HEWLETT, N.Y. - Anchor Bancorp said it raised $67.8 million in a stock offering, adding enough capital to free its thrift unit from regulatory restraints after four years of uncertainty.
"It is an exciting day for Anchor shareholders, both old and new," said James M. Large Jr., chairman and chief executive of the thrift, which has $5.6 billion of deposits.
The additional capital allowed the thrift to meet the 5% leverage capital ratio to satisfy the requirements for a well-capitalized thrift under the 1989 thrift-reform act.
Mr. Large said the thrift also completed a transaction with the Federal Deposit Insurance Corp. that improved Anchor's holding company capital structure by increasing the common equity portion of total capitalization.
In that deal, Anchor exchanged $71 million of senior notes for $157 million of preferred stock, held by a fund managed by the FDIC.
The fund acquired the preferred stock in the early 1980s when Anchor acquired some troubled institutions with assistance from the old Federal Savings and Loan Insurance Corp.