Earnings at the Lacey-based parent company to Anchor Bank swung to a small net loss for its fiscal first quarter after earning net income in the same quarter a year ago.
Anchor Bancorp reported a net loss of $12,000, or no earnings per share, compared with a profit of $278,000, or 11 cents a share, in the year-ago period.
President and Chief Executive Jerry Shaw said the net loss was tied to the expense of dealing with bad assets.
He said the bank is working to “get rid of bad assets and find some good loans, but there is plenty of competition out there.”
The competition is about to get bigger, too, after the parent company to Heritage Bank of Olympia and the parent company to Whidbey Island Bank of Oak Harbor announced a $265.1 million merger last week.
There were some bright spots for Anchor Bancorp in the quarter:
• Total classified loans — a loan that is considered substandard and subject to special review — fell to $16.1 million from $31.3 million in the year-ago period.
• No provision for loan losses — setting aside money to cover potentially bad loans — was recorded for the second consecutive quarter.
• The company repaid $47.4 million in Federal Home Loan bank borrowings.
Shaw said the Thurston County economy is looking better from a macroeconomic picture, compared with Grays Harbor County (Anchor Bank is based in Aberdeen), and the construction activity he sees in the area is encouraging.
But he’s also concerned about recent news, such as Thurston County government facing $6 million in budget cuts. He said the turnaround in the economy still is “dependent on getting a job and being able to afford a house.”
Anchor Bancorp stock, which trades under the ticker symbol ANCB, fell 20 cents Tuesday to close at $17.32 a share. In the past 52 weeks, it has traded between $11 and $19 a share.
Rolf Boone: 360-754-5403 firstname.lastname@example.org