-
Anchor BanCorp Wisconsin (ABCW) in Madison lost $17.5 million in the first quarter despite an improvement in credit quality.
May 28 -
Losses at Anchor BanCorp Wisconsin (ABCW) in Madison narrowed slightly last quarter as its credit quality improved.
February 11 -
The $2.7 billion-asset parent of AnchorBank in Madison, Wis., said Wednesday it has prepaid $150 million in advances from the Federal Home Loan Bank System that were due in 2015.
December 26
Anchor BanCorp Wisconsin (ABCW) has defaulted on a loan from a group of banks led by U.S. Bancorp (USB) after the Federal Reserve Board rejected a request to extend the loan.
The Madison, Wis., company owed $116 million in principal plus $60 million of interest and fees under a revolving loan that was due on June 30, Anchor disclosed in a
Anchor is operating under a 2009
"Obviously, we were a little surprised and disappointed, because US Bank and the bank group were being quite cooperative, and had agreed to the extension," said Anchor Chief Executive Chris Bauer. "But this action does not disrupt in any way the operation of the holding company or the operation of the bank."
As a result of Anchor's default, the lenders can terminate the loan or demand immediate repayment of the balance. The lenders have not told Anchor that they intend to take either step, Bauer said.
The default also caused the interest rate on the unpaid principal to rise by 200 basis points, to 19% a year. Bauer said he does not expect the default to have any further immediate financial impact on the company.
Anchor said it is working to raise the needed capital, and is discussing alternatives with its lenders.
Anchor has strengthened its loan portfolio over the past year, but still recorded a
The $2.4 billion-asset AnchorBank had a Tier 1 leverage ratio of 4.53% and total risk-based capital of 9.02% on April 30, according to the Federal Deposit Insurance Corp.