Exhibit 99.1
ANCHOR BANCORP WISCONSIN INC. ANNOUNCES FOURTH QUARTER AND FISCAL YEAR END
EARNINGS
MADISON, Wis., May 22 /PRNewswire-FirstCall/ -- Anchor BanCorp Wisconsin
Inc. (Nasdaq: ABCW) announced net income of $11.5 million for the quarter ended
March 31, 2006, and net income of $44.7 million for the twelve-month period
ended March 31, 2006. This compares to net income for the same quarter of the
previous fiscal year of $16.8 million and net income for the previous full
fiscal year of $48.3 million, which included a one-time gain of $5.4 million
after tax from the sale of part of our California real estate development
project during the fourth fiscal quarter of 2005.
Diluted earnings per share were $.53 for the quarter ended March 31, 2006,
as compared to $.74 for the same quarter last year, which included a one-time
gain of .24 per share from the sale of part of our California real estate
development project. Diluted earnings per share were $2.03 for the twelve- month
period ended March 31, 2006, which compares to $2.10 for the same twelve-month
period last year.
"Despite less favorable interest rate conditions for consumers than in the
past several years, we had strong asset growth of 5.5 percent and an overall
growth of 5.8% in loans, including a 22.3 percent growth in our mortgage-
related securities," said Douglas J. Timmerman, President. "We also experienced
a 5.8 percent growth in deposits for the fiscal year as consumers responded to
rising investment yields."
"Our focus on managing margins while driving growth continues to pay off,"
added Timmerman. "Our interest rate spread increased from 3.19 percent to 3.23
percent for the quarter ended March 31, 2006, and from 3.16 percent to 3.25
percent for the twelve-month period ended March 31, 2006." Net interest margin
increased from 3.29 percent to 3.35 percent and from 3.27 percent to 3.36
percent for the same periods last year. An increase of 78 basis points for the
quarter ended March 31, 2006 and 64 basis points for the fiscal year in the
yield on earning assets contributed to the growth in net interest margin.
During the quarter the board of directors approved a dividend of $.16 per
share payable to shareholders of record as of April 28, 2006. This represents an
18.5 percent increase from the same period in the prior fiscal year of $.135 per
share.
Anchor BanCorp's stock is traded on the over-the-counter market under the
NASDAQ symbol ABCW. AnchorBank fsb, the wholly-owned subsidiary, has 59 full
service offices and two loan origination only offices. All are located in
Wisconsin.
For more information, contact Michael Helser, CFO at (608) 252-1810 or
Douglas J. Timmerman, President, at (608) 252-8782.
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,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Operations Data:
Net interest income $ 33,294 $ 31,231 $ 132,704 $ 120,703
Provision for loan losses 1,450 165 3,900 1,579
Net gain on sale of loans 1,348 763 2,808 1,643
Real estate investment
partnership revenue 4,524 51,112 33,974 106,095
Other non-interest income 8,063 7,838 30,194 27,126
Real estate investment
partnership cost of sales 3,791 30,966 28,509 74,875
Other non-interest expense 22,534 24,682 89,938 87,700
Minority interest
in income of real
estate partnership
operations 29 8,582 1,723 13,546
Income before income taxes 19,425 26,549 75,610 77,867
Income taxes 7,973 9,748 30,927 29,532
Net income 11,452 16,801 44,683 48,335
Selected Financial Ratios (1):
Yield on earning assets 6.34% 5.56% 6.05% 5.41%
Cost of funds 3.11 2.37 2.80 2.25
Interest rate spread 3.23 3.19 3.25 3.16
Net interest margin 3.35 3.29 3.36 3.27
Return on average assets 1.10 1.68 1.08 1.24
Return on average equity 14.46 21.13 14.16 15.69
Average equity to
average assets 7.59 7.93 7.62 7.92
Non-interest expense
to average assets 2.52 5.55 2.86 4.18
Per Share:
Basic earnings per share $ 0.54 $ 0.75 $ 2.07 $ 2.14
Diluted earnings per share 0.53 0.74 2.03 2.10
Dividends per share 0.16 0.13 0.62 0.49
Book value per share 14.69 13.92 14.69 13.92
March 31,
---------------------------- Percent
2006 2005 Change
------------ ------------ ------------
Financial Condition:
Total assets $ 4,275,140 $ 4,050,456 5.5%
Loans receivable, net
Held for sale 5,509 4,361 26.3
Held for investment 3,614,265 3,414,608 5.8
Investment securities
available for sale,
at fair value 49,521 52,055 (4.9)
Mortgage-related securities
available for sale, at
fair value 247,438 202,250 22.3
Mortgage-related securities
held to maturity, at
amortized cost 77 1,502 (94.9)
Deposits 3,040,217 2,873,533 5.8
Borrowings 861,861 793,609 8.6
Stockholders' equity 321,025 310,678 3.3
Allowance for loan losses 15,570 26,444 (41.1)
Non-performing assets 15,721 15,908 (1.2)
(1) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
March 31, March 31,
2006 2005
------------ ------------
(In Thousands)
Assets
Cash and cash equivalents $ 152,544 $ 166,436
Investment securities available for sale,
at fair value 49,521 52,055
Mortgage-related securities available for sale,
at fair value 247,438 202,250
Mortgage-related securities held to maturity,
at amortized cost 77 1,502
Loans receivable, net
Held for sale 5,509 4,361
Held for investment 3,614,265 3,414,608
Foreclosed properties and repossessed
assets, net 2,192 1,458
Real estate held for development and sale 54,330 48,949
Office properties and equipment 29,867 30,495
Other assets 119,397 128,342
Total assets $ 4,275,140 $ 4,050,456
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing $ 242,924 $ 227,411
Interest bearing 2,797,293 2,646,122
Total Deposits 3,040,217 2,873,533
Short-term borrowings 186,200 242,540
Long-term borrowings 675,661 551,069
Other liabilities 45,040 62,834
Total liabilities 3,947,118 3,729,976
Minority interest in real estate partnerships 6,997 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 70,517 68,627
Retained earnings, substantially restricted 340,364 315,077
Accumulated other comprehensive income (loss) (2,558) (708)
Treasury stock (3,509,036 shares and 3,043,826
shares, respectively), at cost (82,144) (68,441)
Unearned deferred compensation (7,690) (6,413)
Total stockholders' equity 321,025 310,678
Total liabilities, minority interest and
stockholders' equity $ 4,275,140 $ 4,050,456
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
(In Thousands - except per share amounts)
Interest income:
Loans $ 58,811 $ 48,762 $ 220,004 $ 184,350
Mortgage-related
securities 2,910 2,204 11,548 8,608
Investment securities 742 1,024 3,649 5,008
Interest-bearing deposits 461 806 3,349 2,013
Total interest income 62,924 52,796 238,550 199,979
Interest expense:
Deposits 21,704 14,789 76,550 51,447
Short-term borrowings 2,193 1,874 9,918 7,261
Long-term borrowings 5,733 4,902 19,378 20,568
Total interest expense 29,630 21,565 105,846 79,276
Net interest income 33,294 31,231 132,704 120,703
Provision for loan losses 1,450 165 3,900 1,579
Net interest income
after provision for
loan losses 31,844 31,066 128,804 119,124
Non-interest income:
Real estate investment
partnership revenue 4,524 51,112 33,974 106,095
Loan servicing income 1,405 728 5,084 4,192
Credit enhancement income 415 388 1,632 1,528
Service charges on deposits 2,206 2,044 9,290 8,568
Insurance commissions 776 485 2,673 2,248
Net gain on sale of loans 1,348 763 2,808 1,643
Net (loss) gain on sale
of investments and mortgage-
related securities (112) - 282 1,472
Other revenue from real
estate operations 1,921 2,512 5,304 5,256
Other 1,452 1,681 5,929 3,862
Total non-interest
income 13,935 59,713 66,976 134,864
Non-interest expense:
Compensation 10,761 11,715 44,793 42,481
Real estate investment
partnership cost of
sales 3,791 30,966 28,509 74,875
Occupancy 1,963 1,788 7,107 6,752
Furniture and equipment 1,652 1,602 6,261 6,001
Data processing 1,578 1,304 5,652 4,823
Marketing 641 880 3,935 3,910
Other expenses from
real estate partnership
operations 2,739 2,970 9,460 9,663
Other 3,200 4,423 12,730 14,070
Total non-interest
expense 26,325 55,648 118,447 162,575
Minority interest in
income of real estate
partnership operations 29 8,582 1,723 13,546
Income before income
taxes 19,425 26,549 75,610 77,867
Income taxes 7,973 9,748 30,927 29,532
Net income $ 11,452 $ 16,801 $ 44,683 $ 48,335
Earnings per share:
Basic $ 0.54 $ 0.75 $ 2.07 $ 2.14
Diluted 0.53 0.74 2.03 2.10
SOURCE Anchor BanCorp Wisconsin Inc.
-0- 05/22/2006
/CONTACT: Michael Helser, CFO, +1-608-252-1810, or Douglas J. Timmerman,
President, +1-608-252-8782, both of Anchor BanCorp Wisconsin Inc./
/Web site: http://www.anchorbank.com /