Anchor BanCorp files to raise up to $200 million, will increase loan loss provisions
Madison-based Anchor BanCorp Wisconsin Inc., the corporate parent of AnchorBank, filed a shelf registration statement yesterday with the Securities and Exchange Commission that could allow the bank holding company to raise up to $200 million in securities.
The funds would allow the bank to reduce the its debt obligations.
"The shelf registration is part of our strategic capital raising effort to decrease our current debt balances and improve AnchorBank’s current well-capitalized regulatory ratios," said Douglas Timmerman, president and CEO of the bank. "We expect that capital raised in this effort would be sufficient to enable Anchor BanCorp and AnchorBank to deal with current economic conditions and continue our plans for prudent growth."
The bank also plans to raise its allowances for loan losses to 1.5 percent of its loans as of Sept. 30, compared to the 0.94 percent level it had on June 30, the bank announced yesterday.