AnchorBank in Madison, Wis., has been released from two enforcement actions from the Office of the Comptroller of the Currency.
The OCC lifted a cease-and-desist order and a prompt corrective action directive against the $2.1 billion-asset bank. A cease-and-desist order against Anchor's parent, Anchor BanCorp Wisconsin (ABCW), remains in place.
AnchorBank and its parent entered into cease-and-desist orders with the now-defunct Office of Thrift Supervision in June 2009. The bank received a prompt corrective action directive from the OTS in August 2010. The company's board responded to the orders by hiring a new management team, including Chris Bauer, the current president and chief executive.
Bauer spearheaded Anchor's turnaround efforts, which included cutting costs and raising capital. The company's planned $175 million recapitalization hit a roadblock in August when one of its creditors, Associated Banc-Corp (ASBC), refused to approve the deal. Anchor was able to complete the recapitalization in September after filing for Chapter 11 bankruptcy, which allowed it to restructure its debt.
Anchor's capital ratios are now above required minimums. It had a Tier 1 leverage ratio of 9.60% and a total risk-based capital ratio of 17.07% as of Dec. 31. The company returned to profitability in the third quarter following the recapitalization.
"The recapitalization positioned AnchorBank for future success, and a return to soundness, profitability and growth. Maintaining a strong compliance culture will remain a top priority in 2014 and beyond," Bauer said in a press release Wednesday. "We continue to make steady progress in improving our financial health. Termination of these regulatory enforcement actions affirm that AnchorBank complies with or exceeds all regulatory requirements and expectations."
Anchor has 54 branches in Wisconsin.