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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
---------------- -------------------
COMMISSION FILE NUMBER 0-20006
ANCHOR BANCORP WISCONSIN INC.
-----------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Wisconsin 39-1726871
------------ ------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
25 West Main Street
Madison, Wisconsin 53703
--------------------- -------
(Address of principal executive office) (ZIP CODE)
(608) 252-8700
----------------
Registrant's telephone number, including area code
Not Applicable
-------------------
(Former name, former address, and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes |X| No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class: Common stock -- $.10 Par Value
Number of shares outstanding as of July 31, 2002: 24,994,720
ANCHOR BANCORP WISCONSIN INC.
INDEX - FORM 10-Q
PART I - FINANCIAL INFORMATION PAGE #
------
Item 1 Financial Statements (Unaudited)
Consolidated Balance Sheets as of June 30, 2002
and March 31, 2002 2
Consolidated Statements of Income for the Three
Months Ended June 30, 2002 and 2001 3
Consolidated Statements of Cash Flows for the Three Months
Ended June 30, 2002 and 2001 4
Notes to Unaudited Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations 9
Financial Condition 13
Asset Quality 14
Liquidity & Capital Resources 16
Asset/Liability Management 18
Segment Reporting 19
Item 3 Quantitative and Qualitative Disclosures About Market Risk 21
PART II - OTHER INFORMATION
Item 1 Legal Proceedings 21
Item 2 Changes in Securities and Use of Proceeds 21
Item 3 Defaults upon Senior Securities 21
Item 4 Submission of Matters to a Vote of Security Holders 22
Item 5 Other Information 22
Item 6 Exhibits and Reports on Form 8-K 22
SIGNATURES 25
I
CONSOLIDATED BALANCE SHEETS
(Unaudited)
JUNE 30, MARCH 31,
2002 2002
----------------------------------
(In Thousands, Except Share Data)
ASSETS
Cash $ 72,939 $ 57,568
Interest-bearing deposits 129,135 204,108
----------- -----------
Cash and cash equivalents 202,074 261,676
Investment securities available for sale 109,496 65,993
Investment securities held to maturity (fair value of $6,907 and
$7,897, respectively) 6,747 7,747
Mortgage-related securities available for sale 135,517 145,293
Mortgage-related securities held to maturity (fair value of $135,280
and $141,330, respectively) 130,167 140,293
Loans receivable, net:
Held for sale 21,406 46,520
Held for investment 2,666,657 2,627,248
Foreclosed properties and repossessed assets, net 1,462 1,475
Real estate held for development and sale 46,486 46,986
Office properties and equipment 30,854 31,132
Federal Home Loan Bank stock--at cost 53,973 53,316
Accrued interest on investments and loans 19,756 19,918
Prepaid expenses and other assets 49,023 59,479
----------- -----------
Total assets $ 3,473,618 $ 3,507,076
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 2,509,203 $ 2,553,987
Federal Home Loan Bank and other borrowings 613,961 621,590
Reverse repurchase agreements 7,964 --
Advance payments by borrowers for taxes and insurance 14,498 7,838
Other liabilities 39,683 46,149
----------- -----------
Total liabilities 3,185,309 3,229,564
----------- -----------
Preferred stock, $.10 par value, 5,000,000 shares
authorized, none outstanding -- --
Common stock, $.10 par value, 100,000,000 shares authorized,
25,363,339 shares issued, 25,011,687 and 24,950,258 shares outstanding,
respectively 2,536 2,536
Additional paid-in capital 62,305 61,735
Retained earnings 225,795 218,149
Accumulated other comprehensive income 4,487 2,473
Treasury stock (351,652 shares and 413,081 shares,
respectively), at cost (5,788) (6,324)
Common stock purchased by benefit plans (1,026) (1,057)
----------- -----------
Total stockholders' equity 288,309 277,512
----------- -----------
Total liabilities and stockholders' equity $ 3,473,618 $ 3,507,076
=========== ===========
See accompanying Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS ENDED JUNE 30,
-------------------------------------
2002 2001
-------------------------------------
(In Thousands, Except Per Share Data)
INTEREST INCOME:
Loans $ 48,024 $ 48,950
Mortgage-related securities 4,239 5,710
Investment securities 1,581 1,462
Interest-bearing deposits 604 602
-------- --------
Total interest income 54,448 56,724
INTEREST EXPENSE:
Deposits 18,357 24,900
Notes payable and other borrowings 7,224 10,493
Other 85 108
-------- --------
Total interest expense 25,666 35,501
-------- --------
Net interest income 28,782 21,223
Provision for loan losses 450 210
-------- --------
Net interest income after provision for loan losses 28,332 21,013
NON-INTEREST INCOME:
Loan servicing income (loss) 652 (85)
Service charges on deposits 1,698 1,559
Insurance commissions 631 325
Gain on sale of loans 1,841 1,691
Net gain on sale of investments and mortgage-related securities 89 553
Net income from operations of real estate investments 102 159
Other 414 817
-------- --------
Total non-interest income 5,427 5,019
NON-INTEREST EXPENSE:
Compensation 9,208 7,663
Occupancy 1,362 1,051
Furniture and equipment 1,131 1,021
Data processing 1,348 1,102
Marketing 714 614
Federal insurance premiums 114 99
Other 2,720 2,146
-------- --------
Total non-interest expense 16,597 13,696
-------- --------
Income before income taxes 17,162 12,336
Income taxes 6,387 4,425
-------- --------
Net income $ 10,775 $ 7,911
======== ========
Earnings per share:
Basic $ 0.43 $ 0.36
Diluted 0.42 0.35
Dividends declared per share 0.08 0.08
See accompanying Notes to Unaudited Consolidated Financial Statements.
3
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED JUNE 30,
------------------------------
2002 2001
------------------------------
(IN THOUSANDS)
OPERATING ACTIVITIES
Net income $ 10,775 $ 7,911
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Provision for loan losses 450 210
Provision for depreciation and amortization 1,445 803
Net gain on sales of loans (1,841) (1,691)
Amortization of stock benefit plans 35 101
Tax benefit from stock related compensation 260 --
Decrease in accrued interest receivable 162 627
Decrease in accrued interest payable (1,939) (1,271)
(Decrease) increase in accounts payable (6,403) 340
Other 13,663 (4,358)
--------- ---------
Net cash provided by operating activities before net proceeds
from loan sales 16,607 2,672
Net decrease (increase) due to origination and sale of loans held for sale 25,114 (21,584)
--------- ---------
Net cash used by operating activities 41,721 (18,912)
INVESTING ACTIVITIES
Proceeds from sales of investment securities available for sale 10,362 373
Proceeds from maturities of investment securities 92,888 60,610
Purchase of investment securities available for sale (146,545) (112,548)
Proceeds from sale of mortgage-related securities available for sale 4,823 21,424
Purchase of mortgage-related securities available for sale (9,132) --
Principal collected on mortgage-related securities 26,625 25,556
Loans originated for investment (256,240) (168,285)
Principal repayments on loans 216,831 162,723
Net additions of office properties and equipment (610) (584)
Investment in real estate held for development and sale 57 (1,531)
--------- ---------
Net cash used by investing activities (60,941) (12,262)
4
CONSOLIDATED STATEMENTS OF CASH FLOWS (Cont'd)
THREE MONTHS ENDED JUNE 30,
-----------------------------
2002 2001
-----------------------------
(IN THOUSANDS)
FINANCING ACTIVITIES
Increase (decrease) in deposit accounts $ (44,784) $ 83,257
Increase in advance payments by borrowers
for taxes and insurance 6,660 5,297
Proceeds from notes payable to Federal Home Loan Bank 8,500 169,200
Repayment of notes payable to Federal Home Loan Bank (7,500) (196,400)
(Decrease) increase in securities sold under agreements
to repurchase 7,964 (11,621)
Decrease in other loans payable (8,629) (2,811)
Treasury stock purchased (1,537) (1,151)
Exercise of stock options 655 68
Purchase of stock by retirement plans 349 73
Payments of cash dividends to stockholders (2,060) (1,711)
--------- ---------
Net cash (used) provided by financing activities (40,382) 44,201
--------- ---------
Net (decrease) increase in cash and cash equivalents (59,602) 13,027
Cash and cash equivalents at beginning of period 261,676 105,042
--------- ---------
Cash and cash equivalents at end of period $ 202,074 $ 118,069
========= =========
SUPPLEMENTARY CASH FLOW INFORMATION:
Cash paid or credited to accounts:
Interest on deposits and borrowings $ 25,828 $ 32,209
Income taxes 15 49
See accompanying Notes to Unaudited Consolidated Financial Statements
ANCHOR BANCORP WISCONSIN INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - PRINCIPLES OF CONSOLIDATION
The unaudited consolidated financial statements include the accounts and results
of operations of Anchor BanCorp Wisconsin Inc. (the "Corporation") and its
wholly-owned subsidiaries, AnchorBank fsb (the "Bank"), and Investment
Directions, Inc. ("IDI"). The Bank's accounts and results of operations include
its wholly-owned subsidiaries, Anchor Investment Services, Inc. ("AIS"), ADPC
Corporation ("ADPC") and Anchor Investment Corporation ("AIC"). All significant
intercompany balances and transactions have been eliminated. Investments in
joint ventures and other less than 50% owned partnerships, which are not
material, are accounted for by the equity method. Partnerships with 50%
ownership or more are consolidated, with significant intercompany accounts
eliminated.
NOTE 2 - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America and with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by GAAP for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals) necessary
for a fair presentation of the consolidated financial statements have been
included.
In preparing the unaudited consolidated financial statements in conformity with
GAAP, management is required to make estimates and assumptions that affect the
amounts reported in the consolidated financial statements and accompanying
notes. Actual results could differ from those estimates. The results of
operations and other data for the three-month period ended June 30, 2002 are not
necessarily indicative of results that may be expected for any other interim
period or the entire fiscal year ending March 31, 2003. The unaudited
consolidated financial statements presented herein should be read in conjunction
with the audited consolidated financial statements and related notes thereto
included in the Corporation's Annual Report for the year ended March 31, 2002.
Unrealized gains or losses on the Corporation's available-for-sale securities
are included in other comprehensive income. During the quarter ended June 30,
2002 and 2001, total comprehensive income amounted to $12.8 million and $8.5
million, respectively.
NEW ACCOUNTING STANDARDS On April 1, 2001 the Corporation adopted Statement of
Financial Accounting Standard ("SFAS") No.133, "Accounting for Derivative
Instruments and Hedging Activities", as amended, which requires that all
derivative instruments be recorded in the statement of condition at fair value.
Under SFAS No. 133, the Corporation recognizes certain contracts and commitments
relating to its mortgage banking operations as derivative instruments. These
contracts and commitments are for commitments to originate mortgage loans that
will be held for resale and forward loan sales. Forward loan sales are entered
into in an effort to reduce interest rate risk associated with making
commitments to originate mortgage loans. Changes in the fair value of derivative
contracts and commitments are recorded in non-interest income under gain on sale
of loans. During the three-month period ended June 30, 2002, the Corporation
introduced an index powered certificate of deposit product which is FDIC
insured. The certificates have a five-year term with the yield based on the
performance of the Standard & Poors ("S & P") 500. The Corporation entered into
a contract with the FHLB that offsets such changes in the S & P 500.
In June 2001, the Financial Accounting Standards Board issued SFAS No. 141,
"Business Combinations" and No. 142, "Goodwill and Other Intangible Assets,"
effective for fiscal years beginning after December 15, 2001. Under the new
rules, goodwill and certain intangible assets are no longer amortized, but are
reviewed at least annually for impairment. Separable intangible assets that are
not deemed to have indefinite lives will no longer be amortized, but
6
will be subject to annual impairment tests in accordance with the SFAS. Other
intangible assets will continue to be amortized over their useful lives.
In September 2000, FASB issued Statement No. 140, "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities" ("Statement No.
140") that replaces, in its entirety, Statement No. 125. Although FASB No. 140
has changed many of the rules regarding securitizations, it continues to require
an entity to recognize the financial and servicing assets it controls and the
liabilities it has incurred and to derecognize financial assets when control has
been surrendered in accordance with the criteria provided in the Statement. As
required, the Corporation applied the new rules prospectively to transactions
beginning in April of 2001. The application of the new rules did not have a
material impact on its financial statements.
SFAS No. 144, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed of," was issued in October 2001 and addresses
how and when to measure impairment of long-lived assets and how to account for
long-lived assets that an entity plans to dispose of either through sale,
abandonment, exchange, or distribution to owners. The new provisions supersede
FASB No. 121, which addressed asset impairment, and certain provisions of APB
Opinion 30 related to reporting the effects of the disposal of a business
segment and requires expected future operating losses from discontinued
operations to be recorded in the period in which the losses are incurred rather
than the measurement date. Under FASB No. 144, more dispositions may qualify for
discontinued operations treatment in the income statement. The provisions of
FASB No. 144 became effective for the Corporation April 1, 2002 and are not
expected to have a material impact on the Corporation's financial position or
results of operations.
Certain 2001 accounts have been reclassified to conform to the 2002
presentations.
NOTE 3 -- STOCKHOLDERS' EQUITY
During the quarter ended June 30, 2002, options for 82,895 shares of common
stock were exercised at a weighted-average price of $7.91 per share. Treasury
shares were issued in exchange for the options using the last-in-first-out
method. The cost of the treasury shares issued in excess of the option price
paid was charged to retained earnings ($1.1 million). During the quarter ended
June 30, 2002, the Corporation repurchased 72,000 shares of common stock. During
the quarter, 15,534 shares of treasury stock were reissued to the Corporation's
retirement plans. The weighted-average cost of these shares was $20.95 per share
or $330,000 in the aggregate and the gain of the market price over the cost of
the treasury shares of $20,000 was credited to retained earnings. On May 15,
2002, the Corporation paid a cash dividend of $0.0825 per share, or $2.1 million
in the aggregate.
NOTE 4 -- EARNINGS PER SHARE
Basic earnings per share for the three months ended June 30, 2002 and 2001 has
been determined by dividing net income for the respective periods by the
weighted average number of shares of common stock outstanding. Diluted earnings
per share is computed by dividing net income by the weighted average number of
common shares outstanding plus common stock equivalents. Common stock
equivalents are computed using the treasury stock method.
7
THREE MONTHS ENDED JUNE 30,
-------------------------------------
2002 2001
-------------------------------------
Numerator:
Net income $10,775,201 $ 7,911,272
----------- -----------
Numerator for basic and diluted earnings
per share--income available to common
stockholders $10,775,201 $ 7,911,272
Denominator:
Denominator for basic earnings per
share--weighted-average common
shares outstanding 25,000,703 22,184,124
Effect of dilutive securities:
Employee stock options 685,502 508,728
Management Recognition Plans 18,462 28,922
Denominator for diluted earnings per
share--adjusted weighted-average
----------- -----------
common shares and assumed conversions 25,704,667 22,721,774
=========== ===========
Basic earnings per share $ 0.43 $ 0.36
=========== ===========
Diluted earnings per share $ 0.42 $ 0.35
=========== ===========
NOTE 5 -- SUBSEQUENT EVENTS
On July 19, 2002, the Corporation declared a $0.09 per share cash dividend on
its common stock to be paid on August 15, 2002 to stockholders of record on
August 1, 2002.
NOTE 6 -- BUSINESS COMBINATION
On November 10, 2001, Ledger Capital Corp. ("Ledger") was acquired by the
Corporation following the receipt of all required regulatory and stockholder
approvals. The Corporation acquired 100 percent of the outstanding common shares
of Ledger. The results of Ledger's operations have been included in the
consolidated financial statements since that date. Ledger had $450.0 million in
assets as of the merger date. The aggregate purchase price was $43.0 million. In
the merger, Ledger shareholders received either 1.1 shares of Anchor BanCorp
common stock or the taxable cash equivalent, as long as the cash conversion did
not exceed 20 percent of the Ledger shares, in exchange for each share of Ledger
common stock. Approximately 2.5 million shares of common stock of the
Corporation were issued to Ledger shareholders and $2.0 million was paid to
shareholders in cash. The transaction resulted in goodwill of approximately
$20.0 million and added 4 full service offices in the Milwaukee metropolitan
area.
8
ANCHOR BANCORP WISCONSIN INC.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This report contains certain "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Corporation desires to take
advantage of the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995 and is including this statement for the expressed purpose of
availing itself of the protection of the safe harbor with respect to all of such
forward-looking statements. These forward-looking statements describe future
plans or strategies and include the Corporation's expectations of future
financial results. The Corporation's ability to predict results or the effect of
future plans or strategies is inherently uncertain and the Corporation can give
no assurance that those results or expectations will be attained. Factors that
could affect actual results include but are not limited to i) general market
rates, ii) changes in market interest rates and the shape of the yield curve,
iii) general economic conditions, iv) real estate markets, v)
legislative/regulatory changes, vi) monetary and fiscal policies of the U.S.
Treasury and the Federal Reserve Board, vii) changes in the quality or
composition of the Corporation's loan and investment portfolios, viii) demand
for loan products, ix) the level of loan and MBS repayments, x) deposit flows,
xi) competition, xii) demand for financial services in the Corporation's
markets, and xiii) changes in accounting principles, policies or guidelines. In
addition, acquisitions may result in large one-time charges to income, may not
produce revenue enhancements or cost savings at levels or within time frames
originally anticipated and may result in unforeseen integration difficulties.
These factors should be considered in evaluating the forward-looking statements,
and undue reliance should not be placed on such statements.
The Corporation does not undertake and specifically disclaims any obligation to
update any forward-looking statements to reflect occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.
The following discussion is designed to provide a more thorough discussion of
the Corporation's financial condition and results of operations as well as to
provide additional information on the Corporation's asset/liability management
strategies, sources of liquidity and capital resources. Management's discussion
and analysis should be read in conjunction with the consolidated financial
statements and supplemental data contained elsewhere in this report.
RESULTS OF OPERATIONS
General. Net income for the three months ended June 30, 2002 increased $2.9
million to $10.8 million from $7.9 million for the same period in the prior
year. The increase in net income for the three-month period compared to the same
period last year was largely due to a $7.6 million increase in net interest
income, which was primarily due to a decrease in interest expense of $9.8
million. In addition, non-interest income for the three months ended June 30,
2002 increased $410,000. These increases were partially offset by a decrease in
interest income of $2.3 million, an increase in non-interest expense of $2.9
million and an increase in income tax expense of $2.0 million for the
three-month period.
Net Interest Income. Net interest income increased $7.6 million for the three
months ended June 30, 2002 compared to the same period in 2001. The net interest
margin increased to 3.52% from 2.86% for the respective three-month periods. The
interest rate spread increased to 3.40% from 2.68% for the same respective
periods.
Interest income on loans decreased $930,000 for the three months ended June 30,
2002 as compared to the same period in the prior year. This decrease was the
result of a decrease of 84 basis points in the average yield on loans to 7.19%
from 8.03%. Interest income on mortgage-related securities decreased $1.5
million for the same period due primarily to the decrease of $88.8 million in
the average balance of mortgage-related securities. Interest income on
investment securities (including Federal Home Loan Bank stock) increased
$120,000 for the three-month period ended June 30, 2002 as compared to the same
period in the prior year. This was primarily a result of an increase of
9
$65.5 million in the average balances of the investment securities for the
three-month period as compared to the same period in the prior year.
Interest expense on deposits decreased $6.5 million for the three months ended
June 30, 2002 as compared to the same period in 2001. This decrease was due
primarily to a decrease of 178 basis points in the weighted average cost of
deposits to 2.92% from 4.70% for the three-month period as compared to the same
period in the prior year.Interest expense on notes payable and other borrowings
decreased $3.3 million during the same period due to a decrease of $105.1
million in the average balance of notes payable and other borrowings. Other
interest expense decreased $20,000 for the three months ended June 30, 2002, as
compared to the same period in the prior year.
Provision for Loan Losses. Provision for loan losses increased $240,000 for the
three-month period ended June 30, 2002 compared to the same period for the prior
year. The provision was based on management's ongoing evaluation of asset
quality and losses that are inherent in the loan portfolio.
Average Interest-Earning Assets, Average Interest-Bearing Liabilities and
Interest Rate Spread. The following tables show the Corporation's average
balances, interest, average rates, net interest margin and the spread between
the combined average rates earned on interest-earning assets and average cost of
interest-bearing liabilities for the periods indicated. The average balances are
derived from average daily balances.
10
Three Months Ended June 30,
---------------------------------------------------------------------------
2002 2001
------------------------------------ ------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD/ AVERAGE YIELD/
BALANCE INTEREST COST(1) BALANCE INTEREST COST(1)
------------------------------------ ------------------------------------
(Dollars In Thousands)
INTEREST-EARNING ASSETS
Mortgage loans (2) $2,114,956 $ 37,818 7.15% $1,882,454 $ 37,239 7.91%
Consumer loans (2) 434,982 8,241 7.58 465,455 9,897 8.51
Commercial business loans (2) 120,750 1,965 6.51 91,226 1,814 7.95
---------- ---------- ---------- ----------
Total loans receivable (2) 2,670,688 48,024 7.19 2,439,135 48,950 8.03
Mortgage-related securities (3) 272,031 4,239 6.23 360,821 5,710 6.33
Investment securities (3) 117,122 908 3.10 66,902 836 5.00
Interest-bearing deposits 157,169 604 1.54 59,653 602 4.04
Federal Home Loan Bank stock 53,908 673 4.99 38,604 626 6.49
---------- ---------- ---------- ----------
Total interest-earning assets 3,270,918 54,448 6.66 2,965,115 56,724 7.65
Non-interest-earning assets 198,995 159,767
---------- ----------
Total assets $3,469,913 $3,124,882
========== ==========
INTEREST-BEARING LIABILITIES
Demand deposits $ 730,514 1,875 1.03 $ 624,562 3,972 2.54
Regular passbook savings 175,452 453 1.03 133,786 456 1.36
Certificates of deposit 1,612,219 16,029 3.98 1,359,366 20,472 6.02
---------- ---------- ---------- ----------
Total deposits 2,518,185 18,357 2.92 2,117,714 24,900 4.70
Notes payable and other borrowings 621,429 7,224 4.65 726,489 10,493 5.78
Other 11,772 85 2.89 10,964 108 3.94
---------- ---------- ---------- ----------
Total interest-bearing liabilities 3,151,386 25,666 3.26 2,855,167 35,501 4.97
---------- ---- ---------- ----
Non-interest-bearing liabilities 34,581 46,756
---------- ----------
Total liabilities 3,185,967 2,901,923
Stockholders' equity 283,946 222,959
---------- ----------
Total liabilities and stockholders' equity $3,469,913 $3,124,882
========== ==========
Net interest income/interest rate spread $ 28,782 3.40% $ 21,223 2.68%
========== ==== ========== ====
Net interest-earning assets $ 119,532 $ 109,948
========== ==========
Net interest margin 3.52% 2.86%
==== ====
Ratio of average interest-earning assets
to average interest-bearing liabilities 1.04 1.04
==== ====
- --------------------------------------------
(1) Annualized
(2) The average balances of loans include non-performing loans, interest of
which is recognized on a cash basis.
(3) Includes amortized cost basis of assets held and available for sale.
11
Non-Interest Income. Non-interest income increased $410,000 to $5.4 million for
the three months ended June 30, 2002 as compared to $5.0 million for the same
period in the prior year primarily due to an increase in loan servicing income
of $740,000. Insurance commissions increased $310,000 for the three-month period
ended June 30, 2002 as compared to the same period in the prior year due to
increased sales. Gain on sale of loans increased $150,000 for the three months
ended June 30, 2002 as compared to the same period in the prior year. Finally,
service charges on deposit accounts increased $140,000 for the three-month
period. These increases were partially offset by a decrease in net gain on sale
of investments and mortgage-related securities of $460,000 for the same
three-month period. In addition, other non-interest income, which includes a
variety of loan fee and other miscellaneous fee income, decreased $400,000 for
the three months ended June 30, 2002 as compared to the same three-month period
in the prior year. Net income from operations of real estate investments
decreased $60,000 for the three months ended June 30, 2002 as compared to the
same period in the prior year.
Non-Interest Expense. Non-interest expense increased $2.9 million to $16.6
million for the three months ended June 30, 2002 as compared to $13.7 million
for the same period in 2001 as a result of several factors. Compensation expense
increased $1.5 million for the three-month period compared to the prior period
due primarily to an increase in incentive compensation resulting from increased
loan production and increased employee benefits such as health insurance and
employee stock option plan ("ESOP") expense. Other non-interest expense
increased $570,000 for the three-month period largely due to increased postage,
telephone and other miscellaneous expense. Occupancy expense increased $310,000,
due largely to increased maintenance and repair expense. Data processing expense
increased $250,000 for the three months ended June 30, 2002 as compared to the
same period in the prior year. Furniture and equipment expense increased
$110,000, marketing expense increased $100,000, and federal insurance premiums
increased $20,000 during the three months ended June 30, 2002 as compared to the
same period in 2001.
Income Taxes. Income tax expense increased $2.0 million during the three months
ended June 30, 2002 as compared to the same period in 2001. The effective tax
rate was 37.2% for the three months ended June 30, 2002 the current year as
compared to 35.9% for the three-month period last year.
12
FINANCIAL CONDITION
During the three months ended June 30, 2002, the Corporation's assets decreased
by $33.5 million from $3.51 billion at March 31, 2002, to $3.47 billion. The
majority of this decrease was attributable to a decrease in cash and cash
equivalents, which was partially offset by increases in higher-yielding
investment securities and loans.
Investment securities (both available for sale and held to maturity) increased
$42.5 million during the three months ended June 30, 2002 as a result of
purchases of $146.5 million of U.S. Government and agency securities, which were
partially offset by sales and maturities of $103.3 million.
Mortgage-related securities (both available for sale and held to maturity)
decreased $19.9 million during the three months ended June 30, 2002 as a result
of principal repayments and market value adjustments of $24.2 million and sales
of $4.8 million. These decreases were partially offset by purchases of $9.1
million of mortgage-related securities in this three-month period.
Mortgage-related securities consisted of $211.3 million of mortgage-backed
securities and $54.4 million of Collateralized Mortgage Obligations ("CMO's")
and Real Estate Mortgage Investment Conduits ("REMIC's") at June 30, 2002.
The Corporation invests in corporate CMOs and agency-issued REMICs. These
investments are deemed to have limited credit risk. The investments do have
interest rate risk due to, among other things, actual prepayments being more or
less than those predicted at the time of purchase. The Corporation invests only
in short-term tranches in order to limit the reinvestment risk associated with
greater than anticipated prepayments, as well as changes in value resulting from
changes in interest rates.
Total loans (including loans held for sale) increased $14.3 million during the
three months ended June 30, 2002. Activity for the period consisted of (i)
originations and purchases of $459.6 million, (ii) sales of $228.4 million, and
(iii) principal repayments and other adjustments of $216.9 million.
Total liabilities decreased $44.3 million during the three months ended June 30,
2002. This decrease was due to a $44.8 million decrease in deposits during the
three months ended June 30, 2002. The decrease in deposits was due primarily to
decreases in certificates of deposit resulting from lower rates being offered
for certificates. Brokered deposits have been used in the past and may be used
in the future as the need for funds requires them. Brokered deposits totaled
$252.5 million at June 30, 2002 and generally mature within one year. FHLB
advances and other borrowings decreased $7.6 million during the three months
ended June 30, 2002. Reverse repurchase agreements increased $8.0 million during
the three months ended June 30, 2002. Advance payments by borrowers for taxes
and insurance increased $6.7 million during this same period. Other liabilities
decreased $6.5 million during the three months ended June 30, 2002.
Stockholders' equity increased $10.8 million during the three months ended June
30, 2002 as a net result of (i) comprehensive income of $12.8 million (ii) stock
options exercised of $1.8 million (with the excess of the cost of treasury
shares over the option price ($1.1 million) charged to retained earnings), (iii)
the purchase of stock by retirement plans of $330,000 (with the gain of the
purchase price over the cost of the treasury shares of $20,000 credited to
retained earnings), and (iv) benefit plan shares earned and related tax
adjustments totaling $590,000. These increases were partially offset by (i)
purchases of treasury stock of $1.5 million and (ii) cash dividends of $2.1
million.
13
ASSET QUALITY
Loans are placed on non-accrual status when, in the judgment of management, the
probability of collection of interest is deemed to be insufficient to warrant
further accrual. When a loan is placed on non-accrual status, previously accrued
but unpaid interest is deducted from interest income. As a matter of policy, the
Corporation does not accrue interest on loans past due 90 days or more.
Non-performing assets increased $1.8 million to $12.4 million at June 30, 2002
from $10.6 million at March 31, 2002 and increased as a percentage of total
assets to 0.36% from 0.30% at such dates, respectively.
Non-performing assets are summarized as follows at the dates indicated:
AT MARCH 31,
AT JUNE 30, ----------------------------------------
2002 2002 2001 2000
---------- ----------------------------------------
(Dollars In Thousands)
Non-accrual loans:
Single-family residential $ 4,711 $ 4,505 $ 2,572 $ 2,582
Multi-family residential 187 187 372 3
Commercial real estate 3,334 2,212 650 126
Construction and land 168 168 257 --
Consumer 848 933 499 571
Commercial business 1,606 1,037 697 332
------- ------- ------- -------
Total non-accrual loans 10,853 9,042 5,047 3,614
Real estate held for development and sale 69 74 352 1,691
Foreclosed properties and repossessed assets, net 1,462 1,475 313 272
------- ------- ------- -------
Total non-performing assets $12,384 $10,591 $ 5,712 $ 5,577
======= ======= ======= =======
Performing troubled debt restructurings $ 2,448 $ 403 $ 300 $ 144
======= ======= ======= =======
Total non-accrual loans to total loans 0.39% 0.32% 0.20% 0.15%
Total non-performing assets to total assets 0.36 0.30 0.18 0.19
Allowance for loan losses to total loans 1.10 1.09 0.94 1.00
Allowance for loan losses to total
non-accrual loans 284.23 346.04 477.04 675.26
Allowance for loan and foreclosure losses
to total non-performing assets 254.80 300.05 422.16 439.63
Non-accrual loans increased $1.8 million during the three months ended June 30,
2002. The increase was largely attributable to two commercial loans. One loan
was a $870,000 commercial real estate loan secured by industrial property
located in Cudahy, Wisconsin. The other loan was a $460,000 commercial business
loan secured by assets of a trucking company located in Shawano, Wisconsin. At
June 30, 2002, there was one non-accrual commercial real estate loan with a
carrying value greater than $1.0 million. This loan is a loan participation
which is secured by a 161 unit motel located in Schiller Park, Illinois, and had
a carrying value of $1.5 million at June 30, 2002. The original loan was for
$13.1 million, of which the Bank is an 11.5% participant.
Non-performing real estate held for development and sale remained relatively
constant for the three months ended June 30, 2002.
Foreclosed properties and repossessed assets remained relatively constant for
the three months ended June 30, 2002. There were no foreclosed properties and
repossessed assets with a carrying value greater than $1.0 million at June 30,
2002.
14
Performing troubled debt restructurings increased $2.0 million during the three
months ended June 30, 2002. This increase was attributable to a commercial real
estate property secured by a 182 room lodge located in Sonoma, California, with
a carrying value of $2.0 million.
At June 30, 2002, assets that the Corporation has classified as substandard, net
of reserves, consisted of $25.5 million of loans and foreclosed properties. As
of March 31, 2002, substandard assets amounted to $24.7 million. The increase of
$800,000 in substandard assets was not primarily attributable to a specific
loan.
A summary of the details regarding impaired loans follows (in thousands):
AT JUNE 30, AT MARCH 31,
---------- ---------------------------------------------
2002 2002 2001 2000
--------- ---------------------------------------------
Impaired loans with valuation
reserve required $11,466 $11,467 $ 964 $ 5,637
Less:
Specific valuation allowance 4,192 4,240 615 952
------- ------- ------- -------
Total impaired loans $ 7,274 $ 7,227 $ 349 $ 4,685
======= ======= ======= =======
Average impaired loans $11,466 $ 6,216 $ 3,301 $ 5,731
Interest income recognized
on impaired loans $ 117 $ 740 $ 43 $ 431
The following table sets forth information relating to the Corporation's loans
that were less than 90 days delinquent at the dates indicated.
AT MARCH 31,
AT JUNE 30, ---------------------------------------------------
2002 2002 2001 2000
---------- ---------------------------------------------------
(In Thousands)
30 to 59 days $ 9,698 $17,647 $ 7,141 $ 3,224
60 to 89 days 7,808 2,671 716 903
------- ------- ------- -------
Total $17,506 $20,318 $ 7,857 $ 4,127
======= ======= ======= =======
The Corporation's loan portfolio, foreclosed properties and repossessed assets
are evaluated on a continuing basis to determine the necessity for additions to
the allowance for losses and the related balance in the allowances. These
evaluations consider several factors, including, but not limited to, general
economic conditions, loan portfolio composition, loan delinquencies, prior loss
experience, collateral value, anticipated loss of interest and management's
estimation of future potential losses. The evaluation of the allowance for loan
losses includes a review of known loan problems as well as potential problems
based upon historical trends and ratios. Foreclosed properties are recorded at
the lower of carrying value or fair value with charge-offs, if any, charged to
the allowance for loan losses prior to transfer to foreclosed property. The fair
value is primarily based on appraisals, discounted cash flow analysis (the
majority of which are based on current occupancy and lease rates) and pending
offers.
15
A summary of the activity in the allowance for losses on loans follows:
THREE MONTHS ENDED
JUNE 30,
---------------------------
2002 2001
---------------------------
(Dollars In Thousands)
Allowance at beginning of period $ 31,065 $ 24,076
Charge-offs:
Mortgage (337) (138)
Consumer (75) (211)
Commercial business (319) (69)
-------- --------
Total charge-offs (731) (418)
Recoveries:
Mortgage 2 1
Consumer 13 14
Commercial business 49 41
-------- --------
Total recoveries 64 56
-------- --------
Net charge-offs (667) (362)
-------- --------
Provision 450 210
-------- --------
Allowance at end of period $ 30,848 $ 23,924
======== ========
Net recoveries (charge-offs) to
average loans (0.10)% (0.06)%
======== ========
Although management believes that the June 30, 2002 allowance for loan losses is
adequate based upon the current evaluation of loan delinquencies, non-accrual
loans, charge-off trends, economic conditions and other factors, there can be no
assurance that future adjustments to the allowance, which could adversely affect
the Corporation's results of operations, will not be necessary. Management also
continues to pursue all practical and legal methods of collection, repossession
and disposal, as well as adhering to high underwriting standards in the
origination process, in order to maintain strong asset quality.
LIQUIDITY AND CAPITAL RESOURCES
On an unconsolidated basis, the Corporation's sources of funds include dividends
from its subsidiaries, including the Bank, interest on its investments and
returns on its real estate held for sale. The Bank's primary sources of funds
are payments on loans and securities, deposits from retail and wholesale
sources, advances and other borrowings.
At June 30, 2002, the Corporation had outstanding commitments to originate loans
of $147.0 million, commitments to extend funds to, or on behalf of, customers
pursuant to lines and letters of credit of $204.6 million and loans sold with
recourse to the Corporation in the event of default by the borrower of $433,000.
The Corporation had sold loans with recourse in the amount of $7.2 million
through the FHLB Mortgage Partnership Finance Program at June 30, 2002.
Scheduled maturities of certificates of deposit during the twelve months
following June 30, 2002 amounted to $987.6 million and scheduled maturities of
FHLB advances during the same period totaled $181.4 million. At June 30, 2002,
the Corporation also had $8.0 million of reverse repurchase agreements, all of
which are scheduled to mature during the twelve months following June 30, 2002.
Management believes adequate capital and borrowings are available from various
sources to fund all commitments to the extent required.
16
The Bank is required by the Office of Thrift Supervision ("OTS") to maintain
liquid investments in qualifying types of U.S. Government and agency securities
and other investments sufficient to ensure its safe and sound operation. During
the quarter ended June 30, 2002, the Bank's average liquidity ratio was 17.26%,
which was substantially in excess of applicable requirements.
Under federal law and regulation, the Bank is required to meet certain tangible,
core and risk-based capital requirements. Tangible capital generally consists of
stockholders' equity minus certain intangible assets. Core capital generally
consists of tangible capital plus qualifying intangible assets. The risk-based
capital requirements presently address credit risk related to both recorded and
off-balance sheet commitments and obligations. The OTS requirement for the core
capital ratio for the Bank is currently 3.00%. The requirement is 4.00% for all
but the most highly-rated financial institutions.
The following summarizes the Bank's capital levels and ratios and the levels and
ratios required by the OTS at June 30, 2002 and March 31, 2002 (dollars in
thousands):
MINIMUM REQUIRED
MINIMUM REQUIRED TO BE WELL
FOR CAPITAL CAPITALIZED UNDER
ACTUAL ADEQUACY PURPOSES OTS REQUIREMENTS
-------------------------------------------------------------------------------
AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO
-------------------------------------------------------------------------------
As of June 30, 2002:
Tier 1 capital
(to adjusted tangible assets) $251,879 7.41% $101,928 3.00% $169,880 5.00%
Risk-based capital
(to risk-based assets) 278,549 11.45 194,650 8.00 243,313 10.00
Tangible capital
(to tangible assets) 251,879 7.41 50,964 1.50 N/A N/A
AS OF MARCH 31, 2002:
Tier 1 capital
(to adjusted tangible assets) $250,688 7.31% $102,903 3.00% $171,505 5.00%
Risk-based capital
(to risk-based assets) 277,528 11.01 201,613 8.00 252,016 10.00
Tangible capital
(to tangible assets) 250,688 7.31 51,451 1.50 N/A N/A
17
The following table reconciles the Corporation's stockholders' equity to
regulatory capital at June 30, 2002 and March 31, 2002 (dollars in thousands):
JUNE 30, MARCH 31,
---------------------------------
2002 2002
---------------------------------
Stockholders' equity of the Corporation $ 288,309 $ 277,512
Less: Capitalization of the Corporation and non-bank
subsidiaries (8,739) (523)
--------- ---------
Stockholders' equity of the Bank 279,570 276,989
Less: Intangible assets and other non-includable assets (27,691) (26,301)
--------- ---------
Tier 1 and tangible capital 251,879 250,688
Plus: Allowable general valuation allowances 26,670 26,840
--------- ---------
Risk based capital $ 278,549 $ 277,528
========= =========
ASSET/LIABILITY MANAGEMENT
The primary function of asset and liability management is to provide liquidity
and maintain an appropriate balance between interest-earning assets and
interest-bearing liabilities within specified maturities and/or repricing dates.
Interest rate risk is the imbalance between interest-earning assets and
interest-bearing liabilities at a given maturity or repricing date, and is
commonly referred to as the interest rate gap (the "gap"). A positive gap exists
when there are more assets than liabilities maturing or repricing within the
same time frame. A negative gap occurs when there are more liabilities than
assets maturing or repricing within the same time frame. During a period of
rising interest rates, a negative gap over a particular period would tend to
adversely affect net interest income over such period, while a positive gap over
a particular period would tend to result in an increase in net interest income
over such period.
The Corporation's strategy for asset and liability management is to maintain an
interest rate gap that minimizes the impact of interest rate movements on the
net interest margin. As part of this strategy, the Corporation sells
substantially all new originations of long-term, fixed-rate, single-family
residential mortgage loans in the secondary market, and invests in
adjustable-rate or medium-term, fixed-rate, single-family residential mortgage
loans, medium-term mortgage-related securities and consumer loans, which
generally have shorter terms to maturity and higher interest rates than
single-family mortgage loans.
The Corporation also originates multi-family residential and commercial real
estate loans, which generally have adjustable or floating interest rates and/or
shorter terms to maturity than conventional single-family residential loans.
Long-term, fixed-rate, single-family residential mortgage loans originated for
sale in the secondary market are generally committed for sale at the time the
interest rate is locked with the borrower. As such, these loans involve little
interest rate risk to the Corporation.
The calculation of a gap position requires management to make a number of
assumptions as to when an asset or liability will reprice or mature. Management
believes that its assumptions approximate actual experience and considers them
reasonable, although the actual amortization and repayment of assets and
liabilities may vary substantially. The cumulative net gap position at June 30,
2002 has not changed materially since March 31, 2002.
18
SEGMENT REPORTING
According to the materiality thresholds of SFAS No. 131, the Corporation is
required to report each operating segment based on materiality thresholds of ten
percent or more of certain amounts, such as revenue. Additionally, the
Corporation is required to report separate operating segments until the revenue
attributable to such segments is at least 75 percent of total consolidated
revenue. SFAS No. 131 allows the Corporation to combine operating segments, even
though they may be individually material, if the segments have similar basic
characteristics in the nature of the products, production processes, and type or
class of customer for products or services. Based on the above criteria, the
Corporation has two reportable segments.
COMMUNITY BANKING: This segment is the main basis of operation for the
Corporation and includes the branch network and other deposit support services;
origination, sales and servicing of one-to-four family loans; origination of
multifamily, commercial real estate and business loans; origination of a variety
of consumer loans; and sales of alternative financial investments such as tax
deferred annuities.
REAL ESTATE INVESTMENTS: The Corporation's non-banking subsidiary, IDI, and its
subsidiary, NIDI, invest in limited partnerships in real estate developments.
Such developments include recreational residential developments and industrial
developments (such as office parks).
The following represents reconciliations of reportable segment revenues, profit
or loss, and assets to the Corporation's consolidated totals for the three
months ended June 30, 2002 and 2001, respectively.
19
THREE MONTHS ENDED JUNE 30, 2002
-----------------------------------------------------------
CONSOLIDATED
REAL ESTATE COMMUNITY INTERSEGMENT FINANCIAL
INVESTMENTS BANKING ELIMINATIONS STATEMENTS
----------- ---------- ------------ ------------
Interest income $ 30 $ 54,448 $ (30) $ 54,448
Interest expense 83 25,666 (83) 25,666
---------- ---------- ---------- ----------
Net interest income (loss) (53) 28,782 53 28,782
Provision for loan losses -- 450 -- 450
---------- ---------- ---------- ----------
Net interest income (loss) after provision for loan losses (53) 28,332 53 28,332
Other income 4,392 5,325 (4,290) 5,427
Other expense 4,237 16,597 (4,237) 16,597
---------- ---------- ---------- ----------
Income before income taxes 102 17,060 -- 17,162
Income tax expense (benefit) (86) 6,473 -- 6,387
---------- ---------- ---------- ----------
Net income $ 188 $ 10,587 $ -- $ 10,775
========== ========== ========== ==========
Total assets $ 39,735 $3,433,883 $ -- $3,473,618
THREE MONTHS ENDED JUNE 30, 2001
------------------------------------------------------------
CONSOLIDATED
REAL ESTATE COMMUNITY INTERSEGMENT FINANCIAL
INVESTMENTS BANKING ELIMINATIONS STATEMENTS
----------- ---------- ------------ ----------
Interest income $ 414 $ 56,724 $ (414) $ 56,724
Interest expense 18 35,501 (18) 35,501
---------- ---------- ---------- ----------
Net interest income 396 21,223 (396) 21,223
Provision for loan losses -- 210 -- 210
---------- ---------- ---------- ----------
Net interest income after provision for loan losses 396 21,013 (396) 21,013
Other income 2,822 4,860 (2,663) 5,019
Other expense 3,059 13,696 (3,059) 13,696
---------- ---------- ---------- ----------
Income before income taxes 159 12,177 -- 12,336
Income tax expense (benefit) (134) 4,559 -- 4,425
---------- ---------- ---------- ----------
Net income $ 293 $ 7,618 $ -- $ 7,911
========== ========== ========== ==========
Total assets $ 42,127 $3,138,101 $ -- $3,180,228
20
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The Corporation's market rate risk has not materially changed from
March 31, 2002. See the Corporation's Annual Report on Form 10-K for
the year ended March 31, 2002.
PART II - OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS.
The Corporation is involved in routine legal proceedings occurring in
the ordinary course of business which, in the aggregate, are believed
by management of the Corporation to be immaterial to the financial
condition and results of operations of the Corporation.
ITEM 2 CHANGES IN SECURITIES AND USE OF PROCEEDS.
Not applicable.
ITEM 3 DEFAULTS UPON SENIOR SECURITIES.
Not applicable.
21
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Annual Meeting of Stockholders was held on July 23, 2002. There
were 25,015,462 shares of common stock that could be voted, and
22,277,689 shares present at the meeting by holders thereof in person
or by proxy which constituted a quorum. The following is a summary of
the results of items voted upon. There were no broker non-votes at the
meeting.
NUMBER OF VOTES
--------------------------------------
FOR WITHHELD
----------- --------
Election of Directors for three-year terms
expiring in 2005:
Richard A Bergstrom 21,818,063 459,626
Donald D. Parker 22,073,417 204,272
James D. Smessaert 22,044,269 233,420
FOR WITHHELD
---------- --------
Election of Directors for two-year terms
expiring in 2004:
David L. Omachinski 22,084,729 192,960
Pat Richter 22,034,145 243,544
FOR WITHHELD
---------- --------
Election of Directors for one-year terms
expiring in 2003:
Mark D. Timmerman 21,962,587 315,102
FOR AGAINST WITHHELD
---------- ------- --------
Appointment of Ernst & Young LLP as independent
auditor for the year ending March 31, 2003 21,911,719 281,643 84,327
ITEM 5 OTHER INFORMATION.
None.
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K.
(a) EXHIBITS.
Exhibit 99.1 Certification of the Chief Executive Officer pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C. 1350)
Exhibit 99.2 Certification of the Chief Financial Officer pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C. 1350)
(b) REPORTS ON FORM 8-K.
None.
22
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)
The undersigned executive officer of Anchor BanCorp Wisconsin, Inc.
(the "Registrant") hereby certifies that the Registrant's Form 10-Q for the
three months ended June 30, 2002 fully complies with the requirements of Section
13(a) of the Securities Exchange Act of 1934 and that the information contained
therein fairly presents, in all material respects, the financial condition and
results of operations of the Registrant.
/s/ Douglas J. Timmerman
-------------------------------------------------------
Douglas J. Timmerman, Chairman of the Board, President
and Chief Executive Officer
July 31, 2002
23
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)
The undersigned executive officer of Anchor BanCorp Wisconsin, Inc.
(the "Registrant") hereby certifies that the Registrant's Form 10-Q for the
three months ended June 30, 2002 fully complies with the requirements of Section
13(a) of the Securities Exchange Act of 1934 and that the information contained
therein fairly presents, in all material respects, the financial condition and
results of operations of the Registrant.
/s/ Michael W. Helser
-------------------------------------------
Michael W. Helser, Treasurer and
Chief Financial Officer
July 31, 2002
24
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ANCHOR BANCORP WISCONSIN INC.
Date: July 31, 2002 By:/s/ Douglas J. Timmerman
------------------- ---------------------------------------------
Douglas J. Timmerman, Chairman of the
Board, President and Chief Executive Officer
Date: July 31, 2002 By:/s/ Michael W. Helser
------------------- ---------------------------------------------
Michael W. Helser, Treasurer and
Chief Financial Officer
25