Madison-Area Banks and Technology Companies Report Strong Growth

Strategic Insights -

As the economy continues to expand, technology companies in Madison are experiencing significant growth. Sonic Foundry Inc., a leader in media manipulation software, has reported a triple-digit revenue increase for the fifth consecutive quarter. The company's aggressive marketing campaigns have led to a net loss, but its revenue has more than doubled. Meanwhile, local banks such as Anchor BanCorp Wisconsin and Middleton Community Bank are also reporting strong earnings. Anchor, in the process of acquiring Oshkosh-based FCB Financial Corp., has seen its total assets increase to $2.1 billion and its return on average assets decrease slightly. Middleton Community Bank has also seen a significant increase in assets and return on average assets.

Key Takeaways:

  • Sonic Foundry Inc.'s revenues increased 106 percent to $2.76 million in the three months ended March 31, from $1.342 million a year ago.
  • Anchor BanCorp Wisconsin reported earnings of $5.5 million, or $0.30 per diluted share, for its fiscal fourth quarter ended March 31, up from earnings of $5.3 million, or $0.27 per diluted share, a year ago.
  • Middleton Community Bank reported 1998 net income of $640,879, up from $413,639 in 1997, with assets rising to $64.8 million from $48.5 million.
  • State Bank of Cross Plains reported record earnings of $2.201 million, or $2.94 per share, in 1998 up from earnings of $2.003 million, or $2.70 per share, in 1997.
  • FCB Financial Corp., which Anchor is in the process of acquiring, reported fiscal fourth-quarter earnings of $1.6 million, or $0.42 per diluted share, down from $1.7 million, or $0.46 per diluted share, a year ago.

Statistics:

  • Total assets at Anchor BanCorp Wisconsin increased to $2.1 billion from $2 billion.
  • Return on average assets at Anchor BanCorp Wisconsin fell to 1.05 percent from 1.07 percent.
  • Assets at Middleton Community Bank rose to $64.8 million from $48.5 million.
  • Return on average assets at Middleton Community Bank increased to 1.17 percent from 1.01 percent.
  • Earnings at FCB Financial Corp. decreased to $1.6 million, or $0.42 per diluted share, from $1.7 million, or $0.46 per diluted share, in the fourth quarter of the previous fiscal year.

Sources:

  • "Sonic Foundry's Revenue Growth Continues" (undated)
  • "Anchor BanCorp Wisconsin Reports Fourth Quarter and Fiscal Year 1998 Earnings" (March 31, 1999)
  • "Middleton Community Bank Reports 1998 Net Income" (undated)
  • "State Bank of Cross Plains Reports Record Earnings" (undated)
  • "FCB Financial Corp. Reports Fiscal Year 1998 Earnings" (undated)