The management at Anchor BanCorp Wisconsin Inc. is hoping that another quarter of shrinking losses will bolster its case for attracting fresh capital.
The ailing company said late Tuesday that it lost $8.2 million in the first quarter of its 2011 fiscal year, which ended June 30, down from a loss of $21.7 million in the prior quarter and $15.5 million in the same quarter last year.
The $3.2 billion-asset Anchor attributed its improved performance largely to lower overhead and a decline in nonperforming loans, which allowed it to reduce its loan-loss provision by 61% year over year, to $3.5 million.
Still, the company, which has lost roughly $350 million over the last three years, said it needs a large infusion of capital to repay its "significant" senior debt and to comply with a regulatory order that requires it to boost its total risk-based capital ratio to 12%. At June 30, its risk-based ratio was 8.32%.
In a statement Tuesday, President and Chief Executive Officer Chris Bauer said that rebuilding the capital base remains Anchor's primary focus.
"While we are pleased that core operating results and regulatory capital ratios continue to trend favorably, management continues to focus on executing the Bank's capital plan," Bauer said. "As we continue working to improve the financial and operating performance of the Bank, the likelihood increases that we will attract outside capital."
