Anchor BanCorp Wisconsin Announces Second Quarter EarningsMADISON, WI -- 11/05/2004 -- Anchor BanCorp Wisconsin Inc. (NASDAQ: ABCW) announced net income of $10.7 million for the quarter ended September 30, 2004, which compares to net income of $11.2 million for the quarter ended September 30, 2003. Net income for the six-month period ended September 30, 2004 was $21.3 million, which compares to $25.3 million for the six-month period ended September 30, 2003. Net interest income increased to $29.6 million from $27.6 million for the quarter ended September 30, 2004 and increased to $57.8 million from $56.0 million for the six-month period ended September 30, 2004.
For the quarter ended September 30, 2004, diluted earnings per share were $.46 as compared to $.48 for the quarter ended September 30, 2003. For the six-month period ended September 30, 2004, diluted earnings per share were $.92 as compared to $1.07 for the six-month period ended September 30, 2003. Book value per share increased from $12.66 to $13.74.
Total assets grew nearly 7% from $3.7 billion to $3.9 billion from the period ended September 30, 2003. Loans held for investment grew 11%, increasing from $2.9 billion to $3.2 billion from the period ended September 30, 2003. "I am pleased loan demand is so robust in our market areas which continue to experience economic growth," commented Douglas J. Timmerman, President and CEO.
Anchor BanCorp has repurchased 47,300 shares during the quarter ended September 30, 2004 which leaves approximately 900,000 shares remaining. Effective November 5, the Board of Directors extended the current share repurchase program and authorized an additional share repurchase program of 5% or approximately 1.15 million shares of its outstanding common stock in the open market. The repurchases are 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. Purchases are expected to begin on or after November 11, 2004. The repurchased shares will be held as treasury stock and will be available for general corporate purposes. Anchor will utilize various securities brokers as its agent for the stock repurchase program.
The Board of Directors increased the dividend during the quarter from 11 cents to 12.5 cents which is a 13% increase. Anchor BanCorp's stock is traded under the NASDAQ symbol ABCW. AnchorBank fsb, the wholly owned subsidiary, has 57 full service offices and two loan origination offices. All are located in Wisconsin.
For more information, contact Michael W. Helser, CFO at (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 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 Six Months Ended
September 30, September 30,
2004 2003 2004 2003
--------- --------- --------- ---------
Operations Data:
Net interest income $ 29,615 $ 27,582 $ 57,821 $ 56,042
Provision for loan losses 300 450 750 900
Net gain on sale of loans 1,592 1,411 1,891 11,260
Real estate investment
partnership revenue 15,143 - 38,879 -
Other non-interest income 6,048 6,488 12,276 9,705
Real estate investment
partnership cost of sales 11,067 - 30,778 -
Non-interest expense 21,933 16,855 42,649 35,005
Minority interest in income
of real estate partnership
operations 1,359 - 2,942 -
Income before income taxes 17,739 18,176 33,748 41,102
Income taxes 7,057 6,976 12,469 15,809
Net income 10,682 11,200 21,279 25,293
Selected Financial Ratios (1):
Yield on earning assets 5.35% 5.66% 5.29% 5.79%
Cost of funds 2.22 2.46 2.20 2.51
Interest rate spread 3.13 3.20 3.09 3.28
Net interest margin 3.25 3.26 3.19 3.35
Return on average assets 1.12 1.23 1.11 1.41
Return on average equity 13.68 15.12 13.79 17.26
Average equity to average
assets 8.20 8.12 8.08 8.14
Non-interest expense to
average assets 3.47 1.85 3.85 1.95
Per Share:
Basic earnings per share $ 0.47 $ 0.49 $ 0.94 $ 1.09
Diluted earnings per share 0.46 0.48 0.92 1.07
Dividends per share 0.13 0.11 0.24 0.21
Book value per share 13.74 12.66 13.74 12.66
September 30, Percent
2004 2003 Change
----------- ----------- -----------
Financial Condition:
Total assets $ 3,914,257 $ 3,661,558 6.9%
Loans receivable, net
Held for sale 7,057 49,211 (85.7)
Held for investment 3,231,826 2,910,816 11.0
Investment securities
available for sale,
at fair value 58,654 173,190 (66.1)
Investment securities held
to maturity, at amortized
cost - 2,999 (100.0)
Mortgage-related securities
available for sale,
at fair value 207,762 164,311 26.4
Mortgage-related securities
held to maturity, at
amortized cost 3,168 32,251 (90.2)
Deposits 2,681,757 2,597,574 3.2
Borrowings 846,139 721,994 17.2
Stockholders' equity 316,359 293,017 8.0
Allowance for loan losses 28,213 28,601 (1.4)
Non-performing assets 21,187 14,693 44.2
(1) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
September 30, March 31,
2004 2004
------------ ------------
(In Thousands)
Assets
Cash and cash equivalents $ 173,658 $ 198,993
Investment securities available for
sale, at fair value 58,654 29,514
Investment securities held to
maturity, at amortized cost - -
Mortgage-related securities available
for sale, at fair value 207,762 220,918
Mortgage-related securities held to
maturity, at amortized cost 3,168 4,303
Loans receivable, net
Held for sale 7,057 14,578
Held for investment 3,231,826 3,066,812
Foreclosed properties and
repossessed assets, net 760 2,422
Real estate held for development
and sale 65,106 77,749
Office properties and equipment 30,796 31,233
Other assets 135,470 163,864
------------ ------------
Total assets $ 3,914,257 $ 3,810,386
============ ============
Liabilities and Stockholders' Equity
Deposits $ 2,681,757 $ 2,609,686
Borrowings 846,139 831,559
Other liabilities 63,488 60,902
------------ ------------
Total liabilities 3,591,384 3,502,147
------------ ------------
Minority interest in real estate
partnerships 6,514 6,691
------------ ------------
Preferred stock, $.10 par value,
5,000,000 shares authorized,
none outstanding - -
Common stock, $.10 par value,
100,000,000 shares authorized,
25,364,339 shares issued 2,536 2,536
Additional paid-in capital 68,537 67,926
Retained earnings, substantially
restricted 298,436 284,329
Accumulated other comprehensive income 1,274 2,670
Treasury stock (2,335,733 shares and
2,408,804 shares, respectively), at
cost (48,529) (50,324)
Unearned deferred compensation (5,895) (5,589)
------------ ------------
Total stockholders' equity 316,359 301,548
------------ ------------
Total liabilities, minority
interest and stockholders'
equity $ 3,914,257 $ 3,810,386
============ ============
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
2004 2003 2004 2003
--------- --------- --------- ---------
(In Thousands - except per share amounts)
Interest income:
Loans $ 45,153 $ 43,570 $ 88,242 $ 87,683
Mortgage-related
securities 2,075 2,211 4,263 5,081
Investment securities 1,146 1,838 2,679 3,718
Interest-bearing deposits 415 266 642 446
--------- --------- --------- ---------
Total interest income 48,789 47,885 95,826 96,928
Interest expense:
Deposits 12,028 13,879 23,845 28,401
Notes payable and other
borrowings 7,146 6,424 14,160 12,485
--------- --------- --------- ---------
Total interest expense 19,174 20,303 38,005 40,886
--------- --------- --------- ---------
Net interest income 29,615 27,582 57,821 56,042
Provision for loan losses 300 450 750 900
--------- --------- --------- ---------
Net interest income
after provision for
loan losses 29,315 27,132 57,071 55,142
Non-interest income:
Real estate investment
partnership revenue 15,143 - 38,879 -
Loan servicing income (loss) 1,039 (1,256) 1,518 (2,857)
Service charges on deposits 2,205 2,121 4,400 4,125
Insurance commissions 611 544 1,245 1,168
Net gain on sale of loans 1,592 1,411 1,891 11,260
Net gain on sale of
investments and mortgage-
related securities 529 (12) 1,397 340
Other revenue from real
estate operations 881 3,295 2,019 3,933
Other 783 1,796 1,697 2,996
--------- --------- --------- ---------
Total non-interest
income 22,783 7,899 53,046 20,965
Non-interest expense:
Compensation 10,869 9,276 20,737 19,664
Real estate investment
partnership cost of
sales 11,067 - 30,778 -
Occupancy 1,601 1,658 3,305 3,267
Furniture and equipment 1,603 1,352 2,986 2,800
Data processing 1,168 1,125 2,444 2,299
Marketing 1,009 792 2,016 1,582
Other expenses from real
estate operations 2,569 - 5,391 -
Other 3,114 2,652 5,770 5,393
--------- --------- --------- ---------
Total non-interest
expense 33,000 16,855 73,427 35,005
--------- --------- --------- ---------
Minority interest in
income of real estate
partnership operations 1,359 - 2,942 -
--------- --------- --------- ---------
Income before income
taxes 17,739 18,176 33,748 41,102
Income taxes 7,057 6,976 12,469 15,809
--------- --------- --------- ---------
Net income $ 10,682 $ 11,200 $ 21,279 $ 25,293
========= ========= ========= =========
Earnings per share:
Basic $ 0.47 $ 0.49 $ 0.94 $ 1.09
Diluted 0.46 0.48 0.92 1.07
For more information, contact:
Michael W. Helser
CFO
(608) 252-1810
Douglas J. Timmerman
President
(608) 252-8782
