Anchor Bancorp Wisconsin Announces Second QuarterEarnings.

Business Editors

MADISON, Wis.--(BUSINESS WIRE)--Oct. 25, 2000

Anchor BanCorp Wisconsin Inc. announced net income of $6.6 million for the quarter ended September 30, 2000, which compares to $7.1 million for the quarter ended September 30, 1999.

"We have concentrated

on growth, and I am pleased to say our total assets grew 9.8%, primarily through increases in our multi-family and consumer loan portfolios. We also experienced growth in our deposits, which grew 6.9% this quarter, from $1.9 to $2.0 billion. In addition, book value per share increased from $8.96 to $9.13," said Douglas J. Timmerman, President.

Net income for the six-month period ended September 30, 2000 was $13.6 million, which compares to $5.5 million for the six-month period ended September 30, 1999. Diluted earnings per share were $.28 for the quarter and $.58 for the six-month period ended September 30, 2000. This compares to $.28 for the quarter and $.22 for the six-month period ended September 30, 1999. Previously reported financial information, including earnings per share, reflects the merger with FCB Financial Corp., which was accounted for as a pooling of interests.

Anchor BanCorp's stock is traded on the over-the-counter market under the NASDAQ symbol ABCW. AnchorBank fsb, the wholly-owned subsidiary, has 49 full service offices and three loan origination only offices. All are located in Wisconsin.

For more information, contact Mike Helser, CFO at (608) 252-1810 or Douglas J. Timmerman, President, at (608) 252-8782.

                     ANCHOR BANCORP WISCONSIN INC.
                         FINANCIAL HIGHLIGHTS
----------------------------------------------------------------------
                              (Unaudited)

                              Three Months Ended    Six Months Ended
                                 September 30,        September 30,
                              ------------------   ------------------
                                2000      1999       2000      1999
                              ------------------   ------------------
Operations Data:
 Net interest income          $ 19,843  $ 21,001   $ 40,416  $ 41,668
 Provision for possible
   loan losses                     160       150        345     1,006
 Net gain on sale of loans       1,208       366      1,568     1,395
 Other non-interest income       2,349     2,628      5,367     5,259
 Non-interest expense           12,837    12,047     25,532    34,798
 Income before income taxes     10,403    11,798     21,474    12,518
 Income taxes                    3,822     4,676      7,908     6,999
 Net income                      6,581     7,122     13,566     5,519

Selected Financial Ratios (1):
 Yield on earning assets          7.95%     7.48%      7.87%     7.50%
 Cost of funds                    5.34      4.60       5.19      4.57
 Interest rate spread             2.61      2.88       2.68      2.93
 Net interest margin              2.77      3.14       2.86      3.17
 Return on average assets         0.87      1.03       0.91      0.41
 Return on average equity        12.57     12.73      12.79      4.94
 Average equity to average
   assets                         6.91      8.06       7.11      8.24
 Non-interest expense to
   average assets                 1.69      1.74       1.71      2.57

Per Share:
 Basic earnings per share     $   0.29  $   0.29   $   0.59  $   0.22
 Diluted earnings per share       0.28      0.28       0.58      0.22
 Dividends per share              0.08      0.07       0.15      0.12
 Book value per share             9.13      8.96        n/a       n/a


                                        September 30,
                                   ------------------------   Percent
                                      2000         1999        Change
                                   ------------------------   -------
Financial Condition:
 Total assets                      $ 3,098,271  $ 2,820,785       9.8%
 Loans receivable, net
  Held for sale                          4,742        4,171      13.7
  Held for investment                2,462,112    2,268,394       8.5
 Investment securities available
    for sale, at fair value             62,234       80,214     (22.4)
 Investment securities held to
    maturity, at amortized cost         50,777       52,650      (3.6)
 Mortgage-related securities
    available for sale, at fair value   54,564       63,276     (13.8)
 Mortgage-related securities held to
  maturity, at amortized cost          219,456      182,063      20.5
 Deposits                            1,991,161    1,863,173       6.9
 Borrowings                            838,080      687,161      22.0
 Stockholders' equity                  210,006      226,765      (7.4)
 Allowance for possible loan losses     24,140       24,732      (2.4)
 Non-performing assets                   5,165        6,256     (17.4)

--------------------------------
(1) Annualized when appropriate.



                     ANCHOR BANCORP WISCONSIN INC.
            CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
           (Dollars in thousands - except per share amounts)
                              (Unaudited)

                                 September 30,       March 31,
                                      2000             2000
                                 -----------------------------
                                         (In Thousands)
Assets
 Cash and cash equivalents          $ 88,821         $ 83,708
 Investment securities available
  for sale, at fair value             62,234           34,936
 Investment securities held to
  maturity, at amortized cost         50,777           51,270
 Mortgage-related securities
  available for sale, at fair
  value                               54,564           57,276
 Mortgage-related securities held to
  maturity, at amortized cost        219,456          243,243
 Loans receivable, net
  Held for sale                        4,742            1,764
  Held for investment              2,462,112        2,302,721
 Foreclosed properties and
  repossessed assets, net                310              272
 Real estate held for development
  and sale                            48,556           34,063
 Office properties and equipment      25,464           25,712
 Other assets                         81,235           76,187
                               -------------      -----------
    Total assets                 $ 3,098,271      $ 2,911,152
                               =============      ===========

Liabilities and
 Stockholders' Equity

 Deposits                        $ 1,991,161      $ 1,897,369
 Borrowings                          838,080          756,859
 Advance payments by borrowers
  for taxes and insurance             23,771            8,213
 Other liabilities                    35,253           31,496
                               -------------      -----------
    Total liabilities              2,888,265        2,693,937
                               -------------      -----------

 Preferred stock, $.10 par value,
  5,000,000 shares authorized,
  none outstanding                         -                -
 Common stock, $.10 par value,
  100,000,000 shares authorized,
  25,363,339 shares issued             2,536            2,536
 Additional paid-in capital           56,574           56,496
 Retained earnings, substantially
  restricted                         188,471          179,211
 Less: Treasury stock (2,367,151
  shares and 1,275,192 shares,
  respectively), at cost             (35,746)         (18,438)
   Common stock purchased by
    benefit plans                       (709)            (923)
   Accumulated other
    comprehensive loss                (1,120)          (1,667)
                               -------------      -----------
    Total stockholders' equity       210,006          217,215
                               -------------      -----------
    Total liabilities and
     stockholders' equity        $ 3,098,271      $ 2,911,152
                               =============      ===========



                     ANCHOR BANCORP WISCONSIN INC.
                   CONSOLIDATED STATEMENTS OF INCOME
                              (Unaudited)


                          Three Months Ended       Six Months Ended
                             September 30,           September 30,
                          -------------------     -------------------
                            2000       1999         2000       1999
                          -------------------     -------------------
Interest income:
 Loans                    $ 49,893   $ 43,793     $ 97,205   $ 86,112
 Mortgage-related
   securities                4,571      3,968        9,317      8,018
 Investment securities       2,506      2,263        4,822      4,347
                          --------   --------     --------   --------
  Total interest income     56,970     50,024      111,344     98,477
Interest expense:
 Deposits                   23,448     20,153       45,306     40,029
 Notes payable and other    13,679      8,870       25,622     16,780
                          --------   --------     --------   --------
  Total interest expense    37,127     29,023       70,928     56,809
                          --------   --------     --------   --------
   Net interest income      19,843     21,001       40,416     41,668
Provision for possible
  loan losses                  160        150          345      1,006
                          --------   --------     --------   --------
   Net interest income after
    provision for possible
    loan losses             19,683     20,851       40,071     40,662
Non-interest income:
 Service charges on
  deposit accounts           1,438      1,243        2,838      2,549
 Net gain on sale
  of loans                   1,208        366        1,568      1,395
 Other income                  911      1,385        2,529      2,710
                          --------   --------     --------   --------
   Total non-interest
    income                   3,557      2,994        6,935      6,654
Non-interest expense:
 Compensation                6,921      6,722       14,115     13,682
 Occupancy                   1,106      1,107        2,087      2,021
 Federal insurance premiums     97        265          192        532
 Merger-related                  -          -            -      8,500
 Goodwill                        -          -            -      1,761
 Other                       4,713      3,953        9,138      8,302
                          --------   --------     --------   --------
  Total non-interest
   expense                  12,837     12,047       25,532     34,798
                          --------   --------     --------   --------
  Income before
   income taxes             10,403     11,798       21,474     12,518
Income taxes                 3,822      4,676        7,908      6,999
                          --------   --------     --------   --------
     Net income            $ 6,581    $ 7,122     $ 13,566    $ 5,519
                          ========   ========     ========   ========
Earnings per share:
Basic                       $ 0.29     $ 0.29       $ 0.59     $ 0.22
Diluted                       0.28       0.28         0.58       0.22