Anchor Bank has had its federal cease and desist order lifted, a signal that the bank has made the necessary changes to ensure its financial stability.
“We are pleased with the lifting of the order, which reflects the results of our hard work and determination in improving credit quality and reducing non-performing assets,” Jerald L. Shaw, president and chief executive officer of Anchor Bancorp, said in a statement. “We will continue to remain focused on improving our operations and returning the bank to profitability.”
The order had been in effect since Aug. 12, 2009, when the Washington Department of Financial Institutions and the Federal Deposit Insurance Corp. advised the bank it had been operating with “unsafe or unsound banking practices and violations of law and/or regulations alleged to have been committed by the bank.”
Since then, the bank restructured from a mutual savings bank and completed its first public stock offering in early 2011, which generated net proceeds of $23.2 million at the time. Also, the bank has been decreasing its number of loan delinquencies and its non-performing assets.
In a previous statement, Shaw said the bank would continue “to minimize our interest rate risk by reallocating assets and structuring our liabilities by maintaining higher-than-normal cash balances to provide us more flexibility as the economy recovers.”
With the cease and desist order lifted on Thursday, Anchor entered into a supervisory directive with the Department of Financial Institutions that will remain in effect indefinitely.
Anchor Bancorp is headquartered in Lacey and is the parent company of Anchor Bank, with 13 full-service banking offices in Grays Harbor, Thurston, Lewis, Pierce and Mason counties.