MADISON, Wis., Nov. 8 /PRNewswire-FirstCall/ — Anchor BanCorp Wisconsin Inc. (NASDAQ:ABCW) announced net income of $9.7 million for the quarter ended September 30, 2006, as compared to $10.8 million for the same period last year. For the six month period ended September 30, 2006 net income was $20.3 million as compared to $22.3 million for the same period the previous year.
Diluted earnings per share were $.44 for the quarter ended September 30, 2006, as compared to $.48 for the same quarter last year. For the six month period ended September 30, 2006 fully diluted earnings per share were $.93 versus $1.00 a year ago. The Corporation’s 17 cent quarterly per share dividend is payable November 15, 2006 to shareholders of record as of November 1, 2006.
“The slowing of the housing market as well as the overall softening of the economy, along with an increase in non-performing assets has led us to the conclusion that an increase in our loan loss provision was prudent at this time,” commented Douglas J. Timmerman, President, Chairman and CEO. “As such, we raised our provision for loan losses to $2.6 million during the quarter, an increase of $1.1 million versus the same time last year,” continued Timmerman.
Total assets grew to $4.5 billion as of September 30, 2006, an increase of 6.6 percent versus a year ago. Loans held for investment grew to $3.8 billion as of September 30, 2006, an increase of 9.5 percent compared to September 30, 2005. Deposits grew 6.3 percent to $3.2 billion as of September 30, 2006 from $3.0 billion as of September 30, 2005. The interest rate spread, declined from 3.24 percent a year ago to 3.05 percent for the six months ended September 30, 2006.
Book value increased to $15.18 per share, an increase of 6.3 percent for the quarter ended September 30, 2006 versus the same period in the prior year.
During the quarter ended September 30, 2006, 151,000 shares were purchased under a previously authorized repurchase program. Effective November 3, the Board of Directors extended the current share repurchase program of approximately 1.3 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.
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 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 Six Months Ended
September 30, September 30,
2006 2005 2006 2005
Operations Data:
Net interest income $32,838 $33,428 $ 65,683 $65,573Provision for loan
losses 2,625 1,485 3,830 1,750Net gain on sale of
loans 1,349 1,193 2,219 1,316Real estate investment
partnership revenue 3,631 11,559 8,117 23,072
Other non-interest
income 8,075 7,090 16,026 14,233Real estate investment
partnership cost of
sales 3,486 10,780 7,339 19,191
Other non-interest
expense 23,427 22,536 46,013 44,165Minority interest in
income (loss) of
real estate
partnership
operations (75) 102 363 1,391Income before income
taxes 16,430 18,367 34,500 37,697Income taxes 6,769 7,589 14,192 15,359
Net income 9,661 10,778 20,308 22,338
Selected Financial
Ratios (1):Yield on earning
assets 6.76% 5.97% 6.64% 5.85%Cost of funds 3.75 2.68 3.59 2.61
Interest rate spread 3.01 3.29 3.05 3.24
Net interest margin 3.15 3.40 3.19 3.36
Return on average
assets 0.88 1.04 0.94 1.09Return on average
equity 11.72 13.62 12.42 14.16Average equity to
average assets 7.53 7.66 7.56 7.70
Non-interest expense
to average assets 2.46 3.22 2.47 3.09Per Share:
Basic earnings per
share $ 0.45 $ 0.49 $ 0.95 $ 1.02Diluted earnings per
share 0.44 0.48 0.93 1.00Dividends per share 0.17 0.16 0.33 0.30
Book value per share 15.18 14.28 15.18 14.28
September 30, Percent
2006 2005 Change
Financial Condition:
Total assets $4,481,586 $4,204,470 6.6%
Loans receivable, net
Held for sale 5,393 6,957 (22.5)Held for investment 3,794,039 3,466,265 9.5
Investment securities available
for sale, at fair value 89,794 45,904 95.6
Mortgage-related securities
available for sale, at fair
value 260,722 270,536 (3.6)
Mortgage-related securities held
to maturity, at amortized cost 72 1,242 (94.2)
Deposits 3,223,759 3,032,976 6.3
Borrowings 875,014 794,044 10.2
Stockholders’ equity 330,774 315,349 4.9
Allowance for loan losses 18,393 22,582 (18.6)
Non-performing assets 22,506 16,201 38.9(1) Annualized when appropriate.
ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITIONSeptember 30, March 31,
2006 2006
(Unaudited)
(In Thousands)
Assets
Cash and cash equivalents $120,525 $152,544
Investment securities available for
sale, at fair value 89,794 49,521
Mortgage-related securities
available for sale, at fair value 260,722 247,438
Mortgage-related securities held to
maturity, at amortized cost 72 77
Loans receivable, net
Held for sale 5,393 5,509
Held for investment 3,794,039 3,614,265
Foreclosed properties and
repossessed assets, net 4,366 2,192
Real estate held for development and sale 61,550 54,330
Office properties and equipment 29,909 29,867
Other assets 115,216 119,397
Total assets $4,481,586 $4,275,140Liabilities and Stockholders’ Equity
Deposits
Non-interest bearing $277,575 $242,924
Interest bearing 2,946,184 2,797,293
Total Deposits 3,223,759 3,040,217
Short-term borrowings 293,375 186,200
Long-term borrowings 581,639 675,661
Other liabilities 44,745 45,040
Total liabilities 4,143,518 3,947,118Minority interest in real estate
partnerships 7,294 6,997Preferred 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 350,910 340,364
Accumulated other comprehensive loss (2,039) (2,558)
Treasury stock (3,576,506 shares and
3,509,036 shares, respectively), at cost (83,885) (82,144)
Unearned deferred compensation (8,031) (7,690)
Total stockholders’ equity 330,774 321,025
Total liabilities, minority interest
and stockholders’ equity $4,481,586 $4,275,140ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)Three Months Ended Six Months Ended
September 30, September 30,
2006 2005 2006 2005
(In Thousands – except per share amounts)
Interest income:
Loans $65,740 $53,525 $127,515 $104,750
Mortgage-related securities 3,061 3,133 5,965 5,676
Investment securities 1,240 886 2,197 1,903
Interest-bearing deposits 439 1,118 1,070 1,899
Total interest income 70,480 58,662 136,747 114,228
Interest expense:
Deposits 28,618 18,116 53,974 34,588
Short-term borrowings 3,550 2,504 5,812 4,767
Long-term borrowings 5,474 4,614 11,278 9,300
Total interest expense 37,642 25,234 71,064 48,655
Net interest income 32,838 33,428 65,683 65,573
Provision for loan losses 2,625 1,485 3,830 1,750
Net interest income after
provision for loan losses 30,213 31,943 61,853 63,823
Non-interest income:
Real estate investment partnership
revenue 3,631 11,559 8,117 23,072
Loan servicing income 1,417 1,090 2,414 2,401
Credit enhancement income 417 406 834 802
Service charges on deposits 2,517 2,357 4,945 4,729
Insurance commissions 973 621 1,799 1,308
Net gain on sale of loans 1,349 1,193 2,219 1,316
Net gain (loss) on sale of
investments and mortgage-related
securities – 267 (283) 274
Other revenue from real estate
operations 1,575 698 3,722 1,913
Other 1,176 1,651 2,595 2,806
Total non-interest income 13,055 19,842 26,362 38,621
Non-interest expense:
Compensation 11,579 11,298 22,305 22,170
Real estate investment
partnership cost of sales 3,486 10,780 7,339 19,191
Occupancy 1,986 1,748 3,985 3,324
Furniture and equipment 1,595 1,619 3,048 3,186
Data processing 1,639 1,369 3,060 2,650
Marketing 1,158 1,091 2,310 2,186
Other expenses from real estate
partnership operations 2,179 2,205 4,757 4,254
Other 3,291 3,206 6,548 6,395
Total non-interest expense 26,913 33,316 53,352 63,356
Minority interest in income (loss)
of real estate partnership
operations (75) 102 363 1,391
Income before income taxes 16,430 18,367 34,500 37,697
Income taxes 6,769 7,589 14,192 15,359
Net income $9,661 $10,778 $20,308 $22,338Earnings per share:
Basic $0.45 $0.49 $0.95 $1.02
Diluted 0.44 0.48 0.93 1.00
