Printer Friendly

ANCHOR BANCORP ANNOUNCES SECOND QUARTER INCREASE IN CORE EARNINGS

 ANCHOR BANCORP ANNOUNCES SECOND QUARTER INCREASE IN CORE EARNINGS
 HEWLETT, N.Y., Jan. 16 /PRNewswire/ -- Anchor Bancorp, Inc. (NASDAQ: ABKR), parent company of Anchor Savings Bank FSB, today reported net income for the second fiscal quarter ended Dec. 31, 1991, of $11 million before the accumulation of preferred stock dividends of $3.2 million as compared to net income of $7.6 million before preferred stock dividends of $3.5 million for the comparable quarter of last year. This amounted to net income per common share of 45 cents for the second fiscal quarter of 1992 as compared to 24 cents per common share for the comparable prior-year quarter.
 For the first six months of fiscal 1992, Anchor's net income amounted to $28.1 million before the accumulation of $6.5 million in preferred stock dividends or $1.24 per share. This compares to net income of $13.7 million before preferred stock dividends of $6.8 million or 39 cents per share in the prior year.
 In making the announcement, James M. Large Jr., chairman and chief executive officer, stated, "I am pleased to see that core earnings continued to grow, despite the sale of higher yielding earning assets at the end of the first fiscal quarter in order to enhance capital." He added, "It is most satisfying to see that our 2-1/2-year effort to return Anchor to health has resulted in the elimination of operating losses, an increase of over $340 million in regulatory tangible capital and a record of seven consecutive quarters of increasing core profitability."
 As a result of this performance, Anchor was in compliance for the second consecutive quarter with the minimum levels of regulatory capital currently mandated by the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) on Dec. 31, 1991. However, Large cautioned that Anchor could temporarily fall out of compliance over the short term as FIRREA required the amount of Anchor's goodwill allowed in calculating the leverage capital ratio to be reduced by approximately $40 million on Jan. 1, 1992, with the remainder being eliminated by 1994.
 Large noted that meeting currently applicable minimum levels of regulatory capital at Dec. 31, 1991, would appear to permit the Office of Thrift Supervision (OTS) to determine that the conditions of approval to Anchor's capital plan have been satisfied. However, he noted that the OTS has proposed to increase the leverage capital requirement for most of the industry from 3 percent to at least 4 percent. In addition, the Federal Deposit Insurance Corporation Improvement Act of 1991, signed by the president on Dec. 19, 1991, among other things, requires the OTS to take "prompt corrective action" against financial institutions which have less than a critical tangible capital ratio to be set by the OTS (but not less than 2 percent of total assets) by Dec. 19, 1992. Institutions in compliance with previously approved capital plans are not subject to these actions. Large indicated that Anchor is prepared to submit a capital plan modification detailing how Anchor can achieve the newly proposed standards within a reasonable time frame.
 Core pretax earnings amounted to $12.7 million for the second quarter of fiscal 1992, up from $12.2 million in the preceding quarter and up from $2.8 million in the comparable prior-year period. The rate of growth in core pretax earnings slowed, as net interest income remained virtually unchanged. Large stated, "The yields on adjustable rate mortgage loans and mortgage-backed securities came under heavy pressure during the quarter as short-term Treasury rates plummeted. Fortunately, to date we have been able to hold our own by the aggressive downward repricing of our deposit base." The improvement in core earnings primarily resulted from a further decline in the level of general and administrative expenses. Large cautioned that maintaining interest rate margins in today's rate environment could be increasingly difficult in view of the limited amount of adjustable rate mortgage products being produced in today's markets and the resultant narrowing of interest rate spread relationships.
 As the quarter ended, Anchor's loan portfolio continued to perform well with non-performing loans and real estate owned remaining below 1 percent of total assets. Anchor's regulatory tangible capital amounted to $133.7 million or 1.7 percent of assets while regulatory leverage capital amounted to $254.1 million or 3.2 percent of assets at Dec. 31, 1991. Risk-based regulatory capital amounted to $279.9 million or 8.4 percent of risk-weighted assets at that date, $38.8 million in excess of the existing capital requirement, which is 7.2 percent of risk-weighted assets.
 Second Quarter Fiscal 1992 Operating Statistics
 Net interest income amounted to $45.5 million in the second quarter of fiscal 1992 as compared to $39.4 million in the comparable prior-year period, an increase of 15.5 percent. The net yield on average earning assets amounted to 2.41 percent, a significant improvement from the 1.90 percent reported in the second quarter of last year. The sharp decline of short-term rates and an aggressive approach to deposit pricing were the principal factors underlying the improvement. The cost of deposits declined to 5.91 percent in the current quarter from 7.45 percent in the second quarter of fiscal 1991.
 The total provision for credit losses amounted to $5.1 million for the current quarter, the same as in the comparable prior year quarter. Net loans charged off to the allowance for credit losses were $5.3 million in the current quarter as compared to $8.1 million in the second quarter of fiscal 1991. Anchor's allowance for credit losses amounted to $23.9 million with non-accrual loans and real estate owned of $78.3 million or 0.95 percent of total assets at Dec. 31, 1991, as compared to the allowance for credit losses of $21.4 million and non-accrual loans and real estate owned of $74 million or 0.84 percent of total assets at Dec. 31, 1990.
 Gains on the sale of earning assets amounted to $0.6 million during the quarter as compared to $8.2 million in the prior-year period. Loans held for sale at the end of the quarter amounted to $36.0 million and represented loans originated for sale in the secondary market. No loans were transferred to this category from the investment portfolio during the quarter.
 Mortgage banking income amounted to $4.4 million, up from the $3.2 million earned in the comparable prior year quarter primarily due to secondary market gains.
 General and administrative expenses for the second quarter, exclusive of restructuring charge, amounted to $30.7 million or $4.2 million less than that in the comparable year-quarter. The improvement relates primarily to Anchor's exit from the Georgia market.
 Goodwill amortization expense amounted to $4.3 million in the current quarter, up $0.8 million from the level existing in the comparable quarter of last year. This increase was due to a reduction in the amortization periods in order to comply with SEC regulations when Anchor formed a holding company in March of 1991.
 Anchor Savings Bank is among the 25 largest U.S. thrifts with deposits of over $6.6 billion as of Dec. 31, 1991. It operates branches in three market areas: metropolitan New York/New Jersey, upstate New York and Florida.
 ANCHOR BANCORP, INC. AND SUBSIDIARIES
 Consolidated Statements of Income
 (In thousands, except per-share amounts -- unaudited)
 Three Months Six Months
 Periods ended Dec. 31; 1991 1990 1991 1990
 Interest income:
 Loans receivable &
 loans held for sale:
 First mortgage loans $30,648 $49,934 $63,693 $100,743
 Cooperative apt. loans 10,349 13,588 21,325 27,378
 Consumer &
 commercial loans 17,973 22,825 37,679 46,120
 Mortgage-backed securities
 & mortgage-backed
 securities held for sale 92,960 98,008 189,953 186,752
 Money market investments 5,411 16,168 13,357 40,952
 Investment securities &
 investment securities
 held for sale 3,435 4,810 7,029 10,458
 Total interest income 160,776 205,333 333,036 412,403
 Interest expense:
 Deposits 98,631 137,718 204,930 277,830
 Borrowed funds & pfd. stock
 of finance subsidiaries 16,669 28,239 36,833 56,689
 Total interest expense 115,300 165,957 241,763 334,519
 Net interest income 45,476 39,376 91,273 77,884
 Provision for credit losses (5,100) (5,100) (10,200) (10,200)
 Net interest income after
 provision for credit losses 40,376 34,276 81,073 67,684
 Non-interest income:
 Gain on sales of
 earning assets, net 591 8,241 8,620 14,259
 Mortgage banking income 4,350 3,178 8,188 6,707
 Other 4,348 5,197 9,116 9,976
 Total non-interest income 9,289 16,616 25,924 30,942
 Non-interest expense:
 General & administrative:
 Compensation & benefits 14,176 15,843 28,366 32,103
 Occupancy & equipment 4,828 6,100 9,819 12,386
 Federal deposit
 insurance premiums 3,853 3,668 7,706 7,369
 Other 7,833 9,232 16,041 18,446
 Total 30,690 34,843 61,932 70,304
 Amortization of excess cost
 over fair value of net
 assets acquired 4,284 3,460 8,616 6,968
 Amortization of cost of loan
 servicing rights acquired 1,421 1,044 2,928 2,154
 Restructuring charges 324 2,207 672 2,522
 Total non-interest expense 36,719 41,554 74,148 81,948
 Income before income tax
 exp. & extraordinary item 12,946 9,338 32,849 16,678
 Income tax expense 7,970 7,381 18,995 12,061
 Inc. before extraord. item 4,976 1,957 13,854 4,617
 Extraordinary item - federal
 income tax benefit of net
 oper. loss carryforwards 6,070 5,689 14,272 9,092
 Net income 11,046 7,646 28,126 13,709
 Divs. on Class A pfd. stock 3,159 3,513 6,477 6,831
 Net income applicable
 to common stock 7,887 4,133 21,649 6,878
 Income (loss) per common share:
 Income (loss) before
 extraordinary item $.10 $(.09) $.42 $(.13)
 Extraordinary item .35 .33 .82 .52
 Net income .45 .24 1.24 .39
 Consolidated Statements of Financial Condition
 (In thousands -- unaudited)
 Periods ended Dec. 31, 1991 June 30, 1991
 Assets
 Cash & due from banks $82,322 $74,218
 Money market investments 436,448 788,519
 Loans & securities held for sale 36,031 34,695
 Investment securities 157,586 169,544
 Mortgage-backed securities 4,689,833 4,254,361
 Loans receivable:
 First mortgage loans 1,264,655 1,364,652
 Cooperative apartment loans 435,214 461,100
 Consumer & commercial loans 761,037 825,019
 Less allowance for credit losses (23,866) (24,027)
 Loans receivable, net 2,437,040 2,626,744
 Accrued interest receivable 54,196 60,366
 Premises & equipment 45,086 46,659
 Excess of cost over fair
 value of net assets acquired 242,436 251,353
 Cost of loan servicing rights acquired 32,709 29,011
 Other assets 64,212 79,974
 Total 8,277,899 8,415,444
 Liabilities, preferred stock of
 finance subsidiaries and
 stockholders' equity
 Liabilities:
 Deposits $6,622,363 $6,706,185
 Borrowed funds 1,096,565 1,054,630
 Mortgage escrow funds 43,171 63,520
 Accrued expenses & other liabilities 56,873 88,166
 Total 7,818,972 7,912,501
 Preferred stock of finance subsidiaries 75,000 150,000
 Stockholders' equity:
 Preferred stock:
 Class A preferred stock,
 $1 par value; 3,140,000 shares
 authorized, issued and outstanding 3,140 3,140
 Additional paid-in capital 153,860 153,860
 Total preferred stock 157,000 157,000
 Common stock:
 $0.01 par value,
 70 million shares authorized;
 17,595,000 shares issued & outstanding 176 176
 Additional paid-in capital 191,954 191,954
 Total common stock 192,130 192,130
 Retained income 35,344 7,218
 Net unrealized depreciation of certain
 marketable equity securities -- (2,858)
 Less treasury stock at cost
 (119,000 common shares) (547) (547)
 Sub total 383,927 352,943
 Total liabilities, preferred stock
 and stockholders' equity $8,277,899 $8,415,444
 -0- 1/16/92
 /CONTACT: Thomas K. Hernly of Anchor Bancorp, 516-596-3902/
 (ABKR) CO: Anchor Bancorp Inc. ST: New York IN: FIN SU: ERN


CK-TJ -- NY050 -- 0570 01/16/92 13:44 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 16, 1992
Words:2042
Previous Article:THIOKOL DECLARES SECOND QUARTER DIVIDEND
Next Article:DIAGNON CORPORATION REPORTS RESULTS
Topics:


Related Articles
ATLANFED BANCORP ANNOUNCES EARNINGS
CITIZENS FIRST BANCORP REPORTS INCREASED PROFITABILITY
ANCHOR BANCORP ANNOUNCES FISCAL 1992 EARNINGS
CITFED BANCORP FIRST QUARTER EARNINGS UP 24.6 PERCENT; RECORDS NET INCOME OF $2.1 MILLION
PROVIDENT BANCORP ANNOUNCES IMPROVED THIRD QUARTER RESULTS BEFORE NON-RECURRING MERGER CHARGES
CITFED BANCORP SECOND QUARTER EARNINGS UP 71.9 PERCENT; YEAR-TO-DATE EARNINGS IMPROVED BY 44.8 PERCENT
ANCHOR BANCORP REPORTS INCREASED SECOND QUARTER CORE EARNINGS AND THE RETROACTIVE ADOPTION OF SFAS NO. 109
ANCHOR BANCORP ANNOUNCES INCREASED THIRD QUARTER EARNINGS
ANCHOR BANCORP ANNOUNCES FISCAL 1993 EARNINGS
HOME BANCORP REPORTS SECOND QUARTER EARNINGS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters