Anchor BanCorp Wisconsin in Madison managed to push capital ratios at its thrift a bit closer to well-capitalized status at Sept. 30, despite posting another loss.
The $2.7 billion-asset company reported Thursday that AnchorBank’s leverage ratio rose 7 basis points from June 30 to 4.63% at Sept. 30, the end of its second quarter, while its total risk-based capital ratio increased 9 basis points, to 9.07%. The embattled thrift has been hurting from exposure to residential real estate, but has managed to keep itself within the confines of an adequately capitalized status through asset reduction.
Regulators consider financial institutions well capitalized when their leverage ratio is at least 5% and their total risk-based capital ratio is at least 10%. Adequately capitalized ratios are 4% and 8%, respectively, while undercapitalized is just below those ratios.
AnchorBank is slowly mending its capital position, but its parent remains technically insolvent. Anchor BanCorp’s negative equity position grew by 26% from the June 30, to a negative $36 million. The company also has a $116.3 million loan from a group of lenders led by U.S. Bank that is scheduled to mature on Nov. 30, though the loan’s maturity date has been pushed back several times. Anchor BanCorp owes the lenders $50.6 million in unpaid interest; it also owes the Treasury Department $22 million in interest payments it has deferred on the $110 million it received from the Troubled Asset Relief Program.
Anchor BanCorp said in a press release that it is continuing to work with Sandler O’Neill & Partners to address its capital needs.
For the company’s second quarter, the company lost $12.1 million, compared to a $3.4 million loss in its first quarter and a $19.6 million loss a year earlier. The year-over-year improvement was largely because of a 70% decrease in the company’s loan-loss provision, which totaled $5.3 million.
Nonperforming assets fell nearly 8% from the June 30 and 28% from a year earlier, to $251.5 million.
