Anchor Bancorp Reports Third Quarter Fiscal 2013 Earnings

LACEY, Wash., April 26, 2013 (GLOBE NEWSWIRE) -- Anchor Bancorp (Nasdaq:ANCB) ("Company"), the holding company for Anchor Bank ("Bank"), today reported third quarter earnings for the fiscal year ending June 30, 2013. For the quarter ended March 31, 2013, the Company reported net income of $55,000 or $0.02 per diluted share, compared to a net income of $223,000 or $0.09 per diluted share for the same period last year. For the nine months ended March 31, 2013, the Company reported net income of $558,000 or $0.23 diluted share, compared to a net loss of $1.4 million or $0.57 diluted share for the same period last year.

"Our year-over-year earnings improved as a result of the continued improvement in our credit quality. Non-performing loans decreased $1.7 million from June 30, 2012 to March 31, 2013. Our total noninterest expense decreased $466,000 as compared to the quarter ended March 31, 2012 and decreased $3.4 million as compared to the nine months ended March 31, 2012. These decreases were due to our ongoing commitment to improve our asset quality as we significantly reduced real estate owned related expenses by aggressively disposing of properties as the real estate market stabilizes. We also benefitted from a reduction in technology expenses as a result of our new core processing system. During the quarter we closed a Wal-Mart branch, located in Chehalis, Washington, which resulted in a one-time charge of $97,000. We will continue to provide services to the Chehalis customers through our Centralia branch," stated Jerald L. Shaw, President and Chief Executive Officer.

Fiscal Third Quarter Highlights
  • Total classified loans decreased $2.4 million or 7.3% to $30.4 million at March 31, 2013 from $32.8 million at June 30, 2012;
  • Net interest margin increased 25 basis points to 3.72% for the quarter ended March 31, 2013 from 3.47% for the quarter ended March 31, 2012;
  • Total non-performing loans decreased by $1.7 million or 19.4% to $7.0 million at March 31, 2013 from $8.7 million at June 30, 2012; and
  • Provision for loan losses declined to $225,000 for the quarter ended March 31, 2013 compared to $300,000 for the quarter ended March 31, 2012.

Credit Quality

Total delinquent (past due 30 days or more), non-accrual loans and loans 90 days or more past due and still accruing interest decreased $100,000 to $14.1 million at March 31, 2013 from $14.2 million at June 30, 2012. The ratio of non-performing loans, which includes non-accrual loans and loans which are 90 days or more past due, to total loans decreased to 2.4% at March 31, 2013 from 3.0% at June 30, 2012. The Company recorded a $225,000 provision for loan losses for the current quarter compared to $300,000 for the quarter ended March 31, 2012 reflecting the improvement in our asset quality. The allowance for loan losses of $5.3 million at March 31, 2013 represented 1.8% of loans receivable and 75.6% of non-performing loans.

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