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
------------------------------------------------------------------------------
(Unaudited)
