Anchor BanCorp Wisconsin Inc. (ABCW, Financial) filed Quarterly Report for the period ended 2010-12-31.
Anchor Bancorp Wisconsin Inc. has a market cap of $30.57 million; its shares were traded at around $1.61 with and P/S ratio of 0.11.
The Corporation continues to be engaged, along with our advisor, Sandler ONeill and Partners, in active discussions with potential investors for additional capital infusion, and in achieving compliance with the additional regulatory directives imposed by the Office of Thrift Supervision. On a consolidated basis, the Corporations stockholders deficit at December 31, 2010 is $9.5 million, and as discussed below in Liquidity and Capital Resources, presently the Corporation (on an unconsolidated basis) does not have sufficient liquidity to meet its short-term obligations, which include the approximately $116.3 million in outstanding debt that our lender could accelerate and demand payment for upon the expiration of the amended Credit Agreement on May 31, 2011, and $110 million of Series B Preferred Stock and dividends and interest. While the Corporations interest charges on its amended Credit Agreement and other borrowed funds, and provision for credit losses at the Bank continued to result in a net loss available to common equity during the quarter and nine months ended December 31, 2010, the core earnings generating net interest income have remained strong and reflect the realized benefits of the strategic actions noted above. Management continues to focus on efficiency of the balance sheet, operating expense levels and maintaining its adequately capitalized position. An essential element for the conditional approval of the Plan during 2010 was the Banks ability to attain adequately capitalized (8.0% or greater Total Risk Based Capital) status as of July 31, 2010. Based on the Banks internal financial reporting, a total Risk-Based Capital level of 8.05% was achieved as of July 31, 2010. The Bank achieved capital levels of 8.37% at December 31, 2010 and 8.14% at September 30, 2010. Under OTS requirements, a bank is considered adequately capitalized with a risk-based capital level of 8.0% or greater.
Credit Quality The Corporation has seen early stage and overall delinquencies continue to stabilize in the third quarter of fiscal 2011. At December 31, 2010, non-performing loans decreased $65.8 million to $334.1 million since March 31, 2010. Total non-performing assets decreased $52.0 million to $403.4 million at December 31, 2010 from March 31, 2010. The provision for credit losses decreased $100.7 million for the nine months ended December 31, 2010 from $141.8 million for the nine months ended December 31, 2009. Total delinquencies decreased $21.0 million to $352.2 since March 31, 2010.
Net income for the three and nine months ended December 31, 2010 decreased $2.0 million or 19.4% to a net loss of $12.2 million from a net loss of $10.2 million and increased $127.3 million or 84.6% to a net loss of $23.1 million from a net loss of $150.4 million as compared to the respective period in the prior year. The increase in net loss for the three-month period compared to the same period last year was largely due to an increase in provision for credit losses of $11.0 million, a decrease in non-interest income of $4.0 million and a decrease in net interest income of $138,000, which were partially offset by a decrease in non-interest expense of $13.1 million. The decrease in net loss for the nine-month period compared to the same period last year was largely due to a decrease in provision for credit losses of $100.7 million, a decrease in non-interest expense of $26.7 million and an increase in non-interest income of $2.8 million, which were partially offset by a decrease in net interest income of $2.9 million.
Net interest income decreased $138,000 or 0.6% and decreased $2.9 million or 4.3% for the three and nine months ended December 31, 2010, as compared to the respective periods in the prior year. Interest income decreased $12.4 million or 23.2% for the three months ended December 31, 2010, as compared to the same period in the prior year due to a decline in yields on interest earning assets and a reduction in loan balances due to branch sales and loan pay downs. Interest expense decreased $12.3 million or 39.3% for the three months ended December 31, 2010, as compared to the same period in the prior year due to a reduction in deposit accounts due to branch sales, reduced funding needs and improved pricing disciplines. Interest income decreased $39.8 million or 23.6% for the nine months ended December 31, 2010, as compared to the same period in the prior year due to a decline in yields on interest earning assets and a reduction in loan balances due to branch sales and loan pay downs. Interest expense decreased $37.0 million or 35.9% for the nine months ended December 31, 2010, as compared to the same period in the prior year due to a reduction in deposit accounts due to branch sales, reduced funding needs and improved pricing disciplines. The net interest margin increased to 2.51% for the three-month period ended December 31, 2010 from 2.05% for the three-month period in the prior year and increased to 2.25% for the nine-month period ended December 31, 2010 from 1.87% for the same period in the prior year. The change in the net interest margin reflects the decrease in cost of interest-bearing liabilities from 2.79% to 2.07% during the three months ended December 31, 2009 and 2010, respectively. The interest rate spread increased to 2.59% from 2.13% for the three-month period and increased to 2.35% from 1.93% for the nine-month period ended December 31, 2010, as compared to the respective periods in the prior year.
Interest income on loans decreased $11.9 million or 24.5% and $34.4 million or 22.7%, for the three and nine months ended December 31, 2010, as compared to the respective periods in the prior year. These decreases were primarily attributable to a decrease of 33 basis points in the average yield on loans to 5.23% from 5.56% for the three-month period and a decrease of 22 basis points to 5.25% from 5.47% for the nine-month period. The decrease in the yield on loans was due to the level of loans on non-accrual status as well as a modest decline in rates on loans. In addition, the average balances of loans decreased $687.0 million and $721.9 million in the three months and nine months ended December 31, 2010, respectively, as compared to the same periods in th
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Anchor Bancorp Wisconsin Inc. has a market cap of $30.57 million; its shares were traded at around $1.61 with and P/S ratio of 0.11.
Highlight of Business Operations:
In 2010, management conducted a strategic business review of its core businesses, branch footprint and supporting operations, and developed a plan to reduce and better leverage the balance sheet and strengthen the capital base. Beginning in 2010 and during fiscal 2011, management has been executing against this plan, and has reduced the size of the Bank approximately 20% since March 31, 2010, while increasing the amount of net interest income by 19%. Total assets have been reduced from $4.4 billion at March 31, 2010, to $3.6 billion at December 31, 2010, while the amount of net interest income generated actually increased from $18.6 million for the three months ended March 31, 2010 to $18.8 million, $22.3 million and $22.2 million during the quarters ended June 30, 2010, September 30, 2010 and December 31, 2010, respectively.The Corporation continues to be engaged, along with our advisor, Sandler ONeill and Partners, in active discussions with potential investors for additional capital infusion, and in achieving compliance with the additional regulatory directives imposed by the Office of Thrift Supervision. On a consolidated basis, the Corporations stockholders deficit at December 31, 2010 is $9.5 million, and as discussed below in Liquidity and Capital Resources, presently the Corporation (on an unconsolidated basis) does not have sufficient liquidity to meet its short-term obligations, which include the approximately $116.3 million in outstanding debt that our lender could accelerate and demand payment for upon the expiration of the amended Credit Agreement on May 31, 2011, and $110 million of Series B Preferred Stock and dividends and interest. While the Corporations interest charges on its amended Credit Agreement and other borrowed funds, and provision for credit losses at the Bank continued to result in a net loss available to common equity during the quarter and nine months ended December 31, 2010, the core earnings generating net interest income have remained strong and reflect the realized benefits of the strategic actions noted above. Management continues to focus on efficiency of the balance sheet, operating expense levels and maintaining its adequately capitalized position. An essential element for the conditional approval of the Plan during 2010 was the Banks ability to attain adequately capitalized (8.0% or greater Total Risk Based Capital) status as of July 31, 2010. Based on the Banks internal financial reporting, a total Risk-Based Capital level of 8.05% was achieved as of July 31, 2010. The Bank achieved capital levels of 8.37% at December 31, 2010 and 8.14% at September 30, 2010. Under OTS requirements, a bank is considered adequately capitalized with a risk-based capital level of 8.0% or greater.
Credit Quality The Corporation has seen early stage and overall delinquencies continue to stabilize in the third quarter of fiscal 2011. At December 31, 2010, non-performing loans decreased $65.8 million to $334.1 million since March 31, 2010. Total non-performing assets decreased $52.0 million to $403.4 million at December 31, 2010 from March 31, 2010. The provision for credit losses decreased $100.7 million for the nine months ended December 31, 2010 from $141.8 million for the nine months ended December 31, 2009. Total delinquencies decreased $21.0 million to $352.2 since March 31, 2010.
Net income for the three and nine months ended December 31, 2010 decreased $2.0 million or 19.4% to a net loss of $12.2 million from a net loss of $10.2 million and increased $127.3 million or 84.6% to a net loss of $23.1 million from a net loss of $150.4 million as compared to the respective period in the prior year. The increase in net loss for the three-month period compared to the same period last year was largely due to an increase in provision for credit losses of $11.0 million, a decrease in non-interest income of $4.0 million and a decrease in net interest income of $138,000, which were partially offset by a decrease in non-interest expense of $13.1 million. The decrease in net loss for the nine-month period compared to the same period last year was largely due to a decrease in provision for credit losses of $100.7 million, a decrease in non-interest expense of $26.7 million and an increase in non-interest income of $2.8 million, which were partially offset by a decrease in net interest income of $2.9 million.
Net interest income decreased $138,000 or 0.6% and decreased $2.9 million or 4.3% for the three and nine months ended December 31, 2010, as compared to the respective periods in the prior year. Interest income decreased $12.4 million or 23.2% for the three months ended December 31, 2010, as compared to the same period in the prior year due to a decline in yields on interest earning assets and a reduction in loan balances due to branch sales and loan pay downs. Interest expense decreased $12.3 million or 39.3% for the three months ended December 31, 2010, as compared to the same period in the prior year due to a reduction in deposit accounts due to branch sales, reduced funding needs and improved pricing disciplines. Interest income decreased $39.8 million or 23.6% for the nine months ended December 31, 2010, as compared to the same period in the prior year due to a decline in yields on interest earning assets and a reduction in loan balances due to branch sales and loan pay downs. Interest expense decreased $37.0 million or 35.9% for the nine months ended December 31, 2010, as compared to the same period in the prior year due to a reduction in deposit accounts due to branch sales, reduced funding needs and improved pricing disciplines. The net interest margin increased to 2.51% for the three-month period ended December 31, 2010 from 2.05% for the three-month period in the prior year and increased to 2.25% for the nine-month period ended December 31, 2010 from 1.87% for the same period in the prior year. The change in the net interest margin reflects the decrease in cost of interest-bearing liabilities from 2.79% to 2.07% during the three months ended December 31, 2009 and 2010, respectively. The interest rate spread increased to 2.59% from 2.13% for the three-month period and increased to 2.35% from 1.93% for the nine-month period ended December 31, 2010, as compared to the respective periods in the prior year.
Interest income on loans decreased $11.9 million or 24.5% and $34.4 million or 22.7%, for the three and nine months ended December 31, 2010, as compared to the respective periods in the prior year. These decreases were primarily attributable to a decrease of 33 basis points in the average yield on loans to 5.23% from 5.56% for the three-month period and a decrease of 22 basis points to 5.25% from 5.47% for the nine-month period. The decrease in the yield on loans was due to the level of loans on non-accrual status as well as a modest decline in rates on loans. In addition, the average balances of loans decreased $687.0 million and $721.9 million in the three months and nine months ended December 31, 2010, respectively, as compared to the same periods in th
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