Anchor Bank, one of the largest thrifts in Wisconsin, continues to be hampered by nonperforming loans, losing $19.6 million, or 92 cents a share, in the second quarter of its fiscal year.
Anchor’s second quarter performance compared with a loss of $1.87 million, or 9 cents, in the same quarter of last year.
The situation with bad loans, most of which are tied to real estate, has prompted the bank to add $17.1 million to its reserves to cover loan losses, up from $10.7 million a year earlier.
While fewer loans are going delinquent and the amount of nonperforming loans has declined, the situation has been impacted by a higher level of foreclosed properties, according to Chris Bauer, Anchor’s president and chief executive.
Anchor, a Madison-based bank company, has received $110 million as part of the Troubled Asset Relief Program. In addition, Anchor said it is negotiating an extension of a credit agreement with U.S. Bank that matures on Nov. 30. Anchor owes U.S. bank and other lenders a total of $116.3 million.
