped us reduce our cost of funds by 113 basis points, and our service charge based income continued to grow," said Timmerman. For the quarter ended September 30, 2008 Anchor BanCorp Wisconsin's cost of funds was 3.00 percent versus 4.13 percent for the same period a year ago. Service charges on deposits grew 31.3 percent to $4.1 million for the quarter versus $3.1 million for the quarter ended September 30, 2007.
"We also are reviewing alternatives for raising additional capital. Working with our advisors, we are evaluating the best available options, including the possibility of participating in the U.S. Treasury's capital purchase program," added Timmerman.
Total assets stood at $4.93 billion as of September 30, 2008, up 6.9 percent versus a year ago, and total deposits are $3.35 billion, up 5.4 percent from the previous year, which includes the impact of the merger with S&C Banco in January 2008.
Anchor BanCorp's stock is traded on the NASDAQ exchange under the 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 Ringgenberg, CFO, at (608) 252-1810, Mark D. Timmerman, President and CEO of AnchorBank at (608) 252-8784, or Douglas J. Timmerman, President, Chairman and CEO of AnchorBanCorp Wisconsin, at (608) 252-8782.
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
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(Dollars in thousands - except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
------------------- -------------------
2008 2007 2008 2007
------------------- -------------------
Operations Data:
Net interest income $ 29,954 $ 31,584 $ 63,375 $ 62,601
Provision for loan losses 46,964 2,095 56,364 4,366
Net gain on sale of loans 808 814 3,051 2,401
Real estate investment
partnership revenue -- 2,428 -- 7,154
Other non-interest income 7,439 7,696 17,005 16,023
Real estate investment
partnership cost of sales -- 2,669 -- 7,009
Other non-interest expense 30,167 22,659 56,958 45,206
Minority interest in loss
of real estate partnership
operations (13) (203) (52) (278)
Income (loss) before income
taxes (38,917) 15,302 (29,839) 31,876
Income taxes (15,618) 6,028 (12,052) 12,716
Net income (loss) (23,299) 9,274 (17,787) 19,160
Selected Financial
Ratios(1):
Yield on earning assets 5.59% 6.90% 5.82% 6.85%
Cost of funds 3.00 4.13 3.11 4.09
Interest rate spread 2.59 2.77 2.71 2.76
Net interest margin 2.62 2.92 2.74 2.91
Return on average assets (1.89) 0.82 (0.72) 0.85
Return on average equity (27.69) 11.07 (10.44) 11.40
Average equity to average
assets 6.84 7.37 6.88 7.44
Non-interest expense to
average assets 2.45 2.23 2.30 2.31
Per Share:
Basic earnings per share $ (1.11) $ 0.44 $ (0.85) $ 0.91
Diluted earnings per share (1.11) 0.44 (0.85) 0.91
Dividends per share 0.10 0.18 0.28 0.35
Book value per share 14.76 15.88 14.76 15.88
September 30,
----------------------- Percent
2008 2007 Change
----------------------- -------
Financial Condition:
Total assets $4,928,074 $4,611,526 6.9%
Loans receivable, net
Held for sale 4,099 5,403 (24.1)
Held for investment 4,069,369 3,944,980 3.2
Investment securities
available for sale, at
fair value 112,778 121,323 (7.0)
Mortgage-related securities
available for sale, at
fair value 273,766 242,962 12.7
Mortgage-related securities
held to maturity, at
amortized cost 55 64 (14.1)
Deposits 3,349,335 3,178,588 5.4
Borrowings 1,210,562 1,039,540 16.5
Stockholders' equity 317,501 338,907 (6.3)
Allowance for loan losses 64,614 22,002 193.7
Non-performing assets 169,062 63,078 168.0
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(1) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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September 30, March 31,
2008 2008
(Unaudited)
--------------------------
(In Thousands)
Assets
Cash and cash equivalents $ 97,225 $ 257,743
Investment securities available for sale,
at fair value 112,778 87,036
Mortgage-related securities available for
sale, at fair value 273,766 269,370
Mortgage-related securities held to
maturity, at amortized cost 55 59
Loans receivable, net
Held for sale 4,099 9,669
Held for investment 4,069,369 4,202,833
Foreclosed properties and repossessed
assets, net 29,712 8,247
Real estate held for development and sale 60,439 59,002
Office properties and equipment 47,053 47,916
Other assets 233,578 207,682
----------- -----------
Total assets $ 4,928,074 $ 5,149,557
=========== ===========
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing $ 306,130 $ 280,897
Interest bearing 3,043,205 3,259,097
----------- -----------
Total deposits 3,349,335 3,539,994
Short-term borrowings 296,508 232,289
Long-term borrowings 914,054 974,472
Other liabilities 44,647 51,605
----------- -----------
Total liabilities 4,604,544 4,798,360
----------- -----------
Minority interest in real estate
partnerships 6,029 6,081
----------- -----------
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 72,288 72,300
Retained earnings, substantially
restricted 348,443 374,593
Accumulated other comprehensive income
(loss) (3,784) 1,864
Treasury stock (3,845,615 and 4,015,169
shares, respectively), at cost (96,562) (100,930)
Deferred compensation obligation (5,420) (5,247)
----------- -----------
Total stockholders' equity 317,501 345,116
----------- -----------
Total liabilities, minority interest
and stockholders' equity $ 4,928,074 $ 5,149,557
=========== ===========
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
2008 2007 2008 2007
------------------ ------------------
(In Thousands - except per share amounts)
Interest income:
Loans $ 59,450 $ 69,714 $125,161 $137,745
Mortgage-related securities 3,687 3,028 7,355 6,034
Investment securities 780 1,345 1,581 2,560
Interest-bearing deposits 71 636 399 1,031
-------- -------- -------- --------
Total interest income 63,988 74,723 134,496 147,370
Interest expense:
Deposits 23,898 31,424 50,740 62,870
Short-term borrowings 2,352 8,474 4,095 15,132
Long-term borrowings 7,784 3,241 16,286 6,767
-------- -------- -------- --------
Total interest expense 34,034 43,139 71,121 84,769
-------- -------- -------- --------
Net interest income 29,954 31,584 63,375 62,601
Provision for loan losses 46,964 2,095 56,364 4,366
-------- -------- -------- --------
Net interest income
(loss) after provision
for loan losses (17,010) 29,489 7,011 58,235
Non-interest income:
Real estate investment
partnership revenue -- 2,428 -- 7,154
Loan servicing income 1,414 1,375 2,614 2,855
Credit enhancement income 479 424 896 845
Service charges on deposits 4,134 3,148 7,993 6,239
Investment and insurance
commissions 1,073 1,058 2,254 2,040
Net gain on sale of loans 808 814 3,051 2,401
Net gain (loss) on sale or
impairment of investments
and mortgage-related
securities (1,902) 3 (1,902) 15
Other revenue from real
estate partnership
operations 1,032 992 2,505 2,215
Other 1,209 696 2,645 1,814
-------- -------- -------- --------
Total non-interest income 8,247 10,938 20,056 25,578
Non-interest expense:
Compensation 14,665 11,301 27,972 22,571
Real estate investment
partnership cost of sales -- 2,669 -- 7,009
Occupancy 2,557 1,937 4,973 3,874
Furniture and equipment 2,067 1,543 4,193 3,024
Data processing 1,823 1,520 3,635 3,007
Marketing 741 1,086 1,327 2,170
Other expenses from real
estate partnership
operations 1,724 1,797 3,915 3,882
Net expense (income) - REO
operations 1,952 227 2,141 429
Other 4,638 3,248 8,802 6,249
-------- -------- -------- --------
Total non-interest expense 30,167 25,328 56,958 52,215
-------- -------- -------- --------
Minority interest in loss of
consolidated real estate
partnerships (13) (203) (52) (278)
-------- -------- -------- --------
Income (loss) before
income taxes (38,917) 15,302 (29,839) 31,876
Income taxes (15,618) 6,028 (12,052) 12,716
-------- -------- -------- --------
Net income (loss) $(23,299) $ 9,274 $(17,787) $ 19,160
======== ======== ======== ========
Earnings per share:
Basic $ (1.11) $ 0.44 $ (0.85) $ 0.91
Diluted (1.11) 0.44 (0.85) 0.91