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[ANCHOR BANCORP WISCONSIN INC. LETTERHEAD]
Press Release
FOR IMMEDIATE RELEASE
April 30, 1999 OTC: ABCW
ANCHOR BANCORP WISCONSIN INC. ANNOUNCES
RECORD YEAR AND EARNINGS
Madison, WI. Anchor BanCorp Wisconsin Inc. (NASDAQ "ABCW") reported earnings for
the fourth quarter of $5.5 million compared to $5.3 million for the same quarter
last year. Record earnings for the fiscal year ended March 31, 1999 were $23.5
million versus $20.5 million last year. For the quarter ended March 31, 1999,
diluted earnings per share were $.30 which compares to $.27 for the same period
in 1998. For the fiscal period ended March 31, 1999, diluted earnings per share
were $1.28, which compares to $1.06 for the same period in 1998. Per share data
has been adjusted to reflect a two for one stock split distributed in August
1998.
Return on average equity for the twelve months ended March 31, 1999 increased to
17.70%, up from 16.20% for the twelve months ended March 31, 1998. Book value
per share increased to $7.87 from $7.14 for the same period last year. Deposits
increased 8.2% to $1.5 billion. Total assets were up 7.1% to $2.1 billion over
the previous fiscal year. Total loans held for investment were up 8.4% to $1.7
billion. Douglas J. Timmerman, President of AnchorBank, noted the continued
strength of loan demand and attributed much of the growth to the strength of the
Madison and Dane County markets. "Not only are we in strong markets, we are able
to take advantage of the low interest rate environment. I am proud that
AnchorBank continues to be the number one mortgage lender in the market."
On January 5, 1999, Anchor BanCorp and FCB Financial Corp., Oshkosh, Wisconsin
(NASDAQ trading symbol "FCBF") announced they entered into a definitive
agreement providing for the merger of FCB Financial Corp. with and into Anchor.
FCB Financial Corp. is the parent holding company for Fox Cities Bank, a $535
million financial institution with 13 full service offices in 5 Wisconsin
counties. Consummation of the merger is subject to applicable regulatory
approvals and to approval by the shareholders of both companies. The parties
anticipate that the merger will be completed during the second calendar quarter
of 1999.
AnchorBank has 35 full service offices and two loan origination only offices
that are located primarily in southern and western Wisconsin.
For more information contact: William Klein, Vice President-Investor Relations
at (608) 252- 1810 or Douglas J. Timmerman, President, at (608) 252-8782.
Stockholders will be receiving their annual report in mid-June.
more
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ANCHOR BANCORP WISCONSIN INC.
FINANCIAL HIGHLIGHTS
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(Dollars in thousands - except per share amounts)
(Unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
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1999 1998 1999 1998
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OPERATIONS DATA
Net interest income $ 15,941 $ 15,196 $ 62,418 $ 59,370
Provision for loan losses 215 165 815 300
Net gain on sale of loans 1,370 1,231 6,193 3,241
Other non-interest income 2,569 2,176 11,823 8,971
Non-interest expenses 10,663 10,246 41,405 38,294
Income before taxes 9,002 8,192 38,214 32,988
Income taxes 3,468 2,942 14,670 12,487
Net income 5,534 5,250 23,544 20,501
SELECTED FINANCIAL RATIOS
Yield on earning assets 7.54% 8.00% 7.71% 7.99%
Cost of funds 4.66 4.95 4.84 4.99
Interest rate spread 2.88 3.05 2.87 3.00
Net interest margin 3.11 3.24 3.08 3.18
Return on average assets 1.05 1.07 1.13 1.05
Return on average equity 15.83 16.09 17.70 16.20
Average equity to average assets 6.61 6.67 6.38 6.51
Non-interest expenses to average assets 2.02 2.09 1.99 1.97
PER SHARE DATA (1)
Basic earnings per share $ 0.32 $ 0.29 $ 1.37 $ 1.13
Diluted earnings per share 0.30 0.27 1.28 1.06
Book Value per share 7.87 7.14 N/A N/A
MARCH 31,
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1999 1998 CHANGE
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FINANCIAL CONDITION DATA (THOUSANDS)
Total assets $ 2,141,688 $ 1,999,307 7.1%
Loans receivable, net
Held for sale 15,430 18,060 (14.6)
Held for investment 1,724,242 1,591,089 8.4
Investment securities available for sale 32,716 39,555 (17.3)
Investment securities held to maturity 6,845 17,587 (61.1)
Mortgage-related securities available for sale 46,357 67,526 (31.3)
Mortgage-related securities held to maturity 176,913 127,239 39.0
Deposits 1,505,990 1,392,472 8.2
Borrowings 470,859 454,560 3.6
Stockholders' equity 142,239 127,951 11.2
Allowance for loan losses 20,208 21,833 (7.4)
Non-performing assets 5,132 12,863 (60.1)
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(1)Per share data has been adjusted to reflect a two-for-one stock split
distributed in August, 1998.
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ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED BALANCE SHEETS
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(Unaudited)
MARCH 31,
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1999 1998
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(In thousands, except per share data)
ASSETS
Cash and cash equivalents $ 34,574 $ 39,167
Investment securities available for sale 32,716 39,555
Investment securities held to maturity 6,845 17,587
Mortgage-related securities available for sale 46,357 67,526
Mortgage-related securities held to maturity 176,913 127,239
Loans receivable, net
Held for sale 15,430 18,060
Held for investment 1,724,242 1,591,089
Foreclosed properties and repossessed assets, net 1,603 4,723
Real estate held for development and sale 29,943 22,630
Office properties and equipment 18,214 18,640
Other assets 54,851 53,091
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Total assets $ 2,141,688 $ 1,999,307
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 1,505,990 $ 1,392,472
Borrowings 470,859 454,560
Advance payments by borrowers for taxes and insurance 6,575 6,955
Other liabilities 16,025 17,369
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Total liabilities 1,999,449 1,871,356
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Preferred stock, $.10 par value, 5,000,000 shares
authorized, none outstanding - -
Common stock, $.10 par value, 30,000,000 shares
authorized, 24,998,648 shares issued 2,500 2,500
Additional paid-in capital 51,112 49,084
Retained earnings, substantially restricted 136,098 125,615
Less: Treasury stock (6,936,458 shares and 7,073,460 shares) (45,259) (47,959)
Borrowings of Employee Stock Ownership Plan (689) (1,379)
Common Stock purchased by benefit plans (2,108) (851)
Net unrealized gain on securities available for sale, net of tax 585 941
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Total stockholders' equity 142,239 127,951
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Total liabilities and stockholders' equity $ 2,141,688 $ 1,999,307
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ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
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(UNAUDITED)
THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
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1999 1998 1999 1998
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(In thousands, except per share data)
Interest income:
Loans $ 34,203 $ 32,765 $ 138,435 $ 129,008
Mortgage-related securities 3,590 3,686 12,227 14,676
Investment securities 917 1,071 5,304 5,287
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Total interest income 38,710 37,522 155,966 148,971
Interest expense:
Deposits 16,366 16,207 67,268 64,146
Notes payable and other 6,403 6,119 26,280 25,455
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Total interest expense 22,769 22,326 93,548 89,601
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Net interest income 15,941 15,196 62,418 59,370
Provision for loan losses 215 165 815 300
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Net interest income after provision for loan losses 15,726 15,031 61,603 59,070
Non-interest income:
Service charges on deposits 987 916 4,067 3,881
Net gain on sale of loans 1,370 1,231 6,193 3,241
Other income 1,582 1,260 7,756 5,090
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Total non-interest income 3,939 3,407 18,016 12,212
Non-interest expenses:
Compensation 6,283 5,774 23,252 20,147
Occupancy 747 557 3,023 2,921
Federal insurance premiums 225 211 852 836
Other 3,408 3,704 14,278 14,390
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Total non-interest expenses 10,663 10,246 41,405 38,294
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Income before income taxes 9,002 8,192 38,214 32,988
Income taxes 3,468 2,942 14,670 12,487
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Net income $ 5,534 $ 5,250 $ 23,544 $ 20,501
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