Anchor BanCorp Wisconsin (ABCW) reported a large quarterly loss just days after announcing a plan to file for bankruptcy and recapitalize itself.
The $2.3 billion-asset company lost $8.9 million in the quarter ended June 30, after losing $3.4 million in the same quarter in 2012, it announced Wednesday. Declining loan income contributed to the loss, as net interest income fell 18%, to $13.4 million, and net interest margin decreased by 18 basis points, to 2.38%.
Noninterest income dropped 34%, to $8.9 million, because of a decline in income from the sale of loans and real estate.
Overhead expenses fell 16%, to $27.4 million, as Anchor recorded a recovery of $1.3 million related to mortgage-servicing rights, compared with a $1.3 million charge on servicing rights in the year-prior period.
Anchor made a $275,000 provision for credit losses, and its net chargeoffs fell 9%, to $4.2 million.
Anchor's capital ratios improved. Its Tier 1 leverage ratio rose 4 basis points, to 4.57%, and its total risk-based capital rose 19 basis points, to 9.21%.
Anchor filed for a Chapter 11 restructuring that would allow it to repay $183 million of debt at a 73% discount, and convert its $139 million outstanding from the Troubled Asset Relief Program into common shares held by the Treasury Department, it announced Tuesday. Investors have agreed to pump $175 million into the bank to recapitalize it, in exchange for common shares.