MADISON, Wisc., July 30, 2015 (GLOBE NEWSWIRE) -- Anchor BanCorp Wisconsin Inc. (the "Company") (NASDAQ:ABCW) and its wholly-owned subsidiary, AnchorBank, fsb (the "Bank") today announced its financial results for the quarter ended June 30, 2015. The Company recorded a strong and profitable quarter with net income of $107.5 million or $11.37 per diluted common share. Net income for the quarter ended June 30, 2015 includes a one-time income tax benefit, net of current quarter provision, of $103.0 million or $10.89 per diluted share primarily resulting from the reversal of substantially all of the Company's net deferred tax asset valuation allowance. Pre-tax income of $4.5 million or $0.48 per diluted share included the impact of one-time gains and costs associated with several previously announced operational efficiency initiatives during the quarter ended June 30, 2015. Management anticipates these initiatives will result in annual net cost savings of approximately $5.4 million related to reduced compensation, occupancy and other operating costs.
"Our strong results reflect the significant progress the Company has made in restoring profitability, capital and improving asset quality. We're pleased with our performance and have positioned the Company to allow for the recapture of substantially all of the deferred tax asset valuation allowance," said Chris Bauer, President and CEO.
Highlights include:
Deferred Tax Asset Valuation Allowance
During September 2009, the Company established a full deferred tax asset valuation allowance. As a result of management's periodic assessment of all of the positive and negative evidence regarding the deferred tax asset position, during the second quarter of 2015, the Company has substantially reversed the deferred tax asset valuation allowance. The Company has determined that it is more likely than not it will be able to realize its net deferred tax asset, including its entire federal tax loss carryforwards and a significant portion of its state tax loss carryforwards, with the exception of $5.9 million pertaining to certain multi state loss carryforwards, including states we no longer do business in. This action resulted in the recognition of a $103.0 million of income tax benefit, net of current quarter tax provision, during the second quarter of 2015. As a result of the reversal, diluted earnings per share increased $10.89 to $11.37 for the quarter ended June 30, 2015.
Net Income
Loans Held for Investment, Net
Asset Quality
Deposits and Borrowings
Capital
"We will continue to focus on earnings and look for sound, profitable, growth opportunities to further improve stockholder value," Bauer noted.
About Anchor BanCorp Wisconsin Inc.
Anchor Bancorp Wisconsin Inc, is the parent company for AnchorBank, fsb a community-based financial services company providing commercial, retail, mortgage, consumer finance and investment services to businesses and individuals from 53 banking locations throughout Wisconsin. Anchor Bancorp stock (ABCW) is listed on the NASDAQ Global Market and Russell Global Indexes. Visit AnchorBank online at www.anchorbank.com.
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 stockholders 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 share data) | Quarter Ended | Year to Date | 6/15-6/14 | |||
INCOME STATEMENT | 6/30/2015 | 3/31/2015 | 6/30/2014 | 6/30/2015 | 6/30/2014 | Incr(Decr) |
Interest income | 18,541 | 18,084 | 18,956 | 36,625 | 38,418 | (2%) |
Interest expense | 1,117 | 1,028 | 1,094 | 2,145 | 2,241 | 2% |
Net interest income | $ 17,424 | $ 17,056 | $ 17,862 | $ 34,480 | $ 36,177 | (2%) |
Provision for loan losses | (646) | (1,354) | -- | (2,000) | -- | N/M |
Non-interest income: | ||||||
Service charges on deposits | 2,596 | 2,368 | 2,523 | 4,964 | 4,789 | 3% |
Investment and insurance commissions | 1,060 | 1,087 | 1,131 | 2,147 | 1,987 | (6%) |
Loan fees | 179 | 731 | 222 | 910 | 451 | (19%) |
Loan servicing income, net | 467 | 593 | 740 | 1,060 | 1,514 | (37%) |
Loan processing fee income | 360 | 266 | 189 | 626 | 339 | 90% |
Net gain on sale of loans | 1,912 | 1,601 | 698 | 3,513 | 1,290 | 174% |
Net gain on sale of investments | -- | 63 | -- | 63 | 301 | N/M |
Net gain on sale of OREO | 743 | 1,467 | 1,040 | 2,210 | 1,201 | (29%) |
Net gain (loss) on disposal of premises and equipment | 1,332 | -- | (7) | 1,332 | (76) | N/M |
Net gain on sale of branch | 448 | -- | -- | 448 | -- | N/M |
Other | 641 | 564 | 1,074 | 1,205 | 1,746 | (40%) |
Total non-interest income | 9,738 | 8,740 | 7,610 | 18,478 | 13,542 | 28% |
Non-interest expense: | ||||||
Personnel costs | 13,371 | 11,787 | 10,739 | 25,158 | 21,901 | 25% |
Net occupancy and equipment expense | 2,730 | 2,454 | 2,405 | 5,184 | 5,409 | 14% |
Data processing expense | 1,546 | 1,451 | 1,315 | 2,997 | 2,686 | 18% |
OREO expense | 737 | 236 | 2,267 | 973 | 3,452 | (67%) |
Mortgage servicing rights impairment (recovery) | (391) | (30) | 84 | (421) | 95 | N/M |
Provision for unfunded commitments | 170 | 121 | 600 | 291 | 780 | (72%) |
Professional fees | 606 | 434 | 351 | 1,040 | 758 | 73% |
Other | 4,494 | 4,520 | 5,094 | 9,014 | 10,091 | (12%) |
Total non-interest expense | 23,263 | 20,973 | 22,855 | 44,236 | 45,172 | 2% |
Net income before taxes | 4,545 | 6,177 | 2,617 | 10,722 | 4,547 | 74% |
Income tax expense (benefit) | (102,976) | 32 | 10 | (102,944) | 10 | N/M |
Net income | 107,521 | 6,145 | 2,607 | 113,666 | 4,537 | 4024% |
SHARE DATA | ||||||
Diluted earnings per share | $ 11.37 | $ 0.65 | $ 0.29 | $ 12.05 | $ 0.50 | N/M |
Cash dividends | -- | -- | -- | -- | -- | -- |
Book value | 35.68 | 24.66 | 23.37 | 35.68 | 23.37 | 53% |
Average diluted shares outstanding | 9,459,000 | 9,443,000 | 9,050,000 | 9,436,000 | 9,050,000 | 5% |
KEY RATIOS AND DATA | ||||||
Yield on interest earning assets | 3.65% | 3.63% | 3.77% | 3.64% | 3.83% | (0.12) |
Cost of funds | 0.24% | 0.23% | 0.23% | 0.23% | 0.24% | 0.01 |
Net interest margin (FTE) | 3.43% | 3.42% | 3.55% | 3.43% | 3.61% | (0.12) |
Return on average assets | 20.40% | 1.19% | 0.49% | 10.88% | 0.43% | 19.91 |
Average equity to average assets | 11.40% | 11.16% | 9.88% | 11.28% | 9.85% | 1.52 |
Common Equity Tier 1 ratio (1) | 18.26% | 16.91% | N/A | 18.26% | N/A | N/M |
Tier 1 leverage (1) | 12.03% | 10.85% | 9.75% | 12.03% | 9.75% | 2.28 |
Tier 1 risk-based capital (1) | 18.26% | 16.91% | 16.12% | 18.26% | 16.12% | 2.14 |
Total capital ratio (1) | 19.58% | 18.19% | 17.40% | 19.58% | 17.40% | 2.18 |
N/A = not applicable | ||||||
N/M = not meaningful | ||||||
(1) Capital ratios calculated utilizing Basel III regulatory requirements effective January 1, 2015 for Anchor BanCorp, Inc. Prior period capital ratios are reported for AnchorBank, fsb. |
Anchor BanCorp Wisconsin Inc. | ||||||
(Unaudited) | ||||||
Ending | ||||||
Balances | ||||||
(in 000's) | Quarter Ended Averages | Ending Balances | 6/15-12/14 | |||
BALANCE SHEET | 6/30/15 | 12/31/14 | 6/30/14 | 6/30/15 | 12/31/14 | Incr(Decr) |
Assets: | ||||||
Cash and cash equivalents | $ 138,078 | $ 195,093 | $ 182,155 | $ 110,734 | $ 147,273 | (25%) |
Investment securities | 340,127 | 293,577 | 290,578 | 350,752 | 294,599 | 19% |
Loans held for sale | 8,214 | 5,608 | 3,482 | 13,513 | 6,594 | 105% |
Loans held for investment | 1,560,719 | 1,559,421 | 1,554,651 | 1,568,571 | 1,571,476 | (0%) |
Allowance for loan losses | (47,229) | (48,260) | (53,357) | (47,037) | (47,037) | N/M |
Loans held for investment, net | 1,513,490 | 1,511,161 | 1,501,294 | 1,521,534 | 1,524,439 | (0%) |
Other real estate owned (OREO), net | 29,392 | 44,511 | 59,543 | 27,255 | 35,491 | (23%) |
Other assets | 79,001 | 77,081 | 78,896 | 181,807 | 73,983 | 146% |
Total assets | $ 2,108,302 | $ 2,127,031 | $ 2,115,948 | $ 2,205,595 | $ 2,082,379 | 6% |
Liabilities and Stockholders' Equity: | ||||||
Non interest bearing deposits | $ 286,079 | $ 285,960 | $ 1,020,155 | $ 281,621 | $ 291,248 | (3%) |
Interest bearing deposits | 1,543,313 | 1,582,144 | 849,986 | 1,539,171 | 1,522,923 | 1% |
Total deposits | 1,829,392 | 1,868,104 | 1,870,141 | 1,820,792 | 1,814,171 | N/M |
Other borrowed funds | 14,382 | 14,982 | 15,434 | 12,737 | 13,752 | (7%) |
Other liabilities | 24,114 | 21,500 | 21,290 | 29,446 | 26,793 | 10% |
Total liabilities | $ 1,867,888 | $ 1,904,586 | $ 1,906,865 | $ 1,862,975 | $ 1,854,716 | N/M |
Total stockholders' equity | 240,414 | 222,445 | 209,083 | 342,620 | 227,663 | 50% |
Total liabilities & stockholders' equity | $ 2,108,302 | $ 2,127,031 | $ 2,115,948 | $ 2,205,595 | $ 2,082,379 | 6% |
Qtr Ended | ||||||
Quarter Ended | Year-to-Date | 6/15-6/14 | ||||
CREDIT QUALITY | 6/30/15 | 12/31/14 | 6/30/14 | 6/30/2015 | 6/30/2014 | Incr(Decr) |
Provision for loan losses | $ (646) | $ (3,281) | $ -- | $ (2,000) | $ -- | N/M |
Net charge-offs | (646) | (3,281) | 4,322 | (2,000) | 16,007 | (115%) |
Ending allowance for loan losses | 47,037 | 47,037 | 49,175 | (4%) | ||
Key Metrics | ||||||
Loans 30 to 89 days past due | $ 7,844 | $ 8,892 | $ 18,008 | $ 7,844 | $ 18,008 | (56%) |
Non-performing loans (NPL) | 17,550 | 35,115 | 42,167 | 17,550 | 42,167 | (58%) |
Other real estate owned | 27,255 | 35,491 | 56,170 | 27,255 | 56,170 | (51%) |
Non-performing assets | 44,805 | 70,606 | 98,337 | 44,805 | 98,337 | (54%) |
Non-performing assets to total assets | 2.03% | 3.39% | 4.64% | 2.03% | 4.64% | (2.60) |
Allowance for loan losses to NPL | 268.02% | 133.95% | 116.62% | 268.02% | 116.62% | 151.40 |
Allowance for loan losses to loans held for investment | 3.00% | 2.99% | 3.16% | 3.00% | 3.16% | (0.16) |
Net charge-off to average assets | (0.03%) | (0.15%) | 0.20% | (0.03%) | 0.20% | (0.23) |
N/M = not meaningful |