Problems accounting for loans originated through a Federal Home Loan Bank System program have left a Wisconsin bank restating its income and on the verge of having its stock delisted.
Anchor BanCorp Wisconsin Inc. announced it is restating financial statements and that NASDAQ has notified it that its stock may be delisted because its Form 10-K annual report for the year ended March 31, 2005, had not been filed on time.
The Madison, Wis.-based bank has been working on restating previous financial statements to reflect "material adjustments" on the accounting of loans it originated through the Mortgage Partnership Finance 100 program of the Federal Home Loan Bank of Chicago, the announcement said.
Anchor began its restatement after its independent accounting firm concluded it had "a material weakness" in its system of internal controls over the financial reporting of the mortgage partnership loans. The accountants advised Anchor to restate consolidated financial statements for fiscal 2005, 2004 and 2003, and prior financial statements included in annual and quarterly reports on Forms 10-K and 10-Q filed with the SEC.
"The corrections which are necessary to restate the company's financial statements generally relate to the timing of the recognition of income from its participation in the (Mortgage Partnership Finance) program and do not reflect a change in the underlying economics of the company's participation in the (Mortgage Partnership Finance) program, the company's business or its future prospects," Anchor said in the announcement.
Anchor said it intends to request a hearing with a NASDAQ Listing Qualifications Panel to appeal the delisting, which is scheduled for tomorrow.
As a result the filing delinquency, a fifth character was added Wednesday to the trading symbol of Anchor's common stock, changing it from "ABCW" to "ABCWE." The stock has continued to be listed pending the appeal, according to the announcement.
Anchor said it expects to file its Form 10-K this month.