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ANCHOR BANCORP PUBLIC STOCK OFFERING PREFERRED STOCK EXCHANGE

 HEWLETT, N.Y., July 12 /PRNewswire/ -- Anchor Bancorp, Inc. (NASDAQ: ABKR), parent company of Anchor Savings Bank FSB, reported the successful completion of its common stock offering of 5,750,000 shares which was priced at $12.50 per share. The net proceeds will amount to $67,850,000, essentially all of which, after expenses, will be downstreamed to its principal subsidiary, Anchor Savings Bank.
 Anchor also reported that it had completed the previously announced exchange with the Federal Deposit Insurance Corporation (the "FDIC"), as manager of the FSLIC Resolution Fund, of its $157.0 million of Preferred Stock held by the FRF for $71.0 million of senior notes (the "Senior Notes") of Anchor and ten-year warrants to purchase, at an exercise price of $0.01 per share, 4,750,000 shares of the common stock of Anchor (the "Warrants"). The Senior Notes were priced at 8.9375 percent based upon a rating of `BB' from Standard & Poor's and `Ba3' from Moody's. The exchange also eliminated the accumulated but undeclared and unpaid dividend arrearage on Anchor's preferred stock which aggregated $47.2 million at June 30, 1993. As previously reported, the Senior Notes impose certain restrictions upon Anchor, including a limit on the ability of Anchor (but not Anchor Savings) to incur indebtedness and a limit, based primarily on Anchor's earnings after the exchange with the FDIC, on the amount of dividends which Anchor can pay.
 In announcing completion of the exchange with the FDIC, James M. Large Jr., chairman and chief executive officer, stated, "It is an exciting day for Anchor shareholders, both old and new. The stock offering has allowed Anchor to achieve a 5.0 percent leverage capital ratio. As a result, Anchor has satisfied the requirements for a `well capitalized' designation under the prompt corrective action guidelines of the banking regulators. Anchor is now free from all but the normal regulatory restraints and will be able to resume its growth and realize the full potential of its franchise."
 He noted that the FDIC exchange is also a major step since it adds $86.0 million to common shareholders' equity, improves Anchor's holding company capital structure by increasing the common equity portion of total capitalization and allows Anchor to initiate common dividend payments if it should choose to do so.
 Anchor Savings Bank is among the 14 largest U.S. thrifts with deposits of $5.6 billion as of March 31, 1993. It operates branches primarily in two market areas: Metropolitan New York/New Jersey and Florida.
 -0- 7/12/93
 /CONTACT: Thomas K. Hernly of Anchor Bancorp, 516-596-3902/
 (ABKR)


CO: Anchor Bancorp, Inc. ST: New York IN: FIN SU: OFR

WB-LG -- NY066 -- 0516 07/12/93 14:59 EDT
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Publication:PR Newswire
Date:Jul 12, 1993
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