News Column

Anchor BanCorp Wisconsin Inc. Announces Second Quarter Results

August 7, 2014

MADISON, Wis., Aug. 7, 2014 (GLOBE NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (the "Company") today announced its financial results for the quarter ended June 30, 2014. Net income was $2.6 million for the quarter compared to $1.9 million in the quarter ended March 31, 2014 and a net loss of $5.4 million for the quarter ended June 30, 2013. Earnings per share were $0.29 for the quarter compared to $0.21 for the quarter ended March 31, 2014, and a loss per share of $0.25 or a loss per share available to common equity of $0.42 for the quarter ended June 30, 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 completed in September, 2013.

"We are encouraged by AnchorBank's continued, steady progress since the recapitalization," stated Chris Bauer, President & CEO for AnchorBank. "We remain focused on our overall financial health and profitability, with a strategic focus on expanded commercial banking and lending capabilities. To that end, we are pleased to have added six experienced commercial bankers to our team during the first half of this year. Looking to the future, we will continue our work toward improved asset quality, increased core deposits and a more efficient operating model across all lines of business."

Highlights for the quarter ended June 30, 2014, include:

• Net income of $2.6 million for the second quarter was an increase of $8.0 million over the prior year quarter ended June 30, 2013 net loss of $5.4 million and increased $687,000, or 35.6%, over the quarter ended March 31, 2014.• Non-interest expense declined by $4.5 million during the quarter to $22.9 million compared to the prior year quarter of $27.4 million as we continue efforts to control expenses. Expenses reflected a slight increase over the quarter ended March 31, 2014, $538,000, primarily due to other real estate owned valuation adjustments.• Tier 1 capital was 9.75% at June 30, 2014 compared to 9.60% as of December 31, 2013. The total risk-based capital ratio for the Bank was 17.40% as of June 30, 2014, compared to 17.07% at December 31, 2013.• Total non-performing loans decreased $26.3 million, or 38.4%, to $42.2 million at June 30, 2014 from $68.5 million at December 31, 2013.• Total non-performing assets (total non-performing loans and other real estate owned) decreased $33.6 million, or 25.5 %, to $98.3 million at June 30, 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 $455.3 million at March 31, 2010 to the current balance, a 78.4% decrease as a result of continued efforts by management to reduce such problem assets.• There was no provision for loan losses for the quarter ended June 30, 2014. This is a decrease when compared to $275,000 for the year ago quarter.• Loan delinquencies (loans past due 30 days or more) decreased $22.6 million, or 34.7%, to $42.6 million at June 30, 2014 from $65.2 million at December 31, 2013.

"We have made tremendous strides over the last three quarters, and look forward to continued momentum," Bauer said. "As always, we remain extremely 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 endedYear-to-Date06/14-06/13
INCOME STATEMENT6/30/20143/31/20146/30/20136/30/20146/30/2013Incr(Decr)
             
Net interest income  $ 17,862  $ 18,315  $ 13,417  $ 36,177  $ 28,237 33%
             
Provision for loan losses  --   --   275  --   950 (100%)
             
Non-interest income:            
Loan servicing income (loss), net  740  774  55  1,514  110 N/M
Service charges on deposits  2,523  2,266  2,580  4,789  4,949 (2%)
Investment and insurance commissions  1,131  856  1,063  1,987  2,015 6%
Net gain on sale of loans  698  592  2,793  1,290  5,823 (75%)
Net gain on sale of investments  --   301  --   301  (200) 0%
Net gain on sale of OREO  1,040  161  925  1,201  2,262 12%
Other  1,478  982  1,436  2,460  1,396 3%
Total non-interest income  7,610  5,932  8,852  13,542  16,355 (14%)
             
Non-interest expense:            
Personnel costs  10,739  11,162  11,130  21,901  21,272 (4%)
Net occupancy and equipment expense  2,405  3,004  2,836  5,409  5,909 (15%)
Data processing expense  1,315  1,371  1,420  2,686  3,282 (7%)
OREO expense  2,267  1,185  4,289  3,452  16,548 (47%)
Professional fees  953  760  1,766  1,713  3,525 (46%)
Other  5,176  4,835  5,934  10,011  12,507 (13%)
Total non-interest expense  22,855  22,317  27,375  45,172  63,043 (17%)
Net income (loss) before taxes  2,617  1,930  (5,381)  4,547  (19,401) 149%
Income tax expense (benefit)  10  --   --   10  --  0%
Net income (loss)  2,607  1,930  (5,381)  4,537  (19,401) 148%
Preferred stock dividends in arrears  --   --   (1,701)  --   (3,363) N/M
Preferred stock discount accretion  --   --   (1,863)  --   (3,706) N/M
Net income (loss) available to common equity  $ 2,607  $ 1,930  $ (8,945)  $ 4,537  $ (26,470) 129%
             
             
SHARE DATA            
Diluted earnings (loss) per share:            
Net income (loss)  $ 0.29  $ 0.21  $ (0.25)  $ 0.50  $ (0.91) 215%
Net income (loss) available to common equity  0.29  0.21  (0.42)  0.50  (1.25) 169%
Cash dividends  --   --   --   --   --   -- 
Book value  23.37  22.84  (8.33)     N/M
Average diluted shares outstanding  9,050,000  9,050,000  21,247,000  9,050,000  21,247,000 (57%)
             
             
KEY RATIOS AND DATA            
             
Net interest margin (FTE) 3.51% 3.66% 2.33% 3.58% 2.47%  1.18
Return on average assets 0.49% 0.37% (0.91%) 0.43% (2.53%)  1.40
Average equity (deficit) to average assets 9.88% 9.81% (2.64%) 9.85% (2.34%)  12.52
             
Total risk based capital 17.40% 17.43% 9.21%      8.19
Tier 1 risk-based capital 16.12% 16.14% 7.90%      8.22
Tier 1 leverage 9.75% 9.69% 4.57%      5.18
             
N/M = not meaningful            
 
Anchor BanCorp Wisconsin Inc.
(Unaudited)
             
           Ending
    balances
(in 000's)Quarter ended AveragesEnding balances06/14-12/13
BALANCE SHEET6/30/1412/31/136/30/136/30/1412/31/13Incr(Decr)
          
Assets:            
Investment securities  $ 290,578  $ 287,797  $ 269,194  $ 295,290  $ 277,872 6%
Loans held for sale  3,482  4,137  20,592  5,261  3,085 71%
Loans: Mortgage  1,181,865  1,242,172  1,299,868  1,203,966  1,232,132 (2%)
Consumer  351,332  371,332  402,009  349,925  367,831 (5%)
Commercial  21,454  21,863  25,594  16,002  21,591 (26%)
Total loans  $ 1,554,651  $ 1,635,367  $ 1,727,471  $ 1,569,893  $ 1,621,554 (3%)
Allowance for loan losses  (53,357)  (69,854)  (78,162)  (49,175)  (65,182) (25%)
Interest earning deposits in banks  153,033  144,748  212,980  138,365  99,257 39%
Other assets  167,561  177,792  200,717  161,615  175,888 (8%)
Total assets  $ 2,115,948  $ 2,179,987  $ 2,352,792  $ 2,121,249  $ 2,112,474 0%
             
Liabilities and Stockholders' Equity (Deficit):          
Total deposits  $ 1,870,141  $ 1,932,837  $ 2,005,072  $ 1,873,240  $ 1,875,293 (0%)
Other borrowed funds  15,434  19,167  319,530  13,781  12,877 7%
Other liabilities  21,290  24,724  90,289  22,721  22,106 3%
Total liabilities  $ 1,906,865  $ 1,976,728  $ 2,414,891  $ 1,909,742  $ 1,910,276 (0%)
Total stockholders' equity (deficit)  209,083  203,259  (62,099)  211,507  202,198 5%
Total liabilities & stockholders' equity (deficit)  $ 2,115,948  $ 2,179,987  $ 2,352,792  $ 2,121,249  $ 2,112,474 0%
             
   Qtr ended
 Quarter endedYear-to-Date06/14-06/13
CREDIT QUALITY6/30/1412/31/136/30/136/30/20146/30/2013Incr(Decr)
            
Provision for loan losses  $ --   $ --   $ 275  $ --   $ 950 (100%)
Net charge-offs  4,322  6,671  4,218  16,007  8,839 2%
Ending allowance for loan losses  49,175  65,182  75,872     (35%)
             
Key Metrics            
Loans 30 to 89 days past due  $ 18,008  $ 16,165  $ 20,406     (12%)
Non-performing loans (NPL)  42,167  68,497  106,968     (61%)
Other real estate owned  56,170  63,460  68,241     (18%)
Non-performing assets  98,337  131,957  175,209     (44%)
Allowance for loan losses to NPL 116.62% 95.16% 70.93%      45.69

CONTACT: Jennifer Ranville, 608-252-8862



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Source: Anchor BanCorp Wisconsin Inc.


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