Anchor BanCorp Wisconsin Inc. Announces Third Quarter EarningsMADISON, WI -- 01/28/2004 -- Anchor BanCorp Wisconsin Inc. (NASDAQ: ABCW) announced net income of $9.9 million for the quarter ended December 31, 2003, and net income of $35.2 million for the nine-month period ended December 31, 2003. This compares to $13.4 million for the same quarter in 2002 and $36.3 million for the nine-month period ended December 31, 2002. "A slow down in refinance activity resulted in a decrease of $5.9 million in net gain on sale of loans," said Douglas J. Timmerman, President.
Diluted earnings per share were $.43 for the quarter ended December 31, 2003 as compared to $.55 for the same quarter last year. Diluted earnings per share were $1.50 for the nine-month period ended December 31, 2003 which compares to $1.47 for the nine-month period for the same period last year. Book value increased to $13.04 compared to $12.13 for the same period last year.
During the quarter ended December 31, 2003, 239,350 shares were repurchased under a previously authorized repurchase program. The repurchases were authorized to be made from time to time in open-market and/or negotiated transactions as, in the opinion of management, market conditions may warrant.
This quarter, Anchor BanCorp adopted Financial Accounting Standards Board Interpretation Number 46 - Consolidation of Variable Interest Entities (FIN 46). By this adoption, Anchor BanCorp will provide more detailed disclosure on its real estate investment partnerships. While FIN 46 provides enhanced financial disclosure, for Anchor BanCorp, there is no effect on net income.
Anchor BanCorp's stock is traded on the over-the-counter market under the NASDAQ symbol ABCW. AnchorBank fsb, the wholly-owned subsidiary, has 56 full service offices and two loan origination only offices. All are located in Wisconsin.
ANCHOR BANCORP WISCONSIN INC.
FINANCIAL HIGHLIGHTS
(Dollars in thousands - except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
------------------- -------------------
2003 2002 2003 2002
------------------- -------------------
Operations Data:
Net interest income $ 27,490 $ 29,699 $ 83,532 $ 88,053
Provision for loan losses 450 450 1,350 1,350
Net gain on sale of loans 1,683 7,605 12,943 14,374
Real Estate Investment
Partnership sales 11,856 - 31,565 -
Other non-interest income 3,717 1,350 12,022 7,016
Real Estate Investment
Partnership cost of sales 7,787 - 23,445 -
Non-interest expense 20,432 16,537 58,088 49,864
Income before income taxes 16,077 21,667 57,179 58,229
Income taxes 6,139 8,260 21,948 21,933
Net income 9,938 13,407 35,231 36,296
Selected Financial Ratios (1):
Yield on earning assets 5.49% 6.32% 5.59% 6.55%
Cost of funds 2.39 2.84 2.47 3.06
Interest rate spread 3.10 3.48 3.12 3.49
Net interest margin 3.19 3.58 3.24 3.60
Return on average assets 1.09 1.51 1.28 1.39
Return on average equity 13.44 18.27 15.88 16.42
Average equity to average
assets 8.10 8.24 8.04 8.47
Non-interest expense to
average assets 3.09 1.86 2.95 1.91
Per Share:
Basic earnings per share $ 0.44 $ 0.56 $ 1.53 $ 1.50
Diluted earnings per share 0.43 0.55 1.50 1.47
Dividends per share 0.11 0.09 0.32 0.26
Book value per share 13.04 12.13 13.04 12.13
December 31, Percent
2003 2002 Change
------------------------ -------
Financial Condition:
Total assets $3,665,544 $3,521,536 4.1%
Loans receivable, net
Held for sale 14,448 32,366 (55.4)
Held for investment 3,019,819 2,715,964 11.2
Investment securities available
for sale, at fair value 65,242 68,489 (4.7)
Investment securities held to
maturity, at amortized cost 1,000 2,998 (66.6)
Mortgage-related securities
available for sale, at fair value 151,002 227,721 (33.7)
Mortgage-related securities held
to maturity, at amortized cost 25,574 85,947 (70.2)
Deposits 2,552,279 2,575,254 (0.9)
Borrowings 750,729 568,806 32.0
Stockholders' equity 298,640 295,689 1.0
Allowance for loan losses 28,899 29,605 (2.4)
Non-performing assets 16,052 10,638 50.9
(1) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
December 31, March 31,
2003 2003
----------- -----------
(In Thousands)
Assets
Cash and cash equivalents $ 138,018 $ 141,427
Investment securities available
for sale, at fair value 65,242 97,192
Investment securities held to
maturity, at amortized cost 1,000 2,998
Mortgage-related securities available
for sale, at fair value 151,002 185,751
Mortgage-related securities held to
maturity, at amortized cost 25,574 62,998
Loans receivable, net
Held for sale 14,448 43,054
Held for investment 3,019,819 2,770,988
Foreclosed properties and repossessed
assets, net 773 1,535
Real estate held for development
and sale 59,993 44,994
Office properties and equipment 32,149 31,905
Other assets 157,526 155,779
----------- -----------
Total assets $ 3,665,544 $ 3,538,621
=========== ===========
Liabilities and Stockholders' Equity
Deposits $ 2,552,279 $ 2,574,188
Borrowings 750,729 595,816
Advance payments by borrowers for
taxes and insurance 988 6,579
Other liabilities 62,908 69,034
----------- -----------
Total liabilities 3,366,904 3,245,617
----------- -----------
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 74,067 64,271
Retained earnings, substantially
restricted 275,215 251,729
Accumulated other comprehensive income 3,293 4,177
Treasury stock (2,452,899 shares and
1,420,481 shares, respectively), at
cost (51,405) (28,917)
Unearned deferred compensation (392) (792)
Minority interest in REI partnerships (4,674) -
----------- -----------
Total stockholders' equity 298,640 293,004
----------- -----------
Total liabilities and stockholders'
equity $ 3,665,544 $ 3,538,621
=========== ===========
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
------------------- -------------------
2003 2002 2003 2002
------------------- -------------------
(In Thousands, Except Per Share Data)
Interest income:
Loans $ 42,905 $ 45,504 $130,588 $140,995
Mortgage-related securities 2,136 4,918 7,217 13,059
Investment securities 1,979 1,546 5,697 4,684
Interest-bearing deposits 221 519 667 1,531
-------- -------- -------- --------
Total interest income 47,241 52,487 144,169 160,269
Interest expense:
Deposits 13,160 16,177 41,464 51,348
Notes payable and other
borrowings 6,534 6,484 19,019 20,522
Other 57 127 154 346
-------- -------- -------- --------
Total interest expense 19,751 22,788 60,637 72,216
-------- -------- -------- --------
Net interest income 27,490 29,699 83,532 88,053
Provision for loan losses 450 450 1,350 1,350
-------- -------- -------- --------
Net interest income after
provision for loan losses 27,040 29,249 82,182 86,703
Non-interest income:
Real Estate Investment
Partnership home sales 11,856 - 31,565 -
Loan servicing income (loss) 763 (3,378) (2,094) (3,466)
Service charges on deposits 2,046 1,867 6,171 5,433
Insurance commissions 664 337 1,832 1,457
Net gain on sale of loans 1,683 7,605 12,943 14,374
Net gain (loss) on sale of
investments and mortgage-
related securities (40) 206 300 960
Other revenue from real
estate operations (682) (232) 1,852 (584)
Other 966 2,550 3,961 3,216
-------- -------- -------- --------
Total non-interest income 17,256 8,955 56,530 21,390
Non-interest expense:
Real Estate Investment
Partnership cost of home sales 7,787 - 23,445 -
Compensation 9,995 9,210 29,659 27,301
Occupancy 1,533 1,460 4,800 4,257
Furniture and equipment 1,468 1,407 4,267 3,842
Data processing 1,202 1,339 3,501 3,899
Marketing 790 715 2,372 2,137
Other expenses from Real
Estate Partnership operations 1,053 - 1,882 -
Minority interest in income of
Real Estate Partnership
operations 1,478 - 3,301 -
Other 2,913 2,406 8,306 8,428
-------- -------- -------- --------
Total non-interest expense 28,219 16,537 81,533 49,864
-------- -------- -------- --------
Income before income taxes 16,077 21,667 57,179 58,229
Income taxes 6,139 8,260 21,948 21,933
-------- -------- -------- --------
Net income $ 9,938 $ 13,407 $ 35,231 $ 36,296
======== ======== ======== ========
Earnings per share:
Basic $ 0.44 $ 0.56 $ 1.53 $ 1.50
Diluted 0.43 0.55 1.50 1.47
Dividends declared per share 0.11 0.09 0.32 0.26
Contact:
Michael Helser
CFO
(608) 252-1810
Douglas J. Timmerman
President
(608) 252-8782
