Anchor Bancorp (NASDAQ:ANCB) (“Company”), the holding company for
Anchor Bank (“Bank”), today reported second quarter earnings for
its fiscal year ending June 30, 2018. For the quarter ended
December 31, 2017, the Company reported a net loss of $1.4
million or $0.58 per diluted share, compared to net income of
$420,000 or $0.17 per diluted share for the quarter ended December
31, 2016. For the six months ended December 31, 2017, the
Company reported a net loss of $359,000 or $0.15 per diluted share,
compared to net income of $993,000 or $0.41 per diluted share for
the same period last year. The loss for the quarter was the
result of a one-time revaluation adjustment to the Company's
deferred tax asset to account for the future impact of lower
corporate tax rates as a result of the Tax Cuts and Jobs Act that
was enacted on December 22, 2017. The tax revaluation
resulted in a $2.4 million increase in the Company's income tax
expense and a ($0.96) reduction in earnings per diluted share for
the second quarter.
"While the reduction in corporate tax rates required a one-time
adjustment to our net deferred tax asset, I am nonetheless pleased
with our core operating results," stated Jerald L. Shaw, President
and Chief Executive Officer. "Income before the provision for
income taxes for the second quarter was $1.4 million which is our
highest level of earnings since the financial crisis. Our net
interest margin increased 11 basis points to 4.27% and our
efficiency ratio improved 145 basis points to 72.1% as compared to
86.6% for the same quarter last year." stated Mr. Shaw.
Fiscal Second Quarter Highlights
- Loans receivable, net, increased $20.3 million, or 5.4%, to
$398.2 million at December 31, 2017 from $377.9 million at June 30,
2017;
- Net interest income before provision for loan losses increased
$431,000, or 10.5%, to $4.5 million for the quarter ended December
31, 2017 compared to $4.1 million for the quarter ended December
31, 2016;
- Net interest margin ("NIM") was 4.27% for the quarter ended
December 31, 2017 compared to 4.16% for the quarter ended December
31, 2016; and
- Allowance for losses as a percent of nonperforming loans
increased to 283.3% from 110.8% at June 30, 2017.
Balance Sheet Review
Total assets increased by $10.3 million, or 2.2%, to $472.8
million at December 31, 2017 from $462.5 million at June 30, 2017.
Cash and cash equivalents decreased by $6.8 million, or 47.7%, to
$7.4 million at December 31, 2017, from $14.2 million at June 30,
2017. Securities available-for-sale and held-to-maturity
decreased $1.3 million, or 6.3%, and $749,000 or 15.1%,
respectively. The decreases in these portfolios were
primarily the result of contractual principal repayments.
Loans receivable, net, increased $20.3 million, or 5.4%, to
$398.2 million at December 31, 2017 from $377.9 million at
June 30, 2017 due to increases in construction and one-to-four
family loans. Construction loans increased $27.9 million, or 56.9%,
to $77.1 million at December 31, 2017 from $49.2 million at June
30, 2017. There was $43.0 million in undisbursed construction
loan commitments at December 31, 2017. Our construction loans are
primarily for the construction of multi-family properties and to a
lesser extent, loans for the construction of single family and
commercial properties. One-to-four family loans increased $5.2
million, or 8.6%, to $64.9 million at December 31, 2017 from $59.7
million at June 30, 2017. All other loan categories decreased.
Commercial real estate loans decreased $9.8 million, or 6.3%, to
$145.7 million at December 31, 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, a $3.2 million loan for two industrial properties and a
$1.0 million loan secured by a professional office property.
We also reclassified a $2.0 million multi-tenant commercial real
estate loan to real estate owned ("REO") and recorded during the
six months ended December 31, 2017 a $200,000 charge upon transfer
to reflect its fair market value. Land loans decreased
$1.5 million, or 18.3%, to $6.6 million at December 31, 2017 from
$8.1 million at June 30, 2017. Multi-family loans decreased
$579,000, or 1.0%, to $59.9 million at December 31, 2017 from $60.5
million at June 30, 2017. Consumer loans decreased $384,000,
or 2.0%, to $18.4 million at December 31, 2017 from $18.7 million
at June 30, 2017. Commercial business loans decreased
$698,000, or 2.2%, to $30.9 million at December 31, 2017 from $31.6
million at June 30, 2017.
Loans receivable consisted of the following at the dates
indicated:
|
December 31,2017 |
|
June 30, 2017 |
|
December 31,2016 |
|
(In thousands) |
Real estate: |
|
|
|
|
|
One-to-four family |
$ |
64,893 |
|
|
$ |
59,735 |
|
|
$ |
60,191 |
|
Multi-family |
59,921 |
|
|
60,500 |
|
|
52,099 |
|
Commercial |
145,749 |
|
|
155,525 |
|
|
139,529 |
|
Construction |
77,136 |
|
|
49,151 |
|
|
44,057 |
|
Land
loans |
6,581 |
|
|
8,054 |
|
|
7,367 |
|
Total
real estate |
354,280 |
|
|
332,965 |
|
|
303,243 |
|
|
|
|
|
|
|
Consumer: |
|
|
|
|
|
Home
equity |
14,013 |
|
|
13,991 |
|
|
15,949 |
|
Credit
cards |
2,405 |
|
|
2,596 |
|
|
2,731 |
|
Automobile |
497 |
|
|
627 |
|
|
650 |
|
Other
consumer |
1,439 |
|
|
1,524 |
|
|
1,791 |
|
Total
consumer |
18,354 |
|
|
18,738 |
|
|
21,121 |
|
|
|
|
|
|
|
Business: |
|
|
|
|
|
Commercial business |
30,905 |
|
|
31,603 |
|
|
34,850 |
|
|
|
|
|
|
|
Total Loans |
403,539 |
|
|
383,306 |
|
|
359,214 |
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
Deferred
loan fees and loan premiums, net |
1,186 |
|
|
1,292 |
|
|
1,226 |
|
Allowance
for loan losses |
4,128 |
|
|
4,106 |
|
|
3,861 |
|
Loans receivable,
net |
$ |
398,225 |
|
|
$ |
377,908 |
|
|
$ |
354,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities increased $10.9 million to $407.6 million at
December 31, 2017 from $396.7 million at June 30, 2017, primarily
as the result of an increase of $17.5 million in FHLB advances,
partially offset by a decrease of $6.7 million in deposits. The
increase in FHLB advances was primarily used as a funding source
for our loan portfolio growth.
Deposits consisted of the following at the dates indicated:
|
December 31, 2017 |
|
June 30, 2017 |
|
December 31, 2016 |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
(Dollars in thousands) |
Noninterest-bearing
demand deposits |
$ |
50,285 |
|
|
14.9 |
% |
|
$ |
52,606 |
|
|
15.2 |
% |
|
$ |
50,546 |
|
|
15.4 |
% |
Interest-bearing demand
deposits |
32,875 |
|
|
9.7 |
|
|
31,464 |
|
|
9.1 |
|
|
29,505 |
|
|
9.0 |
|
Money market
accounts |
62,036 |
|
|
18.3 |
|
|
73,154 |
|
|
21.2 |
|
|
89,969 |
|
|
27.5 |
|
Savings deposits |
45,134 |
|
|
13.3 |
|
|
43,454 |
|
|
12.6 |
|
|
43,890 |
|
|
13.4 |
|
Certificates of
deposit |
148,122 |
|
|
43.8 |
|
|
144,509 |
|
|
41.9 |
|
|
113,686 |
|
|
34.7 |
|
Total
deposits |
$ |
338,452 |
|
|
100.0 |
% |
|
$ |
345,187 |
|
|
100.0 |
% |
|
$ |
327,596 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality
Total delinquent loans (past due 30 days or more), decreased
$1.9 million to $2.2 million at December 31, 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 a 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 December 31, 2017 from 1.0% at June 30, 2017. The Company
recorded a $105,000 provision for loan losses for the quarter ended
December 31, 2017 due to loan growth. The allowance for loan losses
of $4.1 million at December 31, 2017 represented 1.0% of total
loans and 283.3% of nonperforming loans. This compares to an
allowance of $4.1 million at June 30, 2017, representing 1.1% of
total loans and 110.8% of nonperforming loans.
Nonperforming loans decreased to $1.5 million at December 31,
2017, from $3.7 million at June 30, 2017, and were $2.8 million at
December 31, 2016. Nonperforming loans consisted of the
following at the dates indicated:
|
December 31,2017 |
|
June 30, 2017 |
|
December 31,2016 |
|
(In thousands) |
Real estate: |
|
|
|
|
|
One-to-four family |
$ |
949 |
|
|
$ |
1,170 |
|
|
$ |
2,421 |
|
Commercial |
— |
|
|
1,992 |
|
|
201 |
|
Total
real estate |
949 |
|
|
3,162 |
|
|
2,622 |
|
Consumer: |
|
|
|
|
|
Home
equity |
223 |
|
|
242 |
|
|
68 |
|
Total
consumer |
223 |
|
|
242 |
|
|
68 |
|
Business: |
|
|
|
|
|
Commercial business |
285 |
|
|
300 |
|
|
85 |
|
Total |
$ |
1,457 |
|
|
$ |
3,704 |
|
|
$ |
2,775 |
|
|
|
|
|
|
|
As of December 31, 2017, the Company had three REO properties
with an aggregate book value of $3.3 million compared to three
properties with an aggregate book value of $867,000 at June 30,
2017, and two properties with an aggregate book value of $103,000
at December 31, 2016. The increase in the aggregate book value
of REO properties was primarily attributable to the
reclassification of the commercial real estate loan discussed above
and capital improvements incurred subsequent to its transfer to
REO. The increase was partially offset by a sale of a
one-to-four family property for $115,000 resulting in a loss on
sale of $15,000.
Capital
As of December 31, 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 13.0%,
14.1%, 14.1%, and 15.1% respectively. As of December 31,
2016, the Bank's Tier 1 Leverage-Based Capital, CET1, Tier 1
Risk-Based Capital, and Total Risk-Based Capital ratios were 13.3%,
14.2%, 14.2%, and 15.2%, 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 14.0%, 15.2%, 15.2%, and 16.1%
as of December 31, 2017. As of December 31, 2016, the
Company's Tier 1 Leverage-Based Capital, CET1, Tier 1 Risk-Based
Capital, and Total Risk-Based Capital ratios were 14.3%, 15.2%,
15.2%, and 16.2%, respectively.
Operating Results
Net interest income. Net interest income before the provision
for loan losses increased $431,000, or 10.5%, to $4.5 million for
the quarter ended December 31, 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 December 31, 2017 increased $37.4 million, or 10.4%,
to $396.4 million compared to $359.0 million for the quarter ended
December 31, 2016.
The Company's net interest margin was 4.27% for the quarter
ended December 31, 2017 compared to 4.16% for the quarter ended
December 31, 2016. The average yield on loans receivable, net,
increased 14 basis points to 5.42% for the quarter ended December
31, 2017 compared to 5.28% for the same period of the prior year,
reflecting the increase in high yield construction loans. The
average yield on mortgage-backed securities increased to 2.14% from
1.98% for the same period in the prior year primarily due to a
decrease of large principal pay downs resulting in an increase in
amortization of premiums. The average yield on interest-earning
assets increased 22 basis points to 5.18% from 4.96% for the
quarters ended December 31, 2017 and 2016, respectively. The
average cost of total deposits increased 13 basis points to 1.12%
for the quarter ended December 31, 2017 compared to 0.99% for the
same period in the prior year. The average cost of
interest-bearing liabilities increased 14 basis points to 1.14% for
the quarter ended December 31, 2017 compared to 1.00% for the same
period in the prior year, reflecting the increases in both FHLB
advances and in the federal funds rate over the last year.
Net interest income before the provision for loan losses increased
$704,000, or 8.6%, to $8.9 million for the six months ended
December 31, 2017 compared to $8.2 million for the same period last
year primarily due to the increase in average loans receivable, net
over the last year. The average yield on interest-earning assets
increased 17 basis point to 5.12% for the six months ended December
31, 2017 compared to 4.95% for the same period in the prior year
primarily due to the increase in the average yield on loans
receivable, net. The average cost of interest-bearing
liabilities increased 14 basis points to 1.14% for the six months
ended December 31, 2017 compared to 1.00% for the same period of
the prior year, for the reasons stated above.
Provision for loan losses. In connection with its analysis of
the loan portfolio, management determined that a $105,000 provision
for loan losses was required for the quarter ended December 31,
2017 compared to $75,000 for the same period last year, primarily
reflecting our recent loan growth. Provision for loan losses
for the six months ended December 31, 2017 was $180,000 compared to
$150,000 for the same period last year.
Noninterest income. Noninterest income remained relatively the
same at $1.0 million for both the quarters ended December 31, 2017
and 2016. A decrease of $71,000 in deposit service fees from
$348,000 to $277,000 as consumers reduced their deposit account
overdrafts was partially offset by an increase for gain on sales of
loans of $48,000 due to an increase in loans sold.
Noninterest income increased $21,000, or 1.0%, to $2.1 million
during the six months ended December 31, 2017 which was relatively
unchanged from the same period in 2016.
Noninterest expense. Noninterest expense decreased $427,000, or
9.7%, to $4.0 million for the quarter ended December 31, 2017 from
$4.4 million for the quarter ended December 31, 2016. General
and administrative expenses declined $261,000 to $572,000 for the
quarter ended December 31, 2017 compared to $833,000 for the
quarter ended December 31, 2016. This decrease was mainly due to no
unfunded loan reserve commitment expense during the current quarter
compared to a $75,000 unfunded loan reserve commitment expense in
the quarter ended December 31, 2016, and a $46,000 reduction in
legal fees and a $31,000 decrease in contribution expense between
the periods. Marketing decreased $83,000 to $84,000 for the
quarter ended December 31, 2017 from $167,000 for the same quarter
last year. Compensation and benefits expense decreased
$76,000 or 3.3%, to $2.2 million for the quarter ended December 31,
2017 from $2.3 million for the same period in the previous year.
The decrease was primarily due to a reduction in stock-based
compensation expense related to the Anchor Bancorp 2015 Equity Plan
to $19,000 for the quarter ended December 31, 2017 from $147,000
for the same quarter last year and incentive loan commission
decreasing $105,000 from $180,000 for the same quarter last
year. These decreases were partially offset by $245,000 for
retention bonuses paid this quarter associated with the pending
merger with Washington Federal, Inc. Noninterest expense
decreased $822,000, or 9.4%, to $7.9 million during the six months
ended December 31, 2017 compared to $8.7 million for the same
period in 2016 primarily due to a $301,000 decrease in compensation
and benefits expense and a $424,000 decline in general and
administrative expenses.
About the CompanyAnchor 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 SUBSIDIARYCONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION(Dollars in thousands) (unaudited) |
December 31,2017 |
|
June 30, 2017 |
|
|
|
|
ASSETS |
|
|
|
Cash and
cash equivalents |
$ |
7,418 |
|
|
$ |
14,194 |
|
Securities available-for-sale, at fair value |
19,829 |
|
|
21,170 |
|
Securities held-to-maturity, at amortized cost |
4,200 |
|
|
4,949 |
|
Loans
held for sale |
— |
|
|
1,551 |
|
Loans
receivable, net of allowance for loan losses of $4,128 and
$4,106 |
398,225 |
|
|
377,908 |
|
Bank
owned life insurance investment, net of surrender charges |
20,288 |
|
|
20,030 |
|
Accrued
interest receivable |
1,453 |
|
|
1,332 |
|
Real
estate owned, net |
3,346 |
|
|
867 |
|
Federal
Home Loan Bank (FHLB) stock, at cost |
3,048 |
|
|
2,348 |
|
Property,
premises and equipment, net |
8,887 |
|
|
9,360 |
|
Deferred
tax asset, net |
4,869 |
|
|
8,011 |
|
Prepaid
expenses and other assets |
1,229 |
|
|
805 |
|
Total
assets |
$ |
472,792 |
|
|
$ |
462,525 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
LIABILITIES |
|
|
|
Deposits: |
|
|
|
Noninterest-bearing |
$ |
50,285 |
|
|
$ |
52,606 |
|
Interest-bearing |
288,167 |
|
|
292,581 |
|
Total
deposits |
338,452 |
|
|
345,187 |
|
|
|
|
|
FHLB
advances |
63,000 |
|
|
45,500 |
|
Advance
payments by borrowers for taxes and insurance |
1,199 |
|
|
1,195 |
|
Supplemental Executive Retirement Plan liability |
1,724 |
|
|
1,709 |
|
Accounts
payable and other liabilities |
3,220 |
|
|
3,083 |
|
Total
liabilities |
407,595 |
|
|
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;
2,489,030 issued and outstanding at December 31, 2017 and 2,504,740
issued and outstanding at June 30, 2017 |
25 |
|
|
25 |
|
Additional paid-in capital |
22,344 |
|
|
22,619 |
|
Retained
earnings |
44,226 |
|
|
44,585 |
|
Unearned
Employee Stock Ownership Plan (ESOP) shares |
(573 |
) |
|
(607 |
) |
Accumulated other comprehensive loss, net of tax |
(825 |
) |
|
(771 |
) |
Total
stockholders’ equity |
65,197 |
|
|
65,851 |
|
Total
liabilities and stockholders’ equity |
$ |
472,792 |
|
|
$ |
462,525 |
|
|
|
|
|
|
|
|
|
ANCHOR BANCORP
AND SUBSIDIARYCONSOLIDATED STATEMENTS OF
INCOME(Dollars in thousands, except per share
data)(unaudited) |
Three Months EndedDecember 31, |
|
Six Months EndedDecember 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Interest income: |
|
|
|
|
|
|
|
Loans
receivable, including fees |
$ |
5,371 |
|
|
$ |
4,742 |
|
|
$ |
10,504 |
|
|
$ |
9,394 |
|
Securities |
25 |
|
|
30 |
|
|
59 |
|
|
53 |
|
Mortgage-backed securities |
128 |
|
|
140 |
|
|
257 |
|
|
307 |
|
Total
interest income |
5,524 |
|
|
4,912 |
|
|
10,820 |
|
|
9,754 |
|
Interest expense: |
|
|
|
|
|
|
|
Deposits |
843 |
|
|
659 |
|
|
1,686 |
|
|
1,279 |
|
FHLB
advances |
132 |
|
|
135 |
|
|
240 |
|
|
285 |
|
Total
interest expense |
975 |
|
|
794 |
|
|
1,926 |
|
|
1,564 |
|
Net
interest income before provision for loan losses |
4,549 |
|
|
4,118 |
|
|
8,894 |
|
|
8,190 |
|
Provision for loan
losses |
105 |
|
|
75 |
|
|
180 |
|
|
150 |
|
Net
interest income after provision for loan losses |
4,444 |
|
|
4,043 |
|
|
8,714 |
|
|
8,040 |
|
Noninterest
income: |
|
|
|
|
|
|
|
Deposit
service fees |
277 |
|
|
348 |
|
|
590 |
|
|
696 |
|
Other
deposit fees |
187 |
|
|
179 |
|
|
387 |
|
|
373 |
|
Other
loan fees |
172 |
|
|
207 |
|
|
400 |
|
|
442 |
|
Gain
(loss) on sale of loans |
47 |
|
|
(1 |
) |
|
157 |
|
|
100 |
|
Bank
owned life insurance investment |
129 |
|
|
130 |
|
|
258 |
|
|
262 |
|
Other
income |
179 |
|
|
123 |
|
|
372 |
|
|
270 |
|
Total
noninterest income |
991 |
|
|
986 |
|
|
2,164 |
|
|
2,143 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
Compensation and benefits |
2,220 |
|
|
2,296 |
|
|
4,305 |
|
|
4,606 |
|
General
and administrative expenses |
572 |
|
|
833 |
|
|
1,145 |
|
|
1,569 |
|
Merger
expenses |
— |
|
|
— |
|
|
34 |
|
|
— |
|
Real
estate owned holding costs |
36 |
|
|
19 |
|
|
66 |
|
|
37 |
|
Federal
Deposit Insurance Corporation insurance premiums |
41 |
|
|
24 |
|
|
77 |
|
|
92 |
|
Information technology |
490 |
|
|
540 |
|
|
1,027 |
|
|
1,025 |
|
Occupancy
and equipment |
435 |
|
|
441 |
|
|
868 |
|
|
948 |
|
Deposit
services |
101 |
|
|
128 |
|
|
205 |
|
|
240 |
|
Marketing |
84 |
|
|
167 |
|
|
175 |
|
|
267 |
|
Loss on
sale of property, premises and equipment |
— |
|
|
— |
|
|
5 |
|
|
— |
|
Loss
(gain) on sale of real estate owned |
15 |
|
|
(27 |
) |
|
15 |
|
|
(40 |
) |
Total
noninterest expense |
3,994 |
|
|
4,421 |
|
|
7,922 |
|
|
8,744 |
|
Income
before provision for income taxes |
1,441 |
|
|
608 |
|
|
2,956 |
|
|
1,439 |
|
Provision for income
taxes |
2,844 |
|
|
188 |
|
|
3,315 |
|
|
446 |
|
Net (loss) income |
$ |
(1,403 |
) |
|
$ |
420 |
|
|
$ |
(359 |
) |
|
$ |
993 |
|
Basic (loss) earnings
per share |
$ |
(0.58 |
) |
|
$ |
0.17 |
|
|
$ |
(0.15 |
) |
|
$ |
0.41 |
|
Diluted (loss) earnings
per share |
$ |
(0.58 |
) |
|
$ |
0.17 |
|
|
$ |
(0.15 |
) |
|
$ |
0.41 |
|
Weighted average number
of basic shares outstanding |
2,429,352 |
|
|
2,404,292 |
|
|
2,425,200 |
|
|
2,396,421 |
|
Weighted average number
of diluted shares outstanding |
2,429,352 |
|
|
2,424,976 |
|
|
2,425,200 |
|
|
2,417,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or For the Quarter Ended(unaudited) |
|
December 31,2017 |
|
September 30,2017 |
|
June 30,2017 |
|
December 31,2016 |
|
(Dollars in thousands) |
SELECTED
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
Return on average
assets (1) |
(1.22 |
)% |
|
0.93 |
% |
|
0.58 |
% |
|
0.39 |
% |
Return on average
equity (2) |
(9.31 |
) |
|
6.85 |
|
|
4.48 |
|
|
2.85 |
|
Average
equity-to-average assets (3) |
13.12 |
|
|
13.52 |
|
|
12.85 |
|
|
13.76 |
|
Interest rate
spread(4) |
4.05 |
|
|
3.91 |
|
|
4.11 |
|
|
3.95 |
|
Net interest margin
(5) |
4.27 |
|
|
4.14 |
|
|
4.32 |
|
|
4.16 |
|
Efficiency ratio
(6) |
72.1 |
|
|
71.2 |
|
|
82.9 |
|
|
86.6 |
|
Average
interest-earning assets to average interest-bearing
liabilities |
124.1 |
|
|
125.8 |
|
|
124.2 |
|
|
125.4 |
|
Other operating
expenses as a percent of average total assets |
3.5 |
% |
|
3.5 |
% |
|
4.1 |
% |
|
4.1 |
% |
Book value per common
share |
$ |
26.19 |
|
|
$ |
26.76 |
|
|
$ |
26.29 |
|
|
$ |
25.58 |
|
Tangible book value per
common share (7) |
$ |
26.09 |
|
|
$ |
26.67 |
|
|
$ |
26.20 |
|
|
$ |
25.50 |
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS
(Anchor Bank) |
|
|
|
|
|
|
|
Tier 1 leverage |
13.0 |
% |
|
13.3 |
% |
|
13.0 |
% |
|
13.3 |
% |
Common equity tier 1
capital |
14.1 |
|
|
14.0 |
|
|
14.1 |
|
|
14.2 |
|
Tier 1 risk-based |
14.1 |
|
|
14.0 |
|
|
14.1 |
|
|
14.2 |
|
Total risk-based |
15.1 |
|
|
14.9 |
|
|
15.1 |
|
|
15.2 |
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
|
|
|
|
|
|
Nonaccrual and loans 90
days or more past due and still accruing interest as a percent of
total loans |
0.4 |
% |
|
0.4 |
% |
|
1.0 |
% |
|
0.8 |
% |
Allowance for loan
losses as a percent of total loans |
1.0 |
|
|
1.0 |
|
|
1.1 |
|
|
1.1 |
|
Allowance as a percent
of total nonperforming loans |
283.3 |
|
|
274.4 |
|
|
110.8 |
|
|
139.1 |
|
Nonperforming assets as
a percent of total assets |
1.0 |
|
|
0.9 |
|
|
1.0 |
|
|
0.7 |
|
Net charge-offs
(recoveries) to average outstanding loans |
0.00 |
% |
|
0.04 |
% |
|
(0.03 |
)% |
|
0.10 |
% |
Classified loans |
$ |
1,449 |
|
|
$ |
1,607 |
|
|
$ |
3,721 |
|
|
$ |
3,115 |
|
|
|
|
|
|
|
|
|
(1) |
|
Net (loss)
income divided by average total assets, annualized. |
(2) |
|
Net (loss)
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.
|
December 31,2017 |
|
September 30,2017 |
|
June 30,2017 |
|
December 30,2016 |
|
(In thousands) |
|
|
|
|
|
|
|
|
Stockholders'
equity |
$ |
65,197 |
|
|
$ |
66,776 |
|
|
$ |
65,851 |
|
|
$ |
64,082 |
|
Less:
intangible assets |
260 |
|
|
246 |
|
|
232 |
|
|
213 |
|
Tangible common
stockholders' equity |
$ |
64,937 |
|
|
$ |
66,530 |
|
|
$ |
65,619 |
|
|
$ |
63,869 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
472,792 |
|
|
$ |
460,387 |
|
|
$ |
462,525 |
|
|
$ |
440,911 |
|
Less:
intangible assets |
260 |
|
|
246 |
|
|
232 |
|
|
213 |
|
Tangible assets |
$ |
472,532 |
|
|
$ |
460,141 |
|
|
$ |
462,293 |
|
|
$ |
440,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
stockholders' equity |
$ |
64,937 |
|
|
$ |
66,530 |
|
|
$ |
65,619 |
|
|
$ |
63,869 |
|
Common shares
outstanding at end of period |
2,489,030 |
|
|
2,494,940 |
|
|
2,504,740 |
|
|
2,504,740 |
|
Common stockholders'
equity (book value) per share (GAAP) |
$ |
26.19 |
|
|
$ |
26.76 |
|
|
$ |
26.29 |
|
|
$ |
25.58 |
|
Tangible common
stockholders' equity (tangible book value) per share
(non-GAAP) |
$ |
26.09 |
|
|
$ |
26.67 |
|
|
$ |
26.20 |
|
|
$ |
25.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:Jerald L. Shaw, President and
Chief Executive OfficerTerri L. Degner, EVP and
Chief Financial OfficerAnchor
Bancorp(360) 491-2250
Grafico Azioni Anchor Bancorp (delisted) (NASDAQ:ANCB)
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