Anchor net loss doubles; company settles fraud case
On the heels of news that Anchor BanCorp filed for Chapter 11 bankruptcy reorganization comes word that the company posted a net loss that was more than twice as large as last year’s. For the first fiscal quarter ending June 30, Anchor BanCorp, parent of Madison-based AnchorBank, saw a net loss of $8.9 million (42 cents/share), compared to a net loss of $3.4 million (16 cents/share) for the same quarter a year ago.
Total assets dropped slightly, from $2.37 billion in 2012 to $2.34 billion in 2013. Nonperforming loans dropped from $189 million a year ago to $107 million this year and are not expected to be repaid.
Meanwhile, a financial fraud case, brought by the SEC against Anchor BanCorp Wisconsin and Dale Ringgenberg, its former CFO, has been tentatively settled. The timing of the case had nothing to do with the company’s Chapter 11 filing earlier this week, according to a report in the Wisconsin State Journal.
In part, the SEC questioned the accuracy of information received from the company back in 2009, when its net loss of $11.8 million should have been reported as a net loss of $15.8 million. The complaint also claimed that Ringgenberg, now retired after a 34-year career with the bank, “deliberately or recklessly ignored” $7.4 million that should have been included in a reserve account for loan losses.
The settlement, subject to federal court approval, includes a $75,000 fine against Ringgenberg, who is also barred from serving as an officer or director of a public company for five years. Anchor BanCorp was not assessed a financial penalty.