MADISON, Wis., Aug. 14, 2013 (GLOBE NEWSWIRE) — Anchor BanCorp
Wisconsin Inc. (the “Corporation” or the “Holding Company”) (OTC
Market:ABCW) today announced a net loss available to common equity of
$8.9 million, or $0.42 per common share, for the three months ended
June 30, 2013. This compares to a net loss available to common equity
of $17.5 million, or $0.82 per common share and $3.4 million, or $0.16
per common share, for the three months ended March 31, 2013 and June
30, 2012, respectively.
Recapitalization and Chapter 11 Reorganization
As previously announced, on August 12, 2013, the Holding Company has
entered into definitive stock purchase agreements with institutional
and other private investors as part of a $175 million recapitalization
of the institution. At the same time, in order to facilitate the
recapitalization, the Holding Company announced that it has filed a
voluntary petition under Chapter 11 of the United States Bankruptcy
Code in the United States Bankruptcy Court for the Western District of
Wisconsin to implement a “pre-packaged” plan of reorganization to
restructure the Holding Company and recapitalize its wholly-owned
subsidiary, AnchorBank, fsb (“AnchorBank” or the “Bank”).
The Reorganization filing includes only Anchor BanCorp, the holding
company for the Bank, allowing the Bank to remain outside of bankruptcy
and to continue normal operations. Operations at the Bank will continue
as usual throughout the reorganization process. “It is important for
our customers, employees and the community to know that AnchorBank,
which operates separately from the Holding Company, is not a part of
the Chapter 11 process.” said Chris Bauer, AnchorBank President & CEO.
“It will be business as usual at the Bank. Our customers will continue
to work with the same employees, our leadership team remains in place,
committed to AnchorBank and its success, and all customer deposits
remain safe and insured to the fullest extent possible by the FDIC.”
Pursuant to the plan of reorganization, the Holding Company will
discharge its senior secured credit facility with approximately $183
million in outstanding obligations for a cash payment of $49 million.
In addition, the Holding Company’s TARP preferred securities with an
aggregate liquidation preference and deferred dividends of
approximately $139 million will be cancelled in exchange for new common
equity. The shares of common stock of the Holding Company currently
outstanding will be cancelled for no consideration pursuant to the plan
of reorganization.
Consummation of the foregoing reorganization and recapitalization is
subject to certain conditions, including bankruptcy court approval of
the plan of reorganization, receipt of all required regulatory
approvals and closing of the capital raise, including satisfaction of
the conditions contained in the subscription agreements for the new
common equity. Subject to the foregoing conditions, the reorganization
process is expected to be completed within 45-90 days.
Mr. Bauer continued: “This is an important and necessary step in the
transformation and turnaround of the institution. Upon completion of
this transaction, AnchorBank will have capital in excess of levels
required by our regulators. This will position the Bank for a return to
profitability and growth.”
The securities to be issued in the recapitalization transaction will
not be registered under the Securities Act of 1933, as amended, or the
securities laws of any state and may not be transferred, sold or
otherwise disposed of except while a registration statement relating
thereto is in effect under such Act and applicable state securities
laws or pursuant to an exemption from registration under such Act or
such laws. This news release does not constitute an offer to sell or a
solicitation of an offer to buy any securities. For more information
and the full press release related to the recapitalization, please see
the press release dated August 13, 2013.
Financial Highlights
— The Bank remains adequately capitalized1 for the twelfth consecutive
quarter.
— Tier 1 leverage and total risk-based capital ratios of 4.57 percent and
9.21 percent increased 4 and 19 basis points, respectively, during the
quarter and increased one and 23 basis points, respectively, over the
past twelve months.1
— Total assets declined less than one percent during the quarter by $23.1
million to $2.34 billion at June 30, 2013.
— Non-performing loans decreased 10.0 percent to $107.0 million at June
30, 2013 from $118.8 million at March 31, 2013 and 43.4 percent from
$189.0 million at June 30, 2012.
— Net charge-offs decreased by $403,000 in the current quarter to $4.2
million from $4.6 million in the quarter ending March 31, 2013.
— Gross return on mortgage banking totaled $4.1 million in the current
quarter, a decrease of $1.2 million, or 22.2 percent, from $5.3 million
in the preceding quarter; and was $67,000 lower than the $4.2 million
reported in the same period a year ago.
— Cost of funds declined one basis point to 1.34 percent in the quarter
ending June 30, 2013 compared to 1.35 percent in the preceding quarter,
and declined 22 basis points compared to 1.56 percent in the year ago
quarter as the Bank continued to carefully manage deposit pricing.
