Anchor BanCorp Wisconsin Inc. in Madison said it had managed to keep its thrift adequately capitalized at yearend.
The $3.6 billion-asset company reported a $14 million fiscal third-quarter loss late Monday, narrowing its loss by 4% in the period that ended Dec. 31, from a year earlier.
Anchor's loan-loss provision rose 105% from the previous quarter and a year earlier, to $21.4 million.
Nonperforming assets grew 6% from a year earlier, to $403 million, but they have steadily declined since peaking at $455 million in the March 31 quarter last year.
Higher credit costs were offset by a $5.6 million gain on loan sales, doubling the gain from a year earlier, and a 35% reduction in noninterest expense, to $24.6 million.
The expense cut was largely driven by a reduction in the premium Anchor's thrift pays the Federal Deposit Insurance Corp.; the thrift's capital position improved after several branch sales last year.
Though Anchor showed some signs of improvement, it warned in a Securities and Exchange Commission filing about its ability to remain a going concern if it is unable to boost capital enough to satisfy regulators.
The branch sales and expense cuts branch sales and expense cuts moved Anchor's thrift unit to an adequately capitalized status at Sept. 30, from undercapitalized. The unit's total risk-based capital ratio at Dec. 31 was 8.37%, up 23 basis points from Sept. 30.
The Office of Thrift Supervision has called for that ratio to be 12%.
