Anchor BanCorp Wisconsin Inc. Announces Record Quarter and Record Year End EarningsMADISON, WI -- 05/20/2005 -- Anchor BanCorp Wisconsin Inc. (OTC: ABCW) announced net income of $17.5 million for the quarter ended March 31, 2005, and net income of $49.7 million for the twelve-month period ended March 31, 2005. Both figures represented new record levels for the corporation, and compare to $12.1 million for the same quarter in 2004 and $47.4 million for the twelve-month period ended March 31, 2004.
"We had an outstanding year with asset growth of 6.4 percent, which allowed us to reach total assets of $4.06 billion for the first time," said Douglas J. Timmerman, President. "Our growth can primarily be attributed to an 11.3 percent increase in our overall loan portfolio and deposit growth of 10.1 percent. We are looking forward to continued growth through our upcoming branch expansions in Wisconsin, primarily in Green Bay and the greater Milwaukee area."
Diluted earnings per share were $.77 for the quarter ended March 31, 2005, as compared to $.53 for the same quarter last year. Diluted earnings per share were $2.16 for the twelve-month period ended March 31, 2005, which compares to $2.02 for the twelve-month period for the same period last year.
"As a result of the sale in the fourth quarter of part of our California real estate development project, diluted earnings per share were positively impacted by approximately $.24, or $5.36 million of net income after tax," added Timmerman.
The interest rate spread increased from 2.95 percent to 3.19 percent for the quarter ended March 31, 2005, and from 3.10 percent to 3.16 percent for the twelve-month period ended March 31, 2005. Net interest margin increased from 3.03 percent to 3.29 percent and from 3.21 percent to 3.27 percent for the same periods last year.
During the quarter ended March 31, 2005, 713,990 shares were purchased under a previously authorized repurchase program. The repurchases are made from time to time in open-market and/or negotiated transactions as, in the opinion of management, market conditions may warrant.
Effective with the May 2005 dividend payment, the Board of Directors increased the quarterly per share dividend from 12.5 cents to 13.5 cents, which represents an increase of 8 percent.
Anchor BanCorp's stock is traded on the over-the-counter market under the NASDAQ symbol ABCW. AnchorBank fsb, the wholly owned subsidiary, has 57 full-service offices and two loan origination only offices. All are located in Wisconsin.
This news release contains certain forward-looking statements based on unaudited financial statements, 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 statement.
ANCHOR BANCORP WISCONSIN INC.
FINANCIAL HIGHLIGHTS
(Dollars in thousands - except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
2005 2004 2005 2004
--------- --------- --------- ---------
Operations Data:
Net interest income $ 31,231 $ 26,823 $ 120,703 $ 110,355
Provision for loan losses 165 600 1,579 1,950
Net gain on sale of loans 2,350 2,384 6,066 15,327
Real estate investment
partnership revenue 51,305 9,507 106,288 49,735
Other non-interest income 7,245 7,534 24,805 17,014
Real estate investment
partnership cost of sales 30,966 6,436 74,875 29,881
Other non-interest expense 24,682 18,789 87,700 79,697
Minority interest in income
of real estate partnership
operations 8,582 762 13,546 4,063
Income before income taxes 27,736 19,661 80,162 76,840
Income taxes 10,223 7,523 30,450 29,471
Net income 17,513 12,138 49,712 47,369
Selected Financial
Ratios (1):
Yield on earning assets 5.56% 5.21% 5.41% 5.53%
Cost of funds 2.37 2.26 2.25 2.43
Interest rate spread 3.19 2.95 3.16 3.10
Net interest margin 3.29 3.03 3.27 3.21
Return on average assets 1.75 1.29 1.28 1.30
Return on average equity 22.03 16.05 15.89 15.82
Average equity to average
assets 7.93 8.06 8.04 8.23
Non-interest expense to
average assets 5.55 2.69 4.18 3.01
Per Share:
Basic earnings per share $ 0.78 $ 0.54 $ 2.21 $ 2.07
Diluted earnings per share 0.77 0.53 2.16 2.02
Dividends per share 0.13 0.11 0.49 0.43
Book value per share 14.15 13.14 14.15 13.14
March 31, Percent
2005 2004 Change
----------- ----------- -----------
Financial Condition:
Total assets $ 4,055,674 $ 3,810,386 6.4%
Loans receivable, net
Held for sale 4,361 14,578 (70.1)
Held for investment 3,414,608 3,066,812 11.3
Investment securities available
for sale, at fair value 52,055 29,514 76.4
Mortgage-related securities
available for sale, at fair
value 202,250 220,918 (8.5)
Mortgage-related securities held
to maturity, at amortized cost 1,502 4,303 (65.1)
Deposits 2,873,533 2,609,686 10.1
Borrowings 793,609 831,559 (4.6)
Stockholders' equity 315,896 301,548 4.8
Allowance for loan losses 26,444 28,607 (7.6)
Non-performing assets 15,908 17,343 (8.3)
(1) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
March 31, March 31,
2005 2004
------------ ------------
(In Thousands)
Assets
Cash and cash equivalents $ 166,436 $ 198,993
Investment securities available for sale,
at fair value 52,055 29,514
Mortgage-related securities available for
sale, at fair value 202,250 220,918
Mortgage-related securities held to maturity,
at amortized cost 1,502 4,303
Loans receivable, net
Held for sale 4,361 14,578
Held for investment 3,414,608 3,066,812
Foreclosed properties and repossessed
assets, net 1,458 2,422
Real estate held for development and sale 48,949 77,749
Office properties and equipment 30,495 31,233
Other assets 133,560 163,864
------------ ------------
Total assets $ 4,055,674 $ 3,810,386
============ ============
Liabilities and Stockholders' Equity
Deposits $ 2,873,533 $ 2,609,686
Borrowings 793,609 831,559
Other liabilities 62,834 60,902
------------ ------------
Total liabilities 3,729,976 3,502,147
------------ ------------
Minority interest in real estate
partnerships 9,802 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 68,627 67,926
Retained earnings, substantially restricted 320,295 284,329
Accumulated other comprehensive income (708) 2,670
Treasury stock (3,043,826 shares and
2,408,804 shares, respectively), at cost (68,441) (50,324)
Unearned deferred compensation (6,413) (5,589)
------------ ------------
Total stockholders' equity 315,896 301,548
------------ ------------
Total liabilities, minority interest and
stockholders' equity $ 4,055,674 $ 3,810,386
============ ============
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
2005 2004 2005 2004
--------- --------- --------- ---------
(In Thousands - except per share amounts)
Interest income:
Loans $ 48,762 $ 42,244 $ 184,350 $ 172,831
Mortgage-related securities 2,204 2,043 8,608 9,260
Investment securities 1,024 1,628 5,008 7,326
Interest-bearing deposits 806 179 2,013 845
--------- --------- --------- ---------
Total interest income 52,796 46,094 199,979 190,262
Interest expense:
Deposits 14,789 12,386 51,447 54,004
Notes payable and other
borrowings 6,776 6,885 27,829 25,903
--------- --------- --------- ---------
Total interest expense 21,565 19,271 79,276 79,907
--------- --------- --------- ---------
Net interest income 31,231 26,823 120,703 110,355
Provision for loan losses 165 600 1,579 1,950
--------- --------- --------- ---------
Net interest income after
provision for loan
losses 31,066 26,223 119,124 108,405
Non-interest income:
Real estate investment
partnership revenue 51,305 9,507 106,288 49,735
Loan servicing income (loss) 1,116 649 3,592 (1,446)
Service charges on deposits 2,044 1,970 8,568 8,141
Insurance commissions 485 581 2,248 2,413
Net gain on sale of loans 2,350 2,384 6,066 15,327
Net gain on sale of
investments and mortgage-
related securities - 3,041 1,472 3,341
Other revenue (expense) from
real estate operations 2,319 326 5,063 (365)
Other 1,281 967 3,862 4,930
--------- --------- --------- ---------
Total non-interest income 60,900 19,425 137,159 82,076
Non-interest expense:
Compensation 11,715 9,359 42,481 39,018
Real estate investment
partnership cost of sales 30,966 6,436 74,875 29,881
Occupancy 1,788 1,722 6,752 6,521
Furniture and equipment 1,602 1,440 6,001 5,708
Data processing 1,304 1,264 4,823 4,766
Marketing 880 321 3,910 2,693
Other expenses from real
estate operations 2,970 1,847 9,663 9,849
Other 4,423 2,836 14,070 11,142
--------- --------- --------- ---------
Total non-interest
expense 55,648 25,225 162,575 109,578
--------- --------- --------- ---------
Minority interest in income
of real estate partnership
operations 8,582 762 13,546 4,063
--------- --------- --------- ---------
Income before income
taxes 27,736 19,661 80,162 76,840
Income taxes 10,223 7,523 30,450 29,471
--------- --------- --------- ---------
Net income $ 17,513 $ 12,138 $ 49,712 $ 47,369
========= ========= ========= =========
Earnings per share:
Basic $ 0.78 $ 0.54 $ 2.21 $ 2.07
Diluted 0.77 0.53 2.16 2.02
For more information, contact:
Michael Helser
CFO
(608) 252-1810
Douglas J. Timmerman
President
(608) 252-8782
