Wednesday, November 21, 2012 3:53:33 PM
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
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
All my posts, are only My Opinion
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