Anchor BanCorp Wisconsin Announces Second Quarter EarningsMADISON, WI -- 11/07/2005 -- Anchor BanCorp Wisconsin Inc. (NASDAQ: ABCW) announced net income of $10.8 million for the quarter ended September 30, 2005, which compares to net income of $10.6 million for the quarter ended September 30, 2004. Net income for the six-month period ended September 30, 2005 was $22.3 million, which compares to $20.8 million for the six-month period ended September 30, 2004. Net interest income increased to $33.4 million from $29.6 million for the quarter ended September 30, 2005 and increased to $65.6 million from $57.8 million for the six-month period ended September 30, 2005.
The interest rate spread increased to 3.29 percent for the quarter ended September 30, 2005, from 3.13 percent for the same period in the prior year. For the six month period ended September 30, 2005, the interest rate spread increased to 3.24 percent as compared to 3.09 percent for the same period a year ago. For the quarter ended September 30, 2005, the net interest margin increased to 3.40 percent from 3.25 percent for the same period a year ago. For the six month period ended September 30, 2005, the net interest margin increased to 3.36 percent from 3.19 percent for the same period a year ago.
"I am pleased that our interest margin has held up in the face of rising interest rates and intense competition," said Douglas J. Timmerman, President and CEO. "At the same time, we've seen excellent growth in our deposits and a robust demand for loans in our market areas, which continue to experience positive economic growth."
Total deposits grew 13.1% from $2.7 billion to $3.0 billion. Total assets grew 7.5% from $3.9 billion to $4.2 billion from the period ended September 30, 2004. Loans held for investment grew 7.3%, increasing from $3.2 billion to $3.5 billion from the period ended September 30, 2004.
For the quarter ended September 30, 2005, diluted earnings per share were $.48 as compared to $.46 for the quarter ended September 30, 2004. For the six month period ended September 30, 2005, diluted earnings per share were $1.00 as compared to $.90 for the six month period ended September 30, 2004. Book value per share increased from $13.55 to $14.28 over the same period.
During the quarter ended September 30, 2005, 260,200 shares were purchased under a previously authorized repurchase program. Effective November 7, the Board of Directors extended the current share repurchase program and authorized an additional share repurchase program of 5% or approximately 1.10 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.
The Board was also notified that on October 31, 2005, the Office of Thrift Supervision (OTS) terminated the cease and desist order previously issued to AnchorBank, fsb, the wholly owned banking subsidiary of Anchor BanCorp Wisconsin Inc. The cease and desist order was issued by the OTS in September 2004, in connection with alleged violations of the Bank Secrecy Act (BSA). The OTS terminated the cease and desist order as a result of the remedial actions taken by AnchorBank.
Anchor BanCorp's stock is traded under the NASDAQ symbol ABCW. AnchorBank fsb, the wholly owned subsidiary, has 58 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,
---------- ---------- ---------- ----------
2005 2004 2005 2004
(As Restated) (As Restated)
---------- ---------- ---------- ----------
Operations Data:
Net interest income $ 33,428 $ 29,615 $ 65,573 $ 57,821
Provision for loan losses 1,485 300 1,750 750
Net gain (loss) on sale
of loans 1,193 1,043 1,316 (121)
Real estate investment
partnership revenue 11,559 15,143 23,072 38,879
Other non-interest income 7,090 6,469 14,233 13,530
Real estate investment
partnership cost of
sales 10,780 11,067 19,191 30,778
Other non-interest expense 22,536 21,933 44,165 42,649
Minority interest in
income of real estate
partnership operations 102 1,359 1,391 2,942
Income before income taxes 18,367 17,611 37,697 32,990
Income taxes 7,589 7,006 15,359 12,166
Net income 10,778 10,605 22,338 20,824
Selected Financial
Ratios (1):
Yield on earning assets 5.97% 5.35% 5.85% 5.29%
Cost of funds 2.68 2.22 2.61 2.20
Interest rate spread 3.29 3.13 3.24 3.09
Net interest margin 3.40 3.25 3.36 3.19
Return on average assets 1.04 1.11 1.09 1.09
Return on average equity 13.62 13.78 14.16 13.68
Average equity to average
assets 7.66 8.09 7.70 7.98
Non-interest expense to
average assets 3.22 3.47 3.09 3.85
Per Share:
Basic earnings per share $ 0.49 $ 0.47 $ 1.02 $ 0.92
Diluted earnings per
share 0.48 0.46 1.00 0.90
Dividends per share 0.16 0.13 0.30 0.24
Book value per share 14.28 13.55 14.28 13.55
September 30, Percent
2005 2004 Change
(As Restated)
---------- ---------- ----------
Financial Condition:
Total assets $4,204,470 $3,909,961 7.5%
Loans receivable, net
Held for sale 6,957 7,057 (1.4)
Held for investment 3,466,265 3,231,826 7.3
Investment securities
available for sale, at
fair value 45,904 58,654 (21.7)
Mortgage-related
securities available for
sale, at fair value 270,536 207,762 30.2
Mortgage-related
securities held to
maturity, at amortized
cost 1,242 3,168 (60.8)
Deposits 3,032,976 2,681,757 13.1
Borrowings 794,044 846,139 (6.2)
Stockholders' equity 315,349 312,063 1.1
Allowance for loan losses 22,582 28,213 (20.0)
Non-performing assets 16,201 21,187 (23.5)
(1) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
September 30, March 31,
2005 2005
---- ----
(In Thousands)
Assets
Cash and cash equivalents $ 201,551 $ 166,436
Investment securities available for
sale, at fair value 45,904 52,055
Mortgage-related securities available
for sale, at fair value 270,536 202,250
Mortgage-related securities held to
maturity, at amortized cost 1,242 1,502
Loans receivable, net
Held for sale 6,957 4,361
Held for investment 3,466,265 3,414,608
Foreclosed properties and repossessed
assets, net 2,173 1,458
Real estate held for development and sale 50,447 48,949
Office properties and equipment 29,672 30,495
Other assets 129,723 128,342
----------- -----------
Total assets $ 4,204,470 $ 4,050,456
=========== ===========
Liabilities and Stockholders' Equity
Deposits $ 3,032,976 $ 2,873,533
Borrowings 794,044 793,609
Other liabilities 54,950 62,834
----------- -----------
Total liabilities 3,881,970 3,729,976
----------- -----------
Minority interest in real estate
partnerships 7,151 9,802
----------- -----------
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 70,471 68,627
Retained earnings, substantially restricted 325,736 315,077
Accumulated other comprehensive income (loss) (402) (708)
Treasury stock (3,282,845 shares and
3,043,826 shares,respectively), at cost (75,390) (68,441)
Unearned deferred compensation (7,602) (6,413)
----------- -----------
Total stockholders' equity 315,349 310,678
----------- -----------
Total liabilities, minority interest and
stockholders' equity $ 4,204,470 $ 4,050,456
=========== ===========
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
2005 2004 2005 2004
(As Restated) (As Restated)
--------- --------- --------- ---------
(In Thousands - except per share amounts)
Interest income:
Loans $ 53,525 $ 45,153 $ 104,750 $ 88,242
Mortgage-related
securities 3,133 2,075 5,676 4,263
Investment securities 886 1,146 1,903 2,679
Interest-bearing
deposits 1,118 415 1,899 642
--------- --------- --------- ---------
Total interest income 58,662 48,789 114,228 95,826
Interest expense:
Deposits 18,116 12,028 34,588 23,845
Notes payable and other
borrowings 7,118 7,146 14,067 14,160
--------- --------- --------- ---------
Total interest expense 25,234 19,174 48,655 38,005
--------- --------- --------- ---------
Net interest income 33,428 29,615 65,573 57,821
Provision for loan losses 1,485 300 1,750 750
--------- --------- --------- ---------
Net interest income
after provision for
loan losses 31,943 29,315 63,823 57,071
Non-interest income:
Real estate investment
partnership revenue 11,559 15,143 23,072 38,879
Loan servicing income 1,090 1,080 2,401 2,014
Credit enhancement
derivative income
(includes interest
income of $68 and $57,
respectively, for the
three-month period and
$130 and $113,
respectively, for the
six-month period) 406 380 802 758
Service charges on deposits 2,357 2,205 4,729 4,400
Insurance commissions 621 611 1,308 1,245
Net gain (loss) on sale
of loans 1,193 1,043 1,316 (121)
Net gain on sale of
investments and mortgage-
related securities 267 529 274 1,397
Other revenue from real
estate operations 698 881 1,913 2,019
Other 1,651 783 2,806 1,697
--------- --------- --------- ---------
Total non-interest
income 19,842 22,655 38,621 52,288
Non-interest expense:
Compensation 11,298 10,869 22,170 20,737
Real estate investment
partnership cost of
sales 10,780 11,067 19,191 30,778
Occupancy 1,748 1,601 3,324 3,305
Furniture and equipment 1,619 1,603 3,186 2,986
Data processing 1,369 1,168 2,650 2,444
Marketing 1,091 1,009 2,186 2,016
Other expenses from real
estate partnership
operations 2,205 2,569 4,254 5,391
Other 3,206 3,114 6,395 5,770
--------- --------- --------- ---------
Total non-interest
expense 33,316 33,000 63,356 73,427
--------- --------- --------- ---------
Minority interest in
income of real estate
partnership operations 102 1,359 1,391 2,942
--------- --------- --------- ---------
Income before income
taxes 18,367 17,611 37,697 32,990
Income taxes 7,589 7,006 15,359 12,166
--------- --------- --------- ---------
Net income $ 10,778 $ 10,605 $ 22,338 $ 20,824
========= ========= ========= =========
Earnings per share:
Basic $ 0.49 $ 0.47 $ 1.02 $ 0.92
Diluted 0.48 0.46 1.00 0.90
Contact:
Michael W. Helser
CFO
(608) 252-1810
Douglas J. Timmerman
President
(608) 252-8782
