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.
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