Exhibit 99.1
Wauwatosa Holdings, Inc. Announces Results of Operations for the Fourth Quarter and Year Ended December 31, 2007.
WAUWATOSA, WI – 02/20/2008– Wauwatosa Holdings, Inc. (NASDAQ: WAUW) released 2007 fourth quarter and annual unaudited financial highlights, consolidated statements of operations and consolidated statements of financial condition.
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WAUWATOSA HOLDINGS, INC.
FINANCIAL HIGHLIGHTS
Three months ended | Years ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
(In thousands except ratios and per share data) | ||||||||||||||||
Operations Data: | ||||||||||||||||
Net interest income | $ | 8,578 | $ | 9,623 | $ | 34,841 | $ | 38,449 | ||||||||
Provision for loan losses | 2,845 | 358 | 11,697 | 2,201 | ||||||||||||
Noninterest income | 1,665 | 1,275 | 6,842 | 5,156 | ||||||||||||
Noninterest expense | 7,708 | 6,944 | 28,682 | 28,652 | ||||||||||||
Income (loss) before income taxes | (310 | ) | 3,610 | 1,304 | 12,752 | |||||||||||
Income tax expense (benefit) | (617 | ) | 1,326 | (254 | ) | 4,699 | ||||||||||
Net income | 307 | 2,284 | 1,558 | 8,053 | ||||||||||||
Selected Financial Ratios: | ||||||||||||||||
Yield on earning assets | 6.06 | % | 6.12 | % | 6.10 | % | 6.03 | % | ||||||||
Cost of funds | 4.35 | 4.27 | 4.36 | 4.03 | ||||||||||||
Interest rate spread | 1.70 | 1.85 | 1.74 | 2.00 | ||||||||||||
Return on average assets | 0.07 | 0.54 | 0.09 | 0.50 | ||||||||||||
Return on average equity | 0.60 | 3.77 | 0.72 | 3.41 | ||||||||||||
Average equity to average assets | 11.94 | 14.35 | 13.07 | 14.79 | ||||||||||||
Non-interest expense to average assets | 1.77 | 1.65 | 1.72 | 1.80 | ||||||||||||
Allowance for loan losses to total loans outstanding | 0.92 | 0.52 | 0.92 | 0.52 | ||||||||||||
Per Share: | ||||||||||||||||
Basic earnings per share | $ | 0.01 | $ | 0.07 | $ | 0.05 | $ | 0.24 | ||||||||
Diluted earnings per share | 0.01 | 0.07 | 0.05 | 0.24 | ||||||||||||
Book value per share | 6.46 | 7.29 | 6.46 | 7.29 | ||||||||||||
Weighted average shares outstanding | 30,557,719 | 33,105,046 | 31,570,677 | 33,076,565 | ||||||||||||
Shares outstanding at December 31 | 31,250,897 | 33,723,750 | 31,250,897 | 33,723,750 |
December 31, | Percent | |||||||||||||||||||
2007 | 2006 | Change | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Financial Condition: | ||||||||||||||||||||
Total assets | $ | 1,710,202 | $ | 1,648,470 | 3.7 | % | ||||||||||||||
Loans receivable, net | 1,389,209 | 1,365,712 | 1.7 | |||||||||||||||||
Securities available for sale | 172,137 | 117,330 | 46.7 | |||||||||||||||||
Deposits | 994,535 | 1,036,218 | (4.0 | ) | ||||||||||||||||
Borrowings | 475,484 | 334,003 | 42.4 | |||||||||||||||||
Total equity | 201,819 | 241,272 | (16.4 | ) | ||||||||||||||||
Allowance for loan losses | 12,839 | 7,195 | 78.4 | |||||||||||||||||
Non-performing assets | 88,893 | 29,408 | 202.3 |
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WAUWATOSA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended | Years ended | |||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||||
(In thousands except per share data) | ||||||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||
Loans | $ | 22,024 | $ | 21,509 | $ | 87,101 | $ | 83,822 | ||||||||||||||||||||
Mortgage-related securities | 1,794 | 1,207 | 5,869 | 4,263 | ||||||||||||||||||||||||
Debt securities, federal funds sold and | ||||||||||||||||||||||||||||
short-term investments | 827 | 1,971 | 4,005 | 4,143 | ||||||||||||||||||||||||
Total interest income | 24,645 | 24,687 | 96,975 | 92,228 | ||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Deposits | 11,269 | 11,281 | 44,910 | 42,038 | ||||||||||||||||||||||||
Borrowings | 4,798 | 3,783 | 17,224 | 11,741 | ||||||||||||||||||||||||
Total interest expense | 16,067 | 15,064 | 62,134 | 53,779 | ||||||||||||||||||||||||
Net interest income | 8,578 | 9,623 | 34,841 | 38,449 | ||||||||||||||||||||||||
Provision for loan losses | 2,845 | 358 | 11,697 | 2,201 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 5,733 | 9,265 | 23,144 | 36,248 | ||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||
Service charges on loans and deposits | 504 | 520 | 1,983 | 2,021 | ||||||||||||||||||||||||
Increase in cash surrender value of life insurance | 204 | 180 | 1,192 | 1,055 | ||||||||||||||||||||||||
Loss on sale of securities | - | (35 | ) | - | (819 | ) | ||||||||||||||||||||||
Mortgage banking income | 775 | 357 | 2,912 | 2,109 | ||||||||||||||||||||||||
Other | 182 | 253 | 755 | 790 | ||||||||||||||||||||||||
Total noninterest income | 1,665 | 1,275 | 6,842 | 5,156 | ||||||||||||||||||||||||
Noninterest expenses: | ||||||||||||||||||||||||||||
Compensation, payroll taxes, and other employee benefits | 3,709 | 3,715 | 15,487 | 16,209 | ||||||||||||||||||||||||
Occupancy, office furniture, and equipment | 1,211 | 1,168 | 4,990 | 4,304 | ||||||||||||||||||||||||
Advertising | 288 | 423 | 1,158 | 1,369 | ||||||||||||||||||||||||
Data processing | 475 | 229 | 1,622 | 1,730 | ||||||||||||||||||||||||
Communications expense | 175 | 232 | 729 | 700 | ||||||||||||||||||||||||
Professional fees | 319 | 450 | 1,230 | 1,243 | ||||||||||||||||||||||||
Foreclosed properties | 1,001 | (28 | ) | 1,200 | 116 | |||||||||||||||||||||||
Other | 530 | 741 | 2,266 | 2,981 | ||||||||||||||||||||||||
Total noninterest expenses | 7,708 | 6,930 | 28,682 | 28,652 | ||||||||||||||||||||||||
Income (loss) before income taxes | (310 | ) | 3,610 | 1,304 | 12,752 | |||||||||||||||||||||||
Income tax expense (benefit) | (617 | ) | 1,326 | (254 | ) | 4,699 | ||||||||||||||||||||||
Net income | $ | 307 | $ | 2,284 | $ | 1,558 | $ | 8,053 | ||||||||||||||||||||
Basic earnings per share | $ | 0.01 | $ | 0.07 | 0.05 | 0.24 | ||||||||||||||||||||||
Diluted earnings per share | $ | 0.01 | $ | 0.07 | 0.05 | 0.24 |
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WAUWATOSA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
December 31, | ||||||||||||||||||||
2007 | 2006 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Assets | (Unaudited) | |||||||||||||||||||
Cash | $ | 5,492 | $ | 26,745 | ||||||||||||||||
Federal funds sold | 11,833 | 19,458 | ||||||||||||||||||
Short term investments | 559 | 27,604 | ||||||||||||||||||
Cash and cash equivalents | 17,884 | 73,807 | ||||||||||||||||||
Securities available-for-sale (at fair value) | 172,137 | 117,330 | ||||||||||||||||||
Securities held-to-maturity (at cost) | 7,646 | - | ||||||||||||||||||
Loans held for sale | 23,108 | 5,387 | ||||||||||||||||||
Loans receivable | 1,402,048 | 1,372,907 | ||||||||||||||||||
Allowance for loan losses | (12,839 | ) | (7,195 | ) | ||||||||||||||||
Loans receivable, net | 1,389,209 | 1,365,712 | ||||||||||||||||||
Office properties and equipment, net | 32,018 | 32,625 | ||||||||||||||||||
Federal Home Loan Bank stock, at cost | 19,289 | 17,213 | ||||||||||||||||||
Cash surrender value of life insurance | 25,649 | 24,152 | ||||||||||||||||||
Real estate owned | 8,543 | 520 | ||||||||||||||||||
Prepaid expenses and other assets | 14,719 | 11,724 | ||||||||||||||||||
Total assets | $ | 1,710,202 | 1,648,470 | |||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Demand deposits | $ | 53,210 | $ | 58,407 | ||||||||||||||||
Money market and savings deposits | 114,387 | 94,472 | ||||||||||||||||||
Time deposits | 826,938 | 883,339 | ||||||||||||||||||
Total deposits | 994,535 | 1,036,218 | ||||||||||||||||||
Federal Home Loan Bank advances short-term | 53,484 | 41,224 | ||||||||||||||||||
Federal Home Loan Bank advances long-term | 422,000 | 292,779 | ||||||||||||||||||
Advance payments by borrowers for taxes | 606 | 190 | ||||||||||||||||||
Other liabilities | 37,758 | 36,787 | ||||||||||||||||||
Total liabilities | 1,508,383 | 1,407,198 | ||||||||||||||||||
Shareholders’ equity: | ||||||||||||||||||||
Common Stock (par value — $.01; | 340 | 337 | ||||||||||||||||||
200,000,000 shares authorized; | ||||||||||||||||||||
33,975,250 shares issued; 31,250,897and | ||||||||||||||||||||
33,723,750 shares outstanding 2007 and 2006) | ||||||||||||||||||||
Additional Paid-In Capital | 106,306 | 104,182 | ||||||||||||||||||
Accumulated other comprehensive | ||||||||||||||||||||
loss (net of taxes) | 44 | (1,225 | ) | |||||||||||||||||
Retained earnings, substantially restricted | 146,367 | 144,809 | ||||||||||||||||||
Unearned ESOP shares | (5,977 | ) | (6,831 | ) | ||||||||||||||||
Treasury shares (2,724,353 shares), at cost | (45,261 | ) | - | |||||||||||||||||
Total shareholders’ equity | 201,819 | 241,272 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,710,202 | 1,648,470 | |||||||||||||||||
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