Regulators lifted an enforcement action against Anchor Bank in Lacey, Wash., and replaced it with a softer one.
The $470 million-asset unit of Anchor Bancorp (ANCB) has been operating under a cease-and-desist order from the Washington Department of Financial Institutions and the Federal Deposit Insurance Corp. since August 2009. The order was terminated on Sept. 5, a day after the bank entered into a supervisory directive with the agencies. The downgrade in oversight was a result of the bank's May examination.
"We are pleased with the lifting of the order, which reflects the results of our hard work and determination in improving credit quality and reducing nonperforming assets," Jerald L. Shaw, the company's president and chief executive, said in a press release. "We will continue to remain focused on improving our operations and returning the bank to profitability."
In the second quarter of 2009, noncurrent loans made up roughly 10% of the bank's total loans and its total risk-based capital ratio was 10.15%. In January 2011, Anchor Bancorp raised $23.2 million of capital.
At June 30 of this year, the bank's noncurrent loan ratio was down to about 3%, but its total risk-based capital ratio was 18.23%.
Though it has a stronger balance sheet, the bank is struggling with profitability. It reported a loss of $1.7 million for its fiscal-year 2012, which ended June 30, compared to loss of $8.8 million a year earlier.