News Column

Anchor BanCorp Wisconsin Inc. Announces First Quarter Results

May 8, 2014

MADISON, Wis., May 8, 2014 (GLOBE NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (the "Company") today announced its financial results for the quarter ended March 31, 2014. Net income was $1.9 million for the quarter ended March 31, 2014 compared to net income of $3.8 million in the quarter ended December 31, 2013 and a net loss of $14.0 million for the quarter ended March 31, 2013. Earnings per share was $0.21 for the quarter ended March 31, 2014 compared to $0.41 for the quarter ended December 31, 2013, and a loss per share of $0.66 or a loss per share available to common equity of $0.82 for the quarter ended March 31, 2013. The prior year quarter net loss available to common equity includes preferred stock dividends and discount accretion which is no longer recorded since the preferred stock was cancelled as part of the recapitalization transaction.

"We are pleased with the action taken by the Office of the Comptroller of the Currency in lifting the Bank's Cease and Desist Order at the beginning of April. We continue to see steady progress in earnings during the two quarters since the recapitalization and remain encouraged by the opportunities presented by the recapitalization," stated Chris Bauer, President & CEO for AnchorBank. "We continue to improve our financial health and profitability, as well as work on implementing new strategies to develop a relationship-focused, service-driven franchise with expanded commercial lending, improved asset quality, increased core deposits and a more efficient operating model, which we believe positions us well for success."

Highlights for the quarter ended March 31, 2014, include:

• The total risk-based capital ratio for the Bank was 17.43% as of March 31, 2014, compared to 17.07% at December 31, 2013. Tier 1 capital was 9.69% as of March 31, 2014, compared to 9.60% at December 31, 2013. • Total non-performing loans decreased $28.5 million, or 41.6% to $40.0 million at March 31, 2014 from $68.5 million at December 31, 2013.  • Total non-performing assets (total non-performing loans and other real estate owned) decreased $29.9 million, or 22.6%, to $102.1 million at March 31, 2014 from $132.0 million at December 31, 2013; as the Bank continues to reduce problem asset levels. Non-performing assets have steadily declined for more than three years from over $455.3 million at March 31, 2010 to the current balance, a 77.6% decrease as a result of continued efforts by management to reduce such problem assets.• There was no provision for loan losses for the three months ended March 31, 2014. This is a decrease when compared to $675,000 for the three months ended March 31, 2013.• Loan delinquencies (loans past due 30 days or more) decreased $24.2 million or 37.1%, to $41.0 million at March 31, 2014 from $65.2 million at December 31, 2013.

"We continue to look forward to 2014 and the opportunities for AnchorBank, its customers, its employees, and the communities we serve," Bauer said.  "We remain grateful for the opportunity to provide banking services to our Wisconsin customers and clients, as we have done for 95 years."

About Anchor BanCorp Wisconsin Inc.

AnchorBank, fsb has 54 offices, all of which 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, projections involving anticipated revenues, earnings, liquidity, capital levels, 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.

Anchor BanCorp Wisconsin Inc.
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
     
   Qtr ended
($ in 000's, except per share data)Quarter ended03/14-03/13
INCOME STATEMENT3/31/201412/31/20133/31/2013Incr(Decr)
         
Net interest income  $ 18,315  $ 18,877  $ 14,820 24%
         
Provision for loan losses  --   --   675 (100%)
         
Non-interest income:        
Loan servicing income (loss), net  774  681  55 N/M
Service charges on deposits  2,266  2,504  2,369 (4%)
Investment and insurance commissions  856  1,009  952 (10%)
Net gain on sale of loans  592  728  3,030 (80%)
Net gain on sale of investments  301  292  (200) N/M
Net gain on sale of OREO  161  1,118  1,337 (88%)
Other   982  1,670  (40) N/M
Total non-interest income  5,932  8,002  7,503 (21%)
         
Operating expenses:        
Personnel costs  11,162  10,569  10,142 10%
Net occupancy and equipment expense  3,004  2,586  3,073 (2%)
Data processing expense  1,371  1,616  1,862 (26%)
OREO expense  1,185  2,294  12,259 (90%)
Professional fees  760  781  1,759 (57%)
Other   4,835  5,279  6,573 (26%)
Total operating expenses  22,317  23,125  35,668 (37%)
Net income (loss) before taxes  1,930  3,754  (14,020) 114%
 Income tax expense (benefit)  --   --   --  0%
Net income (loss)  1,930  3,754  (14,020) 114%
Preferred stock dividends in arrears  N/A   N/A   (1,662) N/M
Preferred stock discount accretion  N/A   N/A   (1,843) N/M
Net income (loss) available to common equity  $ 1,930  $ 3,754  $ (17,525) 111%
         
SHARE DATA        
Diluted earnings (loss) per share:        
Net income (loss)  $ 0.21  $ 0.41  $ (0.66) 132%
Net income (loss) available to common equity  $ 0.21  $ 0.41  $ (0.82) 126%
Cash dividends   $ --   $ --   $ --   -- 
Book value  $ 22.84  $ 22.34  $ (7.70) N/M
Average diluted shares outstanding  9,050,000  9,050,000  21,247,000 (57%)
         
         
KEY RATIOS AND DATA    
         
Loan servicing income (loss), net  $ 774  $ 681  $ 55 N/M
Gain on sale of loans  592  728  3,030 (80%)
MSR (impairment) / recovery  (11)  (60)  2,190 (101%)
Residential mortgage banking gross returns  $ 1,355  $ 1,349  $ 5,275 (74%)
         
Key Metrics        
Origination volume (closed loans)  $ 22,600  $ 53,600  $ 169,300 (87%)
Serviced loan portfolio (000's)  2,658,000  2,714,000  2,910,000 (9%)
         
Net interest margin (FTE) 3.66% 3.61% 2.62%  1.04
Return on average assets 0.37% 0.17% (2.37%)  2.74
Average equity (deficit) to average assets 9.81% 9.32% (2.03%)  11.84
         
Total risk based capital 17.43% 17.07% 9.02%  8.41
Tier 1 risk-based capital 16.14% 15.77% 7.71%  8.43
Tier 1 leverage 9.69% 9.60% 4.53%  5.16
         
N/M = not meaningful        
             
             
Anchor BanCorp Wisconsin Inc.            
(Unaudited)            
             
         Ending
   balances
(in 000's)Quarter ended AveragesEnding balances03/14-12/13
BALANCE SHEET3/31/1412/31/133/31/133/31/1412/31/13Incr(Decr)
            
Assets:            
Investment securities   $ 283,110  $ 287,797  $ 265,284  $ 287,966  $ 277,872 4%
Loans held for sale  2,617  4,137  27,344  2,944  3,085 (5%)
Loans: Mortgage  1,210,870  1,242,172  1,333,758  1,204,090  1,232,132 (2%)
   Consumer  361,638  371,332  427,129  354,504  367,831 (4%)
   Commercial  21,795  21,863  25,256  19,914  21,591 (8%)
Total loans   $ 1,594,303  $ 1,635,367  $ 1,786,143  $ 1,578,508  $ 1,621,554 (3%)
Allowance for loan losses  (64,973)  (69,854)  (82,203)  (53,497)  (65,182) (18%)
Interest earning deposits in banks  107,693  144,748  154,909  130,372  99,257 31%
Other assets  171,984  177,792  219,205  163,531  175,888 (7%)
Total assets  $ 2,094,734  $ 2,179,987  $ 2,370,682  $ 2,109,824  $ 2,112,474 (0%)
             
Liabilities and Stockholders' Equity (Deficit):          
Total deposits   $ 1,852,717  $ 1,932,837  $ 2,013,277  $ 1,868,751  $ 1,875,293 (0%)
Other borrowed funds  14,497  19,167  318,251  13,210  12,877 3%
Other liabilities  22,012  24,724  87,280  21,155  22,106 (4%)
Total liabilities  $ 1,889,226  $ 1,976,728  $ 2,418,808  $ 1,903,116  $ 1,910,276 (0%)
Total stockholders' equity (deficit)  205,508  203,259  (48,126)  206,708  202,198 2%
Total liabilities & stockholders' equity (deficit)  $ 2,094,734  $ 2,179,987  $ 2,370,682  $ 2,109,824  $ 2,112,474 (0%)
             
      Qtr ended
 Quarter ended    03/14-03/13
CREDIT QUALITY3/31/1412/31/133/31/13    Incr(Decr)
            
Provision for loan losses  $ --   $ --   $ 675     (100%)
Net charge-offs  11,685  6,671  4,621     153%
Ending allowance for loan losses  53,497  65,182  79,815     (33%)
             
Key Metrics             
Loans 30 to 89 days past due  $ 14,539  $ 16,165  $ 24,403     (40%)
Non-performing loans (NPL)  39,978  68,497  118,790     (66%)
Other real estate owned  62,140  63,460  84,342     (26%)
Non-performing assets  102,118  131,957  203,132     (50%)
Allowance for loan losses to NPL 133.82% 95.16% 67.19%      66.63
             
N/M = not meaningful            

CONTACT: Jennifer Ranville, 608-252-8862



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Source: Anchor BanCorp Wisconsin Inc.


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