Anchor BanCorp Wisconsin Inc. in Madison recorded a third-quarter loss of $23.3 million, or $1.11 a share, compared with earnings of $9.3 million, or 44 cents a share, a year earlier.
The loss was driven by a loan-loss provision that grew 22-fold from the third quarter of last year, to $47 million, the $4.9 billion-asset company said after the market closed Friday.
The dramatically provision increase was a response to "the deterioration in a portion of our loan portfolio, driven primarily by the current condition of the real estate market and the challenges this presents to some of our borrowers," Douglas J. Timmerman, Anchor's president and chief executive, said in a press release.
Nonperforming assets increased 168%, to $169 million, while the allowance for loan losses nearly tripled, to $64.6 million.
Anchor, which filed a shelf registration last month to raise capital to pay down $120 million loan from U.S. Bancorp, said it is "reviewing alternatives for raising additional capital," and still considering participating in the Treasury Department's Capital Purchase Program.