AnchorBank Announces Lifting of Regulatory Enforcement Actions
MADISON, Wis., April 2, 2014 (GLOBE NEWSWIRE) — AnchorBank today
announced its Cease and Desist Order and Prompt Corrective Action
Directive, both overseen by the Office of the Comptroller of the
Currency, have been terminated. However, the Cease and Desist Order at
Anchor BanCorp Wisconsin Inc., the Bank’s parent company, presently
remains in place.
On June 26, 2009, AnchorBank and its holding company, Anchor BanCorp
each consented to the issuance of Orders to Cease and Desist (the “C&D
Orders”) by the Office of Thrift Supervision. And on August 31, 2010,
the Bank received a Prompt Corrective Action Directive (“PCAD”) from
its regulators. In response to the C&D Orders and the PCAD, both of
which imposed no fines or penalties on the Bank, the Board of Directors
recruited a new executive management team under the leadership of Chris
M. Bauer, who joined the Bank as Chief Executive Officer.
The new management team led the Bank’s turnaround efforts, with a focus
on stabilizing the Bank and was ultimately able to achieve compliance
with every provision contained in the C&D Orders and PCAD with the
exception of capital ratio requirements.
To address such remaining requirement, on September 27, 2013, Anchor
BanCorp completed a $175 Million recapitalization and reorganization.
Today, as a result of the recapitalization, the Bank’s capital levels
exceed those required under the terms of the Bank’s Cease and Desist
Order. As of December 31, 2013, the Bank’s total risk-based capital
ratio was 17.07%, with Tier 1 capital at 9.60%.
“The recapitalization positioned AnchorBank for future success, and a
return to soundness, profitability and growth. Maintaining a strong
compliance culture will remain a top priority in 2014 and beyond,” said
Chris Bauer, President & CEO of AnchorBank. “We continue to make steady
progress in improving our financial health, and we continue to focus
our efforts on new strategies to develop a relationship-focused,
service-driven franchise with expanded commercial lending, core
deposits and a more efficient operating model. Termination of these
regulatory enforcement actions affirm that AnchorBank complies with or
exceeds all regulatory requirements and expectations.”
About Anchor BanCorp Wisconsin Inc.
AnchorBank, fsb has 54 offices, all of which are located in Wisconsin.
Forward-Looking Statements
This news release contains certain forward-looking statements, as that
term is defined in the U.S. federal securities laws. In the normal
course of business, we, in an effort to help keep our shareholders and
the public informed about our operations, may from time to time issue
or make certain statements, either in writing or orally, that are or
contain forward-looking statements. Generally, these statements relate
to business plans or strategies, projections involving anticipated
revenues, earnings, liquidity, capital levels, profitability or other
aspects of operating results or other future developments in our
affairs or the industry in which we conduct business. Although we
believe that the anticipated results or other expectations reflected in
our forward-looking statements are based on reasonable assumptions, we
can give no assurance that those results or expectations will be
attained. You should not put undue reliance on any forward-looking
statements. Forward-looking statements speak only as of the date they
are made and we undertake no obligation to update them in light of new
information or future events, except to the extent required by federal
securities laws.
CONTACT: Jennifer Ranville, 608-252-8862
