Apr. 4--AnchorBank of Madison, which lost $167.3 million during the last quarter of 2008 and whose parent company owes $116.3 million to US Bank, will eliminate 19 positions and close three branch offices on Aug. 31, including one in Madison, as part of an effort to reduce costs.

The offices closing are at 2000 Atwood Ave. in Madison; 3 Neenah Center in Neenah; and 1492 W. South Park Ave. in Oshkosh.

"We believe there will be minimal disruption in our ability to serve our valued customers," said bank president Mark Timmerman.

He said the move is expected to save about $1 million in annual operating costs.

After the closings, Anchor will have more than 1,100 employees at 73 Wisconsin offices.

Timmerman said each of the offices targeted for closing is within two miles of another Anchor branch. They were chosen based on geographical overlap. He said no other branch closings are anticipated.

The bank will work with the affected employees to give them priority placement for vacant positions within the company.

The Oshkosh office building, which Anchor owns, will be put up for sale while the two other spaces are leased.

Anchor BanCorp Wisconsin, parent company of AnchorBank, has until May 29 to pay off a $116.3 million debt to US Bank after the company did not make two previous payments.

Anchor used about half of the US Bank money to finance its $104 million purchase last year of S&C Bank, based in New Richmond, which added 13 northwest Wisconsin bank locations.

Anchor BanCorp reported a net loss of $167.3 million for the last quarter of 2008, mostly due to $93 million in the provision for loan losses and a $72.2 million write-down in the value of certain assets.

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