Although its thrift unit remains undercapitalized, Anchor BanCorp Wisconsin Inc. in Madison reported improved results for its most recent quarter.
The company, with $4.5 billion of assets, on Friday reported a net loss of $9 million for its third fiscal quarter, which ended Dec. 31, compared with a loss of $167.1 million a year earlier. Anchor BanCorp reported a loss of $72 million for the quarter that ended Sept. 30.
Driving the loss was a provision for loan losses of $10.5 million, down 88% from a year earlier and down 83% from the previous quarter. Nonperforming assets at the banking company totaled $344.3 million, down 16% year over year.
The company's AnchorBank was undercapitalized at the end of the quarter, though Anchor BanCorp did not provide ratios in its press release.
The thrift has been operating under a cease-and-desist order since June that required the company to have a leverage ratio of 7% and a total risk-based capital ratio of 11% by Sept. 30.
In December, Anchor BanCorp entered into agreements with Badger Anchor Holdings LLC, a private-equity fund run by investment banker Steven Hovde, to invest $290 million into the company as well as lend it $110 million to shore up its capital. The Badger deal is expected to close in the first half of the year.
Anchor BanCorp also announced that its deal to sell 11 of its branches to Royal Credit Union of Eau Claire, Wis., has been pushed back.
The Royal Credit Union transaction is now expected to close by June 30, rather than March 31 as had initially been announced.