Anchor BanCorp in Madison, Wis., said it has won approval to participate in the Treasury Department's Capital Purchase Program and is slated to receive $110 million.
Douglas Timmerman, Anchor's chairman, president, and chief executive, said in a press release late Friday that the $4.9 billion-asset company is already viewed as well capitalized, and that the addition of government funds "will further enhance our position in this challenging economic environment."
The funding also will give Anchor more latitude in its efforts to work with "troubled but qualified borrowers," Mr. Timmerman said.
Anchor lost $23.3 million in the third quarter, in large part because of a $47 million provision for loan losses. It had earned $9.3 million in the same quarter a year earlier.
Also Friday, Anchor said it would continue to review options for raising additional capital to pay down debt. When it filed a shelf registration in October, the company said it was seeking to raise funds to pay down a $120 million loan from U.S. Bancorp.
By late Monday, Anchor's shares had risen 6.3% from Friday's close, to $2.70.
The price is down 89% from its 52-week high.
