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Anchor BanCorp Wisconsin Inc. Announces Third Quarter Results

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

CONTACT: Jennifer Ranville, 608-252-8862

Source:Anchor BanCorp Wisconsin Inc.