MADISON – Anchor BanCorp Wisconsin
Inc. is reporting its first quarterly profit in several years,
according to a company statement.
The Madison company, parent company of AnchorBank, received a
$175 million capital injection in a deal finalized in September.
The deal resulted in eliminating $134.5 million in debt income
in the quarter ending Sept. 30, the statement said, resulting in
consolidated net income for the quarter of $113.3 million.
That’s up from the $8.6 million loss the company had in the same
quarter last year.
Net income at the bank level for the quarter was $10.3 million.
The bank’s nonperforming assets have decreased 19.8 percent over
the past six months to $162.9 million as of Sept. 30, the
On Aug. 13, Anchor BanCorp filed for Chapter 11 after several
years of losses and collapsing stock value. Anchor agreed to pay
U.S. Bank, Bank of America and Associated Bank $49 million to
eliminate an $186 million debt. Under the plan, it will also
give the U.S. Treasury a 3.3 percent equity stake in the
reorganized company, which is worth about $6 million, to cancel
a $139 million debt through the Troubled Asset Relief Program.
“It’s important to understand we still have significant work to
do, including a continued effort to improve our balance sheet
and troubled loan portfolio,” AnchorBank president and CEO Chris
Bauer. “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.”