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ABCWQ: at 16:48, Plan of Bankruptcy Effective 09/27/2013. All Shares Cancelled;
http://www.otcbb.com/asp/dailylist_detail.asp?d=09/27/2013&mkt_ctg=NON-OTCBB
Yes I was one of those farmers I do apreciate what they did for me. I don't know were i'm going to turn now.
I hold a soft spot in my heart for this company as I worked for them in a variety of roles in college and have former coworkers who are still friends but they've needed help for a while.
When they were an S&L they were a solid bank who did a lot of mortgage lending and had no issues during the myriad of S&L crises. In the 1990s they moved to being a smaller, more personal version of M&I bank in Wisconsin like Associated Bank (out of Green Bay) is. Wisconsin doesn't have a ton of Chase, Citi or BofA branches but instead has a lot of rural community banks and in the Madison area a former ton of credit unions that have merged and own a lot of the market.
Historically Credit Unions have struggled for customers due to requirements of members and basically unavailable locations. With changes and mergers CUs in Madison such as Summit CU and UW Credit Union are strong and growing and getting a lot of business.
Anchor should be able to capitalize on some of the mistakes that I see from M&I now that they are now BMO Harris as every month you get notices of new fees, reduced branches etc. Anchor often has branches right next to or near M&I and should be trying to get these customers with advertising free checking, etc. When I live in NJ Commerce Bank was doing great (not buy its rates) but longer lobby hours (9 PM on weeknights) and open all day Saturday and Sunday. A change like this for Anchor could be done and would be successful. Add in some more underwriting for rural land and businesses (farmers) and they could add lots of assets quickly. A solid strategy would be to buy a bunch of small community banks in communities of 3-5k people. There is also a lot of nepotism in many parts of HQ.
Current leadership for the past 18 months seems solid but unspectatular and that will not cut it.
ABCWQ: SEC Litigation: Commission Charges Anchor Bancorp Wisconsin and Former CFO with Fraud:
http://www.sec.gov/litigation/litreleases/2013/lr22778.htm
It's closed at .032 today. I may buy a few shares who knows. Anyone else going to?
ABCW changed to ABCWQ: ** PPS lost 94 % from .41 to .025 cents.
http://www.otcbb.com/asp/dailylist_detail.asp?d=08/13/2013&mkt_ctg=NON-OTCBB
New capital for Anchor BanCorp Wisconsin
Updated 12:26 pm, Tuesday, August 13, 2013
MADISON, Wis. (AP) — A group of investors has agreed to recapitalize the struggling Anchor BanCorp Wisconsin, breathing new life into a company that hasn't posted a profit in the last five fiscal years.
Institutional and private investors from across the country have agreed to provide $175 million in new capital for Anchor BanCorp, the parent of the nearly century-old AnchorBank of Madison.
Anchor BanCorp, in turn, has filed for Chapter 11 reorganization in the Western District of U.S. Bankruptcy Court and will pay its major creditors much less than they are owed.
The holding company owes $183 million to a group of lenders led by U.S. Bank and $139 million to the U.S. Treasury from funds it obtained in 2009 through the Troubled Asset Relief Program, or TARP.
If the bankruptcy judge and the Federal Reserve Bank agree, Anchor will pay the U.S. Bank group $49 million to settle its debt and will give the Treasury Department 3.3 percent of the stock in the reorganized company, valued at about $6 million.
The reorganization and new capital will give the bank the opportunity to become a significant lender once again, said bank president Chris Bauer.
"At the end of the day, the bank will have been saved, it will save 700 jobs, and will allow us to pump a lot of new capital into the economy here," Bauer said.
Bauer stressed that AnchorBank isn't filing for Chapter 11 under the federal bankruptcy law, just the parent company. The bank will continue operating as normal, he said.
Anchor was founded in 1919 and fell into financial trouble about five years ago due to commercial loans that soured as the economy tanked.
The current Anchor BanCorp shareholders, whose investments actually diminished years ago, end up with nothing. Their shares will be eliminated as part of the restructuring.
Anchor will register to resume public trading with new shares when it emerges from bankruptcy, which could take an additional 90 days to complete, Bauer said.
Anyone looking think this will dead cat bounce after such a steep drop or does it have further to drop
I'm wondering why people are still buying a soon-be-canceled stock at ridiculous higher MV? We should see 0.0025 very soon as gaxc did after the CH11 filing!
Ive never owned shares in ABCW but why would you be glad??
It will be worthless persuant to the reorganization which wont happen for at least another 45 days.
Ha ha ha I'm glad!
I hope those that invested in ABCW do not have that much invested and can sell their shares this morning. I avoid banks that are not well capitalized when I purchase low price bank stocks.
The current common stock is now worthless
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 that will represent approximately 3.3% of the pro forma equity of the reorganized Holding Company. The new equity investors will represent in the aggregate approximately 96.7% of the pro forma equity of the reorganized Holding Company. The shares of common stock of the Holding Company currently outstanding will be cancelled for no consideration pursuant to the plan of reorganization.
Anchor BanCorp Announces Recapitalization
Print
Alert
Anchor Bancorp Wisconsin Inc. (QB) (USOTC:ABCW)
Intraday Stock Chart
Today : Tuesday 13 August 2013
Click Here for more Anchor Bancorp Wisconsin Inc. (QB) Charts.
Files for "Pre-packaged" Chapter 11 Reorganization
100% of Necessary Equity Financing Already Committed
Requisite Creditor Consents Already Obtained
Filing Does Not Include Anchorbank, fsb, and Bank Operations Remain Unaffected
Anchor BanCorp Wisconsin Inc. (OTC Market:ABCW) ("Anchor BanCorp" or the "Holding Company") today announced that the Holding Company has entered into definitive stock purchase agreements with a number of institutional and other private investors as part of a $175 million recapitalization of the institution. No new investor will own in excess of 9.9% of the common equity of the recapitalized Holding Company.
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 plan has already received the consent of the Holding Company creditors necessary for approval of the plan, and has also received the consent of the Holding Company's sole preferred stockholder, the United States Department of the Treasury. As described above, Anchor BanCorp has already entered into binding subscriptions for $175 million in new common equity, which represents all the necessary equity financing to implement the plan and emerge as a recapitalized institution.
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. The Bank operates 55 offices throughout Wisconsin. 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. The Chapter 11 filing includes only the Holding Company and does not affect AnchorBank, its people, or its services," 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. As such, there will be no interruption of AnchorBank services and customer programs, and there will be no changes in employment or leadership within the Bank."
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 that will represent approximately 3.3% of the pro forma equity of the reorganized Holding Company. The new equity investors will represent in the aggregate approximately 96.7% of the pro forma equity of the reorganized Holding Company. 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. As noted above, subscription agreements have already been executed with respect to the entire $175 million common equity raise. 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 Bank. 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, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Anchor BanCorp Wisconsin Inc.
Anchor BanCorp Wisconsin Inc.'s stock is traded in the over-the-counter market under the symbol ABCW. AnchorBank, fsb , the wholly owned subsidiary, has 55 offices. All are located in Wisconsin.
Forward-Looking Statements
While big banks like J.P. Morgan Chase (JPM) and Citigroup (C) couldn’t return their TARP funds fast enough, dozens of publicly-traded lenders and thrifts are still sitting on nearly $5 billion in bailout cash some four years after the Great Recession ended.
These TARP holdouts include medium-sized institutions like $2.3 billion Synovus Financial (SNV) and Puerto Rican lender Popular (BPOP), as well as much smaller lenders such as Atlantic Bancshares, which is on the hook for just $2 million.
Banks that have been unable or unwilling to escape TARP now run the risk of being hit by a looming spike in dividend rates at the five-year anniversary of entering the government program as well as being stigmatized by customers and counterparties alike.
“If after four years they still haven’t repaid their money, that is a sign of an inherent weakness,” said Anthony Michael Sabino, a professor at St. John’s University. “Maybe it’s time to urge those banks to seek out a merger partner.”
According to SNL Financial, there are 75 publicly-traded banks and thrifts that remain in the TARP program, which was hastily cobbled together by the U.S. in the fall of 2008 following the implosion of investment bank Lehman Brothers. A recent report by the Treasury Department lists $4.68 billion in outstanding TARP payments as of June 30.
Virtually all of the biggest financial institutions, from Bank of America (BAC) and Goldman Sachs (GS) to Wells Fargo (WFC), have repaid their bailouts, with interest and dividends.
But some regional lenders, many of which struggled during the downturn more than their big-bank cousins, remain on the TARP list, raising questions about their overall health.
“A lot of the banks that have the ability to repay have probably done so,” said Andrew Wolcott, an analyst at SNL Financial.
Still on the Hook
Synovus, which is headquartered in Columbus, Ga., has not yet repaid the $967.9 million in TARP funds it received. A spokesman reiterated that Synovus expects to repay the money during the third quarter.
San Juan, Puerto Rico-based First BanCorp (FBP) owes $222.7 million of the original $400 million the U.S. provided.
John Pelling III, an investor relations officer at First BanCorp, referred questions about a TARP exit to the Treasury Department because the U.S. converted its preferred shares in the lender into common stock during a recapitalization. "We cannot control when they decide to sell their common shares -- only they can," he said.
A spokesman from the Treasury Department declined to comment, but pointed to comments made last week by Timothy Massad, Treasury's assistant secretary for financial stability.
"Our economy is in a stronger position because of our efforts, and we will continue to wind down the remaining CPP investments in a way that helps support community banks and protects taxpayer interests," Massad said.
Other public TARP holders include Bluffton, S.C.-based Atlantic Bancshares, El Monte, Calif.-based Cathay General Bancorp (CATY), which owes $129 million, and Anchor BanCorp Wisconsin (ABCW), which is also undergoing a recapitalization.
None of those lenders responded to a request for comment.
A spokesman from Popular, which is still on the hook for $935 million, declined to talk about TARP repayment because the lender is in the midst of a "quiet period" ahead of its earnings report on Thursday. However, the representative said the bailout repayment is likely to be a topic of conversation during the earnings call.
Some have criticized the Treasury Department for not concentrating enough on TARP now that the big banks have exited the program.
“Most of Treasury’s attention under TARP has focused on the bailout of and repayment of TARP funds by the largest banks and AIG, while notably less attention has been paid to the plight of smaller TARP banks and to TARP housing programs," said a spokesperson at the Office of the Special Inspector General for the TARP program.
Looming Rate Hike
In recent months, a number of lenders have either repaid their TARP funds or enacted plans to do so.
That’s at least partially because the dividend payments on preferred stock that banks are required to pay the U.S. are scheduled to soar from 5% to 9% at the fifth anniversary of their participation in TARP.
“It hops up and that creates an incentive for them to get out. You really don’t want to be paying that higher dividend,” said Ernie Patrikis, a partner at White & Case who previously served as general counsel of the New York Fed.
For some early TARP recipients, that deadline is quickly approaching.
For example, both 1st Financial Services, the bank holding company for Mountain 1st Bank & Trust Company, and Los Angeles-based Broadway Financial Corp. (BYFC) would see their dividend rates jump in November.
“A lot of people are trying to rush before that happens because that’s a pretty big jump in cost of capital,” said Wolcott.
Neither bank responded to a request for comment, but Wayne Bradshaw, CEO of Broadway Financial, recently told SNL his thrift is putting the finishing touches on a recapitalization.
“We're trying to put the bank in a better position to move forward as an institution, and in that process the TARP debt and everything else in the capital structure would be addressed," he said.
Moral Hazard Concerns Linger
While some banks scramble to repay TARP before their five-year anniversary, others simply may not be healthy enough to do so.
“I think the Federal Reserve and the Office of the Comptroller of the Currency have to exert a little pressure,” said Sabino. “A bank that hasn’t yet repaid its TARP money has its own internal problems that might only be solved by agreeing to merge with a stronger rival."
Despite the bailout cash still owed by some lenders, the U.S. has managed to turn a profit on the banking portion of TARP.
“The Treasury has made a pile of money. This is just the tail wagging the dog. These things will work out one way or another over time,” said Patrikis.
According to the Treasury Department, $271 billion has been recovered from TARP’s banking programs through repayments, dividends, interest and other income, compared with $245 billion originally invested in these companies.
TARP “worked,” Treasury said in its monthly report to Congress. “It helped stop widespread financial panic, it helped prevent what could have been a devastating collapse of our financial system, and it did so at a cost that is far less than what most people expected at the time the law was passed.”
Others are more concerned about the less-quantifiable costs of TARP, such as moral hazard.
“Banks screwed up royally and the government bailed them out,” said Sabino. “That’s the wrong message to send and that message is still resonating throughout the banking community. It sets the stage for repetition.”
Read more: http://www.foxbusiness.com/industries/2013/07/15/banking-crisis-is-over-but-tarp-bailout-is-still-alive-and-kicking/#ixzz2aZFYOVMA
Triggering Events That Accelerate or Increase a Direct Financial Obl
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement
Anchor BanCorp Wisconsin Inc. (the "Company") is a party to the Amended and Restated Credit Agreement, dated as of June 9, 2008 (as amended from time to time, the "Credit Agreement"), among the Company, the lenders from time to time a party thereto (the "Lenders"), and U.S. Bank National Association, as administrative agent for the Lenders (the "Agent"). As of March 31, 2013, the total revolving loan commitment under the Credit Agreement was $116.3 million and aggregate borrowings under the Credit Agreement were $116.3 million plus accrued interest and amendment fees payable of $53.3 million and $6.9 million, respectively. The Credit Agreement provides that the Company's obligations under the Credit Agreement become due and payable in full on the maturity date of June 30, 2013, and failure to make such payments on such maturity date constitutes an event of default under the Credit Agreement.
The Company has been exploring and is continuing to explore alternatives to address its capital needs, and has been engaged in ongoing discussions with the Lenders related to such alternatives. In connection therewith, the Company has entered into extensions of the maturity date and other amendments to the Credit Agreement with the Lenders on a recurring basis. The Company and the Lenders were prepared to enter into a further extension of the maturity date and related amendments under the Credit Agreement as of June 30, 2013.
Under the Order to Cease and Desist between the Company and the Office of Thrift Supervision, dated June 26, 2009, the Company may not incur, issue, renew, or rollover any debt, increase any current lines of credit, or guarantee the debt of any entity, without prior written notice to and written approval from the Federal Reserve System, which is the successor regulator to the Office of Thrift Supervision. On July 2, 2013, the Federal Reserve System informed the Company that it is not, at the current time, prepared to approve the further extension of the maturity date and related amendments under the Credit Agreement proposed by the Company.
The Company does not currently have the ability to satisfy its payment obligations under the Credit Agreement. Under the Credit Agreement, upon the occurrence of a payment default, (i) each Lender may at any time immediately terminate its revolving loan commitment, set off, and/or take such other steps to protect or preserve such Lender's interest in any collateral, and (ii) the Agent may, at the request of Lenders holding at least 66.67% of the unpaid principal balance, terminate the revolving loan commitment of each Lender, declare the unpaid principal balance, together with the interest accrued thereon and other amounts accrued to be immediately due and payable, and exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Credit Agreement and the other loan documents. Furthermore, from and after the maturity date, the unpaid principal balance under the Credit Agreement shall bear an additional 2.00% annual interest rate in addition to the base interest rate under the Credit Agreement (the "Default Rate"). The Default Rate is currently 17.00% per annum.
As of the date hereof, the Company has not received any notice from the Agent or the Lenders that they intend to exercise any remedies under the Loan Agreement in connection with the event of default described above. The Company intends to continue to pursue all alternatives to address its capital needs, although there can be no assurance that any such alternative will be consummated.
Its cool no worries
Ok, I'm sorry and I don't know shit and I was drunk!
http://host.madison.com/business/regulators-refuse-to-extend-loan-for-anchorbank-s-parent-company/article_d8d225fc-18b7-53b4-a61e-ab56a775ff7e.html I don't know how to make this so it can be clicked on. Sorry, limited computer skills. This is the other article I was referring to.
Just so we're all singin' from the same sheet of music...here's the article & link.
Regulators deny loan extension to Anchor BanCorp
Anchor owes $116.3 million, plus $60 million in interest and fees, to group led by U.S. Bank
July 5, 2013
Regulators won't let Anchor BanCorp Wisconsin Inc. receive another extension on a $116.3 million credit agreement from a group of lenders led by U.S. Bank, putting more financial pressure on the already troubled bank.
Although regulators have allowed Madison-based Anchor to extend the maturity date six times so far, the Federal Reserve hasn't approved the latest plan, Anchor disclosed Friday. The loan matured June 30.
"Frankly, it was a surprise and a disappointment," said Chris Bauer, chief executive of Anchor. "The key thing is that the bank group, led by U.S Bank, have all agreed, along with our board, to an extension."
The Fed holds sway over borrowing decisions at Anchor BanCorp by virtue of a special order it issued to the bank back in 2009 when loan defaults got the company in trouble. Regulators offered no explanation for denying the extension other than to say Anchor was unable to make the payments, Bauer said.
A spokeswoman for the Federal Reserve Bank of Chicago said Friday the regulator typically doesn't comment on individual banks.
"We can't speculate on what they think as they go through their process, but there are no other orders, no other deadlines that come along with this non-approval," said Bauer, a former Firstar Bank executive who was brought in four years ago to help Anchor recover.
U.S. Bank had no comment Friday afternoon.
Jon C. Bruss, chief executive of Fortress Partners Capital Management Ltd. in Hartland, noted that Anchor's document disclosing the issue states the Fed "is not, at the current time, prepared to approve the further extension" of the credit agreement. That might mean approval still is possible, he said.
But he was puzzled by the Fed's decision, because it technically forces the bank into default.
Anchor has hired an investment bank to try to help it raise capital. Bruss said regulators generally aren't fond of private equity ownership of banks.
"What I'm thinking is they are trying to drive Anchor into the arms of another — probably publicly traded — bank," Bruss said.
In addition to $116.3 million in principal, Anchor BanCorp owes more than $60 million in interest and fees on the credit agreement that matured June 30.
Anchor BanCorp is the parent company of AnchorBank, the fourth-largest bank based in Wisconsin.
Anchor, hit hard by real estate loans that started going bad during the recession, hasn't turned a profit in its last five fiscal years. Its 2013 loss of $48.1 million, however, was its smallest during that stretch. Anchor's worst one-year loss occurred in 2009, when it lost $232.8 million.
"Quite frankly, the bank continues to improve," Bauer said, noting a large reduction in shaky loans and in foreclosed properties on its books.
"We've been making new loans," Bauer said. "In fact, in the last couple of months we've actually increased our loan portfolio."
Anchor BanCorp also still has a $110 million Troubled Asset Relief Program, or TARP, investment from U.S. Treasury and owes the government more than $25 million in unpaid dividends. It received the TARP capital in 2009 during the financial crisis.
http://www.jsonline.com/business/regulators-deny-loan-extension-to-anchor-bancorp-b9948593z1-214405161.html
====================
In some ways the bigger question I have is why did the regulators wait as long as they did? Back in 2009 , 10 & 11 regulators were shutting down banks like Anchor as a matter of routine...then in late 2011 to early 2012 they unexpectedly took a sharp turn towards leniency ...with no explanation given.
During that time many banks turned the corner and regained enough financial strength to actually become profittable again. TARP helped fill in the gap until other capital raising efforts stepped in.
Anchor seems to be lagging more than most and it looks to me like Regulators have seen enough. In 6 months the banks' TARP loan interest rate jumps to 9%... so unless they find some large investors willing to infuse a half billion or more into the bank asap..I think Anchor is a goner.
Correction. It is the Wisconsin State Journal, not Business Journal. The analyst's name is Bruss. Sorry I am unable to give a direct link.
I am sorry, I don't have a link. It was an article from The Wisconsin Business Journal. I searched for news on anchor bank and clicked the WBJ link. It was a recent article; also check journal sentinel online. Both were approx. July 6 to July 10.
Could you post the link the article you refer to
TIA
xry
Furthermore, one analyst speculated in the article that it seemed as if the feds wanted to force ABCW into the arms of a bigger bank. I thought that made sense. Why would they extend the credit 6 times in a row then suddenly not renew? ABCW seemed genuinely surprised it was not extended. Is there something in the works between the gov wanting ABCW out of their hair, US Bank looking to get assests on the cheap, and ABCW now off the cliff, kicking their legs like Wile E. Coyote, just waiting to fall?
Thanks to both of you for responding to my question. I appreciate not being left hanging.
I have been following ABCW for some time. At first, out of local interest. I live in WI, am familiar with their areas of business, and think that ABCW is a potential investment. My question just seems like its out of nowhere because nobody posts on this board.
I read that after the feds would not extend the maturity date again, even with the ok by their creditors, they would not seek to enforce the terms. Why such friendly treatment by creditors? The biggest named creditor I saw referenced was US Bank. I thought perhaps they were friendly because they were looking at acquiring Anchor.
What interests you to ask this question all of a sudden? I'm sorry I didn't get it. Ok fuck it. Let me go to the thread of this anchor bank and see why you may be interested to compose such question. Man or woman...just buy some BNCC stock and you'll be okay by the end of the year. If you don't believe this shit, go check the board. I bet you'll thank me during thanksgiving by buying me some weed gift card, if that comes out to be true.
Sure...but why US Bank specifically?
8 ~ 10 months for regulators to put their stamp of approval on an acquisition is typical.
However if the bank is seized it could have a new owner by next week.
Is there a plausible scenario where US Bank acquires ABCW? If so what sort of time frame would be needed for this to happen?
Certain key credit related metrics continue to trend favorably with loans 30 to 89 days past due falling again this quarter to $24.4 million as of March 31, 2013 from $31.6 million at December 31, 2012 and $30.6 million at March 31, 2012. Non-performing loans of $118.8 million at March 31, 2013 were lower than the preceding quarter and the year ago quarter, decreasing $27.6 million and $106.1 million, respectively. The impact of these trends contributed significantly to the lower provision for credit losses in the current quarter. Despite the decrease in provision for credit losses in the current quarter compared to the prior year quarter, the allowance for loan loss at 67.19 percent of non-performing loans at March 31, 2013 rose sharply compared to 57.23 percent at December 31, 2012. Other real estate owned, net of valuation allowance, also decreased during the quarter to $84.3 million, falling $5.7 million during the quarter but only $4.5 million lower than a year ago reflecting the somewhat irregular financial statement impact of the resolution process for non-performing loans.
Mortgage Banking
For the Quarter Ending: March 31, 2013
----------------------------------
(In thousands) Mar. 31, Dec. 31, Mar. 31, Increase (dec.) vs.
------------------------
2013 2012 2012 12/31/12 3/31/12
---------- ---------- ---------- ----------- -----------
Loan servicing
income (loss),
net $ 55 $ (951) $ (529) $ 1,006 $ 584
Gain on sale of
mortgages 3,030 7,153 6,437 (4,123) (3,407)
OMSR
(impairment) /
recovery 2,190 1,570 1,895 620 295
---------- ---------- ---------- ----------- -----------
Residential
mortgage
banking gross
returns $ 5,275 $ 7,772 $ 7,803 $ (2,497) $ (2,528)
========== ========== ========== =========== ===========
Key Metrics
----------------
Origination
volume (closed
loans) $ 169,300 $ 283,300 $ 294,200 $(114,000) $(124,900)
Serviced loan
portfolio 2,910,000 2,974,000 3,126,000 (64,000) (216,000)
Gross returns on residential mortgage banking totaled $5.3 million for the quarter ending March 31, 2013 compared to $7.8 million in both the preceding and year ago quarters. Lower returns in the quarter ending March 31, 2013 were largely due to a decrease in gain on sale of mortgages over the comparable prior periods, reflecting narrowing margins on the sale of production into the secondary market and a drop in origination volume during the period. OMSR (impairment) / recovery quarterly results improved primarily as a result of the increase in mortgage market interest rates as the current quarter reflected a 9 basis point increase in the 10-year Treasury rate. OMSR results are highly sensitive to changes in mortgage market interest rates as mortgage holders tend to hold onto mortgages when rates rise. Loan servicing results also reflect the impact of rising interest rates as OMSR amortization expense decreased compared to the year ago period. Residential mortgage origination volume fell to $169.3 million in the current quarter compared to $283.3 million in the preceding quarter and $294.2 million in the year ago quarter as the uptick in interest rates during the quarter has served to dampen industry-wide customer demand for this product.
About Anchor BanCorp Wisconsin Inc.
Anchor BanCorp Wisconsin Inc.'s stock is traded in the over-the-counter market under the symbol ABCW. AnchorBank, fsb (the "Bank"), the wholly owned subsidiary, has 55 offices. All are located in Wisconsin.
Forward-Looking Statements
This news release contains certain forward-looking statements, as that term is defined in the U.S. federal securities laws. In the normal course of business, we, in an effort to help keep our shareholders and the public informed about our operations, may from time to time issue or make certain statements, either in writing or orally, that are or contain forward-looking statements. Generally, these statements relate to business plans or strategies, projected or anticipated benefits from acquisitions or dispositions made by or to be made by us, projections involving anticipated revenues, earnings, liquidity, profitability or other aspects of operating results or other future developments in our affairs or the industry in which we conduct business. Although we believe that the anticipated results or other expectations reflected in our forward-looking statements are based on reasonable assumptions, we can give no assurance that those results or expectations will be attained. You should not put undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update them in light of new information or future events, except to the extent required by federal securities laws. Please refer to our Annual Report for the fiscal year ending March 31, 2013 on Form 10-K, as filed with the Securities and Exchange Commission, for a more comprehensive discussion of forward-looking statements and the risks and uncertainties associated with our business.
ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES
Consolidated Balance Sheets
------------------------------------------------------------------------------
(Unaudited)
March 31,
-----------------------------------
2013 2012
----------------- ----------------
(In thousands, except share data)
Assets
Cash and cash equivalents $ 228,536 $ 242,980
Investment securities available for
sale, at fair value 266,787 242,299
Investment securities held to maturity,
at amortized cost -- 20
Loans
Held for sale 18,058 39,332
Held for investment, net 1,670,543 2,057,744
Other real estate owned, net 84,342 88,841
Premises and equipment, net 24,469 25,453
Federal Home Loan Bank stock--at cost 25,630 35,792
Mortgage servicing rights, net 21,824 22,156
Accrued interest receivable 9,563 12,075
Other assets 17,831 22,760
----------------- ----------------
Total assets $ 2,367,583 $ 2,789,452
================= ================
Liabilities and Stockholders' Deficit
Deposits
Non-interest bearing $ 267,732 $ 264,700
Interest bearing 1,757,293 2,000,201
----------------- ----------------
Total deposits 2,025,025 2,264,901
Other borrowed funds 317,225 476,103
Accrued interest and fees payable 61,290 43,327
Accrued taxes, insurance and employee
related expenses 6,389 6,385
Other liabilities 17,518 28,286
----------------- ----------------
Total liabilities 2,427,447 2,819,002
----------------- ----------------
Preferred stock, $0.10 par value,
5,000,000 shares authorized, 110,000
shares issued and outstanding;
dividends in arrears of $25,345 at
March 31, 2013 and $18,785 at March
31, 2012 103,833 96,421
Common stock, $0.10 par value,
100,000,000 shares authorized,
25,363,339 shares issued at March 31,
2013 and 2012 2,536 2,536
Additional paid-in capital 110,034 110,402
Retained deficit (189,097) (147,513)
Accumulated other comprehensive income 3,579 132
Treasury stock (4,116,114 shares at
March 31, 2013 and 4,115,614 shares at
March 31, 2012), at cost (89,848) (90,259)
Deferred compensation obligation (901) (1,269)
----------------- ----------------
Total stockholders' deficit (59,864) (29,550)
----------------- ----------------
Total liabilities and stockholders'
deficit $ 2,367,583 $ 2,789,452
================= ================
ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive
Loss
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(Unaudited)
Anchor BanCorp Wisconsin Inc. (OTC Market:ABCW) today announced a net loss available to common equity of $17.5 million, or $0.82 per common share, for the three months ended March 31, 2013. This compares to a net loss available to common equity of $15.1 million, or $0.71 per common share and $7.4 million, or $0.35 per common share, for the three months ended December 31, 2012 and March 31, 2012, respectively. For the fiscal year ended March 31, 2013, net loss available to common equity was $48.1 million, compared to $50.4 million in the prior year.
Financial Highlights
•AnchorBank, fsb (the "Bank) remains adequately capitalized1 for the eleventh consecutive quarter.
•Tier 1 leverage and total risk-based capital ratios of 4.53 percent and 9.02 percent each decreased by 31 basis points during the quarter but increased 2 and 60 basis points, respectively, over the past twelve months.
•Total assets fell during the past twelve months, decreasing by $421.9 million or 15.1 percent to $2.4 billion at March 31, 2013.
•Non-performing loans decreased 18.8 percent to $118.8 million at March 31, 2013 from $146.4 million at December 31, 2012 and 47.2 percent from $224.9 million at March 31, 2012.
•Net charge-offs decreased by $7.1 million in the current quarter to $4.6 million from $11.7 million in the quarter ending December 31, 2012.
•Gross return on mortgage banking totaled $5.3 million in the current quarter, a decrease of $2.5 million, or 32.1 percent, from $7.8 million in the preceding quarter; and $2.5 million lower than the $7.8 million reported in the same period a year ago.
•Cost of funds declined 4 basis points to 1.35 percent in the quarter ending March 31, 2013 compared to 1.39 percent in the preceding quarter, and declined 37 basis points compared to 1.72 percent in the year ago quarter as the Bank continued to carefully manage deposit pricing.
•Deposit mix improved again this quarter as lower cost checking, savings, money market and escrow funds represent 67.5 percent of total deposits at March 31, 2013, up from 64.7 percent at December 31, 2012 and 57.2 percent at March 31, 2012.
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1 Under standard regulatory requirements, a bank must have a tier 1 leverage ratio of 4.0 percent or greater and a total risk-based capital ratio of 8.0 percent or greater to be considered adequately capitalized.
Bank Capital Ratios
March 31, 2013
Mar. 31, Dec. 31, Mar. 31, Increase (dec.) vs.
(Dollars in thousands) 2013 2012 2012 12/31/12 3/31/12
Tier 1 capital $ 107,272 $ 116,846 $ 125,894 $ (9,574) $ (18,622)
Adjusted total assets 2,369,385 2,414,344 2,792,123 (44,959) (422,738)
Tier 1 leverage ratio 4.53% 4.84% 4.51% -0.31% 0.02%
Total risk-based capital $ 125,459 $ 135,880 $ 149,141 $ (10,421) $ (23,682)
Risk-weighted assets 1,391,386 1,455,890 1,771,260 (64,504) (379,874)
Total risk-based capital ratio 9.02% 9.33% 8.42% -0.31% 0.60%
Ref: Bank quarterly net income (loss) $ (9,259) $ (6,668) $ (144) $ (2,591) $ (9,115)
The Bank's tier 1 leverage and total risk-based capital ratios of 4.53 percent and 9.02 percent at March 31, 2013 each decreased by 31 basis points compared to December 31, 2012. The ratios declined as tier 1 and total risk-based capital fell 8.2 percent and 7.7 percent, respectively, during the quarter primarily due to the net loss in the period totaling $9.3 million. Adjusted total assets and risk-weighted assets of $2.4 billion and $1.4 billion, respectively, at March 31, 2013 decreased 1.9 percent and 4.4 percent, respectively, during the quarter benefitting the capital ratios. Lower adjusted and risk-weighted asset totals reflect a $67.7 million decrease in net loans held for investment during the period.
While the Bank remains adequately capitalized, the Corporation, as the holding company of the Bank, continues to be burdened with significant senior debt and preferred stock obligations:
•The Corporation currently owes $116.3 million of loan principal to various lenders led by U.S. Bank under a credit agreement that matures June 30, 2013. In addition, accrued but unpaid interest and fees totaling $60.2 million associated with this obligation are also due and payable at maturity.
•The Corporation issued $110 million in preferred stock in January 2009 to the United States Treasury pursuant to the Treasury's Capital Purchase Program ("CPP"). As permitted under the CPP program, the Corporation has deferred 16 quarterly preferred stock dividend payments to the Treasury; resulting in total unpaid dividends of $25.3 million, including compounding.
•While the Bank has substantial liquidity, it is currently precluded by its regulators from paying dividends to the Corporation for purposes of repayment of the foregoing obligations.
The Corporation continues to work with Sandler O'Neill & Partners, L.P. as its financial advisor in efforts to address its capital needs.
Financial Results
Financial results for the fourth quarter ended March 31, 2013, include:
•Net interest margin improved to 2.62 percent for the three months ended March 31, 2013, from 2.35 percent for the same period in the previous year. Interest income decreased $5.4 million or 19.3 percent for the three months ended March 31, 2013, as compared to the same period in the prior year. This change was primarily due to a decline in average balances in the loan portfolio as principal repayments again outpaced new loan origination activity. Interest expense decreased $4.4 million or 35.7 percent for the three months ended March 31, 2013, as compared to the same period in the prior year, due to a planned reduction in high yield certificates of deposit. As a result, the cost of deposits declined from 0.83% to 0.34% when compared to the prior year quarter.
•The provision for credit losses decreased $3.8 million to $0.8 million for the three months ended March 31, 2013 compared to $4.6 million in the same period in the previous year. The improvement reflected the relatively steady quarter-over-quarter decrease in non-performing loans since June 2010.
•Non-interest income totaled $7.5 million, down $5.5 million compared to the same period in the previous year. The decrease was primarily due to lower gains on the sale of residential mortgage loans and a cash surrender value adjustment on bank-owned life insurance policies.
•Total non-interest expense increased by $7.3 million to $35.5 million from $28.2 million in the same period in 2012. The unfavorable variance was primarily due to higher OREO expenses reflecting an increase in the valuation allowance on repossessed property. Other non-interest expense also increased as realized and unrealized losses on the repurchase of serviced loans spiked during the current quarter.
"We are pleased to report our eleventh consecutive quarter of capital ratios above the threshold to be considered adequately capitalized," stated Chris Bauer, President and Chief Executive Officer of the Corporation and the Bank. "We are also encouraged by a favorable trend in the net interest margin as this ratio has been moving higher over the past several quarters reflecting the impact of lower non-performing loans and continued pricing discipline on deposits. Despite lower asset totals again this quarter, we are continuing to make progress on implementing strategies to improve Bank financial results by slowing asset runoff to further improve our net interest margin," Bauer added.
Credit Quality
March 31, 2013
(Dollars in thousands) Mar. 31, Dec. 31, Mar. 31, Increase (dec.) vs.
2013 2012 2012 12/31/12 3/31/12
Quarterly Financial Results
Provision for credit losses $ 830 $ 4,660 $ 4,601 $ (3,830) $ (3,771)
Net charge-offs 4,621 11,750 24,336 (7,129) (19,715)
Key Metrics (at period end)
Loans 30 to 89 days past due 24,403 31,633 30,562 (7,230) (6,159)
Non-performing loans (NPL) 118,790 146,355 224,924 (27,565) (106,134)
Other real estate owned 84,342 90,000 88,841 (5,658) (4,499)
Non-performing assets 203,132 236,355 313,765 (33,223) (110,633)
Allowance for loan losses to NPL 67.19% 57.23% 49.45% 9.96% 17.74%
Certain key credit related metrics continue to trend favorably with loans 30 to 89 days past due falling again this quarter to $24.4 million as of March 31, 2013 from $31.6 million at December 31, 2012 and $30.6 million at March 31, 2012. Non-performing loans of $118.8 million at March 31, 2013 were lower than the preceding quarter and the year ago quarter, decreasing $27.6 million and $106.1 million, respectively. The impact of these trends contributed significantly to the lower provision for credit losses in the current quarter. Despite the decrease in provision for credit losses in the current quarter compared to the prior year quarter, the allowance for loan loss at 67.19 percent of non-performing loans at March 31, 2013 rose sharply compared to 57.23 percent at December 31, 2012. Other real estate owned, net of valuation allowance, also decreased during the quarter to $84.3 million, falling $5.7 million during the quarter but only $4.5 million lower than a year ago reflecting the somewhat irregular financial statement impact of the resolution process for non-performing loans.
Mortgage Banking
For the Quarter Ending: March 31, 2013
(In thousands) Mar. 31, Dec. 31, Mar. 31, Increase (dec.) vs.
2013 2012 2012 12/31/12 3/31/12
Loan servicing income (loss), net $ 55 $ (951) $ (529) $ 1,006 $ 584
Gain on sale of mortgages 3,030 7,153 6,437 (4,123) (3,407)
OMSR (impairment) / recovery 2,190 1,570 1,895 620 295
Residential mortgage banking gross returns $ 5,275 $ 7,772 $ 7,803 $ (2,497) $ (2,528)
Key Metrics
Origination volume (closed loans) $ 169,300 $ 283,300 $ 294,200 $(114,000) $(124,900)
Serviced loan portfolio 2,910,000 2,974,000 3,126,000 (64,000) (216,000)
Gross returns on residential mortgage banking totaled $5.3 million for the quarter ending March 31, 2013 compared to $7.8 million in both the preceding and year ago quarters. Lower returns in the quarter ending March 31, 2013 were largely due to a decrease in gain on sale of mortgages over the comparable prior periods, reflecting narrowing margins on the sale of production into the secondary market and a drop in origination volume during the period. OMSR (impairment) / recovery quarterly results improved primarily as a result of the increase in mortgage market interest rates as the current quarter reflected a 9 basis point increase in the 10-year Treasury rate. OMSR results are highly sensitive to changes in mortgage market interest rates as mortgage holders tend to hold onto mortgages when rates rise. Loan servicing results also reflect the impact of rising interest rates as OMSR amortization expense decreased compared to the year ago period. Residential mortgage origination volume fell to $169.3 million in the current quarter compared to $283.3 million in the preceding quarter and $294.2 million in the year ago quarter as the uptick in interest rates during the quarter has served to dampen industry-wide customer demand for this product.
About Anchor BanCorp Wisconsin Inc.
Anchor BanCorp Wisconsin Inc.'s stock is traded in the over-the-counter market under the symbol ABCW. AnchorBank, fsb (the "Bank"), the wholly owned subsidiary, has 55 offices. All are located in Wisconsin.
Forward-Looking Statements
This news release contains certain forward-looking statements, as that term is defined in the U.S. federal securities laws. In the normal course of business, we, in an effort to help keep our shareholders and the public informed about our operations, may from time to time issue or make certain statements, either in writing or orally, that are or contain forward-looking statements. Generally, these statements relate to business plans or strategies, projected or anticipated benefits from acquisitions or dispositions made by or to be made by us, projections involving anticipated revenues, earnings, liquidity, profitability or other aspects of operating results or other future developments in our affairs or the industry in which we conduct business. Although we believe that the anticipated results or other expectations reflected in our forward-looking statements are based on reasonable assumptions, we can give no assurance that those results or expectations will be attained. You should not put undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update them in light of new information or future events, except to the extent required by federal securities laws. Please refer to our Annual Report for the fiscal year ending March 31, 2013 on Form 10-K, as filed with the Securities and Exchange Commission, for a more comprehensive di
ANCHOR BANCORP WISCONSIN INC. ANNOUNCES
THIRD QUARTER RESULTS
Madison, Wisconsin – Anchor BanCorp Wisconsin Inc. (OTC Market: ABCW) today announced a net loss available to common equity of $15.1 million, or $0.71 per common share, for the three months ended December 31, 2012. This compares to a net loss available to common equity of $12.1 million, or $0.57 per common share and $15.3 million, or $0.72 per common share, for the three months ended September 30, 2012 and December 31, 2011, respectively.
Financial Highlights
• AnchorBank, fsb (the “Bank) remains adequately capitalized 1 for the tenth consecutive quarter.
• Tier 1 leverage and total risk-based capital ratios of 4.84 percent and 9.33 percent increased 21 and 27 basis points, respectively, during the quarter and 73 and 126 basis points, respectively, over the past twelve months.
• Total assets fell during the past nine months, decreasing by $377.1 million or 13.5 percent to $2.4 billion at December 31, 2012.
• Non-performing loans decreased 34.9 percent to $146.4 million at December 31, 2012 from $224.9 million at March 31, 2012 and $261.2 million at December 31, 2011.
• Net charge-offs decreased by $3.1 million in the current quarter to $11.7 million from $14.8 million in the quarter ending September 30, 2012.
• Gross return on mortgage banking totaled $7.8 million in the current quarter, an increase of $3.3 million, or 73.3 percent, from $4.5 million in the preceding quarter; and $2.3 million higher than the $5.5 million reported in the same period a year ago.
• Cost of funds declined 10 basis points to 1.39 percent in the quarter ending December 31, 2012 compared to 1.49 percent in the preceding quarter, and declined 42 basis points compared to 1.81 percent in the year ago quarter as the Bank continued to judiciously manage deposit pricing.
• Deposit mix improved as lower cost checking, savings, money market and escrow funds represent 64.7 percent of total deposits at December 31, 2012, up from 62.5 percent at September 30, 2012 and 57.2 percent at March 31, 2012.
• FHLB advances totaling $150.0 million, with a weighted average floating rate of 1.41 percent, scheduled to mature in January 2015, were prepaid in December 2012 triggering an early termination penalty of $3.5 million.
1 Under standard regulatory requirements, a bank must have a tier 1 leverage ratio of 4.0 percent or greater and a total risk-based capital ratio of 8.0 percent or greater to be considered adequately capitalized.
1
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Bank Capital Ratios
Dec. 31, Sep. 30, Dec. 31, December 31, 2012
Increase (dec.) vs.
(Dollars in thousands) 2012 2012 2011 9/30/12 12/31/11
Tier 1 capital
$ 116,846 $ 123,485 $ 125,811 $ (6,639 ) $ (8,965 )
Adjusted total assets
2,414,344 2,667,036 3,064,805 (252,692 ) (650,461 )
Tier 1 leverage ratio
4.84 % 4.63 % 4.11 % 0.21 % 0.73 %
Total risk-based capital
$ 135,880 $ 144,284 $ 150,518 $ (8,404 ) $ (14,638 )
Risk-weighted assets
1,455,890 1,592,099 1,864,639 (136,209 ) (408,749 )
Total risk-based capital ratio
9.33 % 9.06 % 8.07 % 0.27 % 1.26 %
Ref: Bank quarterly net income (loss)
$ (6,668 ) $ (3,710 ) $ (6,525 ) $ (2,958 ) $ (143 )
The Bank’s tier 1 leverage and total risk-based capital ratios of 4.84 percent and 9.33 percent at December 31, 2012, increased by 21 and 27 basis points, respectively, compared to September 30, 2012. The ratios benefited from a planned decrease in adjusted total assets, primarily loans held for investment, and risk-weighted assets during the quarter. Risk-weighted assets of $1.5 billion at December 31, 2012 decreased $136.2 million during the quarter reflecting a $143.5 million decrease in 100 percent risk-weighted loans at quarter end.
While the Bank reported higher capital ratios, the Corporation, as the holding company of the Bank, continues to be burdened with significant senior debt and preferred stock obligations:
• The Corporation currently owes $116.3 million of loan principal to various lenders led by U.S. Bank under a credit agreement that matures June 30, 2013. In addition, accrued but unpaid interest and fees totaling $55.5 million associated with this obligation are also due and payable at maturity.
• The Corporation issued $110 million in preferred stock in January 2009 to the United States Treasury pursuant to the Treasury’s Capital Purchase Program (“CPP”). As permitted under the CPP program, the Corporation has deferred 15 quarterly preferred stock dividend payments to the Treasury; resulting in total unpaid dividends of $23.7 million, including compounding.
• While the Bank has substantial liquidity, it is currently precluded by its regulators from paying dividends to the Corporation for purposes of repayment of the foregoing obligations.
The Corporation continues to work with Sandler O’Neill & Partners, L.P. as its financial advisor in efforts to address its capital needs.
2
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Financial Results
Financial results for the third quarter ended December 31, 2012, include:
• Net interest margin improved to 2.42 percent for the three months ended December 31, 2012, from 2.18 percent for the same period in the previous year. Interest income decreased $5.8 million or 19.5 percent for the three months ended December 31, 2012, as compared to the same period in the prior year. This change was primarily due to a decline in average balances in the loan portfolio as principal repayments again outpaced new loan origination activity. Interest expense decreased $5.0 million or 36.1 percent for the three months ended December 31, 2012, as compared to the same period in the prior year, due to a planned reduction in certificate of deposit average balances and the rate paid on these accounts.
• The provision for credit losses decreased $3.7 million to $4.7 million for the three months ended December 31, 2012 compared to $8.4 million in the same period in the previous year. The improvement was largely due to a lower required allowance for losses on impaired loans, reflecting the relatively steady quarter-over-quarter decrease in non-performing loans since June 2010.
• Non-interest income totaled $11.8 million, up $1.1 million or 10.0 percent, compared to the same period in the previous year. The increase was primarily due to improved results from loan sales and loan servicing income; partially offset by lower net gains on sale of other real estate owned (“OREO”).
• Total non-interest expense increased by $3.8 million or 12.4 percent, to $34.0 million from $30.3 million in the same period in 2011. The unfavorable variance was primarily due to a $3.5 million penalty incurred upon the prepayment of $150.0 million of FHLB advances in December 2012. Also contributing to the variance was higher OREO expenses primarily due to an increase in provisions for losses on repossessed property. These unfavorable variances were partially offset by lower compensation and benefits, furniture and equipment and other professional expenses, reflecting ongoing efforts to reduce costs. Mortgage servicing rights impairment (recovery) also improved reflecting a slight increase in market interest rates during the current quarter ended December 31, 2012.
“We are pleased to report our tenth consecutive quarter of capital ratios above the threshold to be considered adequately capitalized,” stated Chris Bauer, President and Chief Executive Officer of the Corporation and the Bank. “This is also the fourth consecutive quarter in which our capital ratios have increased over the previous quarter. The improvement in Bank capital ratios is primarily due to the tremendous effort expended to resolve issues in the credit portfolios and the resulting decrease in assets. Despite lower asset totals again this quarter, we are continuing to make progress on implementing strategies to increase Bank profitability by slowing asset runoff to improve our net interest margin,” Bauer added.
3
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Credit Quality
Dec. 31, Sep. 30, Dec. 31, December 31, 2012
Increase (dec.) vs.
(Dollars in thousands) 2012 2012 2011 9/30/12 12/31/11
Quarterly Financial Results
Provision for credit losses
$ 4,660 $ 5,351 $ 8,380 $ (691 ) $ (3,720 )
Net charge-offs
11,750 14,827 15,848 (3,077 ) (4,098 )
Key Metrics (at period end)
Loans 30 to 89 days past due
31,633 29,354 46,655 2,279 (15,022 )
Non-performing loans (NPL)
146,355 156,543 261,152 (10,188 ) (114,797 )
Other real estate owned
90,000 94,918 86,925 (4,918 ) 3,075
Non-performing assets
236,355 251,461 348,077 (15,106 ) (111,722 )
Allowance for loan losses to NPL
57.23 % 57.93 % 50.13 % -0.70 % 7.10 %
Certain key credit related metrics continue to trend favorably with loans 30 to 89 days past due rising modestly to $31.6 million as of December 31, 2012 from $29.4 million at September 30, 2012 but falling sharply compared to $46.7 million at December 31, 2011. Non-performing loans of $146.4 million at December 31, 2012 were lower than the preceding quarter and the year ago quarter, decreasing $10.2 million and $114.8 million, respectively. The impact of these trends contributed significantly to the lower provision for credit losses in the current quarter. Despite the decrease in provision for credit losses in the current quarter compared to the prior year quarter, the allowance for loan loss at 57.23 percent of non-performing loans at December 31, 2012 was nearly flat compared to 57.93 percent at September 30, 2012. Running somewhat counter to these favorable variances, other real estate owned decreased during the quarter to $90.0 million, but was up $3.1 million from a year ago reflecting the somewhat irregular financial statement impact of the resolution process for non-performing loans.
Mortgage Banking
For the Quarter Ending: December 31, 2012
Dec. 31, Sep. 30, Dec. 31, Increase (dec.) vs.
(In thousands) 2012 2012 2011 9/30/12 12/31/11
Loan servicing income (loss), net
$ (951 ) $ (590 ) $ (1,555 ) $ (361 ) $ 604
Gain on sale of mortgages
7,153 7,176 6,040 (23 ) 1,113
OMSR (impairment) / recovery
1,570 (2,100 ) 985 3,670 585
Residential mortgage banking gross returns
$ 7,772 $ 4,486 $ 5,470 $ 3,286 $ 2,302
Key Metrics
Origination volume (closed loans)
$ 283,300 $ 285,800 $ 412,800 $ (2,500 ) $ (129,500 )
Serviced loan portfolio
2,974,000 3,034,000 3,170,000 (60,000 ) (196,000 )
Gross returns on residential mortgage banking totaled $7.8 million for the quarter ending December 31, 2012 compared to $4.5 million in the preceding quarter and $5.5 million in the year ago quarter. Higher returns in the quarter ending December 31, 2012 were largely due to an increase in gain on sale of mortgages over the comparable year ago period, reflecting wider margins on the sale of production into the secondary market and the execution of effective
4
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hedging strategies. OMSR (impairment) / recovery quarterly results are highly sensitive to changes in mortgage market interest rates as the current quarter reflects a 13 basis point increase in the 10-year Treasury rate. Loan servicing results also reflect the impact of rising interest rates as OMSR amortization expense decreased compared to the year ago period. Residential mortgage origination volume fell to $283.3 million in the current quarter compared to $285.8 million in the preceding quarter and $412.8 million in the year ago quarter as the uptick in interest rates has served to cool industry-wide customer demand for this product.
About Anchor BanCorp Wisconsin Inc.
Anchor BanCorp Wisconsin Inc.‘s stock is traded in the over-the-counter market under the symbol ABCW. AnchorBank, fsb (the “Bank”), the wholly owned subsidiary, has 55 offices. All are located in Wisconsin.
For More Information
For more information, contact Emily Campbell, VP – Marketing & Communications, at (608) 252-1436.
8 February 2013 -- Anchor BanCorp Wisconsin Inc. (OTC: ABCW) reported a net loss available to common equity of USD15.1m for the three months ended December 31, 2012.
This compares to a net loss available to common equity of USD12.1m, or USD0.57 per common share and USD15.3m, or USD0.72 per common share, for the three months ended September 30, 2012 and December 31, 2011, respectively.
Anchor BanCorp Wisconsin Inc.'s subsidiary AnchorBank, fsb has 55 offices. All are located in Wisconsin.
ABCW is trading above its 10 week simple moving average, and its 13 week exponential moving average.
American Banker-12-26-12
Anchor BanCorp Wisconsin (ABCW) is trimming a chunk of its obligations.
The $2.7 billion-asset parent of AnchorBank in Madison, Wis., said Wednesday it has prepaid $150 million in advances from the Federal Home Loan Bank System that were due in 2015.
Though Anchor BanCorp's paying off the loans early triggered a penalty of $3.5 million, the move is expected to save the company roughly $2.1 million a year in interest.
Anchor BanCorp also said that its payment would improve its net interest margin and lift its Tier 1 leverage ratio to 4.77% from 4.63%, which it reported on Sept. 30.
The early payment represents part of the company's strategy "to increase bank profitability," Chris Bauer, Anchor BanCorp's chief executive, said in a news release
"Even though the bank's cash position has been reduced by $150 million, the bank's balance sheet remains strong as we continue to maintain a high degree of liquidity."
Anchor BanCorp has taken steps recently to address its capital needs. The company owes roughly $116.3 million to a group of lenders led by U.S. Bancorp (USB) that matures on June 30. Anchor BanCorp also owes the lenders $53.9 million in unpaid interest.
Anchor BanCorp owes the Treasury Department $23.1 million in dividend payments on $110 million in preferred stock the company pledged to Treasury in January 2009 in exchange for funds from the Troubled Asset Relief Program. The company has yet to repay any of the Tarp funds.
Anchor BanCorp lost $12.1 million in the quarter ended Sept. 30 compared with a loss of $19.6 million for the same period in 2011. The year-over-year improvement primarily reflected a 70% decrease in the company's loan-loss provision, which totaled $5.3 million. Nonperforming assets for the quarter fell 28%, to $251.5 million, from a year earlier.
Bauer told American Banker recently the company plans to boost lending to consumers and companies in the coming year. "We've been shrinking but we don't want to shrink anymore," Bauer said. "We're really trying to get back on the offense."
Sandler O'Neill and Partners is advising Anchor BanCorp on capital matters.
Anchor BanCorp quick check
http://banktracker.investigativereportingworkshop.org/banks/wisconsin/madison/anchorbank-fsb/
Anchor BanCorp Wisconsin Inc.
Madison, WI
Total TARP funds owed: $110,000,000
$110,000,000 on Jan. 30, 2009
http://banktracker.investigativereportingworkshop.org/tarp/wisconsin/madison/anchor-bancorp-wisconsin-inc/
Anchor BanCorp Wisconsin Inc. Announces Prepayment of $150 Million of FHLB Advances (12/26/12)
MADISON, Wis., Dec. 26, 2012 (GLOBE NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (the "Corporation") (OTC Market:ABCW), the holding company for AnchorBank, fsb. (the "Bank), announced that the Bank has completed the prepayment of $150 million of Federal Home Loan Bank ("FHLB") advances. The borrowings extinguished were floating rate advances with maturities in 2015 and had a current weighted average rate of 1.41%. The repayment of the FHLB advances triggered a pre-payment penalty of $3.5 million.
Chris Bauer, President and Chief Executive Officer of the Corporation and the Bank, commented, "As stated in our second quarter 2012 earnings release, we have been implementing strategies to increase Bank profitability. Given the economic environment, using excess cash at the Bank level to reduce total funding cost is an opportunity to enhance the Bank's profitability by increasing net interest margin going forward. Even though the Bank's cash position has been reduced by $150 million, the Bank's balance sheet remains strong as we continue to maintain a high degree of liquidity."
Results of the Transaction
• Eliminates estimated annualized interest cost of approximately $2.1 million on $150 million of paid off advances, reducing the Bank's overall cost of funds going forward.
• Reduces cash on hand, which earns only modest returns in the current interest rate environment.
• The FHLB advance pre-payment penalty of $3.5 million, or $0.17 per share, will be recouped by a higher net interest rate margin going forward.
• The Tier 1 leverage ratio adjusted for the pre-payment of the FHLB advances increases 14 basis points to 4.77% from 4.63% reported at September 30, 2012. The adjusted ratio only takes into account the reduction in FHLB advances and the prepayment fee.
• Better positions the Bank to compete in the current rate environment while maintaining a flexible liquidity position for future opportunities.
• The Bank's interest rate risk profile is relatively unchanged.
While the pre-payment of FHLB advances will increase the Tier 1 leverage ratio at the Bank, the Corporation, as the holding company of the Bank, continues to be burdened with significant senior debt and preferred stock obligations:
• The Corporation currently owes $116.3 million of loan principal to various lenders led by U.S. Bank under a credit agreement that matures June 30, 2013. In addition, accrued but unpaid interest and fees at November 30, 2012, totaling $53.9 million associated with this obligation are also due and payable at maturity.
• The Corporation issued $110 million in preferred stock in January 2009 to the United States Treasury pursuant to the Treasury's Capital Purchase Program ("CPP"). As permitted under the CPP program, the Corporation has deferred 15 quarterly preferred stock dividend payments to the Treasury; which has resulted in total unpaid dividends at November 30, 2012, of $23.1 million, including compounding.
• While the Bank has substantial liquidity, it is currently precluded by its regulators from paying dividends to the Corporation for purposes of repayment of the foregoing obligations.
The Corporation continues to work with Sandler O'Neill & Partners, L.P. as its financial advisor in efforts to address its capital needs.
About Anchor BanCorp Wisconsin Inc.
Anchor BanCorp Wisconsin Inc.'s stock is traded in the over-the-counter market under the symbol ABCW. The Bank has 55 offices located in Wisconsin.
Forward-Looking Statements
This news release contains certain forward-looking statements, as that term is defined in the U.S. federal securities laws. In the normal course of business, we, in an effort to help keep our shareholders and the public informed about our operations, may from time to time issue or make certain statements, either in writing or orally, that are or contain forward-looking statements. Generally, these statements relate to business plans or strategies, projected or anticipated benefits from acquisitions or dispositions made by or to be made by us, projections involving anticipated revenues, earnings, liquidity, profitability or other aspects of operating results or other future developments in our affairs or the industry in which we conduct business. Although we believe that the anticipated results or other expectations reflected in our forward-looking statements are based on reasonable assumptions, we can give no assurance that those results or expectations will be attained. You should not put undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update them in light of new information or future events, except to the extent required by federal securities laws. Please refer to our Annual Report for the fiscal year ending March 31, 2012 on Form 10-K, as filed with the Securities and Exchange Commission, for a more comprehensive discussion of forward-looking statements and the risks and uncertainties associated with our business.
Emily Campbell, VP - Marketing & Communications
(608) 252-1436
http://www.globenewswire.com/news-release/2012/12/26/513545/10016591/en/Anchor-BanCorp-Wisconsin-Inc-Announces-Prepayment-of-150-Million-of-FHLB-Advances.html
AnchorBank of Madison will have more time to pay off a hefty bank loan.
November 30, 2012
The $116.3 million loan, from a consortium of banks led by U.S. Bank, was due in full Friday. But Anchor filed a document with federal regulators on Friday saying the lenders have agreed to extend the maturity of the loan until June 30, 2013, at a continuing annual interest rate of 15 percent. The bank will have to meet certain capitalization ratios and will have to keep its delinquent loans and foreclosed properties to no more than 13 percent of total loans and real estate.
It is the seventh time the maturity date has been extended, and along with the extra time, Anchor will have to pay an additional fee of $872,250.
That brings the total owed to $170.2 million, which includes $47.5 million in interest and nearly $7.3 million in fees.
"With the extension of the credit agreement, AnchorBank is able to advance (its) capital raising efforts, talking to and meeting with potential investors. Management is hopeful to have a comprehensive solution in the coming months," Chris Bauer, president and chief executive, said in a written statement.
The debt stems from a long-standing line of credit Anchor has had with the banks. Because of its struggle with bad real estate loans, Anchor has made no payments on the principal since December 2008 and no interest payments since December 2009.
Anchor also owes $132 million to the U.S. Treasury (TARP) based on $110 million in preferred stock purchased by the government through the Troubled Asset Relief Program in 2009. The bank has not been allowed to make dividend payments because of its financial difficulties.
http://host.madison.com/business/anchorbank-gets-more-time-to-pay-off-big-loan/article_a79a61e2-3b32-11e2-8e79-0019bb2963f4.html
*On the radar.
Anchor Bancorp, the holding company for Anchor Bank, has reported net loss available to common equity of $12.05 million, or $0.57 loss per share, for the second quarter ended September 30, 2012, compared to net loss available to common equity of $19.59 million, or $0.92 loss per share, for the same quarter ended September 30, 2011.
Net interest income for the second quarter ended September 30, 2012 was $16.06 million, compared to $18.5 million for the same quarter ended September 30, 2011.
Net loss available to common equity for the six months ended September 30, 2012 was $15.47 million, or $0.73 loss per share, compared to net loss available to common equity of $27.75 million, or $1.31 loss per share, for the same period ended September 30, 2011.
Net interest income for the six months ended September 30, 2012 was $32.46 million, compared to $40.02 million for the same period ended September 30, 2011.
Chris Bauer, president and CEO of the Corporation and the Bank, said: "We are pleased to report our ninth consecutive quarter of capital ratios above the threshold to be considered adequately capitalized. This is the first time since March of 2009 that our total risk-based capital ratio at the Bank has exceeded 9%.
"The improvement in Bank capital ratios is primarily due to the tremendous effort expended to resolve issues in the credit portfolios and the resultant decrease in assets. We have recently developed and are implementing strategies to increase Bank profitability by slowing asset runoff to improve our net interest margin."
Anchor BanCorp Wisconsin Inc. (OTC Market:ABCW) today announced a net loss available to common equity of $12.1 million, or $0.57 per common share, for the three months ended September 30, 2012. This compares to a net loss available to common equity of $3.4 million, or $0.16 per common share and $19.6 million, or $0.92 per common share, for the three months ended June 30, 2012 and September 30, 2011, respectively.
Financial Highlights
-- AnchorBank, fsb (the "Bank) remains adequately capitalized1 for the
ninth consecutive quarter.
-- Tier 1 leverage and total risk-based capital ratios of 4.63 percent and
9.07 percent increased 7 and 9 basis points, respectively, during the
quarter and 47 and 92 basis points, respectively, over the past twelve
months.
-- Total assets fell during the past six months, decreasing by $124.0
million or 4.4 percent to $2.7 billion at September 30, 2012.
-- Non-performing loans decreased to $156.5 million at September 30, 2012
from $224.9 million at March 31, 2012 and $256.5 million at September
30, 2011.
-- Net charge-offs increased, by $6.9 million in the current quarter to
$14.8 million from $7.9 million in the quarter ending June 30, 2012.
-- Gross return on mortgage banking totaled $4.5 million in the current
quarter, an increase of $0.3 million, or 7.5 percent, from $4.2 million
in the preceding quarter; and $5.1 million higher than the $0.6 million
loss for the same period a year ago.
-- Cost of funds declined to 1.49 percent in the quarter ending September
30, 2012 compared to 1.84 percent in the year ago quarter as the Bank
continued to judiciously manage deposit pricing.
-- Deposit mix improved as lower cost checking, savings, money market and
escrow funds represent 62.5 percent of total deposits at September 30,
2012, up from 57.2 percent at March 31, 2012.
______________________________
1 Under regulatory requirements, a bank must have a tier 1 leverage ratio of 4.0 percent or greater and a total risk-based capital ratio of 8.0 percent or greater to be considered adequately capitalized.
Bank Capital Ratios
September 30, 2012
Increase (decrease)
Sep. 30, Jun. 30, Sep. 30, vs.
----------------------
(Dollars in thousands) 2012 2012 2011 6/30/12 9/30/11
---------- ---------- ---------- ---------- ----------
Tier 1 capital $123,567 $127,026 $133,307 ($3,459) ($9,740)
Adjusted total assets 2,667,036 2,783,319 3,200,704 (116,283) (533,668)
Tier 1 leverage ratio 4.63% 4.56% 4.16% 0.07% 0.47%
Total risk-based capital $144,366 $148,738 $159,125 ($4,372) ($14,759)
Risk weighted assets 1,592,099 1,656,451 1,952,984 (64,352) (360,885)
Total risk-based capital
ratio 9.07% 8.98% 8.15% 0.09% 0.92%
Ref: Bank quarterly net
income (loss) ($3,710) $913 ($11,193) ($4,623) $7,483
The Bank's tier 1 and total risk-based capital ratios of 4.63 percent and 9.07 percent at September 30, 2012, increased by 7 and 9 basis points, respectively, compared to June 30, 2012. The ratios benefitted from a planned decrease in adjusted total assets, primarily loans held for investment, and risk-weighted assets during the quarter. Risk-weighted assets of $1.6 billion at September 30, 2012 decreased $64.4 million during the quarter reflecting a $60.3 million decrease in 100 percent risk-weighted assets primarily due to a reduction in loans in this category at quarter end. Under regulatory requirements, a bank must have a tier 1 leverage ratio of 4.0 percent or greater and a total risk-based capital ratio of 8.0 percent or greater to be considered adequately capitalized.
While the Bank reported higher capital ratios, the Corporation, as the holding company of the Bank, continues to be burdened with significant senior debt and preferred stock obligations:
-- The Corporation currently owes $116.3 million of loan principal to
various lenders led by U.S. Bank under a credit agreement that matures
November 30, 2012. In addition, accrued but unpaid interest and fees
totaling $50.6 million associated with this obligation are also due and
payable at maturity.
-- The Corporation issued $110 million in preferred stock in January 2009
to the United States Treasury pursuant to the Treasury's Capital
Purchase Program ("CPP"). As permitted under the CPP program, the
Corporation has deferred 14 quarterly preferred stock dividend payments
to the Treasury; which has resulted in total unpaid dividends of $22.0
million, including compounding.
-- While the Bank has substantial liquidity, it is currently precluded by
its regulators from paying dividends to the Corporation for purposes of
repayment of the foregoing obligations.
The Corporation continues to work with Sandler O'Neill & Partners, L.P. as its financial advisor in efforts to address its capital needs.
Financial Results
Financial results for the second quarter ended September 30, 2012, include:
-- Net interest margin fell slightly to 2.44 percent for the three months
ended September 30, 2012, from 2.47 percent for the same period in the
previous year. Interest income decreased $7.0 million or 21.1 percent
for the three months ended September 30, 2012, as compared to the same
period in the prior year. This change was primarily due to a decline in
average balances in the loan and investment security portfolios and the
unfavorable impact of an increase in lower yielding interest-earning
deposits. Interest expense decreased $4.5 million or 31.1 percent for
the three months ended September 30, 2012, as compared to the same
period in the prior year, due to a planned reduction in certificate of
deposit average balances and the rate paid on these accounts.
-- The provision for credit losses decreased $11.8 million to $5.4 million
for the three months ended September 30, 2012 compared to $17.1 million
in the same period in the previous year. The improvement was largely due
to a lower required allowance for losses on impaired loans, reflecting
the relatively steady quarter-over-quarter decrease in non-performing
loans since June 2010.
-- Non-interest income totaled $13.1 million, down $3.4 million or 20.6
percent, compared to the same period in the previous year. The decrease
was primarily due to smaller net gains on the sale of investment
securities and lower loan servicing income, partially offset by higher
net gain on sale of residential mortgage loans.
-- Total non-interest expense decreased by $1.5 million or 4.3 percent, to
$32.5 million from $34.0 million in the same period in 2011. The
improvement was primarily due to a $3.0 million decrease in mortgage
servicing rights impairment, falling to $2.1 million in the current
quarter compared to $5.1 million in the three months ending September
30, 2011. Impairment in the prior year quarter reflected a sharp drop in
market interest rates as the 10-year Treasury rate fell 126 basis points
during that three month period a year ago causing a spike in mortgage
refinance activity. Improved results attributable to mortgage servicing
rights were partially offset by an increase in OREO expense of $2.3
million largely due to higher provisions for loss on repossessed
property in the current year period.
"We are pleased to report our ninth consecutive quarter of capital ratios above the threshold to be considered adequately capitalized," stated Chris Bauer, President and Chief Executive Officer of the Corporation and the Bank. "This is the first time since March of 2009 that our total risk-based capital ratio at the Bank has exceeded 9 percent. The improvement in Bank capital ratios is primarily due to the tremendous effort expended to resolve issues in the credit portfolios and the resultant decrease in assets. We have recently developed and are implementing strategies to increase Bank profitability by slowing asset runoff to improve our net interest margin," Bauer added.
Credit Quality
September 30, 2012
Increase (decrease)
(Dollars in thousands) Sep. 30, Jun. 30, Sep. 30, vs.
---------------------
2012 2012 2011 6/30/12 9/30/11
-------- -------- -------- ---------- ---------
Quarterly Financial Results
Provision for credit losses $5,351 ($1,716) $17,115 $7,067 ($11,764)
Net charge-offs 14,827 7,935 17,608 6,892 (2,781)
Key Metrics (at period end)
Loans 30 to 89 days past due 29,354 39,843 70,927 (10,489) (41,573)
Non-performing loans (NPL) 156,543 188,987 256,502 (32,444) (99,959)
Other real estate owned 94,918 83,955 92,970 10,963 1,948
Non-performing assets 251,461 272,942 349,472 (21,481) (98,011)
Allowance for loan loss to NPL 57.93% 53.17% 53.94% 4.76% 3.99%
Certain key credit related metrics continue to trend favorably with loans 30 to 89 days past due falling to $29.4 million as of September 30, 2012 from $39.8 million at June 30, 2012 and $70.9 million at September 30, 2011. Non-performing loans of $156.5 million at September 30, 2012 were significantly lower than the preceding quarter and the year ago quarter, decreasing $32.4 million and $100.0 million, respectively. The impact of these trends contributed significantly to the lower provision for credit losses in the current quarter. Despite the decrease in provision for credit losses in the current quarter compared to the prior year quarter, the allowance for loan loss remains strong at 57.93 percent of non-performing loans at September 30, 2012. Running counter to these favorable variances, both net charge-offs and other real estate owned increased during the quarter reflecting the somewhat irregular timing of the financial statement impacts during execution of the resolution process for non-performing loans.
Mortgage Banking
For the Quarter Ending:
------------------------------- September 30, 2012
Increase (decrease)
(In thousands) Sep. 30, Jun. 30, Sep. 30, vs.
----------------------
2012 2012 2011 6/30/12 9/30/11
--------- --------- --------- ---------- ----------
Loan servicing income (loss), net ($590) ($406) $488 ($184) ($1,078)
Gain on sale of mortgages 7,176 5,836 4,010 1,340 3,166
OMSR (impairment) / recovery (2,100) (1,257) (5,069) (843) 2,969
--------- --------- --------- ---------- ----------
Residential mortgage banking
gross returns $4,486 $4,173 ($571) $313 $5,057
========= ========= ========= ========== ==========
Key Metrics
Origination volume (closed loans) $285,800 $258,500 $189,100 $27,300 $96,700
Serviced loan portfolio 3,034,000 3,095,000 3,212,000 (61,000) (178,000)
Gross returns on residential mortgage banking totaled $4.5 million for the quarter ending September 30, 2012 compared to $4.2 million in the preceding quarter and ($0.6) million in the year ago quarter. Higher returns in the quarter ending September 30, 2012 were largely due to an increase in gain on sale of mortgages over both comparable periods reflecting wider margins on the sale of production into the secondary market and the execution of effective hedging strategies. OMSR (impairment) / recovery quarterly results are highly sensitive to changes in mortgage market interest rates and reflected a sharp drop in rates during the quarter ending September 30, 2011, with more moderate rate decreases during the current and preceding quarters in 2012. Loan servicing results also reflected the impact of lower interest rates as OMSR amortization expense has increased as rates have fallen during these reporting periods. Residential mortgage origination volume rose to $285.8 million in the current quarter compared to $258.5 million in the preceding quarter and $189.1 million in the year ago quarter as historically low interest rates have continued to fuel customer demand for this product.
About Anchor BanCorp Wisconsin Inc.
Anchor BanCorp Wisconsin Inc.'s stock is traded in the over-the-counter market under the symbol ABCW. AnchorBank, fsb (the "Bank"), the wholly owned subsidiary, has 55 offices. All are located in Wisconsin.
Forward-Looking Statements
This news release contains certain forward-looking statements, as that term is defined in the U.S. federal securities laws. In the normal course of business, we, in an effort to help keep our shareholders and the public informed about our operations, may from time to time issue or make certain statements, either in writing or orally, that are or contain forward-looking statements. Generally, these statements relate to business plans or strategies, projected or anticipated benefits from acquisitions or dispositions made by or to be made by us, projections involving anticipated revenues, earnings, liquidity, profitability or other aspects of operating results or other future developments in our affairs or the industry in which we conduct business. Although we believe that the anticipated results or other expectations reflected in our forward-looking statements are based on reasonable assumptions, we can give no assurance that those results or expectations will be attained. You should not put undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update them in light of new information or future events, except to the extent required by federal securities laws. Please refer to our Annual Report for the fiscal year ending March 31, 2012 on Form 10-K, as filed with the Securities and Exchange Commission, for a more comprehensive discussion of forward-looking statements and the risks and uncertainties associated with our business.
ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES
Consolidated Balance Sheets
------------------------------------------------------------
(Unaudited)
September
30, March 31,
2012 2012
------------ ------------
(In thousands, except
share data)
Assets
Cash and cash equivalents $ 331,679 $ 242,980
Investment securities available
for sale, at fair value 241,776 242,299
Investment securities held to
maturity, at amortized cost -- 20
Loans
Held for sale 34,274 39,332
Held for investment 1,859,473 2,057,744
Other real estate owned, net 94,918 88,841
Premises and equipment, net 25,552 25,453
Federal Home Loan Bank
stock---at cost 25,630 35,792
Mortgage servicing rights, net 18,526 22,156
Accrued interest receivable 10,878 12,075
Other assets 22,749 22,760
------------ ------------
Total assets $ 2,665,455 $ 2,789,452
============ ============
Liabilities and Stockholders'
Deficit
Deposits
Non-interest bearing $ 300,181 $ 280,931
Interest bearing 1,844,229 1,983,970
------------ ------------
Total deposits 2,144,410 2,264,901
Other borrowed funds 467,293 476,103
Accrued interest and fees
payable 52,382 43,327
Accrued taxes, insurance and
employee related expenses 7,550 6,385
Other liabilities 29,859 28,286
------------ ------------
Total liabilities 2,701,494 2,819,002
------------ ------------
Preferred stock, $0.10 par
value, 5,000,000 shares
authorized, 110,000 shares
issued and outstanding;
dividends in arrears of $22,029
at September 30, 2012 and
$18,785 at March 31, 2012 100,137 96,421
Common stock, $0.10 par value,
100,000,000 shares authorized,
25,363,339 shares issued at
September 30, 2012 and March
31, 2012 2,536 2,536
Additional paid-in capital 110,402 110,402
Retained deficit (159,739) (147,513)
Accumulated other comprehensive
income 2,153 132
Treasury stock (4,116,114 shares
at September 30, 2012 and
4,115,614 shares at March 31,
2012), at cost (90,259) (90,259)
Deferred compensation obligation (1,269) (1,269)
------------ ------------
Total stockholders' deficit (36,039) (29,550)
------------ ------------
Total liabilities and
stockholders' deficit $ 2,665,455 $ 2,789,452
============ ============
ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Loss
---------------------------------------------------------------------------------
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
------------------------ ------------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------
Interest income (In thousands, except per share data)
Loans $ 24,314 $ 29,937 $ 49,602 $ 62,046
Investment securities and
Federal Home Loan Bank
stock 1,535 2,960 3,084 6,916
Interest-earning deposits 196 98 350 150
----------- ----------- ----------- -----------
Total interest income 26,045 32,995 53,036 69,112
Interest expense
Deposits 2,956 6,727 6,547 14,046
Other borrowed funds 7,030 7,768 14,031 15,046
----------- ----------- ----------- -----------
Total interest expense 9,986 14,495 20,578 29,092
----------- ----------- ----------- -----------
Net interest income 16,059 18,500 32,458 40,020
Provision for credit losses 5,351 17,115 3,635 20,597
----------- ----------- ----------- -----------
Net interest income after
provision for credit
losses 10,708 1,385 28,823 19,423
Non-interest income
Net impairment losses on
securities recognized in
earnings (146) (123) (210) (182)
Loan servicing income
(loss), net of amortization (590) 488 (996) 1,295
Service charges on deposits 2,693 2,754 5,375 5,354
Investment and insurance
commissions 958 917 1,990 1,954
Net gain on sale of loans 7,176 4,010 13,012 5,203
Net gain on sale of
investment securities 11 5,206 73 6,342
Net gain on sale of OREO 1,600 1,659 4,772 2,904
Other 1,354 1,525 2,538 2,646
----------- ----------- ----------- -----------
Total non-interest income 13,056 16,436 26,554 25,516
Non-interest expense
Compensation and benefits 10,036 9,749 20,506 19,826
Occupancy 1,929 1,925 3,762 3,905
Furniture and equipment 1,346 1,531 2,858 2,992
Federal deposit insurance
premiums 1,561 1,774 3,125 3,707
Data processing 1,639 1,608 3,024 2,991
Marketing 365 429 613 734
OREO expense, net 8,110 5,823 15,122 14,600
Mortgage servicing rights
impairment 2,100 5,069 3,357 5,290
Legal services 1,415 1,328 3,013 2,281
Other professional fees 565 756 1,208 1,774
Other 3,454 3,990 7,490 7,745
----------- ----------- ----------- -----------
Total non-interest
expense 32,520 33,982 64,078 65,845
----------- ----------- ----------- -----------
Loss before income taxes (8,756) (16,161) (8,701) (20,906)
Income tax expense (benefit) (191) -- (191) 10
----------- ----------- ----------- -----------
Net loss (8,565) (16,161) (8,510) (20,916)
Preferred stock dividends in
arrears (1,634) (1,579) (3,244) (3,115)
Preferred stock discount
accretion (1,853) (1,853) (3,716) (3,716)
----------- ----------- ----------- -----------
Net loss available to
common equity $ (12,052) $ (19,593) $ (15,470) $ (27,747)
=========== =========== =========== ===========
Net loss $ (8,565) $ (16,161) $ (8,510) $ (20,916)
Reclassification adjustment
for realized net gains
recognized in income (11) (5,206) (73) (6,342)
Reclassification adjustment
for credit related
other-than-temporary
impairment, net 146 123 210 182
Change in net unrealized
gains (losses) on
available-for-sale
securities 899 12,825 1,884 26,838
----------- ----------- ----------- -----------
Comprehensive loss $ (7,531) $ (8,419) $ (6,489) $ (238)
=========== =========== =========== ===========
Loss per common share:
Basic $ (0.57) $ (0.92) $ (0.73) $ (1.31)
Diluted (0.57) (0.92) (0.73) (1.31)
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Anchor BanCorp Wisconsin Inc.
CONTACT: Emily Campb
Attention,
Do not Miss Out on this Opportunity
ABCW is looking GOOD this Morning, REAL Good!!!
ABCW is below its 10 week simple moving average. This bearish sign is even more significant because the moving average is also trending lower.
The OBV shows that longer term accumulation has given way to near term selling pressure..
The On Balance Volume indicator presently offers a bullish signal.
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AnchorBank is a $3.2 billion bank and Wisconsin's largest thrift. We offer personal and business banking services to more than 138,000 households and businesses. From our beginnings in 1919, quality housing has been a high priority, and today AnchorBank is a leading lender in residential housing and commercial real estate.
We are constantly evolving our products and services to meet the changing needs of our customers. Through our TeleBranch™, we provide 24-hour automated telephone banking. Our WebBranch™ includes online banking capabilities and applications for most products. A full range of investment services is provided through our Anchor Investment Services (AIS) division.
AnchorBank, fsb is a wholly owned subsidiary of Anchor BanCorp Wisconsin Inc., which incorporated into a holding company on March 18, 1992, and went public on July 15, 1992. It is headquartered in Madison, Wisconsin.
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