Since the financial crisis, many banks have struggled to regain momentum after taking a hit from troubled loans. Anchor BanCorp Wisconsin is no exception.
Anchor BanCorp Wisconsin’s first quarter income plummeted by $17.5 million despite an improvement in credit quality, an article in the American Banker said.
Aiding the loss, Anchor BanCorp’s net chargeoffs fell 81% from a year earlier, to $4.6 million. The loan-loss provision fell roughly 82% from the first quarter of 2012, to $830,000.
Anchor has worked over the past year to shed troubled loans and strengthen its balance sheet. A 2009 regulatory order requires the company to maintain a Tier 1 leverage ratio of at least 8% and a total risk-based capital ratio of at least 12%. At March 31, Anchor had a Tier 1 leverage ratio of 4.5% and a total risk-based capital ratio of 9%.
