Anchor BanCorp Wisconsin Inc. (ABCW) announced a fiscal third quarter net loss of $9.0 million, or 58 cents per share, which was an improvement over a net loss of $72.0 million for the previous quarter and $167.1 million for the same period a year ago.
As a result of the third quarter loss, ABCW remains undercapitalized at the bank level according to the terms of the Order to Cease and Desist by the Office of Thrift Supervision. Being undercapitalized subjects the bank to several operating restrictions, including increased premiums for deposit insurance, prior approval from the Federal Deposit Insurance Corp. in order to access brokered deposits, and increased scrutiny by the Office of Thrift Supervision
The company is taking the following actions effort to improve its capital position: continued reduction of balance sheet through loan sales and other strategies; the sale of 11 non-core branches planned to close in first half of 2010; improvement of profitability through continued cost reduction initiatives; and entering into agreements with Badger Anchor Holdings LLC, which will make an investment of more than 483 million shares of common stock at 60 cents per share, for an aggregate equity investment of up to $290 million.
Anchor's net loss declined 95 percent from one year ago and 84 percent from the previous quarter. The company's loan loss provisions declined nearly 83 percent from the previous quarter and were down nearly 89 percent from a year ago.
"Despite the third quarter loss, we continue to make progress toward upgrading our credit quality standards, strategically repositioning our balance sheet and, most importantly, returning the bank to profitability," said ABCW president and chief executive officer Chris Bauer. "These results show signs that we're moving in the right direction."
Anchor Bank still absorbing losses
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