Anchor BanCorp Wisconsin Inc. (ABCW, Financial) filed Amended Quarterly Report for the period ended 2009-06-30.
Anchor Bancorp Wisconsin Inc. has a market cap of $15.18 million; its shares were traded at around $0.7 with and P/S ratio of 0.05.
Net Interest Income. Net interest income decreased $8.5 million or 25.5% for the three months ended June 30, 2009 as compared to the same respective period in the prior year. Interest income decreased $10.4 million or 14.8% for the three months ended June 30, 2009 as compared to the same period in the prior year. Interest expense decreased $1.9 million or 5.1% for the three months ended June 30, 2009 as compared to the same period in the prior year. The net interest margin decreased to 1.99% for the three-month period ended June 30, 2009 from 2.87% for the three-month period ended June 30, 2008. The change in the net interest margin reflects the decrease in yield on interest-earning assets from 6.05% to 4.80% during the three months ended June 30, 2009 and 2008, respectively. The decrease in the yield on interest-earning assets is primarily the result of the reversal of interest income on nonaccrual loans as well as the decline in interest rates. The interest rate spread decreased to 2.01% from 2.83% for the three-month period ended June 30, 2009 as compared to the same respective period in the prior year.
Interest income on loans decreased $11.9 million or 18.1%, for the three months ended June 30, 2009, as compared to the same respective period in the prior year. This decrease was primarily attributable to a decrease of 90 basis points in the average yield on loans to 5.39% from 6.29% for the three-month period. The decrease in the yield on loans was due to the level of loans on nonaccrual status as well as a modest decline in rates on loans. In addition, the average balance of loans decreased $193.6 million in the three months ended June 30, 2009, as compared to the same period in the prior year.
Interest income on mortgage-related securities increased $1.9 million or 52.0% for the three-month period ended June 30, 2009, as compared to the same respective period in the prior year, primarily due to an increase of $144.5 million in the three-month average balance of mortgage-related securities. The increase in the average balance of mortgage-related securities is due to the purchase of securities (all of which were rated AAA) at a significant discount. This increase was offset by a decrease of 2 basis points in the average yield on mortgage-related securities to 5.33% from 5.35% for the three-month period. Interest income on investment securities (including Federal Home Loan Bank stock) decreased $329,000 or 41.1%, for the three-month period ended June 30, 2009 as compared to the same respective periods in the prior year. The decrease for the three-month period was due to a decrease in the average balances. Interest income on interest-bearing deposits decreased $59,000, for the three months ended June 30, 2009 as compared to the same respective period in 2008, primarily due to decreases in the average yields for the three-month period offset by an increase in the average balance.
Interest expense on deposits decreased $2.7 million or 10.1% for the three months ended June 30, 2009, as compared to the same respective period in 2008. This decrease was primarily attributable to a decrease of 67 basis points in the weighted average cost of deposits to 2.43% from 3.10% for the three months ended June 30, 2009, as compared to the same respective period in the prior year, partially offset by an increase in the average balance of deposits of $512.7 million for the respective three-month period. The decrease in the cost of deposits was due to the fact that certificates are repricing at lower rates and interest rates on demand deposits have declined. Interest expense on borrowed funds increased $813,000 or 7.9% during the three months ended June 30, 2009, as compared to the same respective period in the prior year. For the three-month period ended June 30, 2009, the average balance of other borrowed funds decreased $82.1 million, as compared to the same respective period in 2008. The weighted average cost of other borrowed funds increased 59 basis points to 4.17% from 3.58% for the three-month period ended June 30, 2009, respectively, as compared to the same respective period last year.
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Anchor Bancorp Wisconsin Inc. has a market cap of $15.18 million; its shares were traded at around $0.7 with and P/S ratio of 0.05.
Highlight of Business Operations:
General. Net income for the three months ended June 30, 2009 decreased $70.6 million or 1,280.1% to a net loss of $65.1 million from net income of $5.5 million as compared to the same respective period in the prior year. The decrease in net income for the three-month period compared to the same period last year was largely due to an increase in non-interest expense of $12.4 million, an increase in provision for loan losses of $61.0 million and a decrease in net interest income of $8.5 million, which were partially offset by an increase in non-interest income of $7.8 million and a decrease in income tax expense of $3.6 million. A full valuation allowance has been recorded on the deferred tax asset because the Corporation has exhausted its carryback potential and is in a cumulative loss position.Net Interest Income. Net interest income decreased $8.5 million or 25.5% for the three months ended June 30, 2009 as compared to the same respective period in the prior year. Interest income decreased $10.4 million or 14.8% for the three months ended June 30, 2009 as compared to the same period in the prior year. Interest expense decreased $1.9 million or 5.1% for the three months ended June 30, 2009 as compared to the same period in the prior year. The net interest margin decreased to 1.99% for the three-month period ended June 30, 2009 from 2.87% for the three-month period ended June 30, 2008. The change in the net interest margin reflects the decrease in yield on interest-earning assets from 6.05% to 4.80% during the three months ended June 30, 2009 and 2008, respectively. The decrease in the yield on interest-earning assets is primarily the result of the reversal of interest income on nonaccrual loans as well as the decline in interest rates. The interest rate spread decreased to 2.01% from 2.83% for the three-month period ended June 30, 2009 as compared to the same respective period in the prior year.
Interest income on loans decreased $11.9 million or 18.1%, for the three months ended June 30, 2009, as compared to the same respective period in the prior year. This decrease was primarily attributable to a decrease of 90 basis points in the average yield on loans to 5.39% from 6.29% for the three-month period. The decrease in the yield on loans was due to the level of loans on nonaccrual status as well as a modest decline in rates on loans. In addition, the average balance of loans decreased $193.6 million in the three months ended June 30, 2009, as compared to the same period in the prior year.
Interest income on mortgage-related securities increased $1.9 million or 52.0% for the three-month period ended June 30, 2009, as compared to the same respective period in the prior year, primarily due to an increase of $144.5 million in the three-month average balance of mortgage-related securities. The increase in the average balance of mortgage-related securities is due to the purchase of securities (all of which were rated AAA) at a significant discount. This increase was offset by a decrease of 2 basis points in the average yield on mortgage-related securities to 5.33% from 5.35% for the three-month period. Interest income on investment securities (including Federal Home Loan Bank stock) decreased $329,000 or 41.1%, for the three-month period ended June 30, 2009 as compared to the same respective periods in the prior year. The decrease for the three-month period was due to a decrease in the average balances. Interest income on interest-bearing deposits decreased $59,000, for the three months ended June 30, 2009 as compared to the same respective period in 2008, primarily due to decreases in the average yields for the three-month period offset by an increase in the average balance.
Interest expense on deposits decreased $2.7 million or 10.1% for the three months ended June 30, 2009, as compared to the same respective period in 2008. This decrease was primarily attributable to a decrease of 67 basis points in the weighted average cost of deposits to 2.43% from 3.10% for the three months ended June 30, 2009, as compared to the same respective period in the prior year, partially offset by an increase in the average balance of deposits of $512.7 million for the respective three-month period. The decrease in the cost of deposits was due to the fact that certificates are repricing at lower rates and interest rates on demand deposits have declined. Interest expense on borrowed funds increased $813,000 or 7.9% during the three months ended June 30, 2009, as compared to the same respective period in the prior year. For the three-month period ended June 30, 2009, the average balance of other borrowed funds decreased $82.1 million, as compared to the same respective period in 2008. The weighted average cost of other borrowed funds increased 59 basis points to 4.17% from 3.58% for the three-month period ended June 30, 2009, respectively, as compared to the same respective period last year.
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