Anchor Bancorp reported that a $3.1 million writedown of purchased mortgage-servicing rights had a negative impact on earnings in its first fiscal quarter ended Sept. 30.
Despite the writedown, net income amounted to $11.1 million, nearly double the $5.7 million recorded a year earlier.
The bank, based in Hewlett, N.Y., took a writedown of $7.1 million on such rights in the 1992 quarter.
The chairman and CEO, James M. Large Jr., said earnings were hurt by shrinking margins as rates on existing adjustable-rate mortgages fell. Earnings were helped, however, by a $5.2 million-pretax profit from the sale of branches in southern New Jersey.
The company noted that it lost about $1.3 million in its unsuccessful attempt to by Crossland Federal Savings.