Anchor BanCorp Wisconsin Inc. Announces First Quarter Earnings and a Dividend IncreaseMADISON, WI -- 07/27/2004 -- Anchor BanCorp Wisconsin Inc. (NASDAQ: ABCW) reported net income of $10.6 million for the quarter ended June 30, 2004 which compares to $14.1 million for the same quarter last year. Diluted earnings per share for the quarter ended June 30, 2004 were $.46 which compares to $.59 for the same quarter last year. "Net gain on sale of loans was down $9.5 million, which was the primary factor in our net income reduction of $3.5 million. The good news is the difference in net interest income was only $254,000. I am satisfied with how we are making the transition from a refinance market to a more traditional lending environment," said Douglas J. Timmerman, Chairman of the Board, President, and CEO.
Total assets grew 6%, to $3.8 billion at June 30, 2004 as compared to $3.6 billion at June 30, 2003. "We have retained our deposits in a highly competitive environment and our book value increased as well," said Timmerman. Book value increased 6.7% to $13.38 for the quarter ended June 30, 2004 as compared to $12.54 for the quarter ended June 30, 2003.
The Company also announced that it has settled with the Wisconsin Department of Revenue as regards the taxation of its Nevada investment subsidiary. Among other provisions, AnchorBank agreed to pay Wisconsin tax on the income of its Nevada investment subsidiary for the fourth quarter of fiscal 2004, and for future periods. Management estimates that in fiscal 2005, the additional income tax expense related to its Nevada investment subsidiary's operations will amount to approximately $0.06 per diluted share. The Company reduced its tax accrual, in part as a result of the settlement. This reduction, when combined with the impact of the settlement for periods prior to fiscal 2005, resulted in an increase in earnings for the quarter of approximately $0.05 cents per diluted share.
The Board of Directors announced a 13.6% increase in the quarterly cash dividend, moving from $.11 per share to $.125 per share. The dividend will be payable August 13, 2004 to shareholders of record on July 30, 2004.
AnchorBank fsb, the wholly owned subsidiary of ABCW, has 54 full service offices and two loan origination offices. All are located in Wisconsin.
For more information contact: Michael W. Helser, CFO (608) 252-1810 or Douglas J. Timmerman, President, at (608) 252-8782.
This news release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Anchor BanCorp. Forward-looking statements are subject to various factors which could cause actual results to differ materially from these estimates. These factors include the economic and Wisconsin tax matters noted above, as well as changes in general economic conditions, deposit flows, loan demand, asset quality, competition, legislation or regulation and accounting principles, policies or guidelines affecting reports filed with the Securities and Exchange Commission for financial and business information regarding Anchor BanCorp, including information which could affect Anchor BanCorp's forward-looking statements.
ANCHOR BANCORP WISCONSIN INC.
FINANCIAL HIGHLIGHTS
(Dollars in thousands - except per share amounts)
(Unaudited)
Three Months Ended
June 30,
------------------- Percent
2004 2003 Change
------- ------- -------
Operations Data:
Net interest income $28,206 $28,460 (0.9)%
Provision for loan losses 450 450 0.0
Net gain on sale of loans 299 9,807 (97.0)
Real estate investment partnership
revenue 23,967 - 100.0
Other non-interest income 5,997 3,259 84.0
Real estate investment partnership cost
of sales 19,819 - 100.0
Non-interest expense 20,609 18,150 13.5
Minority interest in income of real
estate partnership operations 1,582 - 100.0
Income before income taxes 16,009 22,926 (30.2)
Income taxes 5,412 8,833 (38.7)
Net income 10,597 14,093 (24.8)
Selected Financial Ratios (1):
Yield on earning assets 5.22% 5.83% (10.5)
Cost of funds 2.17 2.56 (15.2)
Interest rate spread 3.05 3.27 (6.7)
Net interest margin 3.13 3.39 (7.7)
Return on average assets 1.11 1.58 (30.1)
Return on average equity 13.91 18.91 (26.5)
Average equity to average assets 7.97 8.38 (4.9)
Non-interest expense to average assets 4.23 2.04 107.1
Per Share:
Basic earnings per share $ 0.47 $ 0.61 (23.0)
Diluted earnings per share 0.46 0.59 (22.0)
Dividends per share 0.11 0.10 10.0
Book value per share 13.38 12.54 6.7
June 30, Percent
2004 2003 Change
---------- ---------- -------
Financial Condition:
Total assets $3,839,653 $3,622,614 6.0%
Loans receivable, net
Held for sale 11,032 61,666 (82.1)
Held for investment 3,162,136 2,823,263 12.0
Investment securities available for
sale, at fair value 48,865 81,591 (40.1)
Investment securities held to maturity,
at amortized cost - 2,999 (100.0)
Mortgage-related securities available
for sale, at fair value 204,051 169,585 20.3
Mortgage-related securities held to
maturity, at amortized cost 3,740 46,242 (91.9)
Deposits 2,663,376 2,646,438 0.6
Borrowings 807,614 607,614 32.9
Stockholders' equity 307,715 299,699 2.7
Allowance for loan losses 28,535 30,037 (5.0)
Non-performing assets 19,009 17,611 7.9
(1) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
June 30, March 31,
2004 2004
---------- ----------
(In Thousands)
Assets
Cash and cash equivalents $ 166,232 $ 198,993
Investment securities available for sale, at
fair value 48,865 29,514
Investment securities held to maturity, at
amortized cost - -
Mortgage-related securities available for sale,
at fair value 204,051 220,918
Mortgage-related securities held to maturity,
at amortized cost 3,740 4,303
Loans receivable, net
Held for sale 11,032 14,578
Held for investment 3,162,136 3,066,812
Foreclosed properties and repossessed assets,
net 687 2,422
Real estate held for development and sale 62,858 77,749
Office properties and equipment 30,786 31,233
Other assets 149,266 163,864
---------- ----------
Total assets $3,839,653 $3,810,386
========== ==========
Liabilities and Stockholders' Equity
Deposits $2,663,376 $2,609,686
Borrowings 807,614 831,559
Other liabilities 54,658 60,902
---------- ----------
Total liabilities 3,525,648 3,502,147
---------- ----------
Minority interest in real estate partnerships 6,290 6,691
---------- ----------
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 68,108 67,926
Retained earnings, substantially restricted 291,891 284,329
Accumulated other comprehensive income 184 2,670
Treasury stock (2,365,428 shares and 2,408,804
shares, respectively), at cost (49,244) (50,324)
Unearned deferred compensation (5,760) (5,589)
---------- ----------
Total stockholders' equity 307,715 301,548
---------- ----------
Total liabilities, minority interest and
stockholders' equity $3,839,653 $3,810,386
========== ==========
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
June 30,
2004 2003
------- -------
(In Thousands - except
per share amounts)
Interest income:
Loans $43,088 $44,112
Mortgage-related securities 2,188 2,870
Investment securities 1,533 1,880
Interest-bearing deposits 227 180
------- -------
Total interest income 47,036 49,042
Interest expense:
Deposits 11,816 14,522
Notes payable and other borrowings 7,014 6,060
------- -------
Total interest expense 18,830 20,582
------- -------
Net interest income 28,206 28,460
Provision for loan losses 450 450
------- -------
Net interest income after provision for loan losses 27,756 28,010
Non-interest income:
Real estate investment partnership revenue 23,967 -
Loan servicing income (loss) 478 (1,601)
Service charges on deposits 2,195 2,004
Insurance commissions 634 624
Net gain on sale of loans 299 9,807
Net gain on sale of investments and mortgage-related
securities 868 352
Other revenue from real estate operations 907 638
Other 915 1,242
------- -------
Total non-interest income 30,263 13,066
Non-interest expense:
Compensation 9,869 10,388
Real estate investment partnership cost of sales 19,819 -
Occupancy 1,704 1,609
Furniture and equipment 1,382 1,448
Data processing 1,276 1,174
Marketing 1,007 790
Other expenses from real estate operations 2,714 -
Other 2,657 2,741
------- -------
Total non-interest expense 40,428 18,150
------- -------
Minority interest in income of real estate
partnership operations 1,582 -
Income before income taxes 16,009 22,926
Income taxes 5,412 8,833
------- -------
Net income $10,597 $14,093
======= =======
Earnings per share:
Basic $ 0.47 $ 0.61
Diluted 0.46 0.59
For more information contact:
Michael W. Helser
CFO
(608) 252-1810
Douglas J. Timmerman
President
(608) 252-8782
