LACEY, Wash., Oct. 30, 2017 (GLOBE NEWSWIRE) -- Anchor Bancorp (NASDAQ:ANCB) (“Company”), the holding company for Anchor Bank (“Bank”), today reported first quarter earnings for its fiscal year ending June 30, 2018. For the quarter ended September 30, 2017, the Company reported net income of $1.0 million or $0.43 per diluted share, compared to net income of $573,000 or $0.24 per diluted share for the quarter ended September 30, 2016.
"We are pleased with the financial results of our first quarter. Our net interest margin has remained strong year over year and for the quarter was 4.14%," stated Jerald L. Shaw, President and Chief Executive Officer. "Additionally we have improved our efficiency ratio by 11.5% over the last year to 71.2% for the current quarter, reflecting our increased net interest income and expense control. Noninterest expense declined 9% year over year," stated Mr. Shaw.
Fiscal First Quarter Highlights
- Loans receivable, net, increased $5.3 million, or 1.4%, to $383.2 million at September 30, 2017 from $377.9 million at June 30, 2017;
- Deposits increased $3.2 million, or 0.9%, to $348.4 million at September 30, 2017 from $345.2 million at June 30, 2017;
- Net interest income before provision for loan losses increased $273,000, or 6.7%, to $4.3 million for the quarter ended September 30, 2017 compared to $4.1 million for the quarter ended September 30, 2016;
- Net interest margin ("NIM") was 4.14% for the quarter ended September 30, 2017 compared to 4.16% for the quarter ended September 30, 2016;
- The efficiency ratio improved to 71.2% for the quarter ended September 30, 2017 compared to 82.7% for the quarter ended September 30, 2016; and
- Book value per share at September 30, 2017 increased to $26.76 from $26.29 at June 30, 2017.
Balance Sheet Review
Total assets decreased by $2.1 million, or 0.5%, to $460.4 million at September 30, 2017 from $462.5 million at June 30, 2017. Cash and cash equivalents decreased by $5.3 million, or 37.1%, to $8.9 million at September 30, 2017, from $14.2 million at June 30, 2017 as we redeployed excess cash to fund the repayment of FHLB advances and fund our loan growth. Securities available-for-sale and held-to-maturity decreased $930,000, or 4.4%, and $396,000 or 8.0%, respectively. The decreases in these portfolios were primarily the result of contractual principal repayments.
Loans receivable, net, increased $5.3 million, or 1.4%, to $383.2 million at September 30, 2017 from $377.9 million at June 30, 2017. Construction loans increased $11.8 million, or 24.0%, to $61.0 million at September 30, 2017 from $49.2 million at June 30, 2017. There was $57.0 million in undisbursed construction loan commitments at September 30, 2017. Our construction loans are primarily for the construction of multi-family and to a lesser extent, loans for the construction of single family properties. One-to-four family loans increased $1.8 million, or 3.0%, to $61.6 million at September 30, 2017 from $59.7 million at June 30, 2017. Multi-family loans increased $512,000, or 0.8%, to $61.0 million at September 30, 2017 from $60.5 million at June 30, 2017. Land loans increased $43,000, or 0.5%, to $8.1 million at September 30, 2017 from $8.0 million at June 30, 2017. Consumer loans decreased $155,000, or 0.83%, to $18.6 million at September 30, 2017 from $18.7 million at June 30, 2017. Commercial business loans decreased $2.1 million, or 6.8%, to $29.5 million at September 30, 2017 from $31.6 million at June 30, 2017. Commercial real estate loans decreased $6.6 million, or 4.3%, to $148.9 million at September 30, 2017 from $155.5 million at June 30, 2017. This decrease was primarily due to the repayments of a $3.2 million commercial real estate loan secured by a self-storage facility and a $1.7 million industrial property. We also reclassified a $2.0 million multi-tenant commercial real estate loan to real estate owned ("REO") and recorded a $200,000 charge upon transfer to fair market value.
Loans receivable consisted of the following at the dates indicated:
| September 30, 2017 | June 30, 2017 | September 30, 2016 | |||||||||
| (In thousands) | |||||||||||
| Real estate: | |||||||||||
| One-to-four family | $ | 61,555 | $ | 59,735 | $ | 60,067 | |||||
| Multi-family | 61,012 | 60,500 | 54,556 | ||||||||
| Commercial | 148,867 | 155,525 | 144,402 | ||||||||
| Construction | 60,963 | 49,151 | 30,635 | ||||||||
| Land loans | 8,097 | 8,054 | 7,534 | ||||||||
| Total real estate | 340,494 | 332,965 | 297,194 | ||||||||
| Consumer: | |||||||||||
| Home equity | 13,991 | 13,991 | 16,890 | ||||||||
| Credit cards | 2,535 | 2,596 | 2,871 | ||||||||
| Automobile | 573 | 627 | 630 | ||||||||
| Other consumer | 1,484 | 1,524 | 1,776 | ||||||||
| Total consumer | 18,583 | 18,738 | 22,167 | ||||||||
| Business: | |||||||||||
| Commercial business | 29,455 | 31,603 | 36,688 | ||||||||
| Total Loans | 388,532 | 383,306 | 356,049 | ||||||||
| Less: | |||||||||||
| Deferred loan fees and loan premiums, net | 1,294 | 1,292 | 1,215 | ||||||||
| Allowance for loan losses | 4,017 | 4,106 | 3,824 | ||||||||
| Loans receivable, net | $ | 383,221 | $ | 377,908 | $ | 351,010 | |||||
Total liabilities decreased $3.1 million to $393.6 million at September 30, 2017 from $396.7 million at June 30, 2017, primarily as the result of the repayment of $7.8 million of FHLB advances, partially offset by an increase of $3.2 million in deposits. The increase in deposit accounts was the result of the Bank's deposit marketing campaign; as well as other deposit gathering activities.
Deposits consisted of the following at the dates indicated:
| September 30, 2017 | June 30, 2017 | September 30, 2016 | ||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 54,474 | 15.7 | % | $ | 52,606 | 15.2 | % | $ | 55,329 | 18.2 | % | ||||||||
| Interest-bearing demand deposits | 31,424 | 9.0 | 31,464 | 9.1 | 27,522 | 9.0 | ||||||||||||||
| Money market accounts | 71,335 | 20.5 | 73,154 | 21.2 | 60,176 | 19.8 | ||||||||||||||
| Savings deposits | 44,349 | 12.7 | 43,454 | 12.6 | 43,677 | 14.4 | ||||||||||||||
| Certificates of deposit | 146,794 | 42.1 | 144,509 | 41.9 | 117,502 | 38.6 | ||||||||||||||
| Total deposits | $ | 348,376 | 100.0 | % | $ | 345,187 | 100.0 | % | $ | 304,206 | 100.0 | % | ||||||||
Credit Quality
Total delinquent loans (past due 30 days or more), decreased $1.7 million to $2.4 million at September 30, 2017 from $4.1 million at June 30, 2017, primarily due to the transfer of the $2.0 million commercial real estate loan discussed above to REO at fair market value of $1.8 million. The percentage of nonperforming loans, consisting solely of nonaccrual loans, to total loans decreased to 0.4% at September 30, 2017 from 1.0% at June 30, 2017. The Company recorded a $75,000 provision for loan losses for the quarter ended September 30, 2017. The allowance for loan losses of $4.0 million at September 30, 2017 represented 1.0% of loans receivable and 274.4% of nonperforming loans. This compares to an allowance of $4.1 million at June 30, 2017, representing 1.1% of loans receivable and 110.8% of nonperforming loans.
Nonperforming loans decreased to $1.5 million at September 30, 2017, from $3.7 million at June 30, 2017, and were $2.5 million at September 30, 2016. Nonperforming loans consisted of the following at the dates indicated:
| September 30, 2017 | June 30, 2017 | September 30, 2016 | |||||||||
| (In thousands) | |||||||||||
| Real estate: | |||||||||||
| One-to-four family | $ | 968 | $ | 1,170 | $ | 2,010 | |||||
| Commercial | — | 1,992 | 315 | ||||||||
| Total real estate | 968 | 3,162 | 2,325 | ||||||||
| Consumer: | |||||||||||
| Home equity | 207 | 242 | 37 | ||||||||
| Total consumer | 207 | 242 | 37 | ||||||||
| Business: | |||||||||||
| Commercial business | 289 | 300 | 96 | ||||||||
| Total | $ | 1,464 | $ | 3,704 | $ | 2,458 | |||||
As of September 30, 2017, the Company had four REO properties with an aggregate book value of $2.7 million compared to three properties with an aggregate book value of $867,000 at June 30, 2017, and three properties with an aggregate book value of $271,000 at September 30, 2016. The increase in the aggregate book value of REO properties during the quarter ended September 30, 2017 from the prior quarter was primarily attributable to reclassification of the commercial real estate loan, discussed above.
Capital
As of September 30, 2017, the Bank was considered "well capitalized" in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements with Tier 1 Leverage-Based Capital, Common Equity Tier 1 Capital ("CET1"), Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios of 13.3%, 14.0%, 14.0%, and 14.9% respectively. As of September 30, 2016, the Bank's Tier 1 Leverage-Based Capital, CET1, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 13.3%, 14.3%, 14.3%, and 15.3%, respectively.
Anchor Bancorp exceeded all regulatory capital requirements with Tier 1 Leverage-Based Capital, CET1, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios of 14.4%, 15.0%, 15.0%, and 16.0% as of September 30, 2017. As of September 30, 2016, the Company's Tier 1 Leverage-Based Capital, CET1, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 14.2%, 15.3%, 15.3%, and 16.2%, respectively.
Operating Results
Net interest income. Net interest income before the provision for loan losses increased $273,000, or 6.7%, to $4.3 million for the quarter ended September 30, 2017 compared to $4.1 million for the same period last year primarily due to the increase in average loans receivable, net. Average loans receivable, net, for the quarter ended September 30, 2017 increased $31.9 million, or 9.0%, to $387.0 million compared to $355.1 million for the quarter ended September 30, 2016.
The Company's net interest margin was 4.14% for the quarter ended September 30, 2017 compared to 4.16% for the quarter ended September 30, 2016. The average yield on loans receivable, net, increased seven basis points to 5.31% for the quarter ended September 30, 2017 compared to 5.24% for the same period of the prior year, reflecting the increase in construction loans. The average yield on mortgage-backed securities decreased to 2.05% from 2.24% for the same period in the prior year primarily due to large principal pay downs resulting in an increase in amortization of premiums. The average yield on interest-earning assets increased 11 basis points to 5.05% from 4.94% for the quarters ended September 30, 2017 and 2016. The average cost of total deposits increased 14 basis points to 1.13% for the quarter ended September 30, 2017 compared to 0.99% for the same period in the prior year. The average cost of interest-bearing liabilities increased 15 basis points to 1.14% for the quarter ended September 30, 2017 compared to 0.99% for the same period in the prior year, reflecting the increases in the federal funds rate over the last year.
Provision for loan losses. In connection with its analysis of the loan portfolio, management determined that a $75,000 provision for loan losses was required for both the quarters ended September 30, 2017 and 2016, primarily reflecting our recent loan growth.
Noninterest income. Noninterest income remained relatively the same at $1.2 million for the quarters ended September 30, 2017 and September 30, 2016. The $50,000 increase in commercial real estate loan prepayment penalties was mostly offset by a decrease of $35,000 in deposit service fees from $348,000 to $313,000 as consumers reduced their deposit account overdrafts.
Noninterest expense. Noninterest expense decreased $396,000, or 9.2%, to $3.9 million for the quarter ended September 30, 2017 from $4.3 million for the quarter ended September 30, 2016. Compensation and benefits expense decreased $226,000 from $2.3 million or 9.8%, to $2.1 million for the quarter ended September 30, 2017 compared to the same period in the previous year. The decrease was primarily due to a reduction in stock-based compensation expense from $224,000 for the quarter last year to $47,000 for the quarter ended September 30, 2017 related to the Anchor Bancorp 2015 Equity Plan. General and administrative expenses declined $162,000 to $574,000 for the quarter ended September 30, 2017 compared to $736,000 for the quarter ended September 30, 2016. This decrease was primarily due to a $37,000 decline in consulting services, a $26,000 decrease in credit card expenses due to the efficiencies realized from our new credit card program, a $19,000 reduction in loan origination expenses and no losses related to repossessed vehicles compared to $23,000 for the same quarter last year. For the quarter ended September 30, 2017 we expensed $34,000 associated with our proposed merger with Washington Federal, Inc. compared to none for the same period ended September 30, 2016 primarily due to legal and professional fees which partially offset the decreases discussed above.
About the Company
Anchor Bancorp is headquartered in Lacey, Washington and is the parent company of Anchor Bank, a community-based savings bank primarily serving Western Washington through its 10 full-service banking offices (including one Wal-Mart in-store location) within Grays Harbor, Thurston, Lewis, Pierce and Mason counties, and one loan production office located in King County, Washington. The Company's common stock is traded on the NASDAQ Global Market under the symbol "ANCB" and is included in the Russell 2000 Index. For more information, visit the Company's web site www.anchornetbank.com.
Forward-Looking Statements:
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding our mission and vision. These forward-looking statements are based upon current management expectations and may, therefore, involve risks and uncertainties. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety or range of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs that may be impacted by deterioration in the housing and commercial real estate markets and may lead to increased losses and nonperforming assets in our loan portfolio, and may result in our allowance for loan losses not being adequate to cover actual losses, and require us to materially increase our reserves; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; the Agreement and Plan of Merger (“Merger Agreement”) with Washington Federal, Inc. may be terminated in accordance with its terms, and the merger may not be completed; termination of the Merger Agreement could negatively impact us; we will be subject to business uncertainties and contractual restrictions while the merger is pending; results of examinations of us by the Federal Reserve Bank of San Francisco and our bank subsidiary by the Federal Deposit Insurance Corporation, the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings and other factors described in the Company’s latest annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission-which are available on our website at www.anchornetbank.com and on the SEC’s website at www.sec.gov. Any of the forward-looking statements that we make in this Press Release and in the other public statements we make may turn out to be wrong because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company's operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2018 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of us, and could negatively affect the Company’s operations and stock price performance.
| ANCHOR BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands) (unaudited) | September 30, 2017 | June 30, 2017 | |||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 8,925 | $ | 14,194 | |||
| Securities available-for-sale, at fair value | 20,240 | 21,170 | |||||
| Securities held-to-maturity, at amortized cost | 4,553 | 4,949 | |||||
| Loans held for sale | — | 1,551 | |||||
| Loans receivable, net of allowance for loan losses of $4,017 and $4,106 | 383,221 | 377,908 | |||||
| Bank owned life insurance investment, net of surrender charges | 20,159 | 20,030 | |||||
| Accrued interest receivable | 1,344 | 1,332 | |||||
| Real estate owned, net | 2,658 | 867 | |||||
| Federal Home Loan Bank (FHLB) stock, at cost | 2,036 | 2,348 | |||||
| Property, premises and equipment, net | 9,037 | 9,360 | |||||
| Deferred tax asset, net | 7,666 | 8,011 | |||||
| Prepaid expenses and other assets | 548 | 805 | |||||
| Total assets | $ | 460,387 | $ | 462,525 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| LIABILITIES | |||||||
| Deposits: | |||||||
| Noninterest-bearing | $ | 54,474 | $ | 52,606 | |||
| Interest-bearing | 293,902 | 292,581 | |||||
| Total deposits | 348,376 | 345,187 | |||||
| FHLB advances | 37,700 | 45,500 | |||||
| Advance payments by borrowers for taxes and insurance | 1,903 | 1,195 | |||||
| Supplemental Executive Retirement Plan liability | 1,717 | 1,709 | |||||
| Accounts payable and other liabilities | 3,915 | 3,083 | |||||
| Total liabilities | 393,611 | 396,674 | |||||
| STOCKHOLDERS’ EQUITY | |||||||
| Preferred stock, $0.01 par value per share authorized 5,000,000 shares; no shares issued or outstanding | — | — | |||||
| Common stock, $0.01 par value per share, authorized 45,000,000 shares; 2,494,940 issued and outstanding at September 30, 2017 and 2,504,740 issued and outstanding at June 30, 2017 | 25 | 25 | |||||
| Additional paid-in capital | 22,447 | 22,619 | |||||
| Retained earnings | 45,629 | 44,585 | |||||
| Unearned Employee Stock Ownership Plan (ESOP) shares | (590 | ) | (607 | ) | |||
| Accumulated other comprehensive loss, net of tax | (735 | ) | (771 | ) | |||
| Total stockholders’ equity | 66,776 | 65,851 | |||||
| Total liabilities and stockholders’ equity | $ | 460,387 | $ | 462,525 | |||
| ANCHOR BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (unaudited) | Three Months Ended September 30, | ||||||
| 2017 | 2016 | ||||||
| Interest income: | |||||||
| Loans receivable, including fees | $ | 5,133 | $ | 4,652 | |||
| Securities | 34 | 23 | |||||
| Mortgage-backed securities | 130 | 166 | |||||
| Total interest income | 5,297 | 4,841 | |||||
| Interest expense: | |||||||
| Deposits | 842 | 619 | |||||
| FHLB advances | 109 | 149 | |||||
| Total interest expense | 951 | 768 | |||||
| Net interest income before provision for loan losses | 4,346 | 4,073 | |||||
| Provision for loan losses | 75 | 75 | |||||
| Net interest income after provision for loan losses | 4,271 | 3,998 | |||||
| Noninterest income: | |||||||
| Deposit service fees | 313 | 348 | |||||
| Other deposit fees | 199 | 194 | |||||
| Other loan fees | 228 | 235 | |||||
| Gain on sale of loans | 110 | 101 | |||||
| Bank owned life insurance investment | 129 | 132 | |||||
| Other income | 193 | 147 | |||||
| Total noninterest income | 1,172 | 1,157 | |||||
| Noninterest expense: | |||||||
| Compensation and benefits | 2,084 | 2,310 | |||||
| General and administrative expenses | 574 | 736 | |||||
| Merger expenses | 34 | — | |||||
| Real estate owned holding costs | 30 | 19 | |||||
| Federal Deposit Insurance Corporation insurance premiums | 36 | 69 | |||||
| Information technology | 537 | 485 | |||||
| Occupancy and equipment | 433 | 506 | |||||
| Deposit services | 104 | 111 | |||||
| Marketing | 91 | 100 | |||||
| Loss on sale of property, premises and equipment | 5 | — | |||||
| Gain on sale of real estate owned | — | (12 | ) | ||||
| Total noninterest expense | 3,928 | 4,324 | |||||
| Income before provision for income taxes | 1,515 | 831 | |||||
| Provision for income taxes | 471 | 258 | |||||
| Net income | $ | 1,044 | $ | 573 | |||
| Basic earnings per share | $ | 0.43 | $ | 0.24 | |||
| Diluted earnings per share | $ | 0.43 | $ | 0.24 | |||
| Weighted average number of basic shares outstanding | 2,421,049 | 2,391,839 | |||||
| Weighted average number of diluted shares outstanding | 2,432,960 | 2,414,679 | |||||
| As of or For the Quarter Ended (unaudited) | |||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | September 30, 2016 | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| SELECTED PERFORMANCE RATIOS | |||||||||||||||
| Return on average assets (1) | 0.93 | % | 0.58 | % | 0.64 | % | 0.54 | % | |||||||
| Return on average equity (2) | 6.85 | 4.48 | 4.79 | 3.88 | |||||||||||
| Average equity-to-average assets (3) | 13.52 | 12.85 | 13.31 | 13.95 | |||||||||||
| Interest rate spread(4) | 3.91 | 4.11 | 3.88 | 3.95 | |||||||||||
| Net interest margin (5) | 4.14 | 4.32 | 4.10 | 4.16 | |||||||||||
| Efficiency ratio (6) | 71.2 | 82.9 | 78.2 | 82.7 | |||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 125.8 | 124.2 | 126.2 | 126.5 | |||||||||||
| Other operating expenses as a percent of average total assets | 3.5 | % | 4.1 | % | 3.7 | % | 4.1 | % | |||||||
| Book value per common share | $ | 26.76 | $ | 26.29 | $ | 25.95 | $ | 25.46 | |||||||
| Tangible book value per common share (7) | $ | 26.67 | $ | 26.20 | $ | 25.86 | $ | 25.37 | |||||||
| CAPITAL RATIOS (Anchor Bank) | |||||||||||||||
| Tier 1 leverage | 13.3 | % | 13.0 | % | 13.1 | % | 13.3 | % | |||||||
| Common equity tier 1 capital | 14.0 | 14.1 | 13.7 | 14.3 | |||||||||||
| Tier 1 risk-based | 14.0 | 14.1 | 13.7 | 14.3 | |||||||||||
| Total risk-based | 14.9 | 15.1 | 14.6 | 15.3 | |||||||||||
| ASSET QUALITY | |||||||||||||||
| Nonaccrual and loans 90 days or more past due and still accruing interest as a percent of total loans | 0.4 | % | 1.0 | % | 0.6 | % | 0.7 | % | |||||||
| Allowance for loan losses as a percent of total loans | 1.0 | 1.1 | 1.0 | 1.1 | |||||||||||
| Allowance as a percent of total nonperforming loans | 274.4 | 110.8 | 167.4 | 157.9 | |||||||||||
| Nonperforming assets as a percent of total assets | 0.9 | 1.0 | 0.6 | 0.6 | |||||||||||
| Net charge-offs (recoveries) to average outstanding loans | 0.04 | % | (0.03 | )% | 0.01 | % | 0.01 | % | |||||||
| Classified loans | $ | 1,607 | $ | 3,721 | $ | 2,645 | $ | 3,185 | |||||||
| _____________________ | |||||||||||||||
(1) Net income divided by average total assets, annualized.
(2) Net income divided by average equity, annualized.
(3) Average equity divided by average total assets.
(4) Difference between weighted average yield on interest-earning assets and weighted average rate on interest-bearing liabilities.
(5) Net interest income as a percentage of average interest-earning assets.
(6) Noninterest expense divided by the sum of net interest income and noninterest income.
(7) Tangible book value per common share excludes intangible assets. Tangible assets excludes intangible assets. This ratio represents a non-GAAP financial measure. See also Non-GAAP Financial Measures reconciliation in the table below.
Non-GAAP Financial Measures:
In addition to results presented in accordance with generally accepted accounting principles utilized in the United States ("GAAP”), this earnings release contains the tangible book value per share, a non-GAAP financial measure. We calculate tangible common equity by excluding intangible assets from stockholders’ equity. We calculate tangible book value per share by dividing tangible common equity by the number of common shares outstanding. We calculate tangible common equity by excluding intangible assets from stockholders' equity. The Company believes that this measure is consistent with the capital treatment by our bank regulatory agencies, which excludes intangible assets from the calculation of risk-based capital ratios and presents this measure to facilitate comparison of the quality and composition of the Company's capital over time and in comparison to its competitors. This non-GAAP financial measure has inherent limitations, is not required to be uniformly applied and is not audited. Further, the non-GAAP financial measure should not be considered in isolation or as a substitute for book value per share or total stockholders' equity determined in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.
| September 30, 2017 | June 30, 2017 | March 31, 2017 | September 30, 2016 | ||||||||||||
| (In thousands) | |||||||||||||||
| Stockholders' equity | $ | 66,776 | $ | 65,851 | $ | 64,989 | $ | 63,778 | |||||||
| Less: intangible assets | 246 | 232 | 214 | 216 | |||||||||||
| Tangible common stockholders' equity | $ | 66,530 | $ | 65,619 | $ | 64,775 | $ | 63,562 | |||||||
| Total assets | $ | 460,387 | $ | 462,525 | $ | 465,449 | $ | 435,963 | |||||||
| Less: intangible assets | 246 | 232 | 214 | 216 | |||||||||||
| Tangible assets | $ | 460,141 | $ | 462,293 | $ | 465,235 | $ | 435,747 | |||||||
| Tangible common stockholders' equity | $ | 66,530 | $ | 65,619 | $ | 64,775 | $ | 63,562 | |||||||
| Common shares outstanding at end of period | 2,494,940 | 2,504,740 | 2,504,740 | 2,505,219 | |||||||||||
| Common stockholders' equity (book value) per share (GAAP) | $ | 26.76 | $ | 26.29 | $ | 25.95 | $ | 25.46 | |||||||
| Tangible common stockholders' equity (tangible book value) per share (non-GAAP) | $ | 26.67 | $ | 26.20 | $ | 25.86 | $ | 25.37 | |||||||
Contact:
Jerald L. Shaw, President and Chief Executive Officer
Terri L. Degner, EVP and Chief Financial Officer
Anchor Bancorp
(360) 491-2250