Exhibit 99.1
ANCHOR BANCORP WISCONSIN INC. ANNOUNCES THIRD QUARTER EARNINGS
MADISON, Wis., Feb. 5 /PRNewswire-FirstCall/ -- Anchor BanCorp Wisconsin
Inc. (Nasdaq: ABCW) announced net income of $10.4 million for the quarter ended
December 31, 2006, and net income of $30.7 million for the nine-month period
ended December 31, 2006. This compares to $10.9 million for the same quarter in
2005 and $33.2 million for the nine-month period ended December 31, 2005. Net
interest income was $32.5 million for the quarter and $98.2 million for the
nine-month period ended December 31, 2006, down 3.9% and 1.2%, respectively,
versus the same period a year ago.
Douglas J. Timmerman, Chairman, noted, "Despite an increase in our provision
for loan losses of $2.7 million during the quarter ended December 31, 2006
versus the same quarter last year, our net income was impacted much more
modestly, decreasing by $458,000." During the quarter ended December 31, 2006
loan loss provisions were increased to $3.4 million versus $700,000 for the same
period a year ago. Timmerman added, "The increase in our provision for loan
losses is based on management's recognition that the slowing economy, and in
particular the housing market, make it prudent that we continue to add to
reserves at this time."
"However," said Timmerman, "AnchorBank is committed to continued growth."
Total assets increased to $4.51 billion as of December 31, 2006, up 7.3% versus
the same period in 2005. Deposits also grew, by 8.5% to $3.24 billion as of
December 31, 2006.
Timmerman added, "As we continue to grow, we have also controlled expenses."
Non-interest expense to average assets declined to 2.64% for the quarter ended
December 31, 2006, from 2.74% a year ago and to 2.53% from 2.97% for the
nine-month period ended December 31, 2006 versus the same period in the prior
year.
Diluted earnings per share were $.48 for the quarter ended December 31,
2006, as compared to $.50 for the same quarter last year. Diluted earnings per
share were $1.42 for the nine-month period ended December 31, 2006, which
compares to $1.50 for the nine-month period for the same period last year. Book
value per share increased from $14.32 as of December 31, 2005 to $15.45 as of
December 31, 2006, a 7.9% increase.
During the quarter ended December 31, 2006, 76,800 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.
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.
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 Nine Months Ended
December 31, December 31,
------------------------------ -----------------------------
2006 2005 2006 2005
------------- ------------- ------------- -------------
Operations Data:
Net interest income $ 32,529 $ 33,837 $ 98,212 $ 99,410
Provision for loan
losses 3,375 700 7,205 2,450
Net gain on sale of
loans 776 144 2,995 1,460
Real estate investment
partnership revenue 8,009 6,378 16,126 29,450
Other non-interest income 7,331 7,898 23,358 22,132
Real estate investment
partnership cost of
sales 7,115 5,527 14,454 24,718
Other non-interest
expense 22,443 23,238 68,457 67,405
Minority interest in
income (loss) of real
estate partnership
operations (31) 304 332 1,694
Income before income
taxes 15,743 18,488 50,243 56,185
Income taxes 5,308 7,595 19,500 22,954
Net income 10,435 10,893 30,743 33,231
Selected Financial Ratios (1):
Yield on earning assets 6.81% 6.15% 6.70% 5.95%
Cost of funds 3.92 2.88 3.70 2.70
Interest rate spread 2.89 3.27 3.00 3.25
Net interest margin 3.05 3.39 3.14 3.37
Return on average assets 0.93 1.04 0.94 1.07
Return on average equity 12.51 13.91 12.45 14.08
Average equity to average
assets 7.45 7.45 7.53 7.62
Non-interest expense to
average assets 2.64 2.74 2.53 2.97
Per Share:
Basic earnings per share $ 0.49 $ 0.51 $ 1.43 $ 1.53
Diluted earnings per share 0.48 0.50 1.42 1.50
Dividends per share 0.17 0.16 0.50 0.46
Book value per share 15.45 14.32 15.45 14.32
December 31,
------------------------------ Percent
2006 2005 Change
------------- ------------- -------------
Financial Condition:
Total assets $ 4,505,896 $ 4,200,234 7.3%
Loans receivable, net
Held for sale 4,470 5,847 (23.6)
Held for investment 3,834,381 3,545,436 8.1
Investment securities
available for sale, at
fair value 41,990 36,139 16.2
Mortgage-related securities
available for sale, at fair
value 258,685 256,358 0.9
Mortgage-related securities
held to maturity, at
amortized cost 70 1,047 (93.3)
Deposits 3,240,540 2,987,284 8.5
Borrowings 841,219 814,641 3.3
Stockholders' equity 336,522 312,089 7.8
Allowance for loan losses 20,031 15,252 31.3
Non-performing assets 39,484 17,265 128.7
(1) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
December 31, March 31,
2006 2006
------------- -------------
(Unaudited)
(In Thousands)
Assets
Cash and cash equivalents $ 151,104 $ 152,544
Investment securities available for sale,
at fair value 41,990 49,521
Mortgage-related securities available for sale,
at fair value 258,685 247,438
Mortgage-related securities held to maturity,
at amortized cost 70 77
Loans receivable, net
Held for sale 4,470 5,509
Held for investment 3,834,381 3,614,265
Foreclosed properties and repossessed assets,
net 4,499 2,192
Real estate held for development and sale 61,624 54,330
Office properties and equipment 30,684 29,867
Other assets 118,389 119,397
Total assets $ 4,505,896 $ 4,275,140
Liabilities and Stockholders' Equity
Deposits
Non-interest bearing $ 254,454 $ 242,924
Interest bearing 2,986,086 2,797,293
Total Deposits 3,240,540 3,040,217
Short-term borrowings 334,400 186,200
Long-term borrowings 506,819 675,661
Other liabilities 79,902 45,040
Total liabilities 4,161,661 3,947,118
Minority interest in real estate partnerships 7,713 6,997
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 71,283 70,517
Retained earnings, substantially restricted 357,616 340,364
Accumulated other comprehensive loss (1,152) (2,558)
Treasury stock (3,580,610 shares and 3,509,036
shares, respectively), at cost (88,781) (82,144)
Unearned deferred compensation (4,980) (7,690)
Total stockholders' equity 336,522 321,025
Total liabilities, minority interest and
stockholders' equity $ 4,505,896 $ 4,275,140
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
------------------------------ -----------------------------
2006 2005 2006 2005
------------- ------------- ------------- -------------
(In Thousands - except per share amounts)
Interest income:
Loans $ 67,265 $ 56,443 $ 194,779 $ 161,192
Mortgage-related
securities 3,112 2,962 9,078 8,639
Investment securities 1,386 1,004 3,583 2,907
Interest-bearing deposits 814 988 1,884 2,888
Total interest income 72,577 61,397 209,324 175,626
Interest expense:
Deposits 30,746 20,257 84,720 54,845
Short-term borrowings 4,220 2,958 10,032 7,725
Long-term borrowings 5,082 4,345 16,360 13,646
Total interest expense 40,048 27,560 111,112 76,216
Net interest income 32,529 33,837 98,212 99,410
Provision for loan losses 3,375 700 7,205 2,450
Net interest income
after provision for
loan losses 29,154 33,137 91,007 96,960
Non-interest income:
Real estate investment
partnership revenue 8,009 6,378 16,126 29,450
Loan servicing income 1,155 1,280 3,569 3,681
Credit enhancement income 418 414 1,252 1,216
Service charges on deposits 2,684 2,355 7,629 7,084
Insurance commissions 1,002 589 2,800 1,897
Net gain on sale of loans 776 144 2,995 1,460
Net gain (loss) on sale of
investments and mortgage-
related securities -- 120 (283) 394
Other revenue from real
estate operations 863 1,470 4,585 3,384
Other 1,209 1,670 3,806 4,476
Total non-interest
income 16,116 14,420 42,479 53,042
Non-interest expense:
Compensation 11,340 11,862 33,645 34,032
Real estate investment
partnership cost of
sales 7,115 5,527 14,454 24,718
Occupancy 1,904 1,820 5,888 5,144
Furniture and equipment 1,418 1,423 4,465 4,609
Data processing 1,445 1,425 4,505 4,074
Marketing 1,152 1,108 3,463 3,294
Other expenses from real
estate partnership
operations 1,878 2,467 6,635 6,721
Other 3,306 3,133 9,856 9,531
Total non-interest
expense 29,558 28,765 82,911 92,123
Minority interest in
income (loss) of real
estate partnership
operations (31) 304 332 1,694
Income before income
taxes 15,743 18,488 50,243 56,185
Income taxes 5,308 7,595 19,500 22,954
Net income $ 10,435 $ 10,893 $ 30,743 $ 33,231
Earnings per share:
Basic $ 0.49 $ 0.51 $ 1.43 $ 1.53
Diluted 0.48 0.50 1.42 1.50
SOURCE Anchor BanCorp Wisconsin Inc.
-0- 02/05/2007
/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 /
(ABCW)