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Anchor BanCorp Wisconsin in Madison has completed a $175 million recapitalization. With funding from private and institutional investors, the company has capital levels above the threshold regulators consider for being well-capitalized.
September 27 -
Anchor BanCorp Wisconsin finally found some capital after a four-year search, but that wasn't enough. It has filed for Chapter 11 as a way to get Associated Banc-Corp, one of its creditors and competitors, to consent to its recapitalization.
August 13 -
Anchor BanCorp Wisconsin (ABCW) reported a large quarterly loss just days after announcing a plan to file for bankruptcy and recapitalize itself.
August 15
Anchor Bancorp Wisconsin (ABCW) returned to profitability in the third quarter, after restructuring its debt through a Chapter 11 bankruptcy and getting $175 million in new capital.
The Madison-based company earned a quarterly profit of $10.3 million at the bank level, compared to a loss of $12.1 million in the same period of 2012, it announced last week.
Anchor's return to profitability follows its
Improved asset quality helped lift the $2.2 billion-asset company to its third-quarter profit. It made no provision for loan losses, and its nonperforming assets decreased by 35%, to $162.9, from the year-prior period. Net chargeoffs fell 73%, to $4 million.
"[W]e still have significant work to do, including a continued effort to improve our balance sheet and troubled loan portfolio," said Chris Bauer, chief executive of Anchor's bank unit, in the news release. "The reorganization of Anchor Bancorp's capital structure and subsequent recapitalization have positioned the company for a return to health and profitability, and we look forward to continuing the momentum in 2014."
Anchor's net interest income dipped 2%, to $15.8 million. Excluding the $134.5 million gain from its bankruptcy-related debt extinguishment, Anchor's noninterest income fell 37%, to $8.2 million, on lower gains from loan sales.
Noninterest expense rose 38%, to $45.2 million, due mainly to a $16.1 million debt-prepayment penalty. Anchor incurred $1.9 million in expenses due to the bankruptcy, it said.