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Chris Bauer says Anchor's "emergency" days are over, but the Wisconsin company is still losing money and operating under a regulatory order.
December 20
Anchor BanCorp Wisconsin (ABCW) in Madison lost $17.5 million in the first quarter despite an improvement in credit quality.
The $2.4 billion-asset company, which lost $7.4 million a year earlier, reported Friday that net chargeoffs fell 81% from a year earlier, to $4.6 million. The loan-loss provision fell roughly 82% from the first quarter of 2012, to $830,000.
Net interest income fell 7% from a year earlier, to $14.8 million. The net interest margin expanded 27 basis points from a year earlier, to 2.62%.
Noninterest income fell 42% from the first quarter of 2012, to $7.5 million, primarily because of lower income from the sale of residential mortgage loans. Noninterest expense rose 26% from a year earlier, to $35.5 million.
Anchor has worked over the past year to shed troubled loans and strengthen its balance sheet. A 2009 regulatory order requires the company to maintain a Tier 1 leverage ratio of at least 8% and a total risk-based capital ratio of at least 12%. At March 31, Anchor had a Tier 1 leverage ratio of 4.5% and a total risk-based capital ratio of 9%.
Anchor is said in a securities filing Tuesday that the company is working with its advisors to explore ways to raise additional equity capital.
