Struggling Anchor BanCorp Wisconsin Inc. has bought itself six more months in its bid to raise fresh capital.
The $3.6 billion-asset thrift company said this week that its lender, U.S. Bank, has given it another six months to repay a $116.3 million loan that was due to be paid off May 31. It is the second time in the last 13 months that U.S. Bank has extended the deadline for repaying the loan.
Anchor said that U.S. Bank agreed to an extension because it has so far complied the loan's covenants for capital ratios and nonperforming loans. The interest rate on the amended agreement is set at 15%, according to news reports.
Anchor's thrift subsidiary, Anchor Bank FSB in Madison, has been hit hard by defaults on real estate loans. The thrift has lost more than $340 million and has shrunk its assets by roughly one-third over the last three years, according to Federal Deposit Insurance Corp. data.
