AnchorBank posts a smaller third-quarter loss 

AnchorBank posts a smaller third-quarter loss

Feb 08, 2013 (Menafn - Milwaukee Journal Sentinel - McClatchy-Tribune Information Services via COMTEX) --The parent company of AnchorBank narrowed its quarterly loss despite a decrease in interest income on loans and a 3.5 million penalty for early debt repayment.

Anchor BanCorp Wisconsin Inc. said Thursday it recorded a fiscal third-quarter loss of 15.1 million, or 71 cents a share. That compared with a loss of 15.3 million, or 72 cents, in third quarter 2011. Anchor's third quarter ended Dec. 31.

Through the first nine months of its fiscal year, Anchor has posted a loss of 30.6 million, or 1.44 a share, compared with a loss of 43 million, or 2.03, in the first three quarters of fiscal 2011.

Madison-based Anchor is trying to recover from big losses on commercial real estate loans it made before the economic downturn.

In a statement announcing the loss, Chris Bauer, Anchor's chief executive, stressed that the company's capital levels have improved. Capital ratios are a key measure of a bank's strength.

"We are pleased to report our 10th consecutive quarter of capital ratios above the threshold to be considered adequately capitalized," Bauer said.

However, Anchor continues to be burdened by a number of issues. Anchor still owes 116.3 million -- plus 55.5 million in unpaid interest and fees -- to various lenders led by U.S. Bank. In addition, Anchor has not paid dividends on its 110 million Troubled Asset Relief Program investment from the U.S. Treasury. Anchor said it now owes the federal government 23.7 million in dividends.

Before the announcement Thursday, Anchor's stock price lost 2 cents to close at 63 cents.

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