Losses continue at Anchor Bank

Anchor BanCorp Wisconsin Inc., the Madison-based parent company of Anchor Bank, announced a fiscal third quarter net loss of $15.1 million, or 71 cents per share, compared with a net loss of $15.3 million, or 72 cents per share, in the same period a year earlier.

The company said Anchor Bank remains “adequately capitalized.”

The corporation currently owes $116.3 million of loan principal to various lenders led by U.S. Bank under a credit agreement that matures June 30, 2013. In addition, accrued but unpaid interest and fees totaling $55.5 million associated with this obligation are also due and payable at maturity.

The company continues to work with Sandler O’Neill & Partners, L.P. as its financial advisor in efforts to address its capital needs.

“We are pleased to report our tenth consecutive quarter of capital ratios above the threshold to be considered adequately capitalized,” said Chris Bauer, president and chief executive officer of the corporation and the bank. “This is also the fourth consecutive quarter in which our capital ratios have increased over the previous quarter. The improvement in bank capital ratios is primarily due to the tremendous effort expended to resolve issues in the credit portfolios and the resulting decrease in assets. Despite lower asset totals again this quarter, we are continuing to make progress on implementing strategies to increase Bank profitability by slowing asset runoff to improve our net interest margin.”

 

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