AnchorBank, Fsb Announces Conditional Approval Of Capital Restoration Plan By Office Of Thrift Supervision
MADISON, Wis., Sept. 7, 2010 (GLOBE NEWSWIRE) -- Anchor BanCorp Wisconsin, Inc. (Nasdaq:ABCW), the holding company for AnchorBank, fsb (Bank), announced today that the Bank has received conditional approval of its capital restoration plan from its primary federal regulator, the Office of Thrift Supervision (OTS). In conjunction with this approval, the Board of Directors has executed a Stipulation and Consent to a Prompt Corrective Action Directive (PCA Directive) with the OTS. The PCA Directive will become effective upon the acceptance of the Consent by the OTS and issuance of the PCA Directive.
"We view the OTS's conditional approval of our Capital Restoration Plan (Plan) as a significant step forward. The Bank's ability to reach an 8.05% Total Risk Based Capital Ratio as of July 31, returning it to "adequately capitalized" status, is a key milestone and indicates that many of our strategic initiatives, including recent sales of branches in non-core markets, closing of unprofitable offices, reductions in overhead and expenses, enhanced underwriting standards and management of both new and troubled loan assets, are beginning to be reflected in the Bank's operating results," stated Chris Bauer, Chief Executive Officer.
The PCA Directive requires, among other things, that the Bank continues to implement the Plan as conditionally approved by the OTS. An essential element for the approval of the Plan was the Bank's ability to attain "adequately capitalized" (8.0% or greater Total Risk Based Capital) status as of July 31, 2010. Based on the Bank's internal financial reporting, a Total Risk Based Capital level of 8.05% was achieved as of July 31, 2010. The Bank's official regulatory capital levels as of the end of its complete second fiscal quarter, ending September 30, 2010, is reported on a quarterly basis and will be reported in late October.The Plan filed with the OTS includes two sets of assumptions for continuing to improve the Bank's capital levels in the future, one based on obtaining capital from an outside source and one which reflects the results of the Bank's ongoing initiatives in the absence of an external capital infusion.
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