EXHIBIT 99
ANCHOR BANCORP
WISCONSIN INC.
Press Release
FOR IMMEDIATE RELEASE OTC: ABCW
July 22, 1997
ANCHOR BANCORP WISCONSIN INC. ANNOUNCES
RECORD FIRST QUARTER EARNINGS, A STOCK SPLIT
AND A DIVIDEND INCREASE
Madison, WI. Anchor BanCorp Wisconsin Inc. (NASDAQ "ABCW") reported record net
income of $4.6 million for the first quarter of fiscal year 1998 ended June 30
1997. This compares to $4.5 million for the same quarter last year. Per share
earnings increased to $.97 for the quarter ended June 30, 1997 from $.90 last
year. Total assets increased to $1.93 billion from $1.88 billion. Deposits also
grew to $1.33 billion from $1.27 billion.
Today, the Board of Directors approved a dividend increase and a two for one
stock split. The quarterly dividend will increase on pre-split shares from $.14
to $.16 per share, payable on August 15, 1997 to shareholders as of the record
date August 1, 1997. The two-for-one stock split will be paid as a stock
dividend on August 15 to shareholders of record at the close of business on
August 1, 1997. The Board also approved a Shareholder's Rights Plan. "The Rights
Plan is intended to provide Anchor BanCorp's Board with negotiating leverage in
dealing with a potential acquirer in order to defend against takeover tactics
that are not in the best interest of the Company and its shareholders," said
Douglas J. Timmerman, Chairman of the Board. Further information will be sent to
shareholders August 15, 1997.
AnchorBank, S.S.B., Anchor BanCorp's wholly-owned subsidiary, opened a full
service, 7 day a week branch in the new Kohl's store, located in Prairie Towne
Center - Madison on May 13. AnchorBank now has 35 full service offices and three
loan origination only offices which 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.
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
JUNE 30,
---------------------------- PERCENT
1997 1996 CHANGE
---------- --------- ---------
OPERATIONS DATA:
Net interest income $ 13,828 $ 13,901 (0.5%)
Provision for loan losses - -
Net gain (loss) on sale of loans 467 157 197.5
Other non-interest income 3,339 3,812 (12.4)
Non-interest expenses 10,130 10,731 (5.6)
Income before taxes 7,504 7,139 5. 1
Income taxes 2,883 2,604 10.7
Net income 4,621 4,535 1.9
SELECTED FINANCIAL RATIOS:(1)
Yield on earning assets 7.91% 7.99% (1.0%)
Cost of funds 5.06 4.96 2.0
Interest rate spread 2.85 3.03 (5.9)
Net interest margin 3.02 3.24 (6.8)
Return on average assets 0.97 1.02 (4.8)
Return on average equity 14.91 15.09 (1.2)
Average equity to average assets 6.50 6.74 (3.6)
Non-interest expenses to average assets 2.12 2.41 (11.8)
PER SHARE:(2)
Primary earnings per share $ 0.97 $ 0.90 7.8%
Fully diluted earnings per share 0.97 0.89 9.0
Book value per share $ 26.49 24.36 8.7
JUNE 30,
---------------------------- PERCENT
1997 1996 CHANGE
---------- ---------- ---------
FINANCIAL CONDITION:
Total assets $1,925,866 $1,882,248 2.3%
Loans receivable, net
Loans held for sale 8,780 7,014 25.2
Loans held for investment 1,487,727 1,396,167 6.6
Securities available for sale:
Investment securities 58,573 46,944 24.8
Mortgage-related securities 75,520 101,680 (25.7)
Securities held to maturity:
Investment securities 11,197 5,547 101.9
Mortgage-related securities 150,815 138,642 8.8
Deposits 1,326,325 1,270,622 4.4
Borrowings 447,375 401,942 11.3
Stockholders' equity 119,847 117,895 1.7
Allowance for loan losses 22,431 22,839 (1.8)
Non-performing assets 14,689 11,839 24.1
(1) Annualized when appropriate.
(2) Per share data and shares outstanding have been adjusted to reflect a
five-for-four stock split distributed in October, 1995.
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ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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(Unaudited)
JUNE 30, MARCH 31,
1997 1997
------------ ------------
(In Thousands)
ASSETS
Cash and cash equivalents $ 36,238 $ 38,025
Securities available for sale:
Investment securities 58,573 35,569
Mortgage-related securities 75,520 80,300
Securities held to maturity:
Investment securities 11,197 7,947
Mortgage-related securities 150,815 160,101
Loans receivable, net
Loans held for sale 8,780 5,348
Loans held for investment 1,487,727 1,461,423
Foreclosed properties and repossessed assets, net 4,875 4,222
Real estate held for development and sale 23,473 23,706
Office properties and equipment 19,187 18,662
Other assets
49,481 49,680
------------ ------------
Total assets $ 19,925,866 $ 1,884,983
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 1,326,325 $ 1,312,445
Borrowings 447,375 431,539
Advance payments by borrowers for taxes and insurance 14,630 7,675
Other liabilities 17,689 15,437
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Total liabilities $ 1,806,019 $ 1,767,096
Preferred stock, $.10 par value, 5,000,000 shares authorized,
none outstanding -- --
Common stock, $.10 par value, 20,000,000 shares
authorized, 6,249,662 shares issued 625 625
Additional paid-in capital 50,446 50,443
Retained earnings, substantially restricted 114,555 110,735
Less: Treasury stock (1,725,295 shares and 1,668,315 shares) (44,435) (41,937)
Common Stock purchased by recognition plans (1,204) (1,246)
Unrealized losses, net of tax (140) (733)
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Total stockholders' equity 119,847 117,887
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Total liabilities and stockholders' equity $ 1,925,866 $ 1,884,983
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ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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(Unaudited)
THREE MONTHS ENDED
JUNE 30,
---------------------
1997 1996
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(In Thousands)
Interest income:
Loans $31,330 $29,725
Mortgage-related securities 3,737 3,483
Investment securities 1,131 1,083
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Total interest income 36,198 34,291
Interest expense:
Deposits 15,700 14,467
Notes payable and other 6,669 5,923
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Total interest expense 22,369 20,390
------- -------
Net interest income 13,828 13,901
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Provision for loan losses -- --
Net interest income after provision for 13,828 13,901
loan losses
Non-interest income:
Service charges on deposits 955 882
Net gain (loss) on sale of loans 467 157
Other income 2,384 2,930
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Total non-interest income 3,806 3,969
Non-interest expenses:
Compensation 4,843 5,532
Occupancy 921 754
Federal insurance premiums 210 705
Other 4,156 3,740
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Total non-interest expenses 10,130 10,731
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Income before income taxes 7,504 7,139
Income taxes 2,883 2,604
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Net income 4,621 $ 4,535
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