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Anchor BanCorp Wisconsin Inc. Announces Second Quarter Results

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MADISON, Wis., Aug. 7, 2014 (GLOBE NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (the "Company") today announced its financial results for the quarter ended June 30, 2014. Net income was $2.6 million for the quarter compared to $1.9 million in the quarter ended March 31, 2014 and a net loss of $5.4 million for the quarter ended June 30, 2013. Earnings per share were $0.29 for the quarter compared to $0.21 for the quarter ended March 31, 2014, and a loss per share of $0.25 or a loss per share available to common equity of $0.42 for the quarter ended June 30, 2013. The prior year quarter net loss available to common equity includes preferred stock dividends and discount accretion which is no longer recorded since the preferred stock was cancelled 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 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 half 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 June 30, 2014, include:

  • Net income of $2.6 million for the second quarter was an increase of $8.0 million over the prior year quarter ended June 30, 2013 net loss of $5.4 million and increased $687,000, or 35.6%, over the quarter ended March 31, 2014.
  • Non-interest expense declined by $4.5 million during the quarter to $22.9 million compared to the prior year quarter of $27.4 million as we continue efforts to control expenses. Expenses reflected a slight increase over the quarter ended March 31, 2014, $538,000, primarily due to other real estate owned valuation adjustments.
  • Tier 1 capital was 9.75% at June 30, 2014 compared to 9.60% as of December 31, 2013. The total risk-based capital ratio for the Bank was 17.40% as of June 30, 2014, compared to 17.07% at December 31, 2013.
  • Total non-performing loans decreased $26.3 million, or 38.4%, to $42.2 million at June 30, 2014 from $68.5 million at December 31, 2013.
  • Total non-performing assets (total non-performing loans and other real estate owned) decreased $33.6 million, or 25.5 %, to $98.3 million at June 30, 2014 from $132.0 million at December 31, 2013; as the Bank continues to reduce problem asset levels. Non-performing assets have steadily declined for more than three years from $455.3 million at March 31, 2010 to the current balance, a 78.4% decrease as a result of continued efforts by management to reduce such problem assets.
  • There was no provision for loan losses for the quarter ended June 30, 2014. This is a decrease when compared to $275,000 for the year ago quarter.
  • Loan delinquencies (loans past due 30 days or more) decreased $22.6 million, or 34.7%, to $42.6 million at June 30, 2014 from $65.2 million at December 31, 2013.

"We have made tremendous strides over the last three quarters, and look forward to continued momentum," Bauer said. "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 06/14-06/13
INCOME STATEMENT 6/30/2014 3/31/2014 6/30/2013 6/30/2014 6/30/2013 Incr(Decr)
Net interest income $ 17,862 $ 18,315 $ 13,417 $ 36,177 $ 28,237 33%
Provision for loan losses -- -- 275 -- 950 (100%)
Non-interest income:
Loan servicing income (loss), net 740 774 55 1,514 110 N/M
Service charges on deposits 2,523 2,266 2,580 4,789 4,949 (2%)
Investment and insurance commissions 1,131 856 1,063 1,987 2,015 6%
Net gain on sale of loans 698 592 2,793 1,290 5,823 (75%)
Net gain on sale of investments -- 301 -- 301 (200) 0%
Net gain on sale of OREO 1,040 161 925 1,201 2,262 12%
Other 1,478 982 1,436 2,460 1,396 3%
Total non-interest income 7,610 5,932 8,852 13,542 16,355 (14%)
Non-interest expense:
Personnel costs 10,739 11,162 11,130 21,901 21,272 (4%)
Net occupancy and equipment expense 2,405 3,004 2,836 5,409 5,909 (15%)
Data processing expense 1,315 1,371 1,420 2,686 3,282 (7%)
OREO expense 2,267 1,185 4,289 3,452 16,548 (47%)
Professional fees 953 760 1,766 1,713 3,525 (46%)
Other 5,176 4,835 5,934 10,011 12,507 (13%)
Total non-interest expense 22,855 22,317 27,375 45,172 63,043 (17%)
Net income (loss) before taxes 2,617 1,930 (5,381) 4,547 (19,401) 149%
Income tax expense (benefit) 10 -- -- 10 -- 0%
Net income (loss) 2,607 1,930 (5,381) 4,537 (19,401) 148%
Preferred stock dividends in arrears -- -- (1,701) -- (3,363) N/M
Preferred stock discount accretion -- -- (1,863) -- (3,706) N/M
Net income (loss) available to common equity $ 2,607 $ 1,930 $ (8,945) $ 4,537 $ (26,470) 129%
SHARE DATA
Diluted earnings (loss) per share:
Net income (loss) $ 0.29 $ 0.21 $ (0.25) $ 0.50 $ (0.91) 215%
Net income (loss) available to common equity 0.29 0.21 (0.42) 0.50 (1.25) 169%
Cash dividends -- -- -- -- -- --
Book value 23.37 22.84 (8.33) N/M
Average diluted shares outstanding 9,050,000 9,050,000 21,247,000 9,050,000 21,247,000 (57%)
KEY RATIOS AND DATA
Net interest margin (FTE) 3.51% 3.66% 2.33% 3.58% 2.47% 1.18
Return on average assets 0.49% 0.37% (0.91%) 0.43% (2.53%) 1.40
Average equity (deficit) to average assets 9.88% 9.81% (2.64%) 9.85% (2.34%) 12.52
Total risk based capital 17.40% 17.43% 9.21% 8.19
Tier 1 risk-based capital 16.12% 16.14% 7.90% 8.22
Tier 1 leverage 9.75% 9.69% 4.57% 5.18
N/M = not meaningful
Anchor BanCorp Wisconsin Inc.
(Unaudited)
Ending
balances
(in 000's) Quarter ended Averages Ending balances 06/14-12/13
BALANCE SHEET 6/30/14 12/31/13 6/30/13 6/30/14 12/31/13 Incr(Decr)
Assets:
Investment securities $ 290,578 $ 287,797 $ 269,194 $ 295,290 $ 277,872 6%
Loans held for sale 3,482 4,137 20,592 5,261 3,085 71%
Loans: Mortgage 1,181,865 1,242,172 1,299,868 1,203,966 1,232,132 (2%)
Consumer 351,332 371,332 402,009 349,925 367,831 (5%)
Commercial 21,454 21,863 25,594 16,002 21,591 (26%)
Total loans $ 1,554,651 $ 1,635,367 $ 1,727,471 $ 1,569,893 $ 1,621,554 (3%)
Allowance for loan losses (53,357) (69,854) (78,162) (49,175) (65,182) (25%)
Interest earning deposits in banks 153,033 144,748 212,980 138,365 99,257 39%
Other assets 167,561 177,792 200,717 161,615 175,888 (8%)
Total assets $ 2,115,948 $ 2,179,987 $ 2,352,792 $ 2,121,249 $ 2,112,474 0%
Liabilities and Stockholders' Equity (Deficit):
Total deposits $ 1,870,141 $ 1,932,837 $ 2,005,072 $ 1,873,240 $ 1,875,293 (0%)
Other borrowed funds 15,434 19,167 319,530 13,781 12,877 7%
Other liabilities 21,290 24,724 90,289 22,721 22,106 3%
Total liabilities $ 1,906,865 $ 1,976,728 $ 2,414,891 $ 1,909,742 $ 1,910,276 (0%)
Total stockholders' equity (deficit) 209,083 203,259 (62,099) 211,507 202,198 5%
Total liabilities & stockholders' equity (deficit) $ 2,115,948 $ 2,179,987 $ 2,352,792 $ 2,121,249 $ 2,112,474 0%
Qtr ended
Quarter ended Year-to-Date 06/14-06/13
CREDIT QUALITY 6/30/14 12/31/13 6/30/13 6/30/2014 6/30/2013 Incr(Decr)
Provision for loan losses $ -- $ -- $ 275 $ -- $ 950 (100%)
Net charge-offs 4,322 6,671 4,218 16,007 8,839 2%
Ending allowance for loan losses 49,175 65,182 75,872 (35%)
Key Metrics
Loans 30 to 89 days past due $ 18,008 $ 16,165 $ 20,406 (12%)
Non-performing loans (NPL) 42,167 68,497 106,968 (61%)
Other real estate owned 56,170 63,460 68,241 (18%)
Non-performing assets 98,337 131,957 175,209 (44%)
Allowance for loan losses to NPL 116.62% 95.16% 70.93% 45.69

CONTACT: Jennifer Ranville, 608-252-8862

Source:Anchor BanCorp Wisconsin Inc.