Anchor BanCorp Wisconsin Inc. Announces Fourth Quarter and Year End Results

MADISON, Wis., Feb. 6, 2015 (GLOBE NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (the "Company") (Nasdaq:ABCW) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2014. Anchor concluded a strong, profitable year with net income of $14.6 million or $1.60 per diluted common share.

"Since our recapitalization, we have improved our asset quality, posted five quarters of consecutive positive earnings and continued to grow our business franchise with a strong focus on our Commercial Banking Division. Our asset quality has improved significantly as non-performing loans and real estate owned declined by over $60 million in the last year. As a result of these and other efforts, AnchorBank is healthy and in its strongest financial condition in several years," said Chris Bauer, President and CEO of AnchorBank.

Net income for the fourth quarter was $5.1 million compared to $5.0 million in the quarter ended September 30, 2014 and $3.8 million for the quarter ended December 31, 2013. Earnings per share were $0.55 for the quarter compared to $0.55 for the quarter ended September 30, 2014, and $0.41 per share for the quarter ended December 31, 2013.

Highlights for the quarter ended December 31, 2014, include:

  • Net income of $5.1 million for the fourth quarter of 2014 compared to $3.8 million in the prior year quarter ended December 31, 2013 and an increase of $161,000 over the quarter ended September 30, 2014.
  • Non-interest income of $9.0 million for the fourth quarter of 2014 compared to $8.0 million in the prior year quarter ended December 31, 2013. The fourth quarter 2014 includes a gain of $1.4 million for the sale of the Capital Square office building and $1.0 million related to the sale of our Richland Center Branch.
  • Capital ratios at the Bank, continue to increase with Tier 1 capital at 10.43% as of December 31, 2014 compared to 9.60% as of December 31, 2013. The total risk-based capital ratio was 18.25% as of December 31, 2014, compared to 17.07% at December 31, 2013.
  • Loan delinquencies (loans 30 to 89 days past due) decreased $7.3 million, or 45.0%, to $8.9 million at December 31, 2014 from $16.2 million at December 31, 2013.
  • Total non-performing loans decreased $33.4 million, or 48.7%, to $35.1 million at December 31, 2014 from $68.5 million at December 31, 2013.
  • Total non-performing assets (total non-performing loans and other real estate owned) decreased $61.4 million, or 46.5%, to $70.6 million at December 31, 2014 from $132.0 million at December 31, 2013; as the Bank continues to reduce problem asset levels. Total non-performing assets as a percent of total assets declined to 3.39% from 4.04% in the September quarter compared to 6.25% in the year ago quarter.
  • The Company recorded a negative provision for loan losses for the quarter ended December 31, 2014 of $3.3 million compared to no provision expense in the prior year period. The allowance for loan losses is 2.99% of total loans at December 31, 2014.

"While we will continue to focus on improving credit quality and operational efficiency for the Company, we also remain committed to safely and strategically growing our community bank franchise, and further strengthening our retail and commercial business lines," Bauer said.

In October 2014, the Company completed its initial public offering in which the Company issued 250,000 shares of common stock at a public offering price of $26.00 per share, and an additional 55,794 shares of common stock were issued subsequent to the offering in conjunction with an overallotment option exercised by the underwriters. The Company shares are now listed on the NASDAQ Global Market under the symbol ABCW. In December 2014, ABCW was included in the preliminary list of quarterly initial public offering additions to the broad-market Russell Global ®, Russell 3000 ®, Russell 2000 ®,and Russell Microcap ® indexes. Anchor's stock price closed December 31, 2014 at $34.44 per share representing a 32.5% increase from its October offering price of $26.00, and a market capitalization of $318.5 million.

About Anchor BanCorp Wisconsin Inc.

Anchor Bancorp is the parent company for AnchorBank, a community-based financial services company providing commercial, retail, mortgage, consumer finance and investment services to businesses and individuals from 53 banking locations throughout Wisconsin. Anchor Bancorp stock (ABCW) is listed on the NASDAQ Global Market and Russell Global Indexes. Visit AnchorBank online at www.anchorbank.com.

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 Twelve Months Ended 12/14-12/13
INCOME STATEMENT 12/31/2014 9/30/2014 12/31/2013 12/31/2014 12/31/2013 Incr(Decr)
Interest income 18,550 18,612 20,188 75,580 84,939 (8%)
Interest expense 1,049 1,054 1,311 4,344 22,013 (20%)
Net interest income $ 17,501 $ 17,558 $ 18,877 $ 71,236 $ 62,926 (7%)
Provision for loan losses (3,281) (1,304) -- (4,585) 950 N/M
Non-interest income:
Loan servicing income, net 602 705 681 2,821 1,437 (12%)
Service charges on deposits 2,602 2,626 2,504 10,017 10,120 4%
Investment and insurance commissions 1,220 1,015 1,009 4,222 3,917 21%
Net gain on sale of loans 670 837 728 2,797 8,116 (8%)
Net gain on sale of investments (37) 482 292 746 92 N/M
Net gain on sale of OREO 352 987 1,118 2,540 4,597 (69%)
Extinguishment of debt -- -- -- -- 134,514 N/M
Other 3,553 1,363 1,670 7,376 4,243 113%
Total non-interest income 8,962 8,015 8,002 30,519 167,036 12%
Non-interest expense:
Personnel costs 11,483 10,872 10,569 44,256 42,568 9%
Net occupancy and equipment expense 2,560 2,443 2,586 10,412 12,100 (1%)
Data processing expense 1,576 1,340 1,616 5,602 6,162 (2%)
OREO expense 3,328 2,999 2,294 9,779 22,056 45%
Mortgage servicing rights impairment (recovery) 492 (53) 60 534 (3,854) N/M
Provision for unfunded commitments (486) (2,401) -- (2,107) 3,133 N/M
Professional fees 794 906 781 3,413 6,231 2%
Debt prepayment penalty -- -- -- -- 16,149 N/M
Reorganization costs -- -- 63 -- 1,929 N/M
Other 4,874 5,809 5,156 19,819 24,926 (5%)
Total non-interest expense 24,621 21,915 23,125 91,708 131,400 6%
Net income before taxes 5,123 4,962 3,754 14,632 97,612 36%
Income tax expense -- -- -- 10 9 0%
Net income 5,123 4,962 3,754 14,622 97,603 36%
Preferred stock dividends in arrears -- -- -- -- (4,200) N/M
Preferred stock discount accretion -- -- -- -- (8,010) N/M
Retirement of preferred shares -- -- -- -- 104,000 N/M
Net income available to common equity $ 5,123 $ 4,962 $ 3,754 $ 14,622 $ 189,393 36%
SHARE DATA
Diluted earnings per share:
Net income $ 0.55 $ 0.55 $ 0.41 $ 1.60 $ 5.41 34%
Net income available to common equity 0.55 0.55 0.41 1.60 10.50 34%
Cash dividends -- -- -- -- -- --
Book value 23.85 23.22 22.34 -- -- 7%
Average diluted shares outstanding 9,340,000 9,058,000 9,050,000 9,151,000 18,039,000 3%
KEY RATIOS AND DATA
Net interest margin (FTE) 3.36% 3.40% 3.61% 3.48% 2.81% (0.25)
Return on average assets 0.96% 0.93% 0.68% 0.69% 4.25% 0.28
Average equity to average assets 10.46% 9.99% 9.32% 10.04% 0.37% 1.14
Total risk based capital 18.25% 17.96% 17.07% 1.18
Tier 1 risk-based capital 16.97% 16.68% 15.77% 1.20
Tier 1 leverage 10.43% 10.07% 9.60% 0.83
N/M = not meaningful
Anchor BanCorp Wisconsin Inc.
(Unaudited)
Ending
Balances
(in 000's) Quarter Ended Averages Ending Balances 12/14-12/13
BALANCE SHEET 12/31/14 9/30/14 12/31/13 12/31/14 12/31/13 Incr(Decr)
Assets:
Cash and cash equivalents $ 195,093 $ 192,041 $ 172,849 $ 147,273 $ 143,396 3%
Investment securities 293,577 294,105 287,797 294,599 277,872 6%
Loans held for sale 5,608 5,145 4,137 6,594 3,085 114%
Loans held for investment 1,559,421 1,547,865 1,635,367 1,571,476 1,609,506 (2%)
Allowance for loan losses (48,260) (49,377) (69,854) (47,037) (65,182) (28%)
Loans held for investment, net 1,511,161 1,498,488 1,565,513 1,524,439 1,544,324 (1%)
Other real estate owned (OREO), net 44,511 52,017 64,843 35,491 63,460 (44%)
Other assets 77,081 79,148 84,848 73,983 80,337 (8%)
Total assets $ 2,127,031 $ 2,120,944 $ 2,179,987 $ 2,082,379 $ 2,112,474 (1%)
Liabilities and Stockholders' Equity:
Non interest bearing deposits $ 285,960 $ 276,888 $ 256,541 $ 291,248 $ 259,926 12%
Interest bearing deposits 1,582,144 1,595,474 1,676,296 1,522,923 1,615,367 (6%)
Total deposits 1,868,104 1,872,362 1,932,837 1,814,171 1,875,293 (3%)
Other borrowed funds 14,982 14,520 19,167 13,752 12,877 7%
Other liabilities 21,500 22,186 24,724 26,793 22,106 21%
Total liabilities $ 1,904,586 $ 1,909,068 $ 1,976,728 $ 1,854,716 $ 1,910,276 (3%)
Total stockholders' equity 222,445 211,876 203,259 227,663 202,198 13%
Total liabilities & stockholders' equity $ 2,127,031 $ 2,120,944 $ 2,179,987 $ 2,082,379 $ 2,112,474 (1%)
Qtr Ended
Quarter Ended Year-to-Date 12/14-12/13
CREDIT QUALITY 12/31/14 9/30/14 12/31/13 12/31/2014 12/31/2013 Incr(Decr)
Provision for loan losses $ (3,281) $ (1,304) $ -- $ (4,585) $ 950 N/M
Net charge-offs (3,281) 834 6,671 13,560 19,529 (149%)
Ending allowance for loan losses 47,037 47,037 65,182 (28%)
Key Metrics
Loans 30 to 89 days past due $ 8,892 $ 9,979 $ 16,165 (45%)
Non-performing loans (NPL) 35,115 38,352 68,497 (49%)
Other real estate owned 35,491 46,725 63,460 (44%)
Non-performing assets 70,606 85,077 131,957 (46%)
Allowance for loan losses to NPL 133.95% 122.65% 95.16% 38.79
N/M = not meaningful

CONTACT: Jennifer Ranville, 608-252-8862

Source:Anchor BanCorp Wisconsin Inc.