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Anchor BanCorp Wisconsin Inc. Reports Operating Results (10-Q)

February 08, 2013 | About:
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10qk

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Anchor BanCorp Wisconsin Inc. (ABCW) filed Quarterly Report for the period ended 2012-12-31.

Anchor Bancorp Wisconsin Inc has a market cap of $13.8107 million; its shares were traded at around $0.65 with and P/S ratio of 0.1201.

Highlight of Business Operations:

Net interest income decreased $0.8 million or 5.1% for the three months ended December 31, 2012, as compared to the same period in the prior year. Interest income decreased $5.8 million or 19.5% for the quarter ended December 31, 2012, compared to the same period in the prior year, primarily due to a decline in average balances in the loan portfolios, partially offset by an increase in investment security average balances and a decrease in the average balance of lower yielding interest-earning deposits. Interest expense decreased $5.0 million or 36.1% for the three months ended December 31, 2012, as compared to the same period in the prior year primarily due to a reduction in certificate of deposit (CD) average balances and the rate paid on these accounts. The net interest margin increased to 2.42% for the three-month period ended December 31, 2012 from 2.18% for the respective period in the prior year.

The increase in net gain on sale of loans of $1.1 million was primarily attributable to significantly higher margins on sale of residential mortgage loans, partially offset by a lower volume of sales in the current year period of $258.4 million compared to $413.2 million in the same quarter a year ago. Loan servicing income improvement of $0.6 million in the current quarter compared to the respective period a year ago was primarily due to lower amortization charges related to the mortgage servicing right asset reflecting lower market interest rates at the end of December 2012 partially offset by a 6.2% year-over-year decrease in the serviced loan portfolio.

The increase in net gain on sale of loans of $8.9 million was primarily attributable to a higher volume of residential mortgage loan sales in the current year period of $760.7 million compared to $639.8 million in the same nine-month period a year ago; as well as higher margins on sale. Net gain on sale of OREO increased to $5.5 million in the nine months ending December 31, 2012 from $4.2 million in the year ago period largely due to the impact of improved market conditions on prices at which property is being sold from the inventory of repossessed property. Net gain on sale of investment securities fell by $6.4 million, to a slight loss of $0.1 million in the nine months ended December 31, 2012, primarily due to a significant decrease in the level of investment security sale activity, as proceeds from sale totaled $5.8 million in the current period compared to $333.8 million of proceeds from sale in the same period a year ago. The loan servicing decrease of $1.7 million in the current period compared to the respective period a year ago was primarily due to higher amortization charges related to the mortgage servicing right asset reflecting a lower interest rate environment in 2012 versus 2011.

Interest-earning deposits totaled $135.7 million at December 31, 2012, down $60.2 million from $195.9 million at March 31, 2012. The decrease in interest-earning deposits was primarily due to opportunities during the second and third quarters of fiscal 2013 to invest excess liquidity in investment securities at attractive risk-adjusted spreads. Purchases of investment securities available-for-sale totaled $35.8 million and $20.5 million in the quarters ending December 31, 2012 and September 30, 2012, respectively.

Investment securities available for sale increased, by $19.2 million during the nine months ended December 31, 2012, as a result of purchases of $56.3 million, sales of $5.9 million, principal collections of $32.9 million, a net increase in fair value of $2.7 million, premium amortization net of discount accretion of $0.7 and net realized and unrealized impairment losses of $0.3 million in the period.

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