10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the year ended December 31, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number 001-34955

ANCHOR BANCORP WISCONSIN INC.

(Exact name of registrant as specified in its charter)

Delaware	39-1726871
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

25 West Main Street

Madison, Wisconsin 53703

(Address of principal executive office)

Registrant’s telephone number, including area code (608) 252-8700

Securities registered pursuant to Section 12 (b) of the Act:

Common stock, par value $0.01 per share	Nasdaq Global Market
(Title of Class)	(Name of each exchange on which registered)

Securities registered pursuant to Section 12 (g) of the Act:

Not Applicable

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ¨    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes   x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 or Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of the Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  x

Indicate by check mark whether the registrant has filed all reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by the court.    Yes  x    No  ¨

Prior to October 2014, there was no trading market for the common stock. As of June 30, 2014 the aggregate market value of the 6,264,100 outstanding shares of the Registrant’s common stock deemed to be held by non-affiliates of the registrant was approximately $125.3 million, based on the last sale price of the common stock (which occurred in a private placement in September 2013 and is also adjusted for a 200:1 reverse stock split in October 2013). Although directors and executive officers of the Registrant and certain of its employee benefit plans were assumed to be “affiliates” of the Registrant for purposes of this calculation, the classification is not to be interpreted as an admission of such status.

As of February 28, 2015, 9,546,987 shares of the Registrant’s common stock were outstanding.

Documents Incorporated by Reference

Portions of the definitive Proxy Statement for the Annual Meeting of Stockholders to be held on April 29, 2015 (Part III, Items 10 to 14).

ANCHOR BANCORP WISCONSIN INC.

FORM 10-K ANNUAL REPORT

TABLE OF CONTENTS

		Page
	PART I
Item 1.	BUSINESS		1
	General		1
	Market Area		4
	Competition		4
	Business Strategy		5
	Recent Developments		6
	Lending Activities		7
	Investment Securities		13
	Sources of Funds		14
	Subsidiaries		16
	Regulation and Supervision		16
	Taxation		31
Item 1A.	RISK FACTORS		31
Item 1B.	UNRESOLVED STAFF COMMENTS		43
Item 2.	PROPERTIES		43
Item 3.	LEGAL PROCEEDINGS		43
Item 4.	MINE SAFETY DISCLOSURES		43
	PART II
Item 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES		44
Item 6.	SELECTED FINANCIAL DATA		45
Item 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		46
Item 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		73
Item 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA		76
Item 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE		135
Item 9A.	CONTROLS AND PROCEDURES		135
Item 9B.	OTHER INFORMATION		136
	PART III
Item 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE		136
Item 11.	EXECUTIVE COMPENSATION		137
Item 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS		137

(i)

ANCHOR BANCORP WISCONSIN INC.

FORM 10-K ANNUAL REPORT

TABLE OF CONTENTS

		Page
Item 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE		137
Item 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES		137
	PART IV
Item 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES		138
	SIGNATURES		141

(ii)

FORWARD-LOOKING STATEMENTS

In the normal course of business, Anchor BanCorp Wisconsin Inc. (“the Company”, “we”, “our”), in an effort to help keep our stockholders and the public informed about our operations, may from time to time issue or make certain statements, either in writing or orally, that are or contain forward-looking statements, as that term is defined in the U.S. federal securities laws. This annual report contains “forward-looking statements” within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to business plans or strategies, projected or anticipated benefits from strategic transactions made by or to be made by us, projections involving anticipated revenues, earnings, liquidity, profitability or other aspects of operating results or other future developments in our affairs or the industry in which we conduct business. Forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “project,” “continue,” “ongoing,” “expect,” “intend,” “plan,” “estimate” or similar expressions.

Although we believe that the anticipated results or other expectations reflected in our forward-looking statements are based on reasonable assumptions, we can give no assurance that those results or expectations will be attained. Forward-looking statements involve risks, uncertainties and assumptions, some of which are beyond our control, and as a result actual results may differ materially from those expressed in forward-looking statements due to several factors more fully described in “Risk Factors,” as well as elsewhere in this report. Factors that could cause actual results to differ from forward-looking statements include, but are not limited to, the following, as well as those discussed elsewhere herein:

• our ability to successfully transform our business and implement our new business strategy;

• our ability to fully realize our deferred tax assets;

• on-going impact of the Recapitalization (as defined below);

• changes in the quality or composition of our loan and investment portfolios, other real estate owned values and allowance for loan losses;

• impact of potential impairment in a challenging economy;

• AnchorBank’s ability to pay dividends;

• our ability to address our liquidity needs;

• deterioration in the value of commercial real estate, land and construction loan portfolios resulting in increased loan losses;

• uncertainties about market interest rates;

• demand for financial services, loss of customer confidence and customer deposit account withdrawals;

• competitive pressures could intensify and affect our profitability, including as a result of continued industry consolidation, the increased availability of financial services from non-banks, technological developments or bank regulatory reform;

• security breaches of our information systems;

• changes in the conditions of the securities markets, which could adversely affect, among other things, the value or credit quality of our assets, the availability and terms of funding necessary to meet our liquidity needs and our ability to originate loans;

• soundness of other financial institutions with which we and the Bank engage in transactions;

• the performance of third party investment products we offer;

• environmental liability for properties to which we take title;

• the effects of any changes to the servicing compensation structure for mortgage servicers pursuant to the programs of government sponsored-entities;

(iii)

• the impact of dilution of existing stockholders as a result of possible future capital raising transactions;

• uncertainties relating to the Emergency Economic Stabilization Act of 2008, the American Recovery and Reinvestment Act of 2009, the Dodd-Frank Act (as defined below), the implementation by the U.S. Department of the Treasury and federal banking regulators of a number of programs to address capital and liquidity issues in the banking system and additional programs that will apply to us in the future, all of which may have significant effects on us and the financial services industry; and

• other risk factors included under “Risk Factors” in this report.

You should not put undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update them in light of new information or future events, except to the extent required by federal securities laws.

(iv)

PART I

Item 1. Business

General

Anchor BanCorp Wisconsin Inc. (the “Company,” “we”, “our”) is a savings and loan holding company formed in 1992 to be the holding company for AnchorBank, fsb. The Company is headquartered in Madison, Wisconsin. In 2013, the Company was reincorporated as a Delaware corporation. Through our wholly owned banking subsidiary, AnchorBank, fsb (the “Bank” or “AnchorBank”) we offer a full range of retail and commercial banking services to customers through our branch and commercial office locations in Wisconsin. The Company’s strategy focuses on building a strong franchise with meaningful commercial banking market share and growing revenues complemented by operational efficiencies that can produce attractive risk-adjusted returns to enhance stockholder value.

The Company is regulated as a savings and loan holding company and is subject to the periodic reporting requirements of both the Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934, as amended (“Exchange Act”) and regulated by the Federal Reserve Bank. See “Regulation and Supervision.”

The Bank was organized in 1919 as a Wisconsin chartered savings institution and converted to a federally chartered savings institution in 2000. The Bank is regulated by the Office of the Comptroller of the Currency (“OCC”). The Bank’s deposits are insured up to the maximum allowable amount by the Federal Deposit Insurance Company (“FDIC”).

The Bank’s core businesses listed below are dedicated to providing quality, personalized financial and investment services to local businesses and individuals.

• Commercial banking division provides:

• Cash management services;

• Working capital lines of credit;

• Loans for fixed asset purchases;

• Lending for owner-occupied buildings;

• Construction lending; and

• Commercial real estate lending including multi-family, retail, office and industrial.

• Retail banking division provides:

• A full range of consumer deposit and lending products such as:

• Checking accounts;

• Interest-bearing checking accounts;

• Savings accounts;

• Money market accounts;

• Certificates of deposit accounts;

• Individual retirement accounts; and

• Consumer loans, including home equity lending.

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• Retail lending division provides:

• Residential mortgage lending;

• Mortgage servicing; and

• Home construction financing.

We believe our presence in the markets in which we serve, our local market knowledge and our ability to make responsive business decisions at the local level give us the ability to tailor our products and services to meet our customer’s specific needs.

As we transition the Bank to a commercially-focused, full service community bank, we will continue to seek and recruit seasoned commercial banking talent, enhance our long-lasting relationships and pursue cross-selling opportunities through a sales and service model.

Our Path to the Present

As a result of the last economic downturn, beginning in fiscal 2009 we experienced significant operating losses, high levels of under-performing assets, depleted levels of capital and difficulty in raising additional capital necessary to stabilize the Bank as required by our banking regulators. The Company had credit obligations under a credit facility, which we were unable to repay. As a consequence of the financial crisis and related challenges, on June 26, 2009, the Company and the Bank each consented to the issuance of an Order to Cease and Desist (individually, the “Company Order” and the “Bank Order”, respectively and collectively the “C&D Orders”). The orders were administered by the governing regulatory bodies of the Company and the Bank. The C&D Orders required among other things a larger capital ratio and the submission of a capital restoration plan along with a revised business plan.

In late 2009, in an effort to raise necessary capital, we issued Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the “TARP Preferred Stock”) and warrants to purchase common stock (the “TARP Warrant”) to the United States Department of the Treasury (the “Treasury”) as part of the Troubled Asset Relief Program (“TARP”). Thereafter, we and our advisors negotiated with the lenders and U.S. Bank National Association (“U.S. Bank”), as administrative agent (the “Administrative Agent”) for the lenders under the credit facility, and with the U.S. Treasury, for a satisfactory settlement of our outstanding obligations. For further discussion please refer to the “Senior Debt Settlement” section below.

On August 12, 2013, we filed a Chapter 11 Case in the Bankruptcy Court to implement a Plan of Reorganization (“the Plan of Reorganization”) in order to facilitate the restructuring of the Company and the recapitalization of the Bank. Subsequently, the Bankruptcy Court entered a confirmation order (the “Confirmation Order”), whereby it confirmed the Plan of Reorganization. On September 27, 2013 (the “Effective Date”), the Plan of Reorganization became effective in accordance with its terms.

The following is a summary of the transactions consummated on or before the Effective Date pursuant to the Plan of Reorganization. Also see Note 2 to the Consolidated Financial Statements in Item 8.

• Delaware Conversion and Reverse Stock Split

Pursuant to the Plan of Reorganization, on September 25, 2013, we (i) converted from a Wisconsin Corporation to a Delaware Corporation. The Certificate of Incorporation filed in Delaware as the result of the Conversion was amended in October 2013 when we effected a reverse stock split (the “Reverse Stock Split”) reducing the authorized shares to 11,900,000 shares of common stock, par value $0.01 per share, and 100,000 shares of preferred stock, par value $0.01 per share. We sometimes refer to the Certificate of Incorporation, as amended, as the “Amended Charter”.

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• Private Placements

In connection with the Plan of Reorganization, we entered into stock purchase agreements (the “Investor SPAs”) with investors for the purchase and sale of 1,750,000,000 shares of our common stock (adjusted to 8,750,000 shares as a result of the Reverse Stock Split) at a pre-Reverse Stock Split purchase price of $0.10 per share (implying a $20.00 per share price after giving effect to the Reverse Stock Split) and received gross proceeds of $175.0 million (the “Private Placements”) and incurred transaction costs of $14.4 million. The Investors were certain institutional investors, other private investors, directors and officers.

• TARP Exchange

Also, pursuant to the Plan of Reorganization, we, exchanged the outstanding TARP Preferred Stock for 60.0 million shares of common stock (adjusted to 300,000 common shares as a result of the Reverse Stock Split) (the “Treasury Issuance”) and cancelled the TARP Warrant in its entirety.

Following the effectiveness of the Plan of Reorganization, the Treasury sold to certain institutional investors (the “Secondary Investors”) all of the shares of common stock delivered to the Treasury in connection with the Treasury Issuance (the “Secondary Treasury Sales”). As a result of the Secondary Treasury Sales, the Treasury received gross proceeds of $6.0 million and ceased to be our stockholder.

• Cancellation of Legacy Common Stock

On the Effective Date, immediately following the consummation of the TARP Exchange and pursuant to the terms of the Plan of Reorganization, all 21,247,225 shares of previously issued and outstanding common stock of the Company (the “Legacy Common Stock”, including shares held as treasury stock and in any stock incentive plans), were cancelled for no consideration.

• Senior Debt Settlement

The aggregate amount of our obligations under the Credit Agreement was approximately $183.5 million as of August 12, 2013 (including with respect to unpaid principal balance, accrued but unpaid interest thereon and all administrative and other fees or penalties). On the Effective Date, pursuant to the Plan of Reorganization, we satisfied all of our obligations under the Credit Agreement by a cash payment to the lenders of $49.0 million (plus expense reimbursement as contemplated by the Credit Agreement). As a result of the transaction, we recognized a gain on extinguishment of debt of $134.5 million. All other claims were unaffected by, and were paid in full under, the Plan of Reorganization.

• Lifting of the Regulatory Orders

Having satisfied the conditions of the regulatory orders, the OCC notified the Bank on April 2, 2014 that it had terminated the Bank Order. The Federal Reserve Bank on July 31, 2014 notified the Company that it had terminated the Company’s Order to Cease and Desist (the “Company Order”). At December 31, 2014 the Company and the Bank were no longer under any regulatory orders.

• Emergence Accounting

Upon emergence from bankruptcy as a result of the Plan of Reorganization, we determined we did not meet the requirements to apply fresh start reporting under applicable accounting standards because we did not meet the solvency criteria of Accounting Standards Codification (“ASC”) 852-10-45-19. The reorganization value immediately before the date of confirmation was greater than the total of all post-petition liabilities and allowed claims and, therefore, indicative of not meeting the test to require fresh start accounting under Accounting Standards Codification (“ASC”) Topic 852. As of the date of confirmation, we estimated our enterprise value (or reorganization value) to be approximately $2.2 billion. The Company utilized the equity value using the income and market approach to approximate fair value. Accordingly, the financial statements do not include fresh start reporting, whereby the Company would have to revalue all of its assets and liabilities.

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• Initial Public Offering

In October 2014, the Company completed its initial public offering (the “IPO”) in which the Company issued and sold 250,000 shares of common stock along with 55,794 additional shares to cover overallotments. The Company’s common stock is now listed on the Nasdaq Global Market under the symbol “ABCW.” For further discussion please refer to the: “Recent Developments” section of this document.

Employees

As of December 31, 2014, the Company had 656 full-time equivalent employees. The Company promotes equal employment opportunity and considers employee relations to be excellent. None of the Bank or Company employees are represented by a collective bargaining group.

The Company maintains a website at www.anchorbank.com. All of the Company’s filings under the Exchange Act are available through our website, free of charge, including copies of Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports, on the date that the Company files those materials with, or furnishes them to, the SEC. The contents of our website are not incorporated by reference herein or otherwise as part of this annual report.

Market Area

Our headquarters are located in Madison, Wisconsin which is a vibrant business community. Madison is the state capital and home to both state and county governments, as well as the University of Wisconsin-Madison. Dane County, where Madison is located, has enjoyed steady population growth of 4.5% annually since 2010, a median household income 16.4% above the national average and relatively low unemployment at 3.2% versus the state average of 5.0% and the national average of 5.4% (each as of December 2014), according to the U.S. Census data. In 2014, Dane County accounted for 17.2% of the employment growth in Wisconsin. The decline in unemployment rates from 2012 through 2014 in Dane County and the State of Wisconsin were 1.4% and 1.7%, respectively.

The Bank provides products and services through 53 full-service branches located throughout the state of Wisconsin. Our market area is concentrated within the triangle formed by the Madison, Milwaukee and Fox Valley markets in Wisconsin where the Bank has 35 of its 53 branches. Collectively, these areas account for nearly half of Wisconsin’s population and we believe they provide a desirable platform for long-term local and regional growth. The Bank has 18 branches located in Dane County. The general business climate in Wisconsin has improved since 2010. CEO magazine indicates “The State of Wisconsin has moved to the 14^th Best State To Do Business in 2014 from 42^nd in 2010”. In addition, CNBC’s “Best Places To Do Business” has Wisconsin ranked #17 in 2014 up from #29 in 2010.

The Bank has seven branches located in Wisconsin’s Fox Valley region, consisting primarily of the cities of Appleton and Oshkosh and their associated satellite communities. We are investing our efforts into developing more commercial business and commercial real estate opportunities for the Bank in this area as we believe that market is attractive for further development of our commercial banking market share. The Bank has seven branches in the greater Milwaukee area, one of the largest metropolitan areas in the Midwest and home to approximately 1.6 million people and close to 60,000 businesses according to SNL Financial LC. Milwaukee has been a solid source of commercial real estate and commercial banking business for the Bank and the real estate climate continues to improve in that region. The Bank’s remaining 21 locations are based primarily in counties adjacent to Dane and the southwestern region of Wisconsin.

Competition

The Bank encounters competition in attracting both loan and deposit customers. Such competition includes other banks, savings institutions, mortgage banking companies, credit unions, finance companies, mutual funds, insurance companies, brokerage and investment banking firms.

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We believe that we are well-positioned to challenge our competition, grow our franchise and create value for our stockholders as a result of the following competitive strengths:

• Experienced and respected management team with a proven track record. Our President and Chief Executive Officer, Chris Bauer, joined us in 2009 and recruited an executive management team, bringing in highly experienced community bankers with extensive knowledge of the Wisconsin banking market. Each of these executives has significant experience at nationally recognized mid- to large-cap commercial banking institutions. Mr. Bauer has 45 years of financial services experience, with a combined 16 years as bank president at First Wisconsin Bank and Firstar Bank Milwaukee, N.A.

• Strong capital position. At December 31, 2014, we had a 16.97% tier 1 risk-based ratio, a 10.43% tier 1 leverage ratio and an 18.25% total risk-based capital ratio.

• Disciplined enterprise-wide and credit risk management. Since 2009, we have invested significantly in our risk management platform in order to provide a consistent approach to identifying, assessing, managing, monitoring and reporting risk across the Company. Our focus both on remediating our classified assets and improving and implementing enhanced credit underwriting and administration over the last five years has enabled us to significantly improve asset quality and create a stable banking platform from which to grow.

• Core funding. A significant component of our franchise is our core deposit base, such as checking and savings deposits, which we use to fund our loans and grow our balance sheet. At December 31, 2014, our total deposits were approximately $1.81 billion, 75.4% of which were core deposits (defined as total deposits excluding certificates of deposit). We seek to cross-sell deposit products at the time of loan origination to our clients as part of our focus on relationship banking in order to provide a stable source of funding. Our loan to deposit ratio was 87.3% at December 31, 2014.

Business Strategy

Our business strategy centers around the following initiatives:

• Strengthen our franchise by increasing commercial banking relationships and market share. Our primary strategic focus is the transformation of the Bank from a residential/commercial real estate lender to a service-driven, relationship-based franchise with a focus on building the commercial banking business and a continued dedication to our retail banking and commercial real estate businesses. We believe there is an underserved base of small and middle market businesses that are interested in banking with a company headquartered in, and with decision-making authority based in, the markets in which we operate. We intend to maintain disciplined growth, a strong credit culture and a relationship-based and community service-focused approach to banking. We continue to recruit seasoned commercial banking talent and transition our corporate culture toward building relationships and pursuing cross-selling opportunities through a sales and service model.

• Expansion of commercial lending services. We plan to increase our commercial banking staff and sales efforts, emphasizing our multi-family and other commercial real estate banking businesses and a comprehensive commercial and industrial banking program designed to service manufacturing businesses, professional service firms and privately owned businesses and their related business owners. We believe these services are a key component in our transition to a commercial bank.

• Continue to improve asset quality. Over the last five years, we have dedicated significant resources to reducing our level of problem assets and improving our credit risk function, including implementing comprehensive credit policies, procedures and monitoring systems in order to better manage the loan portfolio and any delinquent and troubled loans. Through these efforts and working with customers sooner to resolve delinquency issues we have been able to show positive results in this area.

• Build a scalable and efficient operating model. Our management team is focused on sustainable expense control across all lines of business. We continue to make investments in information technology to improve efficiencies and enhance customer service, including upgraded account and data

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processing systems, improved loan monitoring and quality control systems, as well as upgraded reporting systems. In addition, we are implementing a sales activity database in the retail area of the Bank to better track sales performance and market penetration.

• Focus on generating core deposits. We continue to focus on growing our retail and commercial core deposits to fund our lending and investment opportunities by expanding our business development efforts, improving product offerings, including a rebranding effort and execution of an integrated strategic marketing plan. As part of the strategic plan, we are placing an emphasis on providing ancillary services such as debit cards, online banking, online bill pay, mobile banking and most recently mobile deposit via smart phones to enhance deposit growth.

Recent Developments

Change in Fiscal Year End

On December 18, 2013, the Board of Directors (the “Board”) approved the change of our fiscal year end from March 31 to December 31, beginning with December 31, 2013. References to any of our previous fiscal years mean the fiscal years ended on or before March 31, 2013. This report on Form 10-K covers the year ended December 31, 2014, nine months ended December 31, 2013 and the year ended March 31, 2013.

Initial Public Offering

In October 2014, the Company completed the IPO in which the Company issued and sold 250,000 shares of common stock at a public offering price of $26.00 per share. The Company also granted the underwriters a 30-day option to purchase up to 55,794 additional shares of common stock to cover any over-allotments which was executed for the full amount on October 30, 2014. The Company received net proceeds, which includes the proceeds from the over-allotments, of $5.6 million after deducting underwriting discounts and commissions of $517,000 and other offering expenses totaling $1.8 million. The underwriting discounts, commissions and other offering expenses were deducted against additional paid-in capital and were not included in operating expense of the Company. The Company’s shares are now listed on the Nasdaq Global Market under the symbol “ABCW.”

There were 9,547,587 shares of common stock outstanding as of December 31, 2014.

Purchase Agreement to Sell Bank Headquarters

In February 2014, the Bank entered into a purchase agreement with an unrelated third party to sell the Bank’s main office building located at 25 West Main Street, Madison, Wisconsin, the adjacent surface parking lot immediately behind the main office building at 115 South Carroll Street and the 261-stall parking ramp located at 126 South Carroll Street. The transaction closed on December 19, 2014 and a $1.4 million gain was recognized on the parcels that were not included in the subsequent lease between the Bank and the buyer. The Bank entered into a nine year lease to rent a portion of the office building, to house the branch currently located in the building and for additional office space. The gain of $6.4 million, related to the leased space sold and leased back, was deferred and will be amortized into income over the remaining term of the lease.

Sale of Branches

On December 31, 2014 the Bank sold the Richland Center branch, which was a leased facility, in rural Wisconsin. The sale consisted of selected loans, furniture and equipment and deposits. The amount of deposits sold was $16.6 million and a gain of $1.0 million was recorded on the sale.

On January 27, 2015, the Bank announced the sale of its Viroqua branch to another bank located in Wisconsin. The purchasing bank will assume approximately $12.0 million in deposits along with loans and other assets. The transaction is subject to regulatory approval and customary closing conditions and is targeted to close by the end of May 2015.

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Management regularly and periodically evaluates and assesses all aspects of the Bank’s operations, including, but not limited to, retail branch delivery and placement of its support functions, for opportunities to improve the profitability of the Company. In the case of branch delivery, this could include the closure, relocation, sale or other disposal of a branch or addition to the current branch structure.

Credit Card Arrangement

Credit is extended to Bank customers through credit cards issued by a third party, ELAN Financial Services (“ELAN”), pursuant to an agency arrangement under which the Company participates in outstanding balances, currently at levels of 25% to 28%. The Company also shares 33% to 37% of annual fees, and 30% of late payment, over limit and cash advance fees, as well as 25% to 30% of interchange income from the underlying portfolio net of our share of losses. This agreement expired on December 31, 2014.

A new agreement was signed with ELAN effective January 1, 2015 providing the Bank an origination fee for each card sold. The Bank also receives a monthly fee from ELAN resulting from the performance of the originated portfolio, based on 11% of the interest income and 25% of the interchange income. As part of the new agreement, the Bank agreed to sell back to ELAN its participation in outstanding credit card balances totaling $6.6 million with no gain or loss recognized. The Bank is therefore no longer exposed to credit risk from the underlying consumer credit.

Purchase of New Building

On January 28, 2015 the Bank completed the purchase of a new building located on the east side of Madison, Wisconsin at a purchase price of $4.0 million. This facility will house a number of support departments involving approximately 200 employees. Management believes this move should improve workgroup efficiencies.

Lending Activities

General. At December 31, 2014, the Bank’s loans held for investment, net totaled $1.52 billion, representing approximately 73.2% of its $2.08 billion of total assets at that date. Loans held for investment, net based on the portfolio segment consist of single-family residential loans with a gross loan balance of $541.2 million, multi-family residential loans of $265.7 million, commercial real estate loans of $311.3 million, land and construction loans of $106.4 million, commercial and industrial loans of $16.5 million, and consumer loans of $341.9 million.

The Bank originates residential loans secured by properties located primarily in Wisconsin, with adjustable-rate loans generally being originated for inclusion in the Bank’s loan portfolio and fixed-rate loans generally being originated for sale into the secondary market. The Bank also originates loans for commercial, corporate and business purposes, lines of credit, equipment, owner occupied real estate loans as well as commercial real estate loans, which include land and construction, multifamily, retail/office and other commercial real estate. Further, the Bank offers consumer loans which are primarily made up of closed end second mortgage and home equity lines of credit (“HELOCs”) in order to provide a wider range of financial services to our customers.

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Loan Portfolio Composition. The following table presents the composition of loans held for investment, net at the dates indicated.

	December 31,												March 31,
	2014						2013						2013						2012						2011
	Amount			Percent of Total			Amount			Percent of Total			Amount			Percent of Total			Amount			Percent of Total			Amount			Percent of Total
	(Dollars in thousands)
Residential	$	541,211			34.2	%	$	529,777			32.7	%	$	547,720			31.1	%	$	564,427			25.8	%	$	648,514			24.2	%
Multi-family		265,735			16.8			281,917			17.4			287,447			16.3			342,216			15.6			423,587			15.8
Commercial real estate		311,338			19.7			328,388			20.2			371,543			21.1			546,552			25.0			696,127			25.9
Land and construction		106,436			6.7			92,050			5.7			111,953			6.3			186,048			8.5			251,043			9.4
Total mortgage		1,224,720			77.4			1,232,132			76.0			1,318,663			74.8			1,639,243			74.9			2,019,271			75.3
Home equity loans and lines of credit		220,182			13.9			226,225			14.0			234,380			13.3			253,763			11.6			268,786			10.0
Education		108,384			6.9			129,520			8.0			166,429			9.4			240,331			11.0			276,735			10.3
Other		13,305			0.8			12,086			0.7			13,150			0.8			15,769			0.7			18,365			0.7
Total consumer		341,871			21.6			367,831			22.7			413,959			23.5			509,863			23.3			563,886			21.0
Commercial and industrial loans		16,514			1.0			21,591			1.3			30,574			1.7			38,977			1.8			99,689			3.7
Total commercial industrial loans		16,514			1.0			21,591			1.3			30,574			1.7			38,977			1.8			99,689			3.7
Total gross loans		1,583,105			100.0	%		1,621,554			100.0	%		1,763,196			100.0	%		2,188,083			100.0	%		2,682,846			100.0	%
Allowance for loan losses		(47,037	)					(65,182	)					(79,815	)					(111,215	)					(150,122	)
Undisbursed loan proceeds		(10,080	)					(10,322	)					(10,997	)					(16,034	)					(8,761	)
Unearned loan fees, net		(1,544	)					(1,722	)					(1,838	)					(3,086	)					(3,476	)
Unearned interest		(5	)					(4	)					(3	)					(4	)					(115	)
Net discount on purchased loans		—						—						—						—						(5	)
Total loan contra balances		(58,666	)					(77,230	)					(92,653	)					(130,339	)					(162,479	)
Loans held for investment, net	$	1,524,439					$	1,544,324					$	1,670,543					$	2,057,744					$	2,520,367

The following table presents the scheduled contractual maturities of gross loans held for investment as of December 31, 2014, as well as the dollar amount of such loans which are scheduled to mature after one year which have fixed or adjustable interest rates disaggregated according to current classifications.

	Residential		Commercial and Industrial		Commercal Real Estate		Consumer		Total
	(In Thousands)
Amounts due:
In one year or less	$	3,022	$	3,130	$	148,800	$	19,904	$	174,856
After one year through five years		14,707		10,456		322,482		119,135		466,780
After five years		523,482		2,928		212,227		202,832		941,469
	$	541,211	$	16,514	$	683,509	$	341,871	$	1,583,105
Interest rate terms on amounts due after one year:
Fixed	$	225,043	$	8,497	$	319,166	$	211,393	$	764,099
Adjustable		313,146		4,887		215,543		110,574		644,150

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Residential Loans

At December 31, 2014, $541.2 million, or 34.2%, of the total gross loans consisted of single-family residential loans. Residential loans consist of both adjustable and fixed-rate first lien mortgage loans. The adjustable-rate loans currently in the portfolio have up to 30-year maturities and terms which provide for annual increases or decreases of the rate on the loans, based on a margin over a designated index. These rate changes are generally subject to a limit of 2% per adjustment and an aggregate 6% adjustment over the life of the loan. These loans are documented according to standard industry practices. The Company originates a very limited number of interest-only loans which tend to have a shorter term to maturity and does not originate negative amortization or option payment adjustable-rate mortgages.

Adjustable-rate loans decrease the risks associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. We believe that the risks associated with changes in interest rates, which have not had a material adverse effect to date, generally are less than the risks associated with holding fixed-rate loans in an increasing interest rate environment. Also, as interest rates decline, borrowers may refinance their mortgages into fixed-rate loans thereby prepaying the balance of the loan prior to maturity. At December 31, 2014, approximately $313.5 million, or 57.9%, of the held for investment residential loans unpaid principal balance consisted of loans with adjustable interest rates.

The Company originates intermediate and long-term, fixed-rate conventional mortgage loans. Current production of these loans (with terms of 15 years or more) are generally sold to institutional investors, while a portion of loan production is retained in the held for investment portfolio. In order to provide a full range of products to its customers, the Company also participates in the loan origination programs of Wisconsin Housing and Economic Development Authority (“WHEDA”). The right to service substantially all loans sold is retained.

At December 31, 2014, approximately $227.7 million, or 42.1%, of the held for investment residential gross loan balance consisted of loans with fixed rates of interest. Although these loans generally provide for repayments of principal over a fixed period of 10 to 30 years, because of prepayments and due-on-sale clauses, such loans generally remain outstanding for a shorter period of time.

Commercial and Industrial Loans

The Company originates loans for commercial and business purposes, including issuing letters of credit. At December 31, 2014, the gross loan balance of commercial and industrial loans amounted to $16.5 million, or 1.0%, of the total gross loans. The commercial and industrial loan portfolio is comprised of loans that are funded for a variety of business purposes and generally are secured by equipment, real estate and other business assets. These loans generally have terms of five years or less and interest rates that float in accordance with a designated published index. Substantially all such loans are secured and backed by the personal guarantees of the owners of the business.

Commercial Real Estate Loans

The Company originates commercial real estate loans which include land and construction, multi-family, retail/office and other commercial real estate. Such loans generally have adjustable rates and shorter terms than single-family residential loans, thus increasing the earnings sensitivity of the loan portfolio to changes in interest rates, as well as providing higher fees and rates than residential loans. At December 31, 2014, $683.5 million of gross loans were secured by commercial real estate, which represented 43.2% of the total gross loans.

Commercial real estate loans are primarily secured by apartment buildings, office and industrial buildings, land, warehouses, small retail shopping centers and various special purpose properties, including community-based residential facilities and senior housing. Although terms vary, commercial real estate loans generally have fixed

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interest rates, amortization periods of 15 to 30 years, as well as balloon payments of two to seven years. The origination of such loans is generally limited to our primary market area, concentrated in Wisconsin’s greater Madison, Fox Valley and Milwaukee regions.

Consumer Loans

The Company offers consumer loans in order to provide a wider range of financial services to its customers. At December 31, 2014, $341.9 million, or 21.6%, of the total gross loans consisted of consumer loans. Consumer loans, which include home equity loans, typically have higher interest rates than residential loans but generally involve more risk than residential loans because of the type and nature of the collateral and, in certain cases, the absence of collateral.

Approximately $108.4 million, or 6.9%, of the total gross loans at December 31, 2014 consisted of education loans. The origination of education loans was discontinued beginning October 1, 2010 following the March 2010 law ending loan guarantees provided by the U. S. Department of Education. Education loans generally have interest rates that adjust annually in accordance with a designated index. Both the principal amount of an education loan and interest thereon are generally guaranteed by the Great Lakes Higher Education Company up to 97% of the balance of the loan, which typically obtains reinsurance of its obligations from the U.S. Department of Education. Although direct education loans, without a government guarantee, may be originated, we believe the risk-adjusted returns for these loans continue to be unattractive. Education loans may be sold to the U.S. Department of Education or to other investors. No education loans were sold during the year ended December 31, 2014, the nine months ended December 31, 2013 or the fiscal year ended March 31, 2013.

Consumer loans secured by real estate include both first and second mortgages and consist primarily of the Express Refinance loan product (the Bank’s expedited first mortgage refinance and home equity loan product). Express Refinance loans are available for owner occupied one- to two-family residential properties, with loan amounts up to $200,000, a fixed interest rate, up to 15 year amortization, low fees and rapid closing timeframes. The primary home equity loan product is a home equity line of credit that has an adjustable rate linked to the prime interest rate and is secured by a mortgage, either a primary or a junior lien, on the borrower’s residence. New home equity lines do not exceed 85% of appraised value of the property at the loan origination date. A fixed-rate home equity second mortgage term product is also offered.

Beginning February 2015, the bank no longer offers the interest only payment option on new home equity lines of credit. Instead all loans will be underwritten as if they were fully amortized over the life of the line and a minimum payment of 1% of the outstanding balance is due each month.

In March 2015 the Bank plans to offer a debit card for new and existing home equity lines of credit.

Net Fee Income From Lending Activities

Loan origination, commitment and other loan fees and certain direct loan origination costs are deferred and the net amounts are amortized as an adjustment to the related loan’s yield.

The Company also receives other fees and charges relating to existing residential, commercial and consumer loans, which include prepayment penalties, late charges and fees collected in connection with a change in borrower or other loan modifications. Other types of loans also generate fee income. These include annual fees assessed on credit card accounts, transactional fees relating to credit card usage and late charges on consumer loans.

Origination, Purchase and Sale of Loans

The Company’s new loan production comes from a number of sources. Residential mortgage loan production is originated primarily from depositors, branch customers, the Company’s website, non-compensated referrals from

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real estate brokers, builders and direct solicitations. Commercial real estate and commercial and industrial loan production is obtained by direct solicitations and referrals. Consumer loans are originated from branch customers, existing depositors and mortgagors, and direct solicitation.

Credit Approvals

Loans may be approved by designated underwriting/concurrence officers or the Senior Loan Committee, within pre-established limits, or by the Board of Directors. These pre-established limits are as follows:

• Less than $1.5 million can be approved by a designated underwriting/concurrence officer;

• $1.5 million to $4.0 million must be approved by the Senior Loan Committee;

• In excess of $4.0 million must be approved by the Board.

The Company regularly reviews its credit policies and these policies remain subject to amendment with the approval of the Board.

Appraisals and Underwriting

Property appraisals or evaluations on the real estate and improvements securing single-family residential loans are made by independent appraisers and managed by a third party appraisal management company, during the underwriting process. Appraisals are performed in accordance with federal regulations and policies.

The Company’s general policy, for residential mortgage loans, is to lend up to the lesser of 80% of the appraised value or purchase price of the property. The Company will lend more than 80% of the appraised value of the property, but will require that the borrower obtain, private mortgage insurance in an amount intended to reduce exposure to 80% or less of the appraised value of the underlying property. At December 31, 2014, approximately $90.7 million, or 5.8%, of loans had original loan-to-value ratios of greater than 80% and did not have private mortgage insurance for the portion of the loans above such amount. The Company offers higher LTV lending on a limited basis for community oriented and personal loan programs.

The Company’s underwriting criteria generally require that multi-family and commercial real estate loans have loan-to-value ratios of 80% or less and debt service coverage ratios of at least 1.15% to 1.30%, depending on the asset class. The Bank has also introduced an underwriting criteria of a debt yield ratio which ranges from a minimum of 8.5% to 10%. Personal guarantees are also obtained on most multi-family residential, commercial real estate loans and business loans. The Bank does obtain appraisals of the collateral from independent appraisal firms.

The portfolio of commercial real estate and commercial and industrial loans is monitored on a continuing basis by the relationship manager who is responsible for identifying and reporting recommendations to mitigate risk rating in the portfolio. The risk management function provides an independent review of this activity.

Loan Sales

The Company has been actively involved in the mortgage secondary market since the mid-1980s and generally originates single-family residential mortgage loans under terms, conditions and documentation which permit sale to investors. A significant portion of the fixed-rate, single-family residential loans with terms over 10 years originated are sold to investors. The Company attempts to limit any interest rate risk created by interest rate lock commitments by limiting the number of days between the commitment and closing, charging fees for commitments, and limiting the amounts of unhedged commitments at any one time. Forward sale contracts and agency mortgage-back security commitments are used to economically hedge closed loans and rate lock commitments to customers range from 70% to 100% of the closed and committed amounts.

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The following table presents the activity in loans held for sale:

	Year Ended December 31,			Nine Months Ended December 31,			Year Ended March 31,
	2014			2013			2013
	(In thousands)
Beginning Balance	$	3,085		$	18,058		$	39,332
Originations		146,894			228,748			898,960
Sales		(143,385	)		(243,721	)		(920,234	)
Ending Balance	$	6,594		$	3,085		$	18,058

Loan Servicing

The Company generally services all originated loans that have been sold into the secondary market. Servicing fees are recognized when the related loan payments are received. At December 31, 2014, $2.47 billion of loans are serviced for others.

At December 31, 2014, approximately $108.4 million of education loans, $4.9 million of purchased participation mortgage loans and $6.6 million of credit card loans were being serviced for the Company by others.

Delinquency Procedures

Delinquent and problem loans are a normal part of any lending business. When a borrower fails to make a required payment by the 15th day after which the payment is due, internal collection procedures are instituted. The borrower is contacted to determine the reason for non-payment and attempts are made to cure the delinquency. Loan status, the condition of the property, and circumstances of the borrower are regularly reviewed. Based upon the results of our review, the Company may negotiate and accept a repayment program with the borrower, accept a voluntary deed in lieu of foreclosure, agree to the terms of a short sale or initiate foreclosure proceedings.

A decision as to whether and when to initiate foreclosure proceedings is based upon such factors as the amount of the outstanding loan in relation to the original indebtedness, the extent of delinquency, the value of the collateral, and the borrower’s financial ability and willingness to cooperate in curing the deficiencies. If foreclosed on, the property is sold at a public sale and the Company will generally bid an amount reasonably equivalent to the fair value of the foreclosed property or the amount of judgment due.

Real estate acquired by foreclosure or by deed in lieu of foreclosure as well as other repossessed assets (“OREO”) are held for sale and are initially recorded at fair value less a discount for estimated selling costs at the date of foreclosure. Any write down to fair value less estimated selling costs is charged to the allowance for loan losses. If the discounted fair value exceeds the net carrying value of the loans, recoveries to the allowance for loan losses are recorded to the extent of previous charge-offs, with any excess, which is infrequent, recognized as a gain in non-interest income. Subsequent to foreclosure, valuations are periodically performed and a valuation allowance is established if the carrying value exceeds the fair value less estimated selling costs. Costs relating to the development and improvement of the property may be capitalized, generally those greater than $10,000; holding period costs and subsequent changes to the valuation allowance are charged to OREO expense, net included in non-interest expense. Incremental valuation adjustments may be recognized in the Consolidated Statement of Operations if, in the opinion of management, additional losses are deemed probable.

For discussion of the Company’s asset quality, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7. Also see Notes 1 and 5 to the Consolidated Financial Statements in Item 8.

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Investment Securities

In addition to lending activities, the Company conducts other investing activities on an ongoing basis in order to diversify assets, limit interest rate and credit risk, and meet regulatory liquidity requirements. The Company invests in securities, primarily in mortgage-related securities which are insured or guaranteed by Freddie Mac, Fannie Mae and Ginnie Mae; and U.S. government agency obligations. Investment decisions are made by authorized officers in accordance with policies established by the Board of Directors.

Management determines the appropriate financial reporting classification of securities at the time of purchase. Debt securities may be classified as held to maturity when the Company has the intent and ability to hold the securities to maturity. Held to maturity securities are carried at amortized cost. Securities are classified as trading when the Company intends to actively buy and sell securities in order to make a profit. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. There were no securities designated as trading or held to maturity at December 31, 2014, December 31, 2013 or at March 31, 2013.

Securities not classified as held to maturity or trading are classified as available for sale. Available for sale securities are carried at fair value, with the unrealized gains and losses, net of tax (if any), reported as a separate component of stockholders’ equity (deficit). For the year ended December 31, 2014, the nine months ended December 31, 2013 and fiscal year ended March 31, 2013, this component of stockholders’ equity increased $4.2 million, decreased $10.2 million and increased $3.4 million, respectively, to reflect net unrealized gains and losses on holding securities classified as available for sale.

The Company’s investment policy which conforms with OCC regulations, permits investments including U.S. Government obligations, municipal bonds, mortgage-backed securities, securities issued by various federal agencies, corporate debt, certain certificates of deposit of insured banks and savings institutions, certain bankers’ acceptances, repurchase agreements and federal funds.

Agency-backed securities increase the quality of the Company’s assets by virtue of the insurance or guarantees of federal agencies that back them, require less capital under risk-based regulatory capital requirements than non-insured or guaranteed mortgage loans, are more liquid than individual mortgage loans and may be used to collateralize borrowings or other obligations of the Company. At December 31, 2014, securities with a fair value of $294.6 million held by the Company either were AAA rated or are guaranteed by government sponsored agencies. At December 31, 2014, $121.5 million of the Company’s securities available for sale were pledged to secure various obligations of the Company.

The table below sets forth information regarding the amortized cost and fair values of the Company’s investment securities at the dates indicated.

	December 31,								March 31, 2013
	2014				2013
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Available for sale:
U.S. government sponsored and federal agency obligations	$	3,245	$	3,261	$	3,359	$	3,376	$	3,444	$	3,504
Corporate stock and bond		1		3		88		355		152		264
Non-agency CMOs		59		27		6,452		6,208		7,885		7,549
Government sponsored agency mortgage-backed securities		120,627		120,621		50,721		50,158		2,975		3,184
GNMA mortgage-backed securities		173,069		170,687		223,874		217,775		248,752		252,286
	$	297,001	$	294,599	$	284,494	$	277,872	$	263,208	$	266,787

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The Company’s mortgage-backed securities are made up of GNMA, government sponsored agency mortgage-backed securities, and non-agency mortgage-backed securities. The fair value of the mortgage-backed securities available for sale amounted to $291.3 million at December 31, 2014.

The following table sets forth the maturity and weighted average yield characteristics of investment securities at December 31, 2014, classified by term to maturity and reported at fair value.

	One to Five Years					Five to Ten Years					Over Ten Years
	Balance		Weighted Average Yield			Balance		Weighted Average Yield			Balance		Weighted Average Yield			Total
	(Dollars in thousands)
Available for sale:
U.S. government sponsored and federal agency obligations	$	3,261		1.08	%	$	—		—	%	$	—		—	%	$	3,261
Corporate stock and bond		—		—			—		—			3		—			3
Non-agency CMOs		—		—			2		7.94			25		5.81			27
Government sponsored agency mortgage-backed securities		96		4.50			11,998		1.67			108,527		2.00			120,621
GNMA mortgage-backed securities		188		4.97			—		—			170,499		1.87			170,687
Total investment securities	$	3,545		1.37	%	$	12,000		1.67	%	$	279,054		1.92	%	$	294,599

Due to prepayments of the underlying loans, the actual maturities of certain investment securities are expected to be substantially earlier than the scheduled maturities.

For additional information regarding investment securities, see the Consolidated Financial Statements, including Note 4 thereto in Item 8.

Sources of Funds

General. Deposits are a major source of the Company’s funds for lending and other investment activities. In addition to retail and commercial deposits, funds are derived from principal repayments and prepayments on loan and mortgage-related securities, maturities of investment securities, sales of loans and securities, interest payments on loans and securities, advances from the FHLB of Chicago and, from time to time, repurchase agreements and other borrowings. Loan repayments and interest payments are a relatively stable source of funds, while deposit inflows and outflows and loan prepayments are significantly influenced by the general level of interest rates, economic conditions, the stock market and competition. Borrowings may be used on a short-term basis to compensate for reductions in the availability of funds from other sources. Borrowings may also be used on a longer term basis for general business purposes, including providing financing for lending and other investment activities and asset/liability management strategies.

Deposits. The Company’s deposit products include passbook and statement savings accounts, business and personal non-interest bearing checking, business and personal interest bearing checking accounts, business and personal money market deposit accounts and certificates of deposit ranging in terms from 42 days to five years. Included among these deposit products are Individual Retirement Account certificates and Keogh retirement certificates, as well as negotiable-rate certificates of deposit with balances of $100,000 or more (“jumbo certificates”).

In late 2013 the bank introduced a new consumer checking line-up that no longer offered “Free Checking”, but did introduce an activity-based checking account that was fee free for certain activities and also introduced a

14

relationship checking account to reward high balance customers with a number of free benefits. In the first quarter of 2015 the bank modified its basic business checking account by introducing a minimum balance requirement to avoid a fee. It also put limits on the amount of free coin and currency processing for this account as well as other business checking products. These conditions are consistent with market terms and conditions imposed by banks with profiles similar to us.

Deposits are obtained primarily from residents of Wisconsin. The Company attracts deposits through a network of branch locations by utilizing a customer sales and service plan and by offering a wide variety of accounts and services, competitive interest rates and convenient customer hours. In determining the characteristics of deposit accounts, consideration is given to the profitability and liquidity of the Company, matching terms of the deposits with loan products, the attractiveness to customers and the rates offered by competitors. At December 31, 2014, there were no brokered deposits included in the $1.81 billion of total deposits.

The following table sets forth the amount and maturities of certificates of deposit at December 31, 2014 and 2013.

At December 31, 2014	Three Months and Less		Over Three Months Through One Year		Over One Year Through Two Years		Over Two Years Through Three Years		Over Three Years		Total
Interest Rate
	(In thousands)
0.00% to 0.99%	$	86,393	$	186,310	$	79,733	$	6,707	$	4,747	$	363,890
1.00% to 1.99%		270		2,757		15,571		23,419		29,601		71,618
2.00% to 2.99%		1,481		1,634		8,590		—		—		11,705
	$	88,144	$	190,701	$	103,894	$	30,126	$	34,348	$	447,213
At December 31, 2013	Three Months and Less		Over Three Months Through One Year		Over One Year Through Two Years		Over Two Years Through Three Years		Over Three Years		Total
Interest Rate
	(In thousands)
0.00% to 0.99%	$	132,706	$	228,795	$	81,164	$	7,443	$	7,299	$	457,407
1.00% to 1.99%		965		5,155		3,183		16,664		41,795		67,762
2.00% to 3.99%		4,486		6,408		3,473		9,059		—		23,426
4.00% and above		2,374		—		—		—		—		2,374
	$	140,531	$	240,358	$	87,820	$	33,166	$	49,094	$	550,969

At December 31, 2014, $69.2 million of certificates of deposit were greater than or equal to $100,000, of which $16.0 million are scheduled to mature in less than three months, $9.5 million in three to six months, $17.0 million in six to twelve months and $26.8 million in over twelve months. Certificates of deposit with balances greater than or equal to the Federal Deposit Insurance Corporation (“FDIC”) insurance limit of $250,000 totaled $7.9 million at December 31, 2014.

Borrowings. From time to time the Company obtains advances from the FHLB of Chicago, which generally are secured by capital stock of the FHLB of Chicago and certain mortgage loans and investment securities. Such advances are made pursuant to several different credit programs, each of which has its own interest rate and range of maturities.

At March 31, 2013, the Company had drawn $116.3 million under a short-term line of credit. The Company settled the obligation in full as part of the recapitalization during the quarter ended September 30, 2013. See Note 10 to the Company’s Consolidated Financial Statements in Item 8 for more information on its borrowings.

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The following table sets forth the outstanding balances and weighted average interest rates for borrowings at the dates indicated.

	December 31,										March 31,
	2014					2013					2013
	Balance		Weighted Average Rate			Balance		Weighted Average Rate			Balance		Weighted Average Rate
	(Dollars in thousands)
FHLB advances	$	10,000		2.33	%	$	10,000		2.33	%	$	197,500		3.06	%
Credit agreement		—		—			—		—			116,300		15.00
Repurchase agreements		3,569		0.10			2,636		0.10			3,425		0.14
Long Term Lease Obligation		183		2.46			241		2.46			—		—
Total	$	13,752		1.75		$	12,877		1.88		$	317,225		7.41

The following table sets forth information relating to short-term borrowings with original maturities of one year or less for the periods indicated.

	December 31,										March 31,
	2014					2013					2013
	Balance		Weighted Average Rate			Balance		Weighted Average Rate			Balance		Weighted Average Rate
	(Dollars in thousands)
Balance at end of period:
FHLB advances	$	—		—	%	$	—		—	%	$	—		—	%
Credit agreement		—		—			—		—			116,300		15.00
Repurchase agreements		3,569		0.10			2,636		0.10			3,425		0.14
Maximum month-end balance:
FHLB advances	$	—		—	%	$	—		—	%	$	—		—	%
Credit agreement		—		—			116,300		15.00			116,300		15.00
Repurchase agreements		3,569		0.10			4,949		0.12			3,786		0.21
Average balance:
FHLB advances	$	—		—	%	$	3,055		0.09	%	$	—		—	%
Credit agreement		—		—			75,701		9.30			116,300		15.00
Repurchase agreements		3,030		0.10			5,122		0.09			2,914		0.14

Subsidiaries

Investment Directions, Inc. (“IDI”) is a wholly owned, non-banking subsidiary of the Company that has invested in various limited partnerships and subsidiaries funded by borrowings from us. The assets at IDI totaling $520,000 and $369,000 at December 31, 2014 and 2013, respectively, primarily include cash compared to $831,000 at March 31, 2013 which included cash, an equity interest in one commercial enterprise and one real estate development along with various notes receivable and an intercompany receivable which was settled during the quarter ended December 31, 2013.

ADPC Corporation. (“ADPC”) is a wholly owned subsidiary of the Bank that holds certain of the Bank’s foreclosed properties. The Bank’s investment in ADPC at December 31, 2014 and 2013 remained unchanged at $4.1million. ADPC had no net income or loss for the year ended December 31, 2014, net income of $331,000 for the nine months ended December 31, 2013 and a net loss of $153,000 for the fiscal year ended March 31, 2013.

Regulation and Supervision

The U.S. banking industry is highly regulated under federal and state law. These regulations affect the operations of the Company and its subsidiaries. Statutes, regulations and policies limit the activities in which we may

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engage and the conduct of our permitted activities. Further, the regulatory system imposes reporting and information collection obligations. We incur significant costs relating to compliance with these laws and regulations. Banking statutes, regulations and policies are continually under review by federal and state legislatures and regulatory agencies, and a change in them, including changes in how they are interpreted or implemented, could have a material adverse effect on our business.

The material statutory and regulatory requirements that are applicable to us are summarized below. The description below is not intended to summarize all laws and regulations applicable to us.

The Bank as a Federal Savings Association

The Bank is a federal savings association organized under the federal Home Owners’ Loan Act (“HOLA”). A federal savings association is commonly referred to as a federal thrift. As a federal thrift, the Bank is currently subject to ongoing and comprehensive supervision, regulation, examination and enforcement by the OCC. The OCC regulates all areas of banking operations, including investments, reserves, lending, mergers, payment of dividends, interest rates, transactions with affiliates (including the Company), establishment of branches and other aspects of the Bank’s operations. The Bank is subject to regular examinations by the OCC and is assessed amounts to cover the costs of such examinations.

The Company as a Savings and Loan Holding Company

Under Section 10 of the HOLA, any entity that holds or acquires direct or indirect control of a thrift must obtain prior approval of the Federal Reserve to become a savings and loan holding company (“SLHC”). The Company, which controls the Bank, is registered with the Federal Reserve as an SLHC, and is currently subject to ongoing and comprehensive Federal Reserve supervision, regulation, examination and enforcement. In addition, we must file quarterly and annual reports with the Federal Reserve describing the Company’s financial condition. This Federal Reserve jurisdiction also extends to any company that is directly or indirectly controlled by the Company.

FDIC Deposit Insurance

The FDIC is an independent federal agency that insures the deposits of federally insured depository institutions up to applicable limits. The FDIC also has certain regulatory, examination and enforcement powers with respect to FDIC-insured institutions. The deposits of the Bank are insured by the FDIC up to applicable limits. As a general matter, the maximum deposit insurance amount is $250,000 per depositor.

Broad Supervision, Examination and Enforcement Powers

A principal objective of the U.S. bank regulatory system is to protect depositors by ensuring the financial safety and soundness of banking organizations. To that end, the banking regulators have broad regulatory, examination and enforcement authority. The regulators regularly examine the operations of banking organizations. In addition, banking organizations are subject to periodic reporting requirements. The regulators have various remedies available if they determine that the financial condition, capital resources, asset quality, earnings prospects, management, liquidity or other aspects of a banking organization’s operations are unsatisfactory. The regulators may also take action if they determine that the banking organization or its management is violating or has violated any law or regulation. The regulators have the power to, among other things:

• enjoin “unsafe or unsound” practices;

• require affirmative actions to correct any violation or practice;

• issue administrative orders that can be judicially enforced;

• direct increases in capital;

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• direct the sale of subsidiaries or other assets;

• limit dividends and distributions;

• restrict growth;

• assess civil monetary penalties;

• remove officers and directors; and

• terminate deposit insurance.

The FDIC may terminate a depository institution’s deposit insurance after notice and a hearing upon a finding that the institution’s financial condition is unsafe or unsound or that the institution has engaged in unsafe or unsound practices or has violated any applicable rule, regulation, order or condition enacted or imposed by the institution’s regulatory agency. Engaging in unsafe or unsound practices or failing to comply with applicable laws, regulations and supervisory agreements could subject the Company, and subsidiaries of the Company or their officers, directors and institution-affiliated parties to the remedies described above and other sanctions.

The Dodd-Frank Act

The Dodd-Frank Act imposes significant regulatory and compliance requirements on financial institutions, including the designation of certain financial companies as systemically important financial companies, the changing roles of credit rating agencies, the imposition of increased capital, leverage, and liquidity requirements, and numerous other provisions designed to improve supervision and oversight of, and strengthen safety and soundness within, the financial services sector. Additionally, the Dodd-Frank Act established a new framework of authority to conduct systemic risk oversight within the financial system to be distributed among new and existing federal regulatory agencies, including the Financial Stability Oversight Council, the Federal Reserve, the OCC, and the FDIC. The following items provide a brief description of certain provisions of the Dodd-Frank Act that are most relevant to the Company and the Bank.

Under the Dodd-Frank Act, the risk-based and leverage capital standards currently applicable to U.S. insured depository institutions will be imposed on U.S. bank holding companies and SLHCs, and depository institutions and their holding companies will be subject to minimum risk-based and leverage capital requirements on a consolidated basis. In addition, the Dodd-Frank Act requires that SLHCs be well capitalized and well managed in the same manner as bank holding companies in order to engage in the expanded financial activities permissible only for a financial holding company.

Source of strength. The Dodd-Frank Act requires all companies, including SLHCs, that directly or indirectly control an insured depository institution to serve as a source of strength for the institution. Under this requirement, the Company in the future could be required to provide financial assistance to the Bank should it experience financial distress.

Limitation on federal preemption. The Dodd-Frank Act significantly reduces the ability of national banks and federal thrifts to rely upon federal preemption of state consumer financial laws. Although the OCC, as the primary regulator of federal thrifts, will have the ability to make preemption determinations where certain conditions are met, the broad rollback of federal preemption has the potential to create a patchwork of federal and state compliance obligations. This could, in turn, result in significant new regulatory requirements applicable to us, with potentially significant changes in our operations and increases in our compliance costs. It could also result in uncertainty concerning compliance, with attendant regulatory and litigation risks.

Mortgage loan origination and risk retention. The Dodd-Frank Act contains additional regulatory requirements that may affect our operations and result in increased compliance costs. For example, the Dodd-Frank Act imposes new standards for mortgage loan originations on all lenders, including banking organizations, in an effort to require steps to verify a borrower’s ability to repay. In addition, the Dodd-Frank Act generally requires

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lenders or securitizers to retain an economic interest in the credit risk relating to loans the lender sells or mortgage and other asset-backed securities that the securitizer issues. The risk retention requirement generally will be 5%, but could be increased or decreased by regulation. On January 10, 2013, federal regulators released the “qualified mortgage” rule. The qualified mortgage rule is intended to clarify the application of the Dodd-Frank Act requirement that mortgage lenders have a reasonable belief that borrowers can afford their mortgages, or the lender may not be able to foreclose on the mortgage.

On August 28, 2013, the OCC, the Federal Reserve, the FDIC, the SEC, the Federal Housing Finance Agency and the U.S. Department of Housing and Urban Development issued a revised proposed rule in connection with the risk retention requirement mandated by Section 941 of the Dodd-Frank Act. The risk retention requirement generally requires a securitizer to retain no less than 5% of the credit risk in assets it sells into a securitization and prohibits a securitizer from directly or indirectly hedging or otherwise transferring the credit risk that the securitizer is required to retain, subject to limited exemptions.

The proposed rule includes alternatives for structuring the economic interest required to be retained and the application of the rules to specific types of securitization transactions, as well as exemptions from the standard 5% risk retention requirement. One significant exemption is for securities entirely collateralized by “qualified residential mortgages” (“QRMs”), which are loans deemed to have a lower risk of default. The proposed rule defines QRMs to have the same meaning as the term “qualified mortgage,” as defined by the Consumer Financial Protection Bureau. In addition, the Proposed Rule provides for reduced risk retention requirements for qualifying commercial loan, commercial real estate loan and auto loan securitizations.

Imposition of restrictions on certain activities. The Dodd-Frank Act imposes a new regulatory structure on the over-the-counter derivatives market, including requirements for clearing, exchange trading, capital, margin, reporting, and record keeping. In addition, certain swaps and other derivatives activities are required to be “pushed out” of insured depository institutions and conducted in separately capitalized non-bank affiliates. The Dodd-Frank Act also requires certain persons to register as a “major security-based swap participant” or a “security-based swap dealer.” The U.S. Commodity Futures Trading Commission, the SEC and other U.S. regulators are in the process of adopting regulations to implement the Dodd-Frank Act. It is anticipated that this rulemaking process will further clarify, among other things, reporting and recordkeeping obligations, margin and capital requirements, the scope of registration requirements, and what swaps are required to be centrally cleared and exchange-traded. Rules will also be issued to enhance the oversight of clearing and trading entities. These restrictions may affect our ability to manage certain risks in our business.

Expanded FDIC resolution authority. While insured depository institutions have long been subject to the FDIC’s resolution process, the Dodd-Frank Act creates a new mechanism for the FDIC to conduct the orderly liquidation of certain “covered financial companies,” including bank and thrift holding companies and systemically significant non-bank financial companies. Upon certain findings being made, the FDIC may be appointed receiver for a covered financial company, and would conduct an orderly liquidation of the entity. The FDIC liquidation process is modeled on the existing Federal Deposit Insurance Act (the “FDIA”) bank resolution process, and generally gives the FDIC more discretion than in the traditional bankruptcy context. The FDIC has issued final rules implementing the orderly liquidation authority.

Consumer Financial Protection Bureau. The Dodd-Frank Act created the Consumer Financial Protection Bureau (the “CFPB”). While technically located within the Federal Reserve, the CFPB is and functions as an independent agency. The CFPB is tasked with establishing and implementing rules and regulations under certain federal consumer protection laws with respect to the conduct of providers of certain consumer financial products and services. The CFPB has rulemaking authority over many of the statutes governing products and services offered to bank and thrift consumers. For banking organizations with assets of more than $10 billion, the CFPB has exclusive rule making and examination, and primary enforcement authority under federal consumer financial law. For depository institutions with $10 billion or less in assets, such as the Bank, examination and primary enforcement authority will remain largely with the institutions’ primary regulator. However, the CFPB may

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participate in examinations of these smaller institutions on a “sampling basis” and may refer potential enforcement actions against such institutions to their primary regulator. In addition, the Dodd-Frank Act permits states to adopt consumer protection laws and regulations that are stricter than those regulations promulgated by the CFPB. Compliance with any such new regulations would increase our cost of operations.

Deposit insurance. The Dodd-Frank Act made permanent the general $250,000 deposit insurance limit for insured deposits. Amendments to the FDIA also revised the assessment base against which an insured depository institution’s deposit insurance premiums paid to the Deposit Insurance Fund (“DIF”) of the FDIC will be calculated. Under the amendments, the assessment base is no longer the institution’s deposit base, but rather its average consolidated total assets less its average tangible equity. Additionally, the Dodd-Frank Act makes changes to the minimum designated reserve ratio of the DIF, increasing the minimum from 1.15% to 1.35% of the estimated amount of total insured deposits, and eliminating the requirement that the FDIC pay dividends to depository institutions when the reserve ratio exceeds certain thresholds. Several of these provisions may impact the FDIC deposit insurance premiums paid by the Bank.

Transactions with affiliates and insiders. The Dodd-Frank Act generally enhanced the restrictions on transactions with affiliates under Section 23A and 23B of the Federal Reserve Act, including an expansion of the definition of “covered transactions” and a clarification of the amount of time for which collateral requirements regarding covered credit transactions must be satisfied. Insider transaction limitations were expanded through the strengthening of loan restrictions to insiders and the expansion of the types of transactions subject to the various limits, including derivatives transactions, repurchase agreements, reverse repurchase agreements and securities lending or borrowing transactions. Restrictions were also placed on certain asset sales to and from an insider to an institution, including requirements that such sales be on market terms and, in certain circumstances, approved by the institution’s board of directors.

Enhanced lending limits. The Dodd-Frank Act strengthened the existing limits on a depository institution’s credit exposure to one borrower. Federal banking law currently limits a federal thrift’s ability to extend credit to one person (or group of related persons) in an amount exceeding certain thresholds. The Dodd-Frank Act expanded the scope of these restrictions to include, for example, credit exposure arising from derivative transactions, repurchase agreements, and securities lending and borrowing transactions.

Corporate governance. The Dodd-Frank Act addresses many investor protection, corporate governance and executive compensation matters that will affect most U.S. publicly traded companies, including the Company. The Dodd-Frank Act (i) grants stockholders of U.S. publicly traded companies an advisory vote on executive compensation; (ii) enhances independence requirements for compensation committee members; (iii) requires companies listed on national securities exchanges to adopt incentive-based compensation clawback policies for executive officers; and (iv) provides the SEC with authority to adopt proxy access rules that would allow stockholders of publicly traded companies to nominate candidates for election as a director and have those nominees included in a company’s proxy materials.

Many of the requirements of the Dodd-Frank Act are in the process of being implemented and most will be subject to regulations implemented over the course of several years. Given the uncertainty associated with the manner in which the provisions of the Dodd-Frank Act will be implemented by the various regulatory agencies and through regulations, the full extent of the impact such requirements will have on our operations is unclear. The changes resulting from the Dodd-Frank Act may impact the profitability of our business activities, require changes to certain of our business practices, impose upon us more stringent capital, liquidity and leverage requirements or otherwise adversely affect our business. These changes may also require us to invest significant management attention and resources to evaluate and make any changes necessary to comply with new statutory and regulatory requirements. Failure to comply with the new requirements may negatively impact our results of operations and financial condition.

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Notice and Approval Requirements Related to Control

Banking laws impose notice, approval, and ongoing regulatory requirements on any stockholder or other party that seeks to acquire direct or indirect “control” of an FDIC-insured depository institution. These laws include the Bank Holding Company Act, the Change in Bank Control Act, and the Savings and Loan Holding Company Act and the rules and regulations enacted thereunder. Among other things, these laws require regulatory filings by a stockholder or other party that seeks to acquire direct or indirect “control” of an FDIC-insured depository institution. The determination whether an investor “controls” a depository institution is based on all of the facts and circumstances surrounding the investment. As a general matter, a party is deemed to control a depository institution or other company if the party owns or controls 25% or more of any class of voting stock. Subject to rebuttal, a party may be presumed to control a depository institution or other company if the investor owns or controls 10% or more of any class of voting stock and any of certain additional control factors exist. Ownership by affiliated parties, or parties acting in concert, is typically aggregated for these purposes. If a party’s ownership of the Company were to exceed certain thresholds, the investor could be deemed to “control” the Company for regulatory purposes. This could subject the investor to regulatory filings or other regulatory consequences.

In addition, except under limited circumstances, SLHCs are prohibited from acquiring, without prior approval:

• control of any other savings institution or SLHC or all or substantially all the assets thereof; or

• more than 5% of the voting shares of a savings institution or SLHC which is not already a subsidiary.

In evaluating an application by a holding company to acquire a savings association, the factors considered include the financial and managerial resources and future prospects of the holding company and savings association involved, the risk of the acquisition to the DIF, the convenience and needs of the community and the effect of the acquisition on competition.

Permissible Activities and Investments

A particular subset of SLHCs are generally permitted to engage in nonbanking and commercial activities without restriction. These SLHCs are known as “grandfathered unitary SLHCs.” A “grandfathered unitary SLHC” is a SLHC that owned a single savings association, or for which an application to acquire a single savings association was pending, on or before May 4, 1999. The Company currently qualifies as a grandfathered unitary SLHC and, as such, is generally permitted to engage in nonbanking and commercial activities without restriction.

In order to be able to continue to rely on this status, a grandfathered unitary SLHC must continue to control the thrift that caused it to qualify (or a successor to that thrift), and the thrift must meet the QTL test. If the savings association subsidiary of a grandfathered unitary SLHC fails to meet the QTL test, then the holding company will become subject to restrictions on its activities and, unless the savings association re-qualifies as a QTL within one year thereafter, would be required to register as, and become subject to the restrictions applicable to, a bank holding company. Regulation as a bank holding company could be adverse to our operations and impose additional and possibly more burdensome regulatory requirements on the Company.

In addition, if the OCC determines that there is reasonable cause to believe that the continuation by a SLHC, including a grandfathered unitary SLHC, of an activity constitutes a serious risk to the financial safety, soundness or stability of its subsidiary savings association, the OCC may impose such restrictions as it deems necessary to address such risk, including limiting (i) payment of dividends by the savings association; (ii) transactions between the savings association and its affiliates; and (iii) any activities of the savings association that might create a serious risk that the liabilities of the holding company and its affiliates may be imposed on the savings association.

The Dodd-Frank Act did not eliminate the general authority for grandfathered unitary SLHCs to conduct activities without restriction. However, under section 626 of the Dodd-Frank Act, the Federal Reserve is authorized to require a grandfathered unitary thrift holding company to put its financial activities beneath an

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intermediate holding company. Separating commercial and financial activities within an SLHC’s legal structure is intended, among other things, to make supervision of the financial activities easier and to reduce the reporting and supervision burden applicable at the top tier of a commercial SLHC. The Federal Reserve is required to promulgate rules setting forth the criteria for when a grandfathered unitary SLHC would be required to establish an intermediate holding company, but to date it has not yet proposed any such rules.

Qualified Thrift Lender Test

Federal banking laws require a thrift to meet the QTL test by maintaining at least 65% of its “portfolio assets” in certain “qualified thrift investments,” such as residential housing related loans, certain consumer and small business loans and residential mortgage-backed securities, on a monthly average basis in at least nine months out of every twelve months. A thrift that fails the QTL test must either operate under certain restrictions on its activities or convert to a bank charter. The Dodd-Frank Act imposes additional restrictions on the ability of any thrift that fails to become or remain a QTL to pay dividends. Specifically, the thrift is not only subject to the general dividend restrictions as would apply to a national bank (as under prior law), but also is prohibited from paying dividends at all (regardless of its financial condition) unless required to meet the obligations of a company that controls the thrift, permissible for a national bank and specifically approved by the OCC and the Federal Reserve. In addition, violations of the QTL test now are treated as violations of federal banking laws subject to remedial enforcement action. At December 31, 2014, the amount of the Bank’s assets invested in qualified thrift investments exceeded the percentage required to qualify the Bank under the QTL test.

Regulatory Capital Requirements and Capital Adequacy

The federal banking regulators view capital levels as important indicators of an institution’s financial soundness. As a general matter, FDIC-insured depository institutions and their holding companies are required to maintain minimum capital relative to the amount and types of assets they hold. The final supervisory determination on an institution’s capital adequacy is based on the regulator’s assessment of numerous factors.

The OCC has established risk-based and leverage capital guidelines applicable to federal thrifts, including the Bank. As noted above, as a result of the Dodd-Frank Act, SLHCs, including the Company, will formally become subject to regulatory capital requirements. The SLHC capital requirements are discussed below in “—Basel III.”

The current risk-based capital guidelines, commonly referred to as Basel I, are based upon the 1988 capital accord of the International Basel Committee on Banking Supervision (“Basel Committee”), a committee of central banks and bank supervisors, as implemented by the U.S. federal banking agencies. As discussed further below, the federal banking agencies have adopted separate risk-based capital guidelines for so-called “core banks” based upon the Revised Framework for the International Convergence of Capital Measurement and Capital Standards (“Basel II”) issued by the Basel Committee in November 2005, and recently adopted rules implementing the revised standards referred to as Basel III.

Basel I

OCC regulations implementing the Basel I standards currently require that federal thrifts maintain: (i) tier 1 capital in an amount not less than 4.0% (3.0% if the federal thrift is assigned the highest composite rating of 1 under the Uniform Financial Institutions Rating System) of adjusted total assets (the “leverage ratio”), (ii) tier 1 capital in an amount not less than 4.0% of risk-weighted assets and (iii) total risk-based capital in an amount not less than 8.0% of risk-weighted assets.

Tier 1 capital (core capital) includes common stockholders’ equity (including common stock, additional paid-in capital and retained earnings, but excluding any net unrealized gains or losses, net of related taxes, on certain securities available for sale), noncumulative perpetual preferred stock and any related surplus and non-controlling interests in the equity accounts of fully consolidated subsidiaries. Intangible assets generally must be deducted from tier 1 capital, other than certain servicing assets and purchased credit card relationships, subject to limitations.

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Total capital, for purposes of the risk-based capital requirement, equals the sum of tier 1 capital plus supplementary (tier 2) capital up to 100% of core capital (which generally includes the sum of, among other items, perpetual preferred stock not counted as tier 1 capital, limited life preferred stock, subordinated debt and general loan and lease loss allowances up to 1.25% of risk-weighted assets) less certain deductions.

Risk-weighted assets are determined by multiplying certain categories of assets, including off-balance sheet equivalents, by an assigned risk weight of 0% to 100% (or more) based on the degree of credit risk associated with those assets as specified in OCC regulations.

As of December 31, 2014, the Bank met the standard minimum regulatory capital requirements noted above, with tier 1 (core) capital, tier 1 risk-based capital and total risk-based capital ratios of 10.43%, 16.97% and 18.25%, respectively. Capital requirements higher than the generally applicable minimum requirement may be established for a particular savings association if the OCC determines that the institution’s capital was or may become inadequate in view of its particular circumstances.

Basel II

Under the final U.S. Basel II rules issued by the federal banking agencies, there are a small number of “core” banking organizations that have been required to use the advanced approaches under Basel II for calculating risk-based capital related to credit risk and operational risk, instead of the methodology reflected in the regulations effective prior to adoption of Basel II. The rules also require core banking organizations to have rigorous processes for assessing overall capital adequacy in relation to their total risk profiles, and to publicly disclose certain information about their risk profiles and capital adequacy. The Company and the Bank are not among the core banking organizations required to use Basel II advanced approaches.

Basel III

On December 16, 2010, the Basel Committee released its final framework for strengthening international capital and liquidity regulation, known as Basel III. The Basel III calibration and phase-in arrangements were previously endorsed by the Seoul G20 Leaders Summit in November 2010. Under these standards, when fully phased-in on January 1, 2019, banking institutions would be required to satisfy three risk-based capital ratios:

• A new common equity tier 1 capital to risk-weighted assets ratio of at least 7.0%, inclusive of a 4.5% minimum common equity tier 1 capital ratio, net of regulatory deductions, and the new 2.5% “capital conservation buffer” of common equity to risk-weighted assets;

• A tier 1 capital ratio of at least 8.5%, inclusive of the 2.5% capital conservation buffer; and

• A total capital ratio of at least 10.5%, inclusive of the 2.5% capital conservation buffer.

The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a common equity tier 1 ratio above the minimum but below the conservation buffer may face constraints on dividends, equity repurchases, and compensation based on the amount of such shortfall. The Basel Committee also announced that a “countercyclical buffer” of 0% to 2.5% of common equity or other loss-absorbing capital “will be implemented according to national circumstances” as an “extension” of the conservation buffer during periods of excess credit growth.

Basel III also introduced a non-risk adjusted tier 1 leverage ratio of 3%, based on a measure of total exposure rather than total assets and new liquidity standards. The Basel Committee had initially planned for member nations to begin implementing the Basel III requirements by January 1, 2013, with full implementation by January 1, 2019. On November 9, 2012, U.S. regulators announced that implementation of Basel III’s first requirements would be delayed.

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In July 2013, the federal banking agencies published final rules (the “Basel III Capital Rules”) that revised their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to implement, in part, agreements reached by the Basel Committee and certain provisions of the Dodd-Frank Act. The Basel III Capital Rules will apply to banking organizations, including the Company and the Bank.

Among other things, the Basel III Capital Rules: (i) introduce a new capital measure entitled “Common Equity Tier 1” (“CET1”); (ii) specify that tier 1 capital consist of CET1 and additional financial instruments satisfying specified requirements that permit inclusion in tier 1 capital; (iii) define CET1 narrowly by requiring that most deductions or adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions or adjustments from capital as compared to the existing regulations. The Basel III Capital Rules also provide a permanent exemption from the proposed phase out of existing trust preferred securities and cumulative perpetual preferred stock from regulatory capital for banking organizations with less than $15 billion in total consolidated assets as of December 31, 2009.

The Basel III Capital Rules provide for the following minimum capital to risk-weighted assets ratios:

• 4.5% based upon CET1;

• 6.0% based upon tier 1 capital; and

• 8.0% based upon total regulatory capital.

A minimum leverage ratio (tier 1 capital as a percentage of total assets) of 4.0% is also required under the Basel III Capital Rules (even for highly rated institutions). The Basel III Capital Rules additionally require institutions to retain a capital conservation buffer of 2.5% above these required minimum capital ratio levels. Banking organizations that fail to maintain the minimum 2.5% capital conservation buffer could face restrictions on capital distributions or discretionary bonus payments to executive officers.

The Basel III Capital Rules did not address the proposed liquidity coverage ratio (“LCR”) called for by the Basel Committee’s Basel III framework. On October 24, 2013, the Federal Reserve issued a proposed rule implementing a LCR requirement in the United States for larger banking organizations. Neither the Company nor the Bank would be subject to the LCR requirement as proposed.

Finally, the Basel III Capital Rules amend the thresholds under the “prompt corrective action” framework enforced with respect to the Bank by the OCC to reflect both (i) the generally heightened requirements for regulatory capital ratios as well as (ii) the introduction of the CET1 capital measure.

As a result of the enactment of the Basel III Capital Rules the Company and the Bank could be subject to increased required capital levels. The Basel III Capital Rules become effective as applied to us and the Bank on January 1, 2015, with a phase in period that generally extends from January 1, 2015 through January 1, 2019.

The Company and the Bank anticipate being “Well Capitalized” under Basel III Capital Rules.

Prompt Corrective Action

Under the Federal Deposit Insurance Act (“FDIA”), the federal bank regulatory agencies must take “prompt corrective action” against undercapitalized U.S. depository institutions. U.S. depository institutions are assigned one of five capital categories: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized,” and are subjected to differential regulation corresponding to the capital category within which the institution falls. A depository institution is currently deemed to be “well capitalized” if the banking institution has a total risk-based capital ratio of 10.0% or greater, a tier 1 risk-based capital ratio of 6.0% or greater, and a leverage ratio of 5.0% or greater, and the institution is not subject to an order, written agreement, capital directive, or prompt corrective action directive to meet and maintain a specific

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level for any capital measure. Under certain circumstances, a well-capitalized, adequately capitalized or undercapitalized institution may be treated as if the institution were in the next lower capital category. A banking institution that is less than adequately capitalized is required to submit a capital restoration plan. Failure to meet capital guidelines could subject the institution to a variety of enforcement remedies by federal bank regulatory agencies, including: termination of deposit insurance by the FDIC, restrictions on certain business activities, and appointment of the FDIC as conservator or receiver.

In addition, when effective the Basel III Capital Rules will amend the thresholds under the PCA framework enforced with respect to the Bank by the OCC to reflect both (i) the generally heightened requirements for regulatory capital ratios as well as (ii) the introduction of the CET1 capital measure.

As of December 31, 2014, the Bank was “well capitalized” under regulatory standards. See Note 11 in the Notes to Consolidated Financial Statements contained in Item 8.

Regulatory Limits on Dividends and Distributions

OCC and Federal Reserve regulations govern capital distributions by savings institutions, which include cash dividends, stock repurchases and other transactions charged to the capital account of a savings institution to make capital distributions. Under applicable regulations, a savings institution must file an application for approval of the capital distribution if:

• the total capital distributions for the applicable calendar year exceed the sum of the institution’s net income for that year to date plus the institution’s retained net income for the preceding two years;

• the institution would not be at least adequately capitalized under the PCA guidelines following the distribution;

• the distribution would violate any applicable statute, regulation, agreement or OCC-imposed condition; or

• the institution is not eligible for expedited treatment of its filings with the OCC.

If an application is not required to be filed, savings institutions such as the Bank which are a subsidiary of a holding company (as well as certain other institutions) must still file a notice with the OCC and Federal Reserve at least 30 days before the board of directors declares a dividend or approves a capital distribution.

An institution that either before or after a proposed capital distribution fails to meet its then applicable minimum capital requirement or that has been notified that it needs more than normal supervision may not make any capital distributions without the prior written approval of the OCC. In addition, the OCC may prohibit a proposed capital distribution, which would otherwise be permitted by OCC regulations, if the OCC determines that such distribution would constitute an unsafe or unsound practice.

The FDIC prohibits an insured depository institution from paying dividends on its capital stock or interest on its capital notes or debentures (if such interest is required to be paid only out of net profits) or distributing any of its capital assets while it remains in default in the payment of any assessment due the FDIC. The Bank is currently not in default in any assessment payment to the FDIC.

We are a legal entity separate and distinct from the Bank and its subsidiary. Our principal source of revenue consists of dividends from the Bank. As noted above, the payment of dividends by the Bank is subject to various regulatory requirements, including a minimum of 30 days’ advance notice to the OCC of any proposed dividend to us.

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Limits on Transactions with Affiliates and Insiders

Insured depository institutions are subject to restrictions on their ability to conduct transactions with affiliates and other related parties. Section 23A of the Federal Reserve Act imposes quantitative limits, qualitative requirements, and collateral requirements on certain transactions by an insured depository institution with, or for the benefit of, its affiliates. Transactions covered by Section 23A include loans, extensions of credit, investment in securities issued by an affiliate, and acquisitions of assets from an affiliate. Section 23B of the Federal Reserve Act requires that most types of transactions by an insured depository institution with, or for the benefit of, an affiliate be on terms at least as favorable to the insured depository institution as if the transaction were conducted with an unaffiliated third party. Section 11 of the HOLA applies Sections 23A and 23B to federal thrifts, including the Bank. In addition, Section 11 of HOLA prohibits the Bank from lending to any affiliate engaged in activities not permissible for a bank holding company and from acquiring the securities of any affiliate other than a subsidiary.

As noted above, the Dodd-Frank Act generally enhances the restrictions on transactions with affiliates under Section 23A and 23B of the Federal Reserve Act, including an expansion of the definition of “covered transactions” and a clarification of the amount of time for which collateral requirements regarding covered credit transactions must be satisfied. The ability of the Federal Reserve to grant exemptions from these restrictions is also narrowed by the Dodd-Frank Act, including by requiring coordination with other bank regulators.

The Federal Reserve’s Regulation O and OCC regulations impose restrictions and procedural requirements in connection with the extension of credit by an insured depository institution to directors, executive officers, principal stockholders and their related interests.

Brokered Deposits

The FDIC restricts the use of brokered deposits by certain depository institutions. Under the applicable regulations, (i) a “well capitalized insured depository institution” may solicit and accept, renew or roll over any brokered deposit without restriction, (ii) an “adequately capitalized insured depository institution” may not accept, renew or roll over any brokered deposit unless it has applied for and been granted a waiver of this prohibition by the FDIC and (iii) an “undercapitalized insured depository institution” may not (x) accept, renew or roll over any brokered deposit or (y) solicit deposits by offering an effective yield that exceeds by more than 75 basis points the prevailing effective yields on insured deposits of comparable maturity in such institution’s normal market area or in the market area in which such deposits are being solicited. The FDIC may, on a case-by-case basis and upon application by an adequately capitalized insured depository institution, waive the restriction on brokered deposits upon a finding that the acceptance of brokered deposits does not constitute an unsafe or unsound practice with respect to such institution.

At December 31, 2014 and December 31, 2013, the Bank had no outstanding brokered deposits.

Examination Fees

The OCC currently charges fees to recover the costs of examining national banks and federal thrifts, processing applications and other filings, and covering direct and indirect expenses in regulating national banks and federal thrifts and their affiliates. The Dodd-Frank Act provides various agencies with the authority to assess additional supervision fees.

Deposit Insurance Assessments

FDIC-insured depository institutions are required to pay deposit insurance assessments to the FDIC. The amount of a particular institution’s deposit insurance assessment is based on that institution’s risk classification under an FDIC risk-based assessment system. An institution’s risk classification is assigned based on its capital levels and

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the level of supervisory concern the institution poses to the regulators. Deposit insurance assessments fund the DIF. As noted above, the Dodd-Frank Act changed the way an insured depository institution’s deposit insurance premiums are calculated. These changes may impact assessment rates, which could impact the profitability of our operations.

Depositor Preference

The FDIC provides that, in the event of the “liquidation or other resolution” of an insured depository institution, the claims of depositors of the institution (including the claims of the FDIC as subrogee of insured depositors) and certain claims for administrative expenses of the FDIC as a receiver will have priority over other general unsecured claims against the institution. If we invest in or acquire an insured depository institution that fails, insured and uninsured depositors, along with the FDIC, will have priority in payment ahead of unsecured, non-deposit creditors, including us, with respect to any extensions of credit they have made to such insured depository institution.

Federal Reserve System and Federal Home Loan Bank System

The Federal Reserve has adopted regulations that require savings associations to maintain non-earning reserves against their transaction accounts (primarily negotiable order of withdrawal accounts and regular checking accounts). These reserves may be used to satisfy liquidity requirements imposed by the OCC. Because required reserves must be maintained in the form of vault cash, with a pass-through correspondent institution or an account at a Federal Reserve Bank, the effect of this reserve requirement is to potentially restrict the amount of the Bank’s assets.

The Federal Home Loan Bank System consists of twelve regional Federal Home Loan Banks, each subject to supervision and regulation by the Federal Housing Finance Agency (“FHFA”). The Bank is a member of the FHLB of Chicago. The FHLBs provide a central credit facility for member savings associations, and impose collateral requirements on advances. The maximum amount that the FHLB of Chicago will advance fluctuates from time to time in accordance with changes in policies of the FHFB and the FHLB of Chicago, and the maximum amount generally is reduced by borrowings from any other source. In addition, the amount of FHLB of Chicago advances that a savings association may obtain is restricted in the event the institution fails to maintain its status as a QTL.

Bank Secrecy Act / Anti-Money Laundering

The Bank Secrecy Act (“BSA”), which is intended to require financial institutions to develop policies, procedures, and practices to prevent and deter money laundering, mandates that every financial institution have a written, board-approved program that is reasonably designed to assure and monitor compliance with the BSA. The program must, at a minimum: (1) provide for a system of internal controls to assure ongoing compliance; (2) provide for independent testing for compliance; (3) designate an individual responsible for coordinating and monitoring day-to-day compliance; and (4) provide training for appropriate personnel. In addition, financial institutions are required to adopt a customer identification program as part of its BSA compliance program. Financial institution are also required to file Suspicious Activity Reports when they detect certain known or suspected violations of federal law or suspicious transactions related to a money laundering activity or a violation of the BSA.

In addition to complying with the BSA, the Bank is subject to the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”). The Patriot Act is designed to deny terrorists and criminals the ability to obtain access to the United States’ financial system and has significant implications for depository institutions, brokers, dealers, and other businesses involved in the transfer of money. The Patriot Act mandates that financial service companies implement additional policies and procedures and take heightened measures designed to address any or all of the following

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matters: customer identification programs, money laundering, terrorist financing, identifying and reporting suspicious activities and currency transactions, currency crimes, and cooperation between financial institutions and law enforcement authorities.

Anti-Money Laundering and OFAC

Under federal law, financial institutions must maintain anti-money laundering programs that include established internal policies, procedures, and controls; a designated compliance officer; an ongoing employee training program; and testing of the program by an independent audit function. Financial institutions are also prohibited from entering into specified financial transactions and account relationships and must meet enhanced standards for due diligence and customer identification in their dealings with non-U.S. financial institutions, non-U.S. customers and other high-risk customers. Financial institutions must take reasonable steps to conduct enhanced scrutiny of account relationships to guard against money laundering and to report any suspicious transactions, and law enforcement authorities have been granted increased access to financial information maintained by financial institutions. Bank regulators routinely examine institutions for compliance with these obligations and they must consider an institution’s compliance in connection with the regulatory review of applications, including applications for banking mergers and acquisitions. The regulatory authorities have imposed “cease and desist” orders and civil money penalty sanctions against institutions found to be violating these obligations.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) is responsible for helping to insure that U.S. entities do not engage in transactions with certain prohibited parties, as defined by various executive orders and acts of Congress. OFAC publishes lists of persons, organizations, and countries suspected of aiding, harboring or engaging in terrorist acts, known as Specially Designated Nationals and Blocked Persons. If the Company or the Bank finds a name on any transaction, account or wire transfer that is on an OFAC list, the Company or Bank must freeze or block such account or transaction, file a suspicious activity report and notify the appropriate authorities.

Consumer Laws and Regulations

Banking organizations are subject to numerous laws and regulations intended to protect consumers. These laws include, among others:

• Truth in Lending Act;

• Truth in Savings Act;

• Electronic Funds Transfer Act;

• Expedited Funds Availability Act;

• Equal Credit Opportunity Act;

• Fair and Accurate Credit Transactions Act;

• Fair Housing Act;

• Fair Credit Reporting Act;

• Fair Debt Collection Act;

• Gramm-Leach-Bliley Act;

• Home Mortgage Disclosure Act;

• Right to Financial Privacy Act;

• Real Estate Settlement Procedures Act;

• Laws regarding unfair and deceptive acts and practices; and

• Usury laws.

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Many states and local jurisdictions have consumer protection laws analogous, and in addition to, those listed above. These federal, state and local laws regulate the manner in which financial institutions deal with customers when taking deposits, making loans, or conducting other types of transactions. Failure to comply with these laws and regulations could give rise to regulatory sanctions, customer rescission rights, action by state and local attorneys general, and civil or criminal liability. The creation of the Consumer Financial Protection Bureau (“CFPB”) by the Dodd-Frank Act has led to enhanced enforcement of consumer financial protection laws.

The Community Reinvestment Act

The Community Reinvestment Act (“CRA”) is intended to encourage banks and thrifts to help meet the credit needs of their service areas, including low and moderate-income neighborhoods, consistent with safe and sound operations. The bank regulators examine and assign each bank a public CRA rating. The CRA then requires bank regulators to take into account the bank’s record in meeting the needs of its service area when considering an application by a bank to establish or relocate a branch or to conduct certain mergers or acquisitions. The Federal Reserve is required to consider the CRA records of an SLHC’s controlled thrift(s) when considering an application by the SLHC to acquire a banking organization or to merge with another SLHC. When the Company or the Bank applies for regulatory approval to make certain investments, the regulators will consider the CRA record of target institutions and the Bank. A less than satisfactory CRA record could substantially delay approval or result in denial of an application. The regulatory agency’s assessment of the institution’s record is made available to the public. Following its most recent CRA examination in June 2013, the Bank received an overall rating of “Satisfactory.”

Overdraft Fees

The Federal Reserve has adopted amendments under its Regulation E that impose restrictions on banks’ abilities to charge overdraft fees. The rule prohibits financial institutions from charging fees for paying overdrafts on ATM and one-time debit card transactions, unless a consumer consents, or opts in, to the overdraft service for those types of transactions.

Interchange Fees

The Dodd-Frank Act, through a provision known as the Durbin Amendment, required the Federal Reserve to establish standards for interchange fees that are “reasonable and proportional” to the cost of processing the debit card transaction and imposes other requirements on card networks. Institutions like the Bank with less than $10 billion in assets are exempt. However, while we are under the $10 billion level that caps income per transaction, we have been affected by federal regulations that prohibit network exclusivity arrangements and routing restrictions. Essentially, issuers and networks must allow transaction processing through a minimum of two unaffiliated networks. These additional processing alternatives have negatively affected interchange income from our PIN/point of sale network.

Changes in Laws, Regulations or Policies

Federal, state and local legislators and regulators regularly introduce measures or take actions that would modify the regulatory requirements applicable to banks, their holding companies and other financial institutions. Changes in laws, regulations or regulatory policies could adversely affect the operating environment for the Company and the Bank in substantial and unpredictable ways, increase our cost of doing business, impose new restrictions on the way in which we conduct our operations or add significant operational constraints that might impair our profitability. We cannot predict whether new legislation will be enacted and, if enacted, the effect that it, or any implementing regulations, would have on our business, financial condition or results of operations. The Dodd-Frank Act imposes substantial changes to the regulatory framework applicable to us and our subsidiaries. The majority of these changes will be implemented over time by various regulatory agencies. The full effect that these changes will have on us remains uncertain at this time and may have a material adverse effect on our business and results of operations.

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Homeowners Affordability and Stability Plan

In February 2009, the U.S. government also announced its Financial Stability Plan and Homeowners Affordability and Stability Plan (“HASP”). The Financial Stability Plan is the second phase of TARP, to be administrated by the Treasury. Its four key elements include:

• the development of a public/private investment fund essentially structured as a government sponsored enterprise with the mission to purchase troubled assets from banks with an initial capitalization from government funds;

• the Capital Assistance Program under which the Treasury will purchase additional preferred stock available only for banks that have undergone a new stress test given by their regulator;

• an expansion of the Federal Reserve’s term asset-backed liquidity facility to support the purchase of up to $1 trillion in AAA-rated asset backed securities backed by consumer, student, and small business loans, and possible other types of loans; and

• the establishment of a mortgage loan modification program with $50 billion in federal funds further detailed in the HASP.

The HASP is a program aimed to help seven to nine million families restructure their mortgages to avoid foreclosure. The plan also develops guidance for loan modifications nationwide. HASP provides programs and funding for eligible refinancing of loans owned or guaranteed by Fannie Mae or Freddie Mac, along with incentives to lenders, mortgage servicers, and borrowers to modify mortgages of “responsible” homeowners who are at risk of defaulting on their mortgage. The goals of HASP are to assist in the prevention of home foreclosures and to help stabilize falling home prices.

Beyond the Company’s participation in certain programs, such as TARP, the Company will benefit from these programs if they help stabilize the national banking system and aid in the recovery of the housing market.

Federal Housing Finance Agency

In January 2011, the Federal Housing Finance Agency (“FHFA”) announced that it directed Fannie Mae and Freddie Mac to work on a joint initiative, in coordination with FHFA and HUD, to consider alternatives for future mortgage servicing structures and servicing compensation for their single-family mortgage loans. Not all aspects of the joint initiative have yet been implemented and it is as yet uncertain how the financial services industry in general and the Bank specifically will be affected by the final requirements.

The Volcker Rule

On December 10, 2013, five U.S. financial regulators, including the Federal Reserve and the OCC, adopted a final rule implementing the so-called “Volcker Rule.” The Volcker Rule was created by Section 619 of the Dodd-Frank Act and prohibits “banking entities” from engaging in “proprietary trading” and making investments and conducting certain other activities with “private equity funds and hedge funds.” Although the final rule provides some tiering of compliance and reporting obligations based on size, the fundamental prohibitions of the Volcker Rule apply to banking entities of any size, including the Company and the Bank. The final rule became effective April 1, 2014 and had no financial impact on the Company.

Legislative and Regulatory Proposals

Proposals to change the laws and regulations governing the operations and taxation of, and federal insurance premiums paid by, savings banks and other financial institutions and companies that control such institutions are frequently raised in the U.S. Congress, state legislatures and before the FDIC, the OCC and other bank regulatory authorities. The likelihood of any major changes in the future and the impact such changes might have on us or

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our subsidiaries are impossible to determine. Similarly, proposals to change the accounting treatment applicable to savings banks and other depository institutions are frequently raised by the SEC, the federal banking agencies, the Internal Revenue Service (“IRS”) and other appropriate authorities, including, among others, proposals relating to fair market value accounting for certain classes of assets and liabilities. The likelihood and impact of any additional future accounting rule changes and the impact such changes might have on us or our subsidiaries are impossible to determine at this time.

Taxation

Federal. The Company files a consolidated federal income tax return on behalf of itself, the Bank and its subsidiaries on a calendar tax year basis.

State. Under current law, the state of Wisconsin imposes a corporate franchise tax of 7.9% on the combined taxable incomes of the members of the Company’s consolidated income tax group.

Tax Attribute Preservation Provision

In connection with the Plan of Reorganization the Amended Charter contains provisions to protect certain tax attributes of the Company and its subsidiaries following emergence from bankruptcy as summarized below.

Until the third anniversary of the Effective Date, unless approved by the Board in accordance with the procedures set forth in the Amended Charter and subject to certain exceptions for permitted transfers, any attempted transfer of the Company’s common stock is prohibited and void ab initio to the extent that, as a result of such transfer (or any series of transfers of which such transfer is a part), either (i) any person or group of persons will own 4.95% or more of the outstanding shares of common stock or preferred stock of the Company or (ii) the ownership interest in the Company of any of its existing 5% Stockholders will be increased. The Expiration Date may be extended in the Board’s discretion until the sixth anniversary of the Effective Date in order to protect the tax attributes of the Company.

Item 1A. Risk Factors

Set forth below and elsewhere in this Annual Report on Form 10-K and in other documents we file with the SEC are risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements contained in this Annual Report on Form 10-K. The risks described below are not the only ones facing our company. Our business, financial condition, results of operations or prospects could be materially and adversely affected by any of these risks. The value of shares of our common stock could decline due to any of these risks. This report, including the documents incorporated by reference herein, also contain forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including the risks described below.

Risks Related to Our Business

We may not be able to fully execute on our new business initiatives, which could have a material adverse effect on our financial condition or results of operations.

We are primarily a community-oriented commercially focused retail bank offering traditional deposit products and have historically focused on retail banking and residential mortgage lending. We have been developing strategies to grow other loan categories to diversify earning assets and to increase low cost core deposits, including transforming our business to a relationship-focused commercial bank, the expansion of our commercial banking services and our other business strategies. These strategies include, over time, expanding our business banking operations. Our business banking initiative includes focusing on small and mid-sized businesses, with an emphasis on attracting clients from competitors. There are costs, risks and uncertainties associated with the

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development, implementation and execution of these initiatives, including the investment of time and resources, the possibility that these initiatives will be unprofitable and the risk of additional liabilities associated with these initiatives. In addition, our ability to successfully execute on these new initiatives will depend in part on our ability to attract and retain talented individuals to help manage these initiatives and the existence of satisfactory market conditions that will allow us to profitably grow. Our potential inability to successfully execute these initiatives could have a material adverse effect on our business, financial condition or results of operations.

We have a significant deferred tax asset that may not be fully realized in the future.

Our net deferred tax asset totaled $113.1 million as of December 31, 2014. The ultimate realization of a deferred tax asset is dependent upon the generation of future taxable income during the periods that the related net operating losses and certain recognized built-in losses and net unrealized built-in losses, if any (collectively, “pre-change losses”), may be utilized and is also subject to the rules of Section 382 of the Code, described below. If our estimates and assumptions about future taxable income are not accurate, the value of our deferred tax asset may not be recoverable and our cash flow available to fund operations could be adversely affected. While there currently is no limitation on our ability to utilize the deferred tax asset other than the ability to generate sufficient income, due to the uncertainty with respect to the recognition of the deferred tax asset, it has been fully reserved.

Our ability to realize the benefit of our deferred tax assets may be materially impaired.

Our ability to use our deferred tax assets to offset future taxable income will be limited if we experience an “ownership change” as defined in Section 382 of the Internal Revenue Code of 1986, as amended (the” Code”). Due to the complexity of Section 382, it is difficult to conclude with certainty at any given point in time whether an “ownership change” has occurred. A Company that experiences an ownership change will generally be subject to an annual limitation on the use of its pre-change losses equal to the equity value of the Company immediately before the ownership change (in some cases, reduced by certain capital contributions received in the two years preceding the ownership change), multiplied by the applicable “long-term tax-exempt rate” (a rate that changes monthly and was 2.8% for ownership changes occurring in December 2014). While the Tax Attribute Preservation Provision (as defined below) has been included in our Amended Charter to prohibit and void ab initio future transactions in our common stock that would result in an ownership change, such an ownership change nevertheless could occur in the future, which likely would have a material adverse effect on our results of operations, financial condition and stockholder value. Any change in applicable law may result in an ownership change. Further, this provision may limit our ability to raise capital by selling shares of our common stock.

We depend on our key officers and employees to continue the implementation of our long-term business strategy and could be harmed by the loss of their services. Management’s ability to retain key officers and employees may change.

We believe that the implementation of our long-term business strategy and future success will depend in large part on the skills of our current senior management team. We believe our senior management team possesses valuable knowledge about and experience in the banking industry and that their knowledge and relationships would be very difficult to replace. Although most of our senior management team has entered into employment agreements with us, they may not complete the term of their employment agreements or renew them upon expiration. Our success also depends on the experience of our branch managers and lending officers and on their relationships with the customers and communities they serve.

Our future operating results also depend in significant part upon our ability to attract and retain qualified management, financial, technical, marketing, sales and support personnel, particularly in respect of the implementation of our business strategy, which may require the recruitment of new personnel in new or expanded business areas. Competition for qualified personnel is intense, and we may not be successful in attracting or retaining qualified personnel. There may be only a limited number of persons with the requisite skills to serve in these positions, and it may be increasingly difficult for us to hire personnel over time. The loss

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of service of one or more of our key officers and employees, or the inability to recruit and retain qualified personnel in the future, could have an adverse effect on our business, financial condition or operating results and the value of our common stock.

Our allowance for losses on loans may not be adequate to cover probable losses.

The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged off against the allowance for loan losses when we believe that repayment of principal is unlikely. Our level of non-performing loans decreased significantly in the year ended December 31, 2014, relative to the prior year period.

However, any material declines in the creditworthiness of our customers, real estate market conditions and values, general economic conditions or changes in regulatory policies would likely result in a higher probability that principal on some loans will not be repaid and require us to increase our allowance for loan losses. A material increase in the allowance for loan losses would adversely affect our results of operations and our capital.

The Bank’s business is subject to liquidity risk, and changes in its source of funds may adversely affect our performance and financial condition by increasing its cost of funds.

The Bank’s ability to make loans and fund expenses is directly related to its ability to secure funding. Retail and commercial deposits and core deposits are the Bank’s primary source of liquidity. The Bank also relies on cash from payments received from loans and investments, as well as advances from the FHLB of Chicago as a funding source.

Primary uses of funds include withdrawal of and interest payments on deposits, originations of loans and payment of operating expenses. Core deposits represent a significant source of low-cost funds. Alternative funding sources such as large balance time deposits or borrowings are a comparatively higher-cost source of funds. Liquidity risk arises from the inability to meet obligations when they come due or to manage unplanned decreases or changes in funding sources. Significant fluctuations in lower cost funding vehicles would cause the Bank to pursue higher cost funding which would adversely affect our financial condition and results of operations.

The Company’s liquidity is largely dependent upon our ability to receive dividends from the Bank, which accounts for substantially all our revenue, could affect our ability to pay dividends, and we may be unable to generate liquidity from other sources.

We are a separate and distinct legal entity from our subsidiaries, including the Bank. We receive substantially all of our revenue from dividends from the Bank, which we use as the principal source of funds to pay our expenses. Various federal and/or state laws and regulations limit the amount of dividends that the Bank and certain of our non-bank subsidiaries may pay us. Such limits are also tied to the earnings of our subsidiaries. If the Bank does not receive regulatory approval or if our subsidiaries’ earnings are not sufficient to make dividend payments to us while maintaining adequate capital levels, our ability to pay our expenses and our business, financial condition or results of operations could be materially and adversely impacted.

Increases in our level of non-performing assets would have an adverse effect on our financial condition and results of operations.

If loans that are currently performing become non-performing, we may need to continue to increase our allowance for loan losses if additional losses are anticipated which would have an adverse impact on our financial condition and results of operations. The increased time and expense associated with the work out of non-performing assets and potential non-performing assets also could adversely affect our operations.

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If our investment in the capital stock of the FHLB of Chicago is other than temporarily impaired, our financial condition and results of operations could be materially impaired.

The Bank owns capital stock of the FHLB of Chicago. The capital stock is held to qualify for membership in the Federal Home Loan Bank System and to be eligible to borrow funds under the FHLB of Chicago’s advance program. There is no market for the FHLB of Chicago capital stock and, while redemptions may be requested, they are at the discretion of the FHLB of Chicago.

The Bank evaluates the FHLB of Chicago stock for impairment on a regular basis. The determination of whether FHLB of Chicago stock is impaired depends on a number of factors and is based on an assessment of the ultimate recoverability of cost rather than changes in the book value of the shares. If our investment in the capital stock of the FHLB of Chicago were to become other than temporarily impaired, our financial condition and results of operations could be materially affected.

Maintaining or increasing market share depends on market acceptance and regulatory approval of new products and services.

Our success depends, in part, on the ability to adapt products and services to evolving industry and regulatory standards. There is increasing pressure to provide products and services at lower prices. This can reduce net interest income and non-interest income from fee-based products and services. In addition, the widespread adoption of new technologies could require us to make substantial capital expenditures to modify or adapt existing products and services or develop new products and services. We may not be successful in introducing new products and services in response to industry trends or development in technology or those new products may not achieve market acceptance. As a result, we could lose business, be forced to price products and services on less advantageous terms to retain or attract clients, or be subject to cost increases.

Deterioration in the real estate markets and economic conditions could lead to additional losses, which could have a material negative effect on our financial condition and results of operations.

Our success depends on general and local economic conditions, and real estate and business markets in which we do business. The commercial and residential real estate markets experienced weakness during the recent economic downturn. Any future declines in real estate values may reduce the value of collateral securing loans and impact the customer’s ability to borrow or repay. Increases in delinquency levels or declines in real estate values could have a material negative effect on our business and results of operations.

While we attempt to manage the risk from changes in market interest rates, interest rate risk management techniques are not exact. In addition, we may not be able to economically hedge our interest rate risk. A rapid or substantial increase or decrease in interest rates could adversely affect our net interest income and results of operations.

Our earnings and cash flows depend to a great extent upon the level of our net interest income. The amount of interest income is dependent on many factors, including the volume of earning assets, the general level of interest rates, the dynamics of changes in interest rates and the level of non-performing loans. The cost of funds varies with the amount of funds required to support earning assets, the rates paid to attract and hold deposits, rates paid on borrowed funds and the levels of non-interest-bearing demand deposits and equity capital.

Different types of assets and liabilities are impacted differently, and at different times, by changes in market interest rates. We are unable to predict changes in market interest rates, which are affected by many factors beyond our control including inflation, recession, unemployment, money supply, domestic and international events, changes in the United States and other financial markets and policies of various governmental and regulatory agencies, particularly the Board of Governors of the Federal Reserve System (the “Federal Reserve”). Net interest income is not only affected by the level and direction of interest rates, but also by the shape of the

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yield curve, credit spreads, relationships between interest sensitive instruments and key driver rates, balance sheet growth, client loan and deposit preferences and the timing of changes in these variables. Additionally, an increase in interest rates may, among other things, reduce the demand for loans and our ability to originate loans and decrease loan repayment rates. A decrease in the general level of interest rates may affect us through, among other things, increased prepayments on our loan and mortgage-backed securities portfolios and increased competition for deposits. Accordingly, changes in the level of market interest rates affect our net yield on interest earning assets, loan origination volume, loan and mortgage-backed securities portfolios, and our overall results.

We attempt to manage our risk from changes in market interest rates through asset/liability management by adjusting the rates, maturity, repricing, and balances of the different types of interest-earning assets and interest bearing liabilities. Interest rate risk management techniques, however, are not precise, and we may not be able to successfully manage our interest rate risk. As a result, a rapid increase or decrease in interest rates could have an adverse effect on our net interest margin and results of operations.

Since we engage in lending secured by real estate and may be forced to foreclose on the collateral property and own the underlying real estate, we may be subject to the increased costs and risks associated with the ownership of real property, which could have an adverse effect on our business and results of operations.

A significant portion of our loan portfolio is secured by real property. During the ordinary course of business, we may foreclose on and take title to properties securing certain loans, in which case, we are exposed to the risks inherent in the ownership of real estate. The amount that we, as a mortgagee, may realize after a default is dependent upon factors outside of our control, including:

• general or local economic conditions;

• environmental cleanup liabilities;

• neighborhood values;

• interest rates;

• real estate tax rates;

• operating expenses of the mortgaged properties;

• supply of and demand for rental units or properties;

• ability to obtain and maintain adequate occupancy of the properties;

• zoning laws;

• governmental rules, regulations and fiscal policies; and

• extreme weather conditions or other natural or man-made disasters.

Certain expenditures associated with the ownership of real estate, principally real estate taxes and maintenance costs, may also adversely affect our operating expenses.

An interruption in or breach in security of our information systems may result in a loss of customer business.

We rely heavily on communications and information systems to conduct our business. Any failure or interruptions or breach in security of these systems could result in failures or disruptions in our customer relationship management, general ledger, deposits, servicing, or loan origination systems. The occurrence of any failures, interruptions or security breaches of information systems used to process customer transactions could damage our reputation, result in a loss of customer business, subject us to additional regulatory scrutiny, or expose us to civil litigation and possible financial liability, any of which could have a material adverse effect on our financial condition, results of operations and cash flows.

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Additionally, we outsource portions of our data processing to third parties. If our third party provider encounters difficulties or if we have difficulty in communicating with such third party, it will significantly affect our ability to adequately process and account for customer transactions, which would significantly affect our business operations. Furthermore, breaches of such third party’s technology may also cause reimbursable loss to our consumer and business customers, through no fault of our own.

Management regularly reviews and updates our internal controls, disclosure controls and procedures, and corporate governance policies and procedures. Any system of controls, however well designed and operated, is based in part on certain assumptions and can provide only reasonable, not absolute, assurances that the objectives of the system are met. Any failure or circumvention of our controls and procedures or failure to comply with regulations related to controls and procedures could have a material adverse effect on our business, results of operations, cash flows and financial condition.

Our regional concentration makes us particularly at risk for changes in economic conditions in our primary market.

Our business is primarily located in Wisconsin. Due to our lack of geographic diversification, we are particularly vulnerable to adverse changes in economic conditions in Wisconsin, and the Midwest more generally. The economic conditions in Wisconsin and the Midwest affect our business, financial condition, results of operations, and future prospects, where adverse economic developments, among other things, could affect the volume of loan originations, increase the level of non-performing assets, increase the rate of foreclosure losses on loans and reduce the value of our loans and loan servicing portfolio. Any regional or local economic downturn that affects Wisconsin and the Midwest or existing or prospective borrowers or property values in such areas may affect us and our profitability more significantly and more adversely than our competitors whose operations are less geographically concentrated.

Our asset valuations include observable inputs and may include methodologies, estimations and assumptions that are subject to differing interpretations and could result in changes to asset valuations that may materially adversely affect our results of operations or financial condition.

We use estimates, assumptions and judgments when financial assets and liabilities are measured and reported at fair value. Assets and liabilities carried at fair value inherently result in a higher degree of financial statement volatility. Fair values and the information used to record valuation adjustments for certain assets and liabilities are based on quoted market prices and/or other observable inputs provided by independent third-party sources, when available. When such third-party information is not available, we estimate fair value primarily by using cash flows and other financial modeling techniques utilizing assumptions such as credit quality, liquidity, interest rates and other relevant inputs. Changes in underlying inputs, factors, assumptions or estimates in any of the areas underlying our estimates could materially impact our future financial condition and results of operations.

We may be required to repurchase mortgage loans or indemnify mortgage loan purchasers as a result of breaches of representations and warranties, borrower fraud, or certain borrower defaults, which could harm our liquidity, results of operations and financial condition.

When we sell mortgage loans we are required to make customary representations and warranties to the purchaser about the mortgage loans and the manner in which they were originated. While we sell mortgage loans with no recourse, our whole loan sale agreements require us to repurchase or substitute mortgage loans in the event we breach any of these representations or warranties. In addition, we may be required to repurchase mortgage loans as a result of borrower fraud. If the level of repurchase and indemnity activity becomes material, our liquidity, results of operations and financial condition could be materially and adversely affected.

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Certain provisions in our Amended Charter limit our likelihood of being acquired in a manner not approved by the Board.

In connection with the Plan of Reorganization the Amended Charter contains provisions to protect certain tax attributes of the Company and its subsidiaries following emergence from bankruptcy as summarized below.

Until the third anniversary of the Effective Date, unless approved by the Board in accordance with the procedures set forth in the Amended Charter and subject to certain exceptions for permitted transfers, any attempted transfer of the Company’s common stock is prohibited and void ab initio to the extent that, as a result of such transfer (or any series of transfers of which such transfer is a part), either (i) any person or group of persons will own 4.95% or more of the outstanding shares of common stock or preferred stock of the Company or (ii) the ownership interest in the Company of any of its existing 5% Stockholders will be increased. The Expiration Date may be extended in the Board’s discretion until the sixth anniversary of the Effective Date in order to protect the tax attributes of the Company.

The existence of the Tax Attribute Preservation Provision may make it more difficult, delay, discourage, prevent or make it more costly to acquire us or affect a change-in-control that is not approved by the Board. This, in turn, could prevent our stockholders from recognizing a gain in the event that a favorable offer is extended and could materially and adversely affect the market price of our common stock.

We may suffer substantial losses due to our agreements to indemnify the Investors and the Secondary Investors against a broad range of potential claims.

In connection with the Investor SPAs and the Secondary Stock Purchase Agreements (“Secondary SPAs”), we agreed to indemnify the Investors and the Secondary Investors, respectively, for a broad range of claims, including any inaccuracies or breaches of our representations and warranties in the Investor SPAs or the Secondary SPAs, as applicable, entered into in connection with the Plan of Reorganization and any losses arising out of or resulting from any legal, administrative or other proceedings arising out of the transactions contemplated by such Investor SPAs or the Secondary SPAs, as applicable, and the terms of the securities offered thereby. While these indemnities are capped at the purchase price applicable to each Investor under their respective Investor SPA, if all or some claims were successfully brought against us, it could potentially result in significant losses for us.

We offer third-party products including mutual funds, annuities, life insurance, individual securities and other wealth management services which could experience significant declines in value subjecting us to reputational damage and litigation risk.

We offer third-party products including mutual funds, annuities, life insurance, individual securities and other wealth management products and services. If these products do not generate competitive risk-adjusted returns that satisfy clients in a variety of asset classes, we will have difficulty maintaining existing business and attracting new business. Additionally, our investment services business involves the risk that clients or others may sue us, claiming that we have failed to perform under a contract or otherwise failed to carry out a duty owed to them. Our investment services businesses are particularly subject to this risk and this risk may be heightened during periods when credit, equity or other financial markets are deteriorating in value or are particularly volatile, or when clients or investors are experiencing losses. Significant declines in the performance of these third-party products could subject us to reputational damage and litigation risk.

We are exposed to risk of environmental liabilities with respect to properties to which we take title.

In the course of our business, we may own or foreclose and take title to real estate, and could be subject to environmental liabilities with respect to these properties. We may be held liable to a governmental entity or to third parties for property damage, personal injury, investigation and clean-up costs incurred by these parties in connection with environmental contamination, or may be required to investigate or clean up hazardous or toxic

37

substances, or chemical releases at a property. The costs associated with investigation or remediation activities could be substantial. In addition, as the owner or former owner of a contaminated site, we may be subject to common law claims by third parties based on damages and costs resulting from environmental contamination emanating from the property. If we ever become subject to significant environmental liabilities, our business, financial condition, cash flows, liquidity and results of operations could be materially and adversely affected.

Risks Related to the Ownership of our Common Stock

An active, liquid and orderly trading market for our common stock may not develop and the stock price may be volatile.

Since our common stock is not widely traded, its market value could be subject to wide fluctuations in response to various risk factors including:

• changes in laws or regulations applicable to our industry, products or services;

• additions or departures of key personnel;

• price and volume fluctuations in the overall stock market;

• volatility in the market value and trading volume of companies in our industry or companies that investors consider comparable;

• share price and volume fluctuations attributable to inconsistent trading volume levels of our shares;

• sales of our common stock by us or our stockholders;

• the expiration of contractual lock-up agreements;

• litigation involving us, our industry or both;

• the impact of changes in the economic environment;

• the impact of changes in the political environment;

• activities by our competitors;

• loss of significant customers;

• major catastrophic events; and

• general economic and market conditions and trends.

As a result of the Plan of Reorganization, a limited number of stockholders are substantial holders of the shares of our common stock.

As a result of the Private Placements pursuant to the Plan of Reorganization, as of September 30, 2013, certain Investors own up to 9.9% of our common stock and certain other Investors own up to 4.9% of our common stock. Having a large portion of our shares of common stock held by a relatively small number of stockholders could result in a material impact on the trading volume and price per share of our common stock if any of these stockholders decide to sell a significant portion of their holdings. As a result, a small number of holders of our common stock are able to exercise significant influence over matters requiring stockholder approval.

The Investor SPAs and the Secondary SPAs grant the Investors and the Secondary Investors, respectively, certain preemptive rights and approval rights which could impede our ability to raise additional equity capital. Under the Investor SPAs and the Secondary SPAs, in certain instances, the Investors and the Secondary Investors, respectively, have preemptive rights to purchase equity securities we may offer in non-SEC registered capital raising transactions. These rights may adversely affect our ability to raise additional equity capital on favorable terms. If management determines we need to raise additional equity capital for our business, our inability to do so on favorable terms may have a material adverse effect on our business, financial condition and results of operations and, as a result, a material adverse effect on our ability to satisfy our debt obligations.

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“Anti-takeover” provisions and the regulations to which we are subject may make it more difficult for a third party to acquire control of us, even if the change in control would be beneficial to our stockholders.

Anti-takeover provisions in Delaware law and our Amended Charter and bylaws (the “Amended Bylaws”), as well as regulatory approvals that would be required under federal law, could make it more difficult for a third party to take control of us and may prevent stockholders from receiving a premium for their shares of our common stock. These provisions could adversely affect the market value of our common stock and could reduce the amount that stockholders might get if we are sold.

Our Amended Charter provides for, among other things:

• advance notice for nomination of directors and other stockholder proposals;

• limitations on the ability of stockholders to call a special meeting of stockholders;

• the approval by a super-majority of outstanding shares to amend certain provisions of the Amended Bylaws and the certificate of incorporation; and

• the Tax Attribute Preservation Provision.

Delaware law also imposes some restrictions on mergers and other business combinations between us and any holder of 15% or more of our outstanding common stock. We believe that these provisions protect our stockholders from coercive or otherwise unfair takeover tactics by requiring potential acquirers to negotiate with our Board and by providing our Board with more time to assess any acquisition proposal. However, these provisions apply even if the offer may be determined to be beneficial by some stockholders and could delay or prevent an acquisition that our Board determines is not in the best interest of our stockholders.

Furthermore, banking laws impose notice, approval and ongoing regulatory requirements on any stockholder or other party that seeks to acquire direct or indirect “control” of an FDIC-insured depository institution. These laws include the Federal Savings and Loan Holding Company Act, the Bank Holding Company Act of 1956 and the Change in Bank Control Act. These laws could delay or prevent an acquisition.

Risks Related to Our Industry

Our business may be adversely affected by the slow economic recovery, current conditions in the financial markets, the real estate market and economic conditions generally.

The slow economic recovery has continued to result in decreased lending by some financial institutions to their customers and to each other. This has continued to result in a lack of customer confidence, increased market volatility and a widespread reduction in general business activity. Competition among financial institutions for deposits and loans continues to be high, and access to deposits or borrowed funds remains lower than average.

The soundness of other financial institutions could materially and adversely affect us.

Our ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Transactions with other financial institutions expose us to credit risk in the event of default of our counterparty or client. In addition, our credit risk is likely to be exacerbated when the collateral held by us cannot be realized upon or is liquidated at prices not sufficient to recover the full amount of the financial instrument exposure due us. Any losses resulting from such defaults by us, our counterparties or our clients could materially and adversely affect our results of operations.

Competition in the financial services industry is intense and could result in losing business or reducing margins.

We operate in a highly competitive industry that could become even more competitive as a result of legislative, regulatory and technological changes, and continued consolidation. We face aggressive competition from other domestic and foreign lending institutions and from numerous other providers of financial services. The ability of

39

non-banking financial institutions to provide services previously limited to commercial banks has intensified competition. Because non-banking financial institutions are not subject to the same regulatory restrictions as banks and bank holding companies, they can often operate with greater flexibility and lower cost structures.

Securities firms and insurance companies that elect to become financial holding companies may acquire banks and other financial institutions. This may significantly change the competitive environment in which we conduct business. As a result of these various sources of competition, we could lose business to competitors or be forced to price products and services on less advantageous terms to retain or attract clients, either of which would adversely affect our profitability.

We continually encounter technological change.

The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services. Our future success depends, in part, upon our ability to address the needs of our customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in our operations. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers. Failure to successfully keep pace with technological change affecting the financial services industry could have a material adverse impact on our business and, in turn, our financial condition, results of operations and cash flows.

Risks Related to Recent Market, Legislative and Regulatory Events

We are highly dependent upon programs administered by Fannie Mae, Freddie Mac and Ginnie Mae. Changes in existing U.S. government-sponsored mortgage programs or servicing eligibility standards could materially and adversely affect our business, financial position, results of operations or cash flows.

Our ability to generate revenues through mortgage loan sales to institutional depends to a significant degree on programs administered by Fannie Mae, Freddie Mac, Ginnie Mae and others that facilitate the issuance of mortgage-backed securities in the secondary market. Our status as a Fannie Mae and Freddie Mac approved seller/servicer is subject to compliance with each entity’s respective selling and servicing guides.

We also derive other material financial benefits from our relationships with Fannie Mae and Freddie Mac, including the assumption of credit risk by these entities on loans included in mortgage-backed securities in exchange for our payment of guarantee fees and the ability to avoid certain loan inventory finance costs through streamlined loan funding and sale procedures. Any discontinuation of, or significant reduction or material change in, the operation of these entities or any significant adverse change in the level of activity in the secondary mortgage market or the underwriting criteria of these entities would likely prevent us from originating and selling most, if not all, of our mortgage loan originations.

In addition, we service loans on behalf of Fannie Mae and Freddie Mac, as well as loans that have been securitized pursuant to securitization programs sponsored by Fannie Mae and Freddie Mac in connection with the issuance of agency guaranteed mortgage-backed securities and a majority of our mortgage servicing rights (“MSR”) relate to these servicing activities.

Potential changes to the government-sponsored mortgage programs, and related servicing compensation structures, could require us to fundamentally change our business model in order to effectively compete in the market. Our inability to make the necessary changes to respond to these changing market conditions or loss of our approved seller/servicer status with any of these entities, would have a material adverse effect on our overall business and our consolidated financial position, results of operations and cash flows.

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We operate in a highly regulated environment and the laws and regulations that govern our operations, corporate governance, executive compensation and accounting principles, or changes in them, or our failure to comply with them, may adversely affect us.

As a savings and loan holding company and a federal savings association, we and the Bank are subject to extensive regulation, supervision, and legal requirements that govern almost all aspects of our operations. These laws and regulations, among other matters, prescribe minimum capital requirements, impose limitations on the business activities in which we can engage, limit the dividends or distributions that the Bank can pay to us, restrict the ability of institutions to guarantee our debt, and impose certain specific accounting requirements on us that may be more restrictive and may result in greater or earlier charges to earnings or reductions in our capital than generally accepted accounting principles. Changes to statutes, regulations, or regulatory policies, including interpretation or implementation of statutes, regulations, or policies, could affect us adversely, including limiting the types of financial services and products we may offer and/or increasing the ability of non-banks to offer competing financial services and products. Compliance with laws and regulations can be difficult and costly, and changes to laws and regulations often impose additional compliance costs. Our failure to comply with these laws and regulations, even if the failure follows good faith effort or reflects a difference in interpretation, could subject us to restrictions on our business activities, fines and other penalties, any of which could adversely affect our results of operations, capital base and the price of our securities. Further, any new laws, rules and regulations could make compliance more difficult or expensive or otherwise adversely affect our business and financial condition.

Federal banking agencies periodically conduct examinations of our business, including compliance with laws and regulations, and our failure to comply with any supervisory actions to which we are or become subject as a result of such examinations may adversely affect us.

Federal banking agencies, including the OCC and Federal Reserve, periodically conduct examinations of our business, including compliance with laws and regulations. If, as a result of an examination, a federal banking agency were to determine that the financial condition, capital resources, asset quality, earnings prospects, management, liquidity or other aspects of any of our operations had become unsatisfactory, or that we or the Bank or its management were in violation of any law or regulation, it may take a number of different remedial actions as it deems appropriate. These actions include the power to enjoin “unsafe or unsound” practices, to require affirmative actions to correct any conditions resulting from any violation or practice, to issue an administrative order that can be judicially enforced, to direct an increase in our or the Bank’s capital, to restrict our growth, to assess civil monetary penalties against us, our officers or directors, to remove officers and directors and, if it is concluded that such conditions cannot be corrected or there is an imminent risk of loss to depositors, to terminate the Bank’s deposit insurance.

Regulatory requirements may affect our ability to attract and retain management and directors.

Chris M. Bauer, in addition to being the Chief Executive Officer and a Director of each of the Company and the Bank, is a member of the boards of directors of The Auto Club Group and Auto Club Insurance Association (collectively, “Auto Club”). Auto Club, based in Dearborn, Michigan, operates certain insurance and automobile membership organizations in the mid-west and south-east regions as part of the American Automobile Association, Inc. Mr. Bauer’s dual service with us and Auto Club is permitted by a Federal Reserve exemption under the Depository Institution Management Interlocks Act, which exemption expires on October 21, 2015. If the Federal Reserve does not further extend this exemption, then Mr. Bauer will no longer be permitted to serve simultaneously with both us and Auto Club.

We may not be able to obtain the written approvals described above in a timely manner or at all. If we fail to meet these regulatory requirements such failure could adversely affect our ability to attract and retain management and directors.

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New activities and expansion plans may require regulatory approvals, and failure to obtain them may restrict our growth.

We must generally receive federal regulatory approval before we can acquire an institution or business, or engage in certain activities. In determining whether to approve a proposed acquisition, federal banking regulators will consider, among other factors, the effect of the acquisition on the competition, our financial condition, and our future prospects. The regulators also review current and projected capital ratios and levels, the competence, experience, and integrity of management and its record of compliance with laws and regulations, the convenience and needs of the communities to be served (including the acquiring institution’s record of compliance under the CRA), the effectiveness of the acquiring institution in combating money laundering activities, and the existence of any outstanding enforcement actions. Such regulatory approvals may not be granted on terms that are acceptable to us, or at all. The failure to obtain required regulatory approvals may impact our business plans and restrict our growth.

Financial institutions, such as the Bank, face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.

The federal Bank Secrecy Act, the USA PATRIOT Act, and other laws and regulations require financial institutions, among other duties, to institute and maintain an effective anti-money laundering program and file suspicious activity and currency transaction reports as appropriate. The federal Financial Crimes Enforcement Network, established by the U.S. Treasury Department to administer the Bank Secrecy Act, is authorized to impose significant civil money penalties for violations of those requirements, and has recently engaged in coordinated enforcement efforts with the individual federal banking regulators, as well as the U.S. Department of Justice, U.S. Drug Enforcement Administration, and Internal Revenue Service. There is also increased scrutiny of compliance with the sanctions programs and rules administered and enforced by the U.S. Treasury Department’s Office of Foreign Assets Control. In order to comply with regulations, guidelines and examination procedures in this area, we have dedicated significant resources to the development of our anti-money laundering program, adopting enhanced policies and procedures and implementing a robust automated anti-money laundering software solution. If our policies, procedures and systems are deemed deficient, we could be subject to liability, including fines and regulatory actions such as restrictions on our ability to pay dividends and the necessity to obtain regulatory approvals to proceed with certain aspects of our business plans.

We are subject to the CRA and fair lending laws, and failure to comply with these laws could lead to material penalties.

The CRA, the Equal Credit Opportunity Act, the Fair Housing Act and other fair lending laws and regulations impose nondiscriminatory lending requirements on financial institutions. The U.S. Department of Justice and other federal agencies are responsible for enforcing these laws and regulations. A successful challenge to an institution’s performance under the CRA or fair lending laws and regulations could result in a wide variety of sanctions, including the required payment of damages and civil money penalties, injunctive relief, imposition of restrictions on mergers and acquisitions activity, and restrictions on expansion activity. Private parties may also have the ability to challenge an institution’s performance under fair lending laws in private class action litigation.

The FDIC’s restoration plan and the related increased assessment rate could adversely affect our earnings.

Market developments have significantly depleted the Deposit Insurance Fund of the FDIC and reduced the ratio of reserves to insured deposits. As a result of recent economic conditions and the enactment of the Dodd-Frank Act, the FDIC has increased the deposit insurance assessment rates and thus raised deposit premiums for insured depository institutions. If these increases are insufficient for the DIF to meet its funding requirements, further special assessments or increases in deposit insurance premiums may be required. We are generally unable to control the amount of premiums that we are required to pay for FDIC insurance. If there are additional bank or financial institution failures, we may be required to pay even higher FDIC premiums than the recently increased levels. Any future additional assessments, increases or required prepayments in FDIC insurance premiums may materially adversely affect results of operations.

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We may be subject to more stringent capital requirements.

The Dodd-Frank Act would require the federal banking agencies to establish stricter risk-based capital requirements and leverage limits to apply to banks and bank and savings and loan holding companies. In July 2013, the federal banking agencies published the Basel III Capital Rules that revised their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to implement, in part, agreements reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act. The Basel III Capital Rules will apply to banking organizations, including the Company and the Bank.

As a result of the enactment of the Basel III Capital Rules, the Company will formally become subject to regulatory capital requirements, and the Bank could be subject to increased required capital levels. The Basel III Capital Rules become effective as applied to the Company and the Bank on January 1, 2015, with a phase in period that generally extends from January 1, 2015 through January 1, 2019. Since the effective date of Basel III neither the Company nor the Bank has experienced any material impact involving the new rules. Subsequent potential rules adjustment by the regulatory governing bodies could still impact the Company or the Bank when they become effective.

The fiscal and monetary policies of the federal government and its agencies could have a material adverse effect on our earnings.

The Federal Reserve regulates the supply of money and credit in the United States. Its policies determine in large part the cost of funds for lending and investing and the return earned on those loans and investments, both of which affect the net interest margin. The resultant changes in interest rates can also materially decrease the value of certain financial assets we hold, such as debt securities. Its policies can also adversely affect borrowers, potentially increasing the risk that they may fail to repay their loans. Changes in Federal Reserve policies are beyond our control and difficult to predict.

Item 1B. Unresolved Staff Comments.

Not applicable.

Item 2. Properties

At December 31, 2014, the Company conducted its business from its main office headquarters, which includes a full service branch, at 25 West Main Street, Madison, Wisconsin and 52 other full-service offices and one loan origination office. The Bank owns 33 of its full-service offices, leases the land on which four such offices are located, and leases the remaining 16 full-service offices. The leases expire between 2015 and 2029. The Bank also owned its headquarters building, adjacent surface parking lot and parking garage. During 2014 the Bank entered into a sale transaction on its headquarters building, the adjacent surface parking lot and the parking garage and subsequently entered into a leaseback agreement involving its headquarters building and the adjacent surface parking lot and sold its Richland Center branch. In January 2015 the Company entered into an agreement to sell the Viroqua branch subject to regulatory approval and purchased a building located on the east side of Madison, Wisconsin. See Note 7 Premises, Equipment and Lease Commitments, and Note 20 Subsequent Events included in Item 8 for a further discussion of these events.

Item 3. Legal Proceedings

In the ordinary course of business, there are legal proceedings against the Company and its subsidiaries. Management considers that the aggregate liabilities, if any, resulting from such actions would not have a material, adverse effect on the consolidated financial position of the Company.

Item 4. Mine Safety Disclosures

Not applicable.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Common Stock

On October 22, 2014 the Company completed its initial public offering in which the Company issued and sold 250,000 shares of its common stock at a public offering price of $26.00 per share. In addition the underwriters of the offering purchased an additional 55,794 shares at the offering price on October 30, 2014 to cover overallotments. Our common stock is listed on the NASDAQ Global Market under the symbol “ABCW”.

All shares of the outstanding Legacy Common Stock, including shares held as treasury stock and in any stock incentive plans, were cancelled on September 27, 2013 pursuant to the Plan of Reorganization.

The Company had 725 stockholders of record at February 28, 2015.

Quarterly Stock Price and Dividend Information

The table below presents the reported high and low sale prices of the Company’s common stock during the periods indicated. As noted previously, the Company completed its initial public offering of common stock in October 2014, and the common stock was listed for trading upon completion of the initial public offering. Accordingly, the table below shows only the fourth quarter of 2014.

Quarter Ended	High		Low		Cash Dividend
December 31, 2014	$	35.00	$	29.51	$	—

For information regarding restrictions on the payments of dividends by the Bank to the Company, see “Item 1. Business – Regulation and Supervision “Item 1A. Risk Factors – Risks Related to Our Business” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.”

Dividends

There were no dividends declared or paid on the Company’s common stock for the year ended December 31, 2014, the nine months ended December 31, 2013 or the fiscal year ended March 31, 2013.

Recent Sales of Unregistered Securities

There were no sales of unregistered securities for the quarter ended December 31, 2014.

Repurchases of Common Stock

There were no repurchases of the Company’s common stock for the quarter ended December 31, 2014.

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Item 6. Selected Financial Data

The following information at and for the year ended December 31, 2014, the nine months ended December 31, 2013 and the fiscal years ended March 31, 2013, 2012, and 2011 has been derived primarily from the Company’s historical audited consolidated financial statements for those periods.

	Year Ended December 31,			Nine Months Ended December 31,			Fiscal Year Ended March 31,
	2014			2013			2013			2012			2011
	(Dollars in thousands – except per share amounts)
Operations:
Interest income	$	75,580		$	62,223		$	99,882		$	127,253		$	166,467
Interest expense		4,344			14,117			37,399			55,329			81,383
Provision for loan losses		(4,585	)		275			7,733			33,887			50,325
Non-interest income (1)		30,519			159,533			45,901			49,261			59,260
Non-interest expense		91,708			95,732			135,004			124,026			135,033
Income (loss) before income taxes		14,632			111,632			(34,353	)		(36,728	)		(41,014	)
Income tax expense (benefit)		10			9			(181	)		10			164
Net income (loss)		14,622			111,623			(34,172	)		(36,738	)		(41,178	)
Preferred stock dividends in arrears (2)		—			(2,538	)		(6,560	)		(6,278	)		(5,934	)
Preferred stock discount accretion		—			(6,167	)		(7,412	)		(7,413	)		(7,412	)
Retirement of preferred shares		—			104,000			—			—			—
Net income (loss) available to common equity		14,622			206,918			(48,144	)		(50,429	)		(54,524	)
Per Common Share:
Basic earnings (loss)	$	1.61		$	12.18		$	(2.27	)	$	(2.37	)	$	(2.57	)
Diluted earnings (loss)		1.60			12.18			(2.27	)		(2.37	)		(2.57	)
Book value		23.85			22.34			(7.99	)		(6.57	)		(5.80	)
Dividends		—			—			—			—			—
Financial Condition:
Total assets	$	2,082,379		$	2,112,474		$	2,367,583		$	2,789,452		$	3,394,825
Investment securities available for sale (AFS)		294,599			277,872			266,787			242,299			523,289
Loans held for investment, net		1,524,439			1,544,324			1,670,543			2,057,744			2,520,367
Deposits		1,814,171			1,875,293			2,025,025			2,264,901			2,699,433
Other borrowed funds		13,752			12,877			317,225			476,103			659,005
Stockholders’ equity (deficit)		227,663			202,198			(59,864	)		(29,550	)		(13,171	)
Common shares outstanding (3)		9,547,587			9,050,000			21,247,225			21,247,725			21,247,725
Other Financial Data:
Yield on interest-earning assets		3.74	%		3.80	%		3.96	%		4.34	%		4.59	%
Cost of funds		0.23			0.86			1.45			1.79			2.16
Interest rate spread		3.51			2.94			2.51			2.55			2.43
Net interest margin (4)		3.53			2.94			2.48			2.45			2.34
Return on average assets (5)		0.69			6.54			(1.30	)		(1.17	)		(1.07	)
Average equity (deficit) to average assets		10.04			1.19			(1.32	)		(0.49	)		0.65

⁽¹⁾  The period ended December 31, 2013 includes $134.5 million for extinguishment of debt.

⁽²⁾  All periods include compounding.

⁽³⁾  At December 31, 2013 common shares outstanding represent all new common stock issued pursuant to the Plan of Reorganization. All legacy common shares were cancelled.

⁽⁴⁾  Net interest margin represents net interest income as a percentage of average interest-earning assets.

⁽⁵⁾ Return on average assets represents net income (loss) as a percentage of average total assets.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Set forth below is a discussion and analysis of the Company’s financial condition and results of operations, including information on asset/liability management strategies, sources of liquidity and capital resources and critical accounting policies at the dates and for the periods indicated.

Management is required to make estimates, assumptions and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the consolidated financial statements. Accordingly, as this information changes, actual results could differ from the estimates, assumptions, and judgments reflected in the consolidated financial statements. Certain policies inherently have a greater reliance on the use of estimates, assumptions, and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. Management believes the following policies are both important to the portrayal of our financial condition and results of operations and require subjective or complex judgments; therefore, management considers the following to be its critical accounting policies. Management has reviewed the application of these polices with the Audit Committee of our Board of Directors. Management’s discussion and analysis should be read in conjunction with the consolidated financial statements and supplemental data contained elsewhere in this report.

Critical Accounting Estimates and Judgments

The consolidated financial statements are prepared by applying certain accounting policies. Certain of these policies require management to make estimates and strategic or economic assumptions that may prove inaccurate or be subject to variations that may significantly affect the reported results and financial position for the period or in future periods. Some of the more significant policies are as follows:

Fair Value Measurements

In preparing the consolidated financial statements, management is required to make estimates, assumptions and judgments when assets and liabilities are required to be recorded at, or adjusted to reflect, fair value under Generally Accepted Accounting Principles (“GAAP”) that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the valuation of foreclosed real estate, the net carrying value of mortgage servicing rights and deferred tax assets. The valuation of both financial and nonfinancial assets and liabilities in these transactions requires numerous assumptions and estimates and the use of third-party sources including appraisers and valuation specialists. For a more detailed discussion, see Notes 1 and 16 in the Notes to Consolidated Financial Statements contained in Item 8.

Assets and liabilities carried at fair value inherently result in a higher degree of financial statement volatility. Assets and liabilities measured at fair value on a recurring basis include available for sale securities, loans held for sale, interest rate lock commitments and forward contracts to sell mortgage loans. Assets and liabilities measured at fair value on a non-recurring basis may include mortgage servicing rights, certain impaired loans and OREO. Fair values and the information used to record valuation adjustments for certain assets and liabilities are based on either quoted market prices or are provided by other independent third-party sources, when available. When such third-party information is not available, fair value is estimated primarily by using cash flow and other financial modeling techniques. Changes in underlying factors, assumptions, or estimates in any of these areas could materially impact future financial condition and results of operations.

Available-for-Sale Securities

Declines in the fair value of available-for-sale securities below their amortized cost that are deemed to be other-than- temporary are reflected in earnings as unrealized losses. In estimating other-than-temporary impairment

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losses on debt securities, management considers many factors which include: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Corporation to retain its ownership in a security for a period of time sufficient to allow for any anticipated recovery in fair value. To determine if other-than-temporary impairment exists on a debt security, the Corporation first determines if (a) it intends to sell the security or (b) it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of the conditions is met, the Corporation will recognize an other-than-temporary impairment loss in earnings equal to the difference between the fair value of the security and its amortized cost. If neither of the conditions is met, the Corporation determines (a) the amount of the impairment related to credit loss and (b) the amount of the impairment due to all other factors. The difference between the present values of the cash flows expected to be collected, discounted at the purchase yield or current accounting yield of the security, and the amortized cost basis is the credit loss. The credit loss is the amount of impairment deemed other-than-temporary and recognized in earnings and is a reduction to the cost basis of the security. The amount of impairment related to all other factors (i.e. non-credit) is deemed temporary and included in accumulated other comprehensive income (loss).

Allowance for Loan Losses

The allowance for loan losses is a valuation account for probable and inherent losses incurred in the loan portfolio. Management maintains an allowance for loan losses – at levels that we believe to be adequate to absorb estimated probable credit losses incurred in the loan portfolio. The adequacy of the allowance for loan losses is determined based on periodic evaluations of the loan portfolios and other relevant factors. The allowance for loan losses is comprised of general and specific components. Even though the entire allowance is available to cover losses on any loan, specific allowances are provided on impaired loans pursuant to accounting standards. The general allowance is based on historical loss experience, adjusted for qualitative factors. At least quarterly, management reviews the assumptions and methodology related to the general and specific allowance in an effort to update and refine the estimate. See Notes 1 and 5 in the Notes to Consolidated Financial Statements contained in Item 8.

Valuation of OREO

Real estate acquired by foreclosure or by deed in lieu of foreclosure and other repossessed assets are held for sale and are initially recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. When a loan is transferred to OREO the write down to fair value less estimated selling costs is charged to the allowance for loan losses. See Notes 1 and 6 in the Notes to Consolidated Financial Statements contained in Item 8.

Mortgage Servicing Rights

Mortgage servicing rights (“MSR”) are initially recorded as an asset, measured at fair value, when loans are sold to third parties with servicing rights retained. MSR assets are amortized in proportion to, and over the period of, estimated net servicing revenues. The carrying value of these assets is periodically reviewed for impairment using a lower of amortized cost or fair value methodology. See Notes 1 and 8 in the Notes to Consolidated Financial Statements contained in Item 8.

Deferred Tax Assets

The Company’s provision for federal income taxes results in the recognition of a deferred tax liability or deferred tax asset computed by applying the current statutory tax rates to net taxable or deductible differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements that will produce taxable income or deductible expenses in future periods. The Company regularly reviews the carrying amount of its net deferred tax assets (net of deferred tax liabilities) to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the

47

Corporation’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be established. Consideration is given to various positive and negative factors that could affect the realization of the net deferred tax assets.

In evaluating this available evidence, management considers, among other things, historical financial performance, expectation of future earnings, the ability to carry back losses to recoup taxes previously paid, length of statutory carry forward periods, experience with operating loss and tax credit carry forwards not expiring unused, tax planning strategies and timing of reversals of temporary differences. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. The Corporation’s evaluation is based on current tax laws as well as management’s expectations of future performance.

As a result this evaluation, the full valuation allowance has been maintained against the net deferred tax asset during 2014. For additional information regarding our deferred taxes, see Notes 1 and 17 of the Notes to Consolidated Financial Statements contained in Item 8.

Recent Accounting Pronouncements

Refer to Note 1 of our consolidated financial statements, included in Item 8, for a description of recent accounting pronouncements including the respective dates of adoption and effects on results of operations and financial condition.

Comparison of Financial Condition at December 31, 2014 and December 31, 2013

Total assets decreased $30.1 million or 1.4% to $2.08 billion at December 31, 2014 from $2.11 billion at December 31, 2013. The decrease was primarily caused by a $19.9 million decrease in loans held for investment, net and a $28.0 million decrease in other real estate owned. These decreases were partially offset by an increase of $3.9 million in cash and cash equivalents and an increase of $16.7 million in investment securities available for sale.

The decrease in loans held for investment, net of $19.9 million, or 1.3%, since December 31, 2013 was primarily due to transfers to OREO of $10.4 million, net charge-offs of $13.6 million and $2.4 million of loans which were included in the Richland Center branch sale. Off-setting these decreases, was a release of loan loss provision of $4.6 million through the allowance for loan loss account. The release of loan loss provision was due to lower levels of non-performing loans during 2014. Loans transferred to other real estate owned was the result of management continuing to aggressively workout troubled credits which has led to a decline in the level of non-performing loans and selling these properties to convert the assets to interest earning assets which accounts for the $28.0 million, or 44.1% decrease in other real estate owned. The allowance for loan losses declined $18.1 million as the loan portfolio continues to improve its performance. The $3.9 million, or 2.7%, increase in cash and cash equivalents along with the $16.7 million, or 6.0%, increase in investment securities was the result of net cash received on the sales of the branch building and equipment, the net sales proceeds from OREO sales and the net cash proceeds from the initial public offering of common stock.

Total liabilities decreased $55.6 million or 2.9% to $1.85 billion at December 31, 2014 from $1.91 billion at December 31, 2013. The decrease was primarily due to a $61.1 million, or 3.3%, decrease in deposits primarily due to the sale of the Richland Center branch which contained $16.6 million in deposits, $7.0 million in checking and money market accounts, $7.6 million in time deposits and $2.0 million in savings products, a decrease in time deposits, excluding the branch sale, of $96.2 million partially offset by a net increase in checking and money market accounts of $28.5 million and savings accounts of $21.4 million which was the result of customers converting their matured time deposits into more liquid deposit products due to the low interest rate environment. Advance payments by borrowers for taxes and insurance increased $1.8 million between periods, due to the

48

timing of tax and insurance payments. Other liabilities increased $4.8 million primarily due to the deferred gain on the sale of the Bank premises of $6.3 million offset by the decrease in the allowance for unfunded commitments of $2.1 million.

Stockholders’ equity increased $25.5 million, or 12.6%, to $227.7 million at December 31, 2014 from $202.2 million at December 31, 2013. The increase was primarily due to the net proceeds from the Company’s initial public offering during 2014 which generated $5.6 million, net income for 2014 of $14.6 million and a decrease of $4.2 million in accumulated other comprehensive loss resulting from an increase in unrealized gains in the Company’s investment securities available for sale portfolio.

Comparison of the Results of Operations for the Twelve Months Ended December 31, 2014 and 2013

The following results should be read in conjunction with the Consolidated Financial Statements included in Item 8.

Net income from operations for the twelve months ended December 31, 2014 declined $83.0 million or 85.0% to $14.6 million from $97.6 million in the twelve month period ended December 31, 2013. The decrease in net income was primarily the result of a decline in non-interest income of $136.5 million as a result of the $134.5 million extinguishment of debt related to the payoff and settlement of the Credit Agreement. This was partially offset by a $39.7 million decline in non-interest expense, related to the prepayment of FHLB advances in 2013 which lowered our cost of funds, a decrease in provision for loan losses of $5.5 million and an increase in net interest income of $8.3 million compared to the twelve months ended December 31, 2013.

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Net Interest Income

The following table shows the Company’s average balances, interest, average rates, the spread between the combined average rates earned on interest-earning assets and average cost of interest-bearing liabilities, net interest margin, which represents net interest income as a percentage of average interest-earning assets, and the ratio of average interest-earning assets to average interest-bearing liabilities for the year ended December 31, 2014 and the twelve month period ended December 31, 2013. The average balances are derived from daily balances.

	Twelve Months Ended December 31,
	2014								2013
	Average Balance			Interest		Average Yield/ Cost			Average Balance			Interest		Average Yield/ Cost
	(Dollars in thousands)
Interest-Earning Assets
Mortgage loans	$	1,197,999		$	51,379		4.29	%	$	1,299,424		$	57,960		4.46	%
Consumer loans		351,113			16,766		4.78			396,590			19,242		4.85
Commercial and industrial loans		19,032			1,068		5.61			24,592			1,688		6.86
Total loans held for investment, net (1)(2)		1,568,144			69,213		4.41			1,720,606			78,890		4.59
Investment securities (3)		290,381			5,931		2.04			278,770			5,517		1.98
Interest-earning deposits		147,915			371		0.25			177,126			436		0.25
Federal Home Loan Bank stock		11,940			65		0.54			23,755			96		0.40
Total interest-earning assets		2,018,380			75,580		3.74			2,200,257			84,939		3.86
Non-interest-earning assets		96,390								98,311
Total assets	$	2,114,770							$	2,298,568
Interest-Bearing Liabilities
Demand deposits	$	1,021,022			1,178		0.12		$	1,022,453			1,241		0.12
Regular savings		348,680			353		0.10			331,044			369		0.11
Certificates of deposit		496,189			2,568		0.52			626,182			4,208		0.67
Total deposits		1,865,891			4,099		0.22			1,979,679			5,818		0.29
Other borrowed funds		14,858			245		1.65			238,008			16,195		6.80
Total interest-bearing liabilities		1,880,749			4,344		0.23			2,217,687			22,013		0.99
Non-interest-bearing liabilities		21,748								72,403
Total liabilities		1,902,497								2,290,090
Stockholders’ equity		212,273								8,478
Total liabilities and stockholders’ equity	$	2,114,770							$	2,298,568
Net interest income/interest rate spread (4)				$	71,236		3.51	%				$	62,926		2.87	%
Net interest-earning assets	$	137,631							$	(17,430	)
Net interest margin (5)							3.53	%							2.86	%
Ratio of average interest-earning assets to average interest-bearing liabilities		107.32	%							99.21	%

⁽¹⁾  For the purpose of these computations, non-accrual loans are included in the average loan amounts outstanding.

⁽²⁾  Interest earned on loans includes loan fees (which are not material in amount) and interest income which has been received from borrowers whose loans were removed from non-accrual status during the period indicated.

⁽³⁾  Average balances of securities available-for-sale are based on fair value.

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⁽⁴⁾  Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted- average cost of interest-bearing liabilities and is represented on a fully tax equivalent basis if applicable.

⁽⁵⁾  Net interest margin represents net interest income as a percentage of average interest-earning assets.

Net interest income increased $8.3 million, or 13.2%, to $71.2 million for the year ended December 31, 2014 as compared to $62.9 million for the same twelve month period in 2013. Interest income decreased $9.4 million, or 11.0%, for the year ended December 31, 2014 compared to the twelve month period ended December 31, 2013, due primarily to a decrease of $181.9 million in average interest-earning assets. The average yield on interest-earning assets decreased 12 basis points to 3.74% in the twelve month period ended December 31, 2014 compared to 3.86% for the same period in 2013.

The average balance of loans held for investment, net decreased $152.5 million to $1.57 billion in 2014, interest-earning deposits decreased $29.2 million to $147.9 million offset by an increase in the average balance of investment securities of $11.6 million to $290.4 million in 2014. These decreases were primarily due to loan repayments exceeding loan originations during the period and the resulting excess liquidity being invested in securities as opposed to being held in cash to improve the yield on assets. The decline in the average yield was the result of the interest rate environment over the last several years.

Interest expense decreased $17.7 million, or 80.3%, to $4.3 million for the year ended December 31, 2014 from $22.0 million for the twelve months ended December 31, 2013. The average cost of interest-bearing liabilities decreased 76 basis points to 0.23% for the twelve months ended December 31, 2014 from 0.99% for the same period in 2013 while the average balance of interest-bearing liabilities decreased $336.9 million to $1.88 billion for the twelve months ended December 31, 2014 from $2.22 billion for the same period in 2013.

The average balance of deposits decreased $113.8 million to $1.87 billion in 2014 from $1.98 billion in 2013. The decrease was primarily due to a $130.0 million decrease to $496.2 million in certificates of deposit in 2014 from $626.2 million in 2013. The average cost of deposits decreased 7 basis points to 0.22% in 2014 from 0.29% in 2013. The average balance of other borrowed funds decreased $223.1 million to $14.9 million in 2014 from $238.0 million in 2013. The average cost of funds for the other borrowings decreased 515 basis points to 1.65% in 2014 from 6.80% in 2013. The decrease in average balance and cost of funds for other borrowings was due to the settlement of the Credit Agreement with U.S. Bank and the prepayment of FHLB of Chicago borrowings in 2013, the effect of these transactions was realized in 2014. The decrease in the average cost of funds was the result of the Bank following its interest rate risk strategic plan while minimizing its cost of funding.

The interest rate spread increased 64 basis points to 3.51% for the year ended December 31, 2014 compared to 2.87% for the twelve month period ended December 31, 2013. The increase was primarily the result of management’s strategic plan to settle the Credit Agreement with U.S. Bank and the prepayment of the FHLB of Chicago advances reducing interest expense on those borrowings $237.8 million during 2014 and the related cost of funding those borrowings by 515 basis points. Net interest margin was 3.53% for the year ended December 31, 2014 an increase of 67 basis points from 2.86% for the twelve months ended December 31, 2013. The increase in net interest margin was due to an $8.3 million increase in net interest income and a $181.9 million decrease in total interest-earning assets between 2014 and 2013.

The ratio of average interest-earning assets to average interest-bearing liabilities increased to 107.32% at December 31, 2014 from 99.21% at December 31, 2013. This increase was primarily due to the $336.9 million decrease in average interest-bearing liabilities during 2014.

Provision for Loan Losses

The provision for loan losses decreased $5.5 million during the year ended December 31, 2014 to a negative provision of $4.6 million from a $950,000 provision for the twelve months ended December 31, 2013. The

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reason for the decrease was due to the continued improvement in the credit quality of the loan portfolio during 2014 with non-performing loans decreasing $33.4 million, or 48.7%, to $35.1 million at December 31, 2014.

Future provisions for loan losses will continue to be based upon management’s assessment of the overall loan portfolio and the underlying collateral, trends in non-performing loans, current economic conditions and other relevant factors in order to maintain the allowance for loan losses at adequate levels to provide for probable and estimable future losses. The establishment of the amount of the loan loss allowance inherently involves judgments by management as to the adequacy of the allowance, which ultimately may change. Higher rates of loan defaults than anticipated would likely result in a need to increase provisions in future periods. Conversely, the provision for loan losses may decline should credit metrics such as net charge-offs and the amount of non-performing loans improve in the future.

Non-Interest Income

The following table presents non-interest income by major category for the periods indicated:

	Year Ended December 31,						Increase (Decrease)
	2014			2013			Amount			Percent
	(Dollars in thousands)
Service charges on deposits	$	10,017		$	10,120		$	(103	)		(1.0	)%
Investment and insurance commissions		4,222			3,917			305			7.8
Loan servicing income, net of amortization		2,821			1,437			1,384			96.3
Net impairment losses recognized in earnings		(64	)		(106	)		42			(39.6	)
Net gain on sale of loans		2,797			8,116			(5,319	)		(65.5	)
Net gain on sale of investment securities		746			92			654			N/M
Net gain on sale of OREO		2,540			4,597			(2,057	)		(44.7	)
Extinguishment of debt		—			134,514			(134,514	)		N/M
Net gain (loss) on sale of disposition of property & equipment		1,328			(82	)		1,410			N/M
Net gain on sale of branches		991			—			991			N/M
Other income		5,121			4,431			690			15.6
Total non-interest income	$	30,519		$	167,036		$	(136,517	)		(81.7	)%

N/M = Not Meaningful

Non-interest income decreased $136.5 million to $30.5 million for the year ended December 31, 2014 from $167.0 million for the twelve months ended December 31, 2013. In 2013 the Company recorded non-interest income of $134.5 million resulting from the extinguishment of debt with U.S. Bank. Net gain on sale of loans decreased $5.3 million to $2.8 million for the year ended December 31, 2014 from $8.1 million for the twelve month period ended December 31, 2013 primarily due to lower loan volume in 2014.

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Non-Interest Expense

The following table presents non-interest expense by major category for the periods indicated:

	Year Ended December 31,						Increase (Decrease)
	2014			2013			Amount			Percent
	(Dollars in thousands)
Compensation and benefits	$	44,256		$	42,568		$	1,688			4.0	%
Occupancy		7,374			8,828			(1,454	)		(16.5	)
Furniture and equipment		3,038			3,272			(234	)		(7.2	)
Federal deposit insurance premiums		3,151			4,740			(1,589	)		(33.5	)
Data processing		5,602			6,162			(560	)		(9.1	)
Communications		1,987			1,929			58			3.0
Marketing		3,676			2,605			1,071			41.1
OREO expense, net		9,779			22,056			(12,277	)		(55.7	)
Investor loss reimbursement		50			3,497			(3,447	)		(98.6	)
Mortgage servicing rights impairment (recovery)		534			(3,854	)		4,388			113.9
Provision for unfunded commitments		(2,107	)		3,133			(5,240	)		(167.3	)
Loan processing and servicing expense		2,435			3,852			(1,417	)		(36.8	)
Retail operations expense		2,490			2,343			147			6.3
Legal services		1,961			3,873			(1,912	)		(49.4	)
Other professional fees		1,452			2,358			(906	)		(38.4	)
Insurance		1,057			2,915			(1,858	)		(63.7	)
Debt prepayment penalty		—			16,149			(16,149	)		N/M
Reorganization costs		(64	)		1,929			(1,993	)		N/M
Other expense		5,037			3,045			1,992			65.4
Total non-interest expense	$	91,708		$	131,400		$	(39,692	)		(30.2	)%

N/M = Not Meaningful

Non-interest expense decreased $39.7 million, or 30.2%, to $91.7 million for the year ended December 31, 2014 from $131.4 million for the twelve months ended December 31, 2013. The decrease was primarily the result of a one-time debt prepayment penalty charge in 2013 of $16.1 million related to the early payoff of FHLB of Chicago borrowings of $176.0 million with no corresponding charges in 2014. In addition OREO expense decreased $12.3 million due to a decline in OREO inventory during 2014. The provision for OREO losses declined $6.3 million and OREO real estate taxes declined $3.3 million were the primary reason for the decrease in OREO expense as compared to the twelve months ended December 31, 2013. Provision for unfunded commitments decreased $5.2 million as a result of the release of a specific reserve of $2.7 million no longer required in 2014 and investor loss reimbursement declined $3.4 million which included a $2.0 million reserve recorded in 2013 that was no longer needed in 2014. Offsetting these decreases was an increase in the mortgage servicing rights impairment (recovery) of $4.4 million to an expense of $534,000 for the year ended December 31, 2014 compared to a recovery of $3.9 million for the twelve months ended December 31, 2013. This increase was the result of changes in the level of prepayment speeds and interest rate fluctuations during 2014. Other expense increased $2.0 million during the year ended December 31, 2014 primarily due to $844,000 of costs incurred from the settlement of the Village of Kronenwetter litigation. In addition, during 2013, a non-bank subsidiary of the holding company had a $1.2 million recovery of a previously written off receivable, there were no comparable transactions recorded during 2014.

Income Taxes

Income tax expense of $10,000 was recorded for the twelve month period ended December 31, 2014 compared to $9,000 for the same period in 2013. While previously unrecognized net operating loss carryforwards were used

53

to substantially offset taxable income, some states in which we operate have a minimum tax requirement which resulted in $10,000 of tax expense in the current year. A full valuation allowance has been recorded on the remaining net deferred tax asset due to the uncertainty of our ability to create sufficient taxable income to utilize the tax asset.

Comparison of the Results of Operations of Nine Months Ended December 31, 2013 and 2012

Net results from operations for the nine months ended December 31, 2013 improved $131.8 million to net income of $111.6 million from a net loss of $20.2 million in the prior year period. The improvement in results was primarily the result of $134.5 million extinguishment of debt related to the payoff and settlement of the Credit Agreement and a decline in provision for loan losses of $6.8 million. Non-interest income was lower than the prior year period by $13.4 million when excluding the $134.5 extinguishment of debt. Other positive effects on earnings were lower non-interest expense which declined by $3.6 million and higher net interest income which increased by $443,000 when compared to the nine month period ended December 31, 2012. The discussion that follows in this section provides additional details regarding these results for the nine month periods.

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Net Interest Income

The following table shows the Company’s average balances, interest, average rates, the spread between the combined average rates earned on interest-earning assets and average cost of interest-bearing liabilities, net interest margin, which represents net interest income as a percentage of average interest-earning assets, and the ratio of average interest-earning assets to average interest-bearing liabilities for the periods indicated. The average balances are derived from daily balances.

	Nine Months Ended December 31,
	2013								2012
	Average Balance			Interest		Average Yield/ Cost (1)			Average Balance			Interest		Average Yield/ Cost (1)
	(Dollars in thousands)
Interest-Earning Assets
Mortgage loans	$	1,279,238		$	42,324		4.41	%	$	1,536,595		$	53,496		4.64	%
Consumer loans		386,596			14,118		4.87			480,941			17,462		4.84
Commercial and industrial loans		24,374			1,260		6.89			25,988			1,189		6.10
Total loans held for investment, net (2)(3)		1,690,208			57,702		4.55			2,043,524			72,147		4.71
Investment securities (4)		283,183			4,102		1.93			242,985			4,401		2.41
Interest-earning deposits		184,397			342		0.25			289,255			541		0.25
Federal Home Loan Bank stock		23,141			77		0.44			28,930			77		0.35
Total interest-earning assets		2,180,929			62,223		3.80			2,604,694			77,166		3.95
Non-interest-earning assets		94,038								101,689
Total assets	$	2,274,967							$	2,706,383
Interest-Bearing Liabilities
Demand deposits	$	1,021,637			892		0.12		$	1,039,010			1,324		0.17
Regular savings		344,238			294		0.11			282,288			277		0.13
Certificates of deposit		602,808			2,922		0.65			861,899			7,013		1.08
Total deposits		1,968,683			4,108		0.28			2,183,197			8,614		0.53
Other borrowed funds		211,747			10,009		6.30			467,709			20,889		5.95
Total interest-bearing liabilities		2,180,430			14,117		0.86			2,650,906			29,503		1.48
Non-interest-bearing liabilities		67,534								85,736
Total liabilities		2,247,964								2,736,642
Stockholders’ equity (deficit)		27,003								(30,259	)
Total liabilities and stockholders’ equity (deficit)	$	2,274,967							$	2,706,383
Net interest income/interest rate spread (5)				$	48,106		2.94	%				$	47,663		2.47	%
Net interest-earning assets	$	499							$	(46,212	)
Net interest margin (6)							2.94	%							2.44	%
Ratio of average interest-earning assets to average interest-bearing liabilities		100.02	%							98.26	%

⁽¹⁾  Annualized

⁽²⁾  For the purpose of these computations, non-accrual loans are included in the average loan amounts outstanding.

⁽³⁾  Interest earned on loans includes loan fees (which are not material in amount) and interest income which has been received from borrowers whose loans were removed from non-accrual status during the period indicated.

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⁽⁴⁾  Average balances of securities available-for-sale are based on fair value.

⁽⁵⁾  Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities and is represented on a fully tax equivalent basis if applicable.

⁽⁶⁾  Net interest margin represents net interest income as a percentage of average interest-earning assets.

Net interest income increased $443,000, or 0.9%, for the nine months ended December 31, 2013, as compared to the same period in the prior year. Interest income decreased $14.9 million, or 19.4%, for the nine months ended December 31, 2013, compared to the same period in the prior year, primarily due to a decline in average balances and yields in the residential and commercial real estate loan portfolios, a decline in average balances of consumer loans, and lower investment securities yields. Interest expense decreased $15.4 million, or 52.2%, for the nine months ended December 31, 2013, as compared to the same period in the prior year due to lower borrowed funds balances and a reduction in certificate of deposit average balances and the rate paid on these accounts. The net interest margin increased to 2.94% for the nine month period ended December 31, 2013 from 2.44% for the respective period in the prior year.

Loan portfolio average balances declined $353.3 million in the nine months ending December 31, 2013 compared to the same period a year prior largely due to scheduled principal payments, prepayments of principal and transfers to OREO. New loan originations had been limited as part of our capital improvement strategy to reduce risk-weighted assets by shrinking the overall size of the balance sheet. However, we have recently developed and are implementing strategies to increase profitability by slowing asset runoff and generating new loan volume to improve the net interest margin. Investment securities average balances increased $40.2 million primarily due to the purchase of securities totaling $63.3 million since March 31, 2013, partially offset by sales, maturities and principal collections in the past nine months. The average balance of interest-earning deposits decreased $104.9 million as the flow of funds from the loan and investment securities portfolios were used to reinvest in higher yielding investment securities, fund deposit run off and payoff of borrowings.

Other borrowed funds average balances declined by $256.0 million for the nine months ended December 31, 2013 when compared to the same period in the prior year primarily due to the payoff and settlement of $116.3 million under the Credit Agreement and $187.5 million of FHLB of Chicago borrowings during the quarter ended September 30, 2013. The average balance of certificates of deposit decreased $259.1 million for the nine months ended December 31, 2013 compared to the same period in the previous year. Likewise, the average rate paid on certificates of deposit fell by 43 basis points year over year. The decline in certificate of deposit average balances and interest rates was largely the result of lower rates offered in the market due to reduced funding needs and improved deposit pricing disciplines.

Provision for Loan Losses

Provision for loan losses decreased $6.8 million for the nine month period ended December 31, 2013, as compared to the same period in the previous year. Non-performing loans totaled $68.5 million at December 31, 2013, down from $118.8 million at March 31, 2013.

The decrease in provision for loan losses for the nine months ended December 31, 2013 was due to lower levels of non-performing loans and lower net charges-offs for the period. In addition, the decrease was partly due to the impact of lower net charge-offs in the quarter ended December 31, 2013 of $6.7 million that replaced net charge-offs of $15.8 million in the quarter ended December 31, 2011 in the trailing eight quarter net charge-off history used in the determination of the general component of the allowance for loan losses. The provision for loan losses attributable to substandard and impaired loans was favorably impacted by the steady quarter-over-quarter decrease in non-performing loans since March 2010.

Future provisions for loan losses will continue to be based upon management’s assessment of the overall loan portfolio and the underlying collateral, trends in non-performing loans, current economic conditions and other

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relevant factors in order to maintain the allowance for loan losses at adequate levels to provide for probable and estimable future losses. The establishment of the amount of the loan loss allowance inherently involves judgments by management as to the adequacy of the allowance, which ultimately may change. Higher rates of loan defaults than anticipated would likely result in a need to increase provisions in future periods. Conversely, the provision for loan losses may decline should credit metrics such as net charge-offs and the amount of non-performing loans improve in the future.

Non-Interest Income

The following table presents non-interest income by major category for the periods indicated:

	Nine Months Ended December 31,						Increase (Decrease)
	2013			2012			Amount			Percent
	(Dollars in thousands)
Service charges on deposits	$	7,751		$	8,066		$	(315	)		(3.9	)%
Investment and insurance commissions		2,965			2,942			23			0.8
Loan servicing income (loss), net of amortization		1,382			(1,947	)		3,329			N/M
Net impairment losses recognized in earnings		(23	)		(325	)		302			92.9
Net gain on sale of loans		5,086			20,165			(15,079	)		(74.8	)
Net gain on sale and call of investment securities		292			(47	)		339			N/M
Net gain on sale of OREO		3,260			5,539			(2,279	)		(41.1	)
Extinguishment of debt		134,514			—			134,514			N/M
Other income		4,306			4,005			301			7.5
Total non-interest income	$	159,533		$	38,398		$	121,135			N/M	%

N/M = Not Meaningful

Non-interest income increased $121.1 million to $159.5 million for the nine months ended December 31, 2013, compared to $38.4 million for the respective period in 2012. The increase was primarily due to the $134.5 extinguishment of debt resulting from the payoff and settlement of the Credit Agreement and $3.3 million increase in loan servicing income due to a loss recorded in the prior year period. These favorable items were partially reduced by a $15.1 million decline in net gain on sale of loans and a $2.3 million decline in gains on the sale of OREO.

The loan servicing income increase of $3.3 million in the nine month period ending December 31, 2013 compared to the respective prior year period was primarily due to lower amortization charges related to the mortgage servicing right asset. The decrease in net gain on sale of loans of $15.1 million was primarily attributable to a significantly lower volume of residential mortgage loan sales in the nine month period ending December 31, 2013 of $243.7 million compared to $760.7 million in the same nine month prior year period. Market mortgage rates reached historic lows during the fourth calendar quarter of 2012 into the first quarter of 2013 and have been on the rise since March 31, 2013, which caused a reduction in residential mortgage financing activity resulting in decreased loan sales volume. Net gain on sale of OREO decreased to $3.3 million in the nine months ended December 31, 2013 from $5.5 million in the prior year period largely due to the impact of lower sales volume with smaller gains per property as the OREO portfolio balances continue to decline and smaller margins per property are achieved.

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Non-Interest Expense

The following table presents non-interest expense by major category for the periods indicated:

	Nine Months Ended December 31,					Increase (Decrease)
	2013			2012		Amount			Percent
	(Dollars in thousands)
Compensation and benefits	$	32,426		$	30,594	$	1,832			6.0	%
Occupancy		6,517			5,822		695			11.9
Furniture and equipment		2,510			3,801		(1,291	)		(34.0	)
Federal deposit insurance premiums		3,386			4,567		(1,181	)		(25.9	)
Data processing		4,300			4,361		(61	)		(1.4	)
Communications		1,517			1,428		89			6.2
Marketing		2,099			839		1,260			N/M
OREO expense, net		9,797			25,312		(15,515	)		(61.3	)
Investor loss reimbursement		687			1,450		(763	)		(52.6	)
Mortgage servicing rights impairment (recovery)		(1,664	)		1,787		(3,451	)		N/M
Provision for unfunded loan commitments		2,708			1,237		1,471			118.9
Loan processing and servicing expense		2,549			2,569		(20	)		(0.8	)
Retail operations expense		1,793			1,705		88			5.2
Legal services		2,773			4,156		(1,383	)		(33.3	)
Other professional fees		1,699			1,687		12			0.7
Insurance		2,497			1,238		1,259			101.7
Debt prepayment penalty		16,149			3,549		12,600			N/M
Reorganization costs		1,929			—		1,929			N/M
Other expense		2,060			3,234		(1,174	)		(36.3	)
Total non-interest expense	$	95,732		$	99,336	$	(3,604	)		(3.6	)%

N/M = Not Meaningful

Non-interest expense decreased $3.6 million, or 3.6%, to $95.7 million for the nine months ended December 31, 2013, as compared to $99.3 million for the respective period in 2012. The decrease was primarily due to lower OREO expense and MSR impairment. These decreases were mostly offset by a debt prepayment penalty related to the early payoff of $176.0 million of FHLB of Chicago borrowings in 2013, reorganization costs incurred in conjunction with the bankruptcy filing, and higher compensation and benefits, provision for unfunded loan commitments expenses, marketing and insurance expense.

The significant decline in OREO expense of $15.5 million during the nine months ended December 31, 2013 was the result of lower valuation adjustments on repossessed property. MSR impairment declined $3.5 million reflecting a sharp increase in market interest rates in the prior year as the 10-year Treasury rate rose 117 basis points causing a reduction in mortgage refinance activity. Other decreases include $1.4 million in legal services and $1.3 million in furniture and equipment as a result of ongoing efforts to reduce operating costs. Reduced depreciation expense in 2013 was the result of older assets becoming fully depreciated and the nine months ended December 31, 2012 included a $571,000 write off for the closures of branches and discontinued software. Federal deposit insurance premiums declined $1.2 million due to a lower deposit insurance assessment base primarily attributable to the drop in average consolidated total assets.

The increase in insurance premiums of $1.3 million in the current year period compared to the prior year period was due to a runoff policy related to pre-bankruptcy activity. Compensation and benefits increased in part due to increased employee benefits and lower amortization of loan origination, salaries and benefits due to the discontinuation of the deferral of origination costs on held for sale mortgage loan originations. The provision for unfunded loan commitments increased due to a change in methodology wherein specific credits are provided for as needed.

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Income Taxes

Income tax expense of $9,000 for the nine month period ended December 31, 2013 increased by $190,000 from the $181,000 income tax benefit recorded in the prior year period. No taxes were recorded on the cancellation of indebtedness (“COD”) income since COD income is excluded from gross income when the discharge occurs in a bankruptcy proceeding. Consistent with applicable tax regulations, in addition to not recognizing the COD income, the Company forfeited their right to use a related amount of NOLs and reduced its net operating losses by a like amount. A full valuation allowance has been recorded on the remaining net deferred tax asset due to the uncertainty of our ability to create sufficient taxable income to utilize the tax asset.

Rate/Volume Analysis

The most significant impact on the Company’s net interest income between periods is derived from the interaction of changes in the volume of and rates earned or paid on interest-earning assets and interest-bearing liabilities. The volume of investments in loans and securities, compared to the volume of interest-bearing liabilities represented by deposits and borrowings, combined with the spread, produces the changes in net interest income between periods. The following table shows the relative contribution of the changes in average volume and average interest rates on changes in net interest income for the periods indicated. Information is provided with respect to the effects on net interest income attributable to (i) changes in rate (changes in rate multiplied by prior volume) and (ii) changes in volume (changes in volume multiplied by prior rate). The change in interest income (tax equivalent, if applicable) due to both rate and volume have been allocated to rate and volume changes in proportion to the relationship of the absolute dollar amounts of the change in each.

	Increase (Decrease) for the Year Ended
	Twelve Months Ended December 31, 2014 Compared to Twelve Months Ended December 31, 2013									Nine Months Ended December 31, 2013 Compared to Nine Months Ended December 31, 2012
	Rate			Volume			Net			Rate			Volume			Net
	(In thousands)
Interest-earning assets
Mortgage loans	$	(2,174	)	$	(4,407	)	$	(6,581	)	$	(2,555	)	$	(8,617	)	$	(11,172	)
Consumer loans		(300	)		(2,176	)		(2,476	)		100			(3,444	)		(3,344	)
Commercial and industrial loans		(277	)		(343	)		(620	)		148			(77	)		71
Total loans receivable (1)(2)		(2,751	)		(6,926	)		(9,677	)		(2,307	)		(12,138	)		(14,445	)
Investment securities		180			234			414			(961	)		662			(299	)
Interest-bearing deposits		8			(73	)		(65	)		(5	)		(194	)		(199	)
Federal Home Loan Bank stock		26			(57	)		(31	)		17			(17	)		—
Total decrease in interest income		(2,537	)		(6,822	)		(9,359	)		(3,256	)		(11,687	)		(14,943	)
Interest-bearing liabilities
Demand deposits		(61	)		(2	)		(63	)		(410	)		(22	)		(432	)
Regular savings		(35	)		19			(16	)		(39	)		56			17
Certificates of deposit		(861	)		(779	)		(1,640	)		(2,346	)		(1,745	)		(4,091	)
Total deposits		(957	)		(762	)		(1,719	)		(2,795	)		(1,711	)		(4,506	)
Other borrowed funds		(7,129	)		(8,821	)		(15,950	)		1,155			(12,035	)		(10,880	)
Total decrease in interest expense		(8,086	)		(9,583	)		(17,669	)		(1,640	)		(13,746	)		(15,386	)
Total increase (decrease) in net interest income	$	5,549		$	2,761		$	8,310		$	(1,616	)	$	2,059		$	443

⁽¹⁾  For the purpose of these computations, non-accrual loans are included in the daily average loan amounts outstanding.

⁽²⁾  Interest earned on loans includes loan fees (which are not material in amount) and interest income which has been received from borrowers whose loans were removed from non-accrual status during the period indicated.

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RISK MANAGEMENT

The Bank encounters risk as part of its normal course of business and designs risk management processes to help manage these risks. This section describes the Bank’s risk management philosophy, principles, governance and various aspects of its risk management process.

Risk Management Philosophy

The Bank’s risk management philosophy is to manage to an overall level of risk while still allowing it to capture opportunities and optimize stockholder value. However, due to the general state of the economy and the elevated level of troubled loan assets and OREO, the Bank’s risk profile does not currently meet our desired risk level. While improvements have occurred, the Bank continues to work toward reducing the overall risk level to a more desired risk profile.

The Bank views risk management as not about eliminating risks, but about identifying and accepting risks and then working to effectively manage them so as to optimize stockholder value. Risk management includes, but is not limited to the following:

• Taking only risks consistent with the Bank’s strategy and within its capability to manage,

• Ensuring strong underwriting and credit risk management practices,

• Practicing disciplined capital and liquidity management,

• Helping ensure that risks and earnings volatility are appropriately understood and measured,

• Avoiding excessive concentrations, and

• Helping support external stakeholder confidence.

Although the Board of Directors is primarily responsible for oversight of risk management, committees of the Board may provide oversight to specific areas of risk with respect to the level of risk and risk management structure. The Bank uses management level risk committees to help ensure that business decisions are executed within our desired risk profile. Management provides oversight for the establishment and implementation of new risk management initiatives, reviews risk profiles and discusses key risk issues. The Chief Risk Officer is in charge of overseeing all risk management. Our internal audit department performs an independent assessment of the internal control environment and plays a critical role in risk management, testing the operation of the internal control system and reporting findings to management and to the Audit Committee of the Board.

CREDIT RISK MANAGEMENT

Credit risk represents the possibility that a customer, counterparty or issuer may not perform in accordance with contractual terms. Credit risk is inherent in the financial services business and results from extending credit to customers, purchasing investment securities and entering into certain guarantee contracts. Credit risk is one of the most significant risks facing the Bank.

In addition to credit policies and procedures and setting portfolio objectives for the level of credit risk, the Bank has established guidelines for problem loans, acceptable levels of total borrower exposure and other credit measures. Management continues to focus on loss mitigation and maximization of recoveries in the Bank’s non-performing assets portfolio. Over time, the Bank intends to return to management of portfolio returns through discrete portfolio investments within approved risk tolerances.

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The Bank seeks to achieve credit portfolio objectives by maintaining a customer base that is diverse in borrower exposure and industry types. Corporate credit personnel are responsible for loan underwriting and approval processes to help ensure that newly approved loans meet policy and portfolio objectives.

The Risk Management group is responsible for monitoring credit risk, while Internal Audit provides an independent assessment of the effectiveness of the credit risk management process. An external credit risk management group also provides loan review services. Credit risk is managed taking into account regulatory guidance.

Non-Performing Loans

The composition of non-performing loans is summarized as follows:

	December 31, 2014								December 31, 2013
	Non- Performing Loans		Percent of Non- Performing Loans			Percent of Total Gross Loans (1)			Non- Performing Loans		Percent of Non- Performing Loans			Percent of Total Gross Loans (1)
	(Dollars in thousands)
Residential	$	5,873		16.7	%		0.37	%	$	14,404		21.0	%		0.89	%
Commercial and industrial		33		0.1			—			1,509		2.2			0.09
Land and construction		17,195		48.9			1.09			24,729		36.1			1.52
Multi-family		3,566		10.2			0.23			3,658		5.4			0.22
Retail/office		3,970		11.3			0.25			14,365		21.0			0.89
Other commercial real estate		3,622		10.3			0.23			6,802		9.9			0.42
Education (2)		205		0.6			0.01			276		0.4			0.02
Other consumer		651		1.9			0.04			2,754		4.0			0.17
Total	$	35,115		100.0	%		2.22	%	$	68,497		100.0	%		4.22	%

⁽¹⁾  Gross loans are the unpaid principal balance before the reduction for loans in process, unearned interest and loan fees and the allowance for loans losses.

⁽²⁾  Excludes the guaranteed portion of education loans 90+ days past due with an unpaid principal balance totaling $6.6 million and $8.9 million at December 31, 2014 and 2013, respectively, that are not considered impaired based on a guarantee provided by government agencies.

The following is a summary of non-performing loan activity for the twelve months ended December 31, 2014:

	Non- Performing Loans December 31, 2013		Additions		Transfer to Accrual Status			Transfer to OREO			Paid Down			Net Charged Off			Non- Performing Loans December 31, 2014		Remaining Balance of Loans		Associated ALLL
	(In thousands)
Residential	$	14,404	$	4,919	$	(5,475	)	$	(5,303	)	$	(775	)	$	(1,897	)	$	5,873	$	535,338	$	10,684
Commercial and industrial		1,509		4,846		(420	)		(57	)		(2,266	)		(3,579	)		33		16,481		1,436
Land and construction		24,729		9,642		(219	)		(1,395	)		(9,404	)		(6,158	)		17,195		89,241		9,976
Multi-family		3,658		4,592		(1,713	)		—			(2,487	)		(484	)		3,566		262,169		6,053
Retail/office		14,365		3,849		(1,359	)		(2,893	)		(2,789	)		(7,203	)		3,970		151,125		7,837
Other commercial real estate		6,802		2,661		(1,710	)		(242	)		(5,713	)		1,824			3,622		152,621		4,850
Education		276		10		—			—			(81	)		—			205		108,179		483
Other consumer		2,754		1,768		(918	)		(491	)		(579	)		(1,883	)		651		232,836		5,718
Total	$	68,497	$	32,287	$	(11,814	)	$	(10,381	)	$	(24,094	)	$	(19,380	)	$	35,115	$	1,547,990	$	47,037

Non-performing loans decreased $33.4 million during the twelve months ended December 31, 2014. The loan categories with the largest decline in non-performing loans were retail/office of $10.4 million, residential loans of $8.5 million, land and construction of $7.5 million and other commercial real estate of $3.2 million.

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The interest income that would have been recorded during the twelve months ended December 31, 2014 if the Bank’s non-performing loans at the end of the period had been current in accordance with their terms during the period was $3.6 million.

Non-Performing Assets

The composition of non-performing assets and related credit metrics are summarized as follows:

	December 31,
	2014			2013
	(Dollars in thousands)
Non-accrual loans – excluding troubled debt restructurings	$	18,632		$	39,151
Troubled debt restructurings – non-accrual (1)		16,483			29,346
Other real estate owned (OREO)		35,491			63,460
Total non-performing assets	$	70,606		$	131,957
Non-performing loans to gross loans (2)		2.22	%		4.22	%
Non-performing assets to total assets		3.39			6.25
Allowance for loan losses to gross loans (2)		2.97			4.02
Allowance for loan losses to non-performing loans		133.95			95.16
Allowance for loan losses plus OREO valuation allowance to non-performing assets		95.77			72.77

⁽¹⁾  Troubled debt restructurings – non-accrual represent non-accrual loans that have been modified in a troubled debt restructuring.

⁽²⁾  Gross loans are the unpaid principal balance before the reduction for loans in process, unearned interest and loan fees and the allowance for loans losses.

Loans modified in a troubled debt restructuring (“TDRs”) that are currently on non-accrual status will remain on non-accrual status for a period of at least six months, or longer period, sufficient to prove that the borrower demonstrates that they can make the payments under the modified terms. If after this period, the borrower has made payments in accordance with the modified terms, the loan is returned to accrual status but retains its designation as a TDR. Once a TDR loan is returned to accrual, further review of the credit could take place resulting in a further upgrade into the pass category but still remaining as a TDR.

The following is a summary of non-performing asset activity for the twelve months ended December 31, 2014:

	Non-Performing Loans (1)			Other Real Estate Owned (OREO)			Total Non- Performing Assets
	(In thousands)
Balance at December 31, 2013	$	68,497		$	63,460		$	131,957
Additions		32,287			—			32,287
Transfer of loans to OREO		(10,381	)		10,381			—
Returned to accrual status		(11,814	)		—			(11,814	)
Sales		—			(30,761	)		(30,761	)
Loan charge-offs/OREO valuation adjustments, net		(19,380	)		(7,840	)		(27,220	)
Capitalized improvements		—			251			251
Payments		(24,094	)		—			(24,094	)
Balance at December 31, 2014	$	35,115		$	35,491		$	70,606

⁽¹⁾  Total non-performing loans exclude the guaranteed portion of education loans of $6.6 million and $8.9 million that are 90 days or more past due but still accruing interest at December 31, 2014, and December 31, 2013, respectively.

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Loan Delinquencies 30 Days and Over

The following table sets forth information relating to past due loans that were delinquent 30 days and over at the dates indicated.

	December 31,										March 31,
	2014					2013					2013					2012					2011
Days Past Due	Balance		% of Total Gross Loans			Balance		% of Total Gross Loans			Balance		% of Total Gross Loans			Balance		% of Total Gross Loans			Balance		% of Total Gross Loans
	(Dollars in thousands)
30 to 59 days	$	5,795		0.37	%	$	11,885		0.73	%	$	14,294		0.81	%	$	18,332		0.84	%	$	46,244		1.72	%
60 to 89 days		3,097		0.20			4,280		0.26			10,109		0.57			12,230		0.56			30,479		1.14
90 days and over		20,338		1.28			49,017		3.02			92,209		5.23			190,663		8.71			238,256		8.88
Total	$	29,230		1.85	%	$	65,182		4.02	%	$	116,612		6.61	%	$	221,225		10.11	%	$	314,979		11.74	%

Loans delinquent 30 to 89 days decreased $7.3 million to $8.9 million at December 31, 2014 from $16.2 million at December 31, 2013 as a result of increased monitoring, loss mitigation efforts and improved economic conditions.

Impaired Loans

At December 31, 2014, the Company identified $95.3 million of loans as impaired, which includes $60.2 million of performing TDRs. At December 31, 2013, impaired loans were $132.8 million, which included $64.3 million of performing TDRs. A loan is identified as impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement.

The following is additional information regarding impaired loans.

	December 31,
	2014		2013
	(In thousands)
Carrying amount of impaired loans	$	86,844	$	108,267
Average carrying amount of impaired loans		93,498		95,451
Loans and troubled debt restructurings on non-accrual status		35,115		68,497
Troubled debt restructurings – accrual		60,170		64,261
Troubled debt restructurings – non-accrual (1)		16,483		29,346
Troubled debt restructurings valuation allowance		8,593		15,210
Loans past due ninety days or more and still accruing (2)		6,613		8,930

⁽¹⁾  Troubled debt restructurings – non-accrual are included in the loans and troubled debt restructurings on non-accrual status line item above.

⁽²⁾  Represents the guaranteed portion of education loans that were 90+ days past due which continue to accrue interest due to a guarantee provided by government agencies covering approximately 97% of the outstanding balance.

Interest income recognized on impaired loans on a cash basis was $3.6 million and $2.1 million for the twelve months ended December 31, 2014 and the nine months ended December 31, 2013, respectively, and $4.7 million for the fiscal year ended March 31, 2013.

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Allowance for Loan Losses

The allowance for loan losses is maintained at a level believed appropriate by management to absorb probable and estimable losses inherent in the held for investment loan portfolio and is based on the size and current risk characteristics of the held for investment loan portfolio; an assessment of individual impaired loans; actual and anticipated loss experience; and current economic events in specific industries and geographical areas. These economic events include unemployment levels, regulatory guidance, and general economic conditions. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience, and consideration of current economic trends, all of which may be susceptible to significant change. Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for loan losses is recorded in the statement of operations based on management’s periodic evaluation of the factors previously mentioned as well as other pertinent factors. Conversely, the provision for loan losses may decline should credit metrics such as net charge offs and the amount of non-performing loans improve in the future. In addition, regulatory agencies periodically review the adequacy of the allowance for loan losses. These agencies may require the Company to make additions to the allowance for loan losses based on their judgments of collectability using information available to them at the time of their examination.

The allowance for loan losses consists of specific and general components. Specific allowance allocations are established for probable losses resulting from analysis of impaired loans. A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement. Impaired loans include all non-accrual loans and troubled debt restructurings. Troubled debt restructurings are loans that have been modified, due to financial difficulties of the borrower, where the terms of the modified loan are more favorable for the borrower than what the Company would normally accept. Impairment is determined when the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less costs to sell, if the loan is collateral dependent is less than the carrying value of the loan. Cash collections on impaired loans are generally credited to the loan balance and no interest income is recognized on those loans until the principal balance is current and collection of principal and interest becomes probable. See Notes 1 and 5 to the Consolidated Financial Statements included in Item 8 for additional details.

The specific allowance component relates to impaired loans, loans reported as troubled debt restructurings (“TDRs”), and loans graded substandard or below. The company has certain loans rated substandard, which are not classified as impaired based on the facts of the credit. For these non-impaired and substandard loans, the Company does not follow the same allowance methodology as it does for all other non-impaired, collectively evaluated loans. Rather, the Company performs a more detailed analysis including evaluation of the cash flow and collateral valuations. Based upon this evaluation, an estimate of the probable loss in this portfolio is collectively evaluated under ASC 450-20. These non-impaired substandard loans exist primarily in the commercial and industrial and commercial real estate segments. For substandard loans, an allowance for loan losses is established when the discounted cash flows (or collateral value if repayment relies solely on the operation or sale of the collateral) of the impaired loan are lower than the carrying value of that loan.

The general allowance component is based on historical net loss experience adjusted for qualitative factors. In determining the general allowance, the Company has defined the following segments within its loan portfolio: residential, commercial and industrial, commercial real estate and consumer. The Company has disaggregated those segments into the following classes based on risk characteristics: residential; commercial and industrial; land and construction, multi-family, retail/office and other commercial real estate within the commercial real estate segment; and education and other consumer within the consumer segment. Consistent with the Bank’s allowance for loan losses policy, the appropriateness of the segmentation is periodically reviewed. This additional detail allows management to better identify trends in borrower behavior and loss severity within the segments and classes of the loan portfolio. A historical loss factor is computed for each class of loan and is used

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as the major determinate of the general allowance for loan losses. In determining the appropriate period of activity to use in computing the historical loss factor management considers trends in quarterly net charge-off ratios. It is management’s intention to utilize a period of activity that it believes to be most reflective of current experience. Changes in the historical period are made when there is a distinct change in the trend of net charge-off experience. Management reviews each class’ historical losses by quarter for any trends that indicate the most representative look-back period.

Beginning with the quarter ended June 30, 2014, the Bank modified its general allowance methodology to increase the historical loss period by an additional period each quarter until the historical look-back period is built to a twelve quarter look-back period. For the quarter ended December 31, 2014, the Bank utilized an eleven quarter look-back period compared to a ten quarter look-back period for the quarter ended September 30, 2014. The modification is being done to reflect a more stable economic environment to capture additional loss statistics considered reflective of the current portfolio and to conform to industry practices. The impact to the allowance for loan losses at December 31, 2014 after implementing the modification was a $36,000 reduction in the required reserve as compared to the previous methodology.

Management adjusts historical loss factors based on the following qualitative factors:

• Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses;

• Changes in national, regional and local economic and business conditions and developments that affect the collectability of the portfolio including the condition of various market segments;

• Changes in the nature and volume of the portfolio and in the terms of loans;

• Changes in the experience, ability and depth of lending management and other relevant staff;

• Changes in the volume and severity of past due loans, the volume of non-accrual loans, and volume and severity of adversely classified or graded loans;

• Changes in the quality of the Bank’s loan review system;

• Changes in the value of underlying collateral for collateral-dependent loans;

• The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and

• The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Bank’s current portfolio.

In determining the impact, if any, of an individual qualitative factor, management compares the current underlying facts and circumstances surrounding a particular factor with those in the historical periods, adjusting the historical loss factor based on changes in the qualitative factor. Management will continue to analyze the qualitative factors on a quarterly basis, adjusting the historical loss factor as necessary, to a factor believed to be appropriate for the probable and inherent risk of loss in the portfolio.

The following table presents the allowance for loan losses by component:

	December 31,
	2014		2013
	(In thousands)
General reserve	$	34,027	$	34,466
Specific reserve:
Substandard rated loans, excluding TDR accrual		4,569		6,225
Impaired loans		8,441		24,491
Total allowance for loan losses	$	47,037	$	65,182

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The following table presents the gross balance of loans by risk category:

	December 31,
	2014		2013
	(In thousands)
Pass	$	1,465,224	$	1,429,283
Special mention		6,243		24,203
Total pass and special mention rated loans		1,471,467		1,453,486
Substandard rated loans, excluding TDR accrual (1)		16,353		35,310
Troubled debt restructurings – accrual (2)		60,170		64,261
Non-accrual		35,115		68,497
Total impaired loans		95,285		132,758
Total gross loans	$	1,583,105	$	1,621,554

⁽¹⁾ Includes residential and consumer loans identified as substandard that are not necessarily on non-accrual.

⁽²⁾ Includes TDR accruing loans of $55.4 million and $31.2 million at December 31, 2014 and 2013, respectively that are rated pass.

The following table presents credit risk metrics related to the allowance for loan losses:

	December 31,
	2014			2013
	(Dollars in thousands)
General reserve / pass and special mention loans		2.3	%		2.4	%
Substandard reserve/substandard loans		27.9	%		17.6	%
Other specific reserve / impaired loans		8.9	%		18.4	%
Loans 30 to 89 days past due	$	8,892		$	16,165

The ratio of the general reserve for loan losses to pass and special mention rated loans has remained relatively stable in 2014 from 2013 as the portfolios has continued to improve during the period. The substandard reserve for loan losses to substandard loans has increased year to year based on management’s assessment of risk and potential for loss. The ratio of other specific reserve for loan losses to impaired loans has decreased in 2014 from 2013 based on significantly lower levels of impaired loans during 2014.

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The following table summarizes the activity in the allowance for loan losses for the periods indicated.

	Year Ended December 31,			Nine Months Ended December 31,			Year Ended March 31,
	2014			2013			2013			2012			2011
	(Dollars in thousands)
Allowance at beginning of period	$	65,182		$	79,815		$	111,215		$	150,122		$	179,644
Charge-offs:
Residential		(2,212	)		(4,419	)		(6,659	)		(6,625	)		(17,563	)
Multi-family		(908	)		(2,972	)		(2,656	)		(4,247	)		(14,497	)
Commercial real estate		(8,317	)		(6,678	)		(13,390	)		(32,009	)		(21,986	)
Land and construction		(6,816	)		(3,450	)		(18,219	)		(21,429	)		(12,554	)
Consumer		(2,599	)		(1,903	)		(4,946	)		(3,259	)		(3,302	)
Commercial and industrial		(5,220	)		(864	)		(3,483	)		(14,993	)		(18,984	)
Total charge-offs		(26,072	)		(20,286	)		(49,353	)		(82,562	)		(88,886	)
Recoveries:
Residential		436			729			1,743			1,711			1,522
Multi-family		485			190			327			1,425			653
Commercial real estate		7,346			2,274			3,686			2,670			2,331
Land and construction		990			1,062			2,787			1,429			1,166
Consumer		379			330			219			693			299
Commercial and industrial		2,876			793			1,458			1,840			3,068
Total recoveries		12,512			5,378			10,220			9,768			9,039
Net charge-offs		(13,560	)		(14,908	)		(39,133	)		(72,794	)		(79,847	)
Provision for loan losses		(4,585	)		275			7,733			33,887			50,325
Allowance at end of period	$	47,037		$	65,182		$	79,815		$	111,215		$	150,122
Net charge-offs to average loans held for sale and for investment (1)		(0.86	)%		(1.18	)%		(1.97	)%		(3.14	)%		(2.76	)%

⁽¹⁾  The nine month period ended December 31, 2013 is annualized.

Management monitors and evaluates the portfolio on an ongoing basis and also considered the decrease in non-performing loans to total loans to 2.22% at December 31, 2014 from 4.22% at December 31, 2013 to be a factor that warranted the decrease in allowance for loan losses.

The allowance process is analyzed regularly, with modifications made if needed, and those results are reported to the Bank’s Board of Directors. Although management believes that the December 31, 2014 allowance for loan losses is adequate based upon the current evaluation of loan delinquencies, non-performing assets, charge off trends, economic conditions and other factors, there can be no assurance that future adjustments to the allowance will not be necessary. Management also continues to pursue all practical and legal methods of collection, repossession and disposal, and adheres to high underwriting standards in the origination process in order to continue to improve asset quality. Determination as to the classification of assets and the amount of valuation allowances is subject to review by the Bank regulatory agencies which can recommend the establishment of additional general or specific loss allowances.

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The following table presents the allocation of the allowance for loan losses in the loan categories previously presented.

	As of December 31,										As of March 31,
	2014		% of Loan Type to Total Loans			2013		% of Loan Type to Total Loans			2013		% of Loan Type to Total Loans			2012		% of Loan Type to Total Loans			2011		% of Loan Type to Total Loans
	(Dollars in thousands)
Residential	$	10,684		34.2	%	$	13,059		32.7	%	$	14,525		31.1	%	$	13,027		26.0	%	$	20,487		24.3	%
Multi-family		6,053		16.8			8,049		17.4			10,753		16.3			15,714		19.4			22,358		18.6
Other commercial real estate		12,687		19.7			20,274		20.2			26,330		21.1			37,629		21.8			61,836		24.1
Land and construction		9,976		6.7			13,742		5.7			17,498		6.3			31,810		7.9			22,251		8.4
Consumer		6,201		21.6			3,656		22.7			3,637		23.5			2,467		23.3			3,649		21.0
Commercial and industrial		1,436		1.0			6,402		1.3			7,072		1.7			10,568		1.6			19,541		3.6
Total allowance for loan losses	$	47,037		100.0	%	$	65,182		100.0	%	$	79,815		100.0	%	$	111,215		100.0	%	$	150,122		100.0	%

The following table presents the associated allowance for loan losses as a percent of the total in the loan categories previously reported:

	As of December 31,						As of March 31,
	2014			2013			2013			2012			2011
Residential		22.7	%		20.0	%		18.2	%		11.7	%		13.6	%
Multi-family		12.9			12.4			13.5			14.1			14.9
Other commercial real estate		27.0			31.1			33.0			33.8			41.2
Land and construction		21.2			21.1			21.9			28.6			14.8
Consumer		13.2			5.6			4.6			2.2			2.4
Commercial and industrial		3.1			9.8			8.8			9.5			13.0
Total allowance for loan losses		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Other Real Estate Owned

OREO, net decreased $28.0 million during the twelve months ended December 31, 2014. Individual properties included in OREO at December 31, 2014 with a recorded balance in excess of $1 million are listed below:

Description	Location	Carrying Value
		(in thousands)
Raw Land	Northeast Wisconsin	$	3,266
Commercial Building	Northwest Wisconsin		1,632
Commercial Building	South Central Wisconsin		2,890
Raw Land	South Central Wisconsin		1,028
Commercial Lot	South Central Wisconsin		1,071
Raw Land	Southeast Wisconsin		3,680
Commercial Building	Southeast Wisconsin		2,536
Commercial Building	Southeast Wisconsin		2,276
Raw Land	Southeast Wisconsin		1,158
Other properties individually less than $1 million			15,954
		$	35,491

Foreclosed properties are recorded at fair value less cost to sell upon transfer to OREO with shortfalls, if any, charged to the allowance for loan losses. Subsequent decreases in the valuation of OREO are recorded in a valuation account for the foreclosed property with a corresponding charge to OREO expense, net. The fair value is primarily based on appraisals. On a quarterly basis, the carrying values of OREO properties are reviewed and

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appropriate adjustments made based upon updated appraisals, evaluations, signed sales contracts or list price reductions. Incremental valuation adjustments may be recognized in the Consolidated Statement of Operations if, in the opinion of management, additional losses are deemed probable.

LIQUIDITY RISK MANAGEMENT

Liquidity risk is the risk of potential loss if the Company were unable to meet its funding requirements at a reasonable cost. The Company manages liquidity risk to help ensure that it can obtain cost-effective funding to meet current and future obligations.

The largest source of liquidity on a consolidated basis is the deposit base that originates from retail and corporate banking businesses. Other borrowed funds are available from a diverse mix of short- and long-term funding sources. Liquid assets and unused borrowing capacity from a number of sources are also available to maintain an adequate liquidity position.

Liquidity and Capital Resources

On an unconsolidated basis, the Company’s typical sources of funds could include dividends from its subsidiaries, including the Bank, interest on its investments and returns on its real estate held for sale. The Company currently finances its operations through cash on hand and, to a lesser extent, interest on investments and dividends from its non-Bank subsidiary. A significant amount of our consolidated operating expenses are incurred by and paid directly by the Company’s subsidiaries. Net cash provided from operations during 2014 was $17.1 million while cash provided from investing activities was $24.7 million and cash used in financing activities was $(38.0) million. The Bank is currently not paying dividends.

The Bank’s primary sources of funds are payments on loans and securities, deposits from retail and commercial banking businesses and wholesale funding sources (FHLB of Chicago advances, other borrowings and broker/internet CDs). As of December 31, 2014, the Company had outstanding borrowings from the FHLB of Chicago of $10.0 million. The total maximum credit capacity at the FHLB of Chicago based on the existing stock holding as of December 31, 2014 was $238.8 million, subject to collateral availability. Total remaining credit capacity based on the value of the existing collateral pledged was $489.1 million as of December 31, 2014 after considering other collateral requirements for letters of credit and our participation in the Mortgage Partnership Finance Program of the FHLB of Chicago (“MPF Program”). The Bank has also been granted access to the Federal Reserve Bank of Chicago’s discount window but as of December 31, 2014, the Bank had no borrowings outstanding from this source.

Contractual Obligations and Commitments

At December 31, 2014, on a consolidated basis, the Company had outstanding commitments to originate $39.3 million of loans, no unused commitments and commitments to extend credit to or on behalf of customers pursuant to lines and letters of credit of $287.5 million. Commitments to extend credit typically have a term of less than one year. Scheduled maturities of certificates of deposit for the Bank during the twelve months following December 31, 2014 amounted to $278.8 million. Scheduled maturities of borrowings during the same period totaled $3.7 million for the Bank. Management believes adequate capital and borrowings are available from various sources to fund all commitments to the extent required. See Note 14 to the Consolidated Financial Statements included in Item 8.

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The following table summarizes our contractual principal cash obligations and other commitments at December 31, 2014:

	Payment Due by Period
Contractual Obligations	Less than 1 Year		1-3 Years		4-5 Years		More than 5 Years		Total
	(In thousands)
FHLB advances	$	—	$	—	$	10,000	$	—	$	10,000
Repurchase agreements		3,569		—		—		—		3,569
Total other borrowed funds		3,569		—		10,000		—		13,569
Certficates of deposit		278,845		134,020		34,348		—		447,213
Other deposits		1,366,958		—		—		—		1,366,958
Lease obligations		3,046		3,955		3,707		6,493		17,201
Total contractual obligations	$	1,652,418	$	137,975	$	48,055	$	6,493	$	1,844,941

Investment Securities

Investment securities are subject to inherent risks based upon the future performance of the underlying collateral (i.e., mortgage loans) for these securities. Among these risks are prepayment risk, interest rate risk and credit risk. Should general interest rate levels decline, the mortgage-related securities portfolio would be subject to (i) prepayments as borrowers typically would seek to obtain financing at lower rates, (ii) a decline in interest income received on adjustable-rate mortgage-related securities, and (iii) an increase in fair value of fixed-rate mortgage-related securities. Conversely, should general interest rate levels increase, the mortgage-related securities portfolio would be subject to (i) a longer term to maturity as borrowers would be less likely to prepay their loans, (ii) an increase in interest income received on adjustable-rate mortgage-related securities, (iii) a decline in fair value of fixed-rate mortgage-related securities, (iv) a decline in fair value of adjustable-rate mortgage-related securities to an extent dependent upon the level of interest rate increases, the time period to the next interest rate repricing date for the individual security and the applicable periodic (annual and/or lifetime) cap which could limit the degree to which the individual security may reprice within a given time period and (v) should default rates and loss severities increase on the underlying collateral of mortgage-related securities, credit losses may be experienced, which are recognized in earnings as net impairment losses.

MPF Program

The Bank previously participated in the MPF Program of the FHLB of Chicago. Pursuant to the credit enhancement feature of the MPF Program, the Bank retained a secondary credit loss exposure in the amount of $7.6 million at December 31, 2014 related to approximately $165.9 million of residential mortgage loans that the Bank has originated and are still outstanding. The Bank acts as a servicing agent for the FHLB of Chicago. Under the credit enhancement, the FHLB of Chicago is liable for losses on loans up to one percent of the original delivered loan balances in each pool up to the point the credit enhancement is reset. After the credit enhancement resets, the FHLB of Chicago and the Bank’s loss contingency could be reduced depending upon losses experienced and loan balances remaining. The Bank is liable for losses over and above the FHLB of Chicago first loss position up to a contractually agreed-upon maximum amount in each pool that was delivered to the MPF Program. The Bank receives a monthly fee for this credit enhancement obligation based on the outstanding loan balances. The monthly fee received is net of losses under the MPF Program. The Bank discontinued funding loans through the MPF Program in 2008.

FHLB of Chicago Advances

The Bank pledges certain loans that meet underwriting criteria established by the FHLB of Chicago as collateral for outstanding advances. The unpaid principal balance of loans pledged to secure FHLB of Chicago borrowings totaled $652.3 million and $659.4 million at December 31, 2014 and 2013, respectively. The FHLB of Chicago borrowings are also collateralized by mortgage-related securities with a fair value of $88.9 million and $122.2 million at December 31, 2014 and 2013, respectively. At December 31, 2014, there were no FHLB of Chicago borrowings with call features that may be exercised by the FHLB of Chicago.

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On September 19, 2013, FHLB of Chicago advances totaling $176.0 million were prepaid. The prepaid advances were fixed rate, due to mature in January 2018, with a then-current weighted average rate of 3.18%. The prepayment triggered an early termination penalty of $16.1 million, which was recorded in non-interest expense. On December 21, 2012, FHLB of Chicago advances totaling $150.0 million were prepaid. The prepaid advances were floating rate, due to mature in January 2015, with a then-current weighted average rate of 1.41%. The prepayment triggered an early termination penalty of $3.5 million which was recorded in non-interest expense.

Credit Agreement

As of March 31, 2013, the Company had drawn a total of $116.3 million pursuant to the Amended and Restated Credit Agreement, dated as of June 9, 2008 (as amended from time to time) at a weighted average interest rate of 15.0%, on a short term line of credit to various lenders. On September 27, 2013, pursuant to the Plan of Reorganization, the Company satisfied all of its obligations under the Credit Agreement by a cash payment to the Lenders of $49.0 million (plus expense reimbursement as contemplated by the Credit Agreement). As a result, the Company recorded a $134.5 million extinguishment of debt as non-interest income in the Consolidated Statement of Operations.

Other

The Bank has, in the past, entered into agreements with certain brokers that provided deposits obtained from their customers at specified interest rates for an identified fee, or so called “brokered deposits.” At December 31, 2014, the Bank had no brokered deposits.

Regulatory Capital

Under federal law and regulation, the Bank is required to meet tier 1 leverage, tier 1 risk-based and total risk-based capital requirements. Tier 1 capital primarily consists of stockholders’ equity minus certain intangible assets and unrealized gains/losses on available-for-sale securities. Total risk-based capital primarily consists of tier 1 capital plus a qualifying portion of the allowance for loan losses. The risk-based capital requirements presently address credit risk related to both recorded and off-balance sheet commitments and obligations.

Our ability to meet our short-term liquidity and capital resource requirements may be subject to our ability to obtain additional debt financing and equity capital. We may increase our capital resources through offerings of equity securities (possibly including common shares and one or more classes of preferred shares), commercial paper, medium-term notes, securitization transactions structured as secured financings, and senior or subordinated notes.

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The following table summarizes the Bank’s capital ratios to be considered adequately or well capitalized under standard regulatory guidelines:

						Minimum Required
	Actual					To be Adequately Capitalized					To be Well Capitalized
	Capital		Ratio			Capital		Ratio			Capital		Ratio
	(Dollars in thousands)
December 31, 2014
Tier 1 leverage (1)	$	216,659		10.43	%	$	83,123		4.00	%	$	103,904		5.00	%
Tier 1 risk-based capital (2)		216,659		16.97			51,066		4.00			76,598		6.00
Total risk-based capital (3)		233,032		18.25			102,131		8.00			127,664		10.00
December 31, 2013
Tier 1 leverage (1)	$	201,995		9.60	%	$	84,170		4.00	%	$	105,212		5.00	%
Tier 1 risk-based capital (2)		201,995		15.77			51,226		4.00			76,839		6.00
Total risk-based capital (3)		218,668		17.07			102,452		8.00			128,065		10.00

⁽¹⁾  Tier 1 capital divided by adjusted total assets.

⁽²⁾  Tier 1 capital divided by total risk-weighted assets.

⁽³⁾  Total risk-based capital divided by total risk-weighted assets.

The following table reconciles the Bank’s stockholders’ equity to regulatory capital at December 31, 2014 and 2013:

	December 31, 2014			December 31, 2013
	(In thousands)
Stockholders’ equity of the Bank	$	216,030		$	196,469
Less: Disallowed servicing assets		(1,773	)		(1,096	)
Accumulated other comprehensive loss		2,402			6,622
Tier 1 capital		216,659			201,995
Plus: Allowable allowance for loan losses		16,373			16,673
Total risk-based capital	$	233,032		$	218,668

The Company is a separate and distinct legal entity from our subsidiaries, including the Bank. As a holding company without independent operations, the Company’s liquidity (on an unconsolidated basis) is primarily dependent upon the Company’s ability to raise debt or equity capital from third parties and the receipt of dividends from the Bank and its non-bank subsidiary. We receive substantially all of our revenue from dividends from the Bank. These dividends are the principal source of funds to pay dividends on our preferred or common stock. Various federal and/or state laws and regulations limit the amount of dividends that the Bank may pay us. Additionally, if the Bank’s earnings are not sufficient to make dividend payments to the Company while maintaining adequate capital levels, our ability to make dividend payments to our preferred or common stockholders will be negatively impacted. At December 31, 2014, the Company’s cash and cash equivalents, on an unconsolidated basis amounted to $10.1 million.

Regulatory Orders

As a result of the last economic downturn, beginning in fiscal 2009 we experienced significant operating losses, high levels of under-performing assets, depleted levels of capital and difficulty in raising additional capital necessary to stabilize the Bank as required by our banking regulators. The Company had credit obligations under a credit facility, which we were unable to repay. As a consequence of the financial crisis and related challenges, on June 26, 2009, the Company and the Bank each consented to the issuance of the Company Order and the Bank

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Order, respectively. The orders were administered by the governing regulatory bodies of the Company and the Bank. The Company Order and the Bank Order required among other things a larger capital ratio and the submission of a capital restoration plan along with a revised business plan.

Having satisfied the conditions of the regulatory orders, the OCC notified the Bank on April 2, 2014 that it had terminated the Bank Order. The Federal Reserve Bank on July 31, 2014 notified the Company that it had terminated the Company Order. At December 31, 2014 the Company and the Bank were no longer subject to any regulatory orders.

MARKET RISK MANAGEMENT

Market risk is the risk of a loss in earnings or economic value due to adverse movements in market factors such as interest rates, credit spreads, foreign exchange rates, and equity prices. We are exposed to market risk primarily by our involvement in, among others, traditional banking activities of taking deposits and extending loans. See Item 7A Quantitative and Qualitative Disclosures About Market Risk – Asset and Liability Management.

While the Company attempts to manage its balance sheet to minimize the effect that a change in interest rates has on its net interest margin it may utilize derivative financial instruments as part of its interest rate risk management strategy. The Company’s Board of Directors recently approved developing a program for the prudent use of interest rate swap transactions to manage the interest rate risk of commercial loans and to manage other balance sheet interest rate risk. The Company intends to enter into interest rate-related transactions to facilitate the interest rate risk management strategies of commercial customers. The Company would then mitigate this risk by entering into equal and offsetting interest rate-related transactions with highly rated third party financial institutions. The Company’s objective with the use of derivatives is to add stability to its net interest margin and to manage its exposure to movements in interest rates. There are currently no outstanding interest rate transactions or any activity during the twelve months ended December 31, 2014.

COMPLIANCE RISK MANAGEMENT

Compliance risk represents the risk of regulatory sanctions, reputational impact or financial loss resulting from the Company’s failure to comply with regulations and standards of good banking practice. Activities which may expose the Company to compliance risk include, but are not limited to, those dealing with the prevention of money laundering, privacy and data protection, community reinvestment initiatives, fair lending challenges and employment and tax matters. The Company has a separate department with individuals having specialized training and experience tasked with ensuring compliance with state and federal public interest, consumer, and civil rights oriented banking laws and regulations.

STRATEGIC AND/OR REPUTATION RISK MANAGEMENT

Strategic and/or reputation risk represents the risk of loss due to impairment of reputation, failure to fully develop and execute business plans, failure to assess current and new opportunities in business, markets and products and any other event not identified in the defined risk types mentioned previously. Mitigation of the various risk elements that represent strategic and/or reputation risk is achieved through initiatives to help the Company better understand, manage and report on the various risks.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The business of the Company and the composition of its consolidated balance sheet consist of investments in interest-earning assets (primarily loans, mortgage-backed securities, and other securities) that are largely funded by interest-bearing liabilities (deposits and borrowings). All of the financial instruments of the Company as of December 31, 2014 were held for other-than-trading purposes. Such financial instruments have varying levels of

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sensitivity to changes in market rates of interest. The Company’s net interest income is dependent on the amounts of and yields on its interest-earning assets as compared to the amounts of and rates on its interest-bearing liabilities. Net interest income is therefore sensitive to changes in market rates of interest.

The Company’s asset/liability management strategy is to maximize net interest income while limiting exposure to risks associated with changes in interest rates. This strategy is implemented by the Company’s ongoing analysis and management of its interest rate risk. A principal function of asset/liability management is to coordinate the levels of interest-sensitive assets and liabilities to manage net interest income changes within limits in times of fluctuating market interest rates.

Interest rate risk results when the maturity or repricing intervals and interest rate indices of the interest-earning assets, interest-bearing liabilities, and off-balance-sheet financial instruments are different, thus creating a risk that will result in disproportionate changes in the value of and the net earnings generated from these instruments. The Company’s exposure to interest rate risk is managed primarily through the strategy of selecting the types and terms of interest-earning assets and interest-bearing liabilities that generate favorable earnings while limiting the potential negative effects of changes in market interest rates. Because the primary source of interest-bearing liabilities is customer deposits, the Company’s ability to manage the types and terms of such deposits may be somewhat limited by customer maturity preferences in the market areas in which the Company operates. Deposit pricing is competitive with promotional rates frequently offered by competitors. Borrowings, which include FHLB of Chicago advances, short-term borrowings, and long-term borrowings, are generally structured with specific terms which, in management’s judgment, when aggregated with the terms for outstanding deposits and matched with interest-earning assets, reduce the Company’s exposure to interest rate risk. The rates, terms, and interest rate indices of the interest-earning assets result primarily from the Company’s strategy of investing in securities and loans (a portion of which have adjustable rates). This permits the Company to limit its exposure to interest rate risk, together with credit risk, while at the same time achieving a positive interest rate spread from the difference between the income earned on interest-earning assets and the cost of interest-bearing liabilities.

Management uses a simulation model for internal asset/liability management. The model uses maturity and repricing information for securities, loans, deposits, and borrowings plus repricing assumptions on products without specific repricing dates (e.g., savings and interest-bearing demand deposits), to calculate the cash flows, income, and expense of assets and liabilities. In addition, the model computes a theoretical market value of equity by estimating the market values of its assets and liabilities using present value methodology. The model also projects the effect on earnings and theoretical value under various interest rate change scenarios. The Company’s exposure to interest rates is reviewed on a monthly basis by senior management and the Board.

Net Interest Income Sensitivity Analysis

The Company performs a net interest income sensitivity analysis as part of its asset/liability management processes. Net interest income sensitivity analysis measures the change in net interest income in the event of hypothetical changes in interest rates. This analysis assesses the risk of change in net interest income in the event of sudden and sustained 100 and 200 basis point increases in market interest rates. The table below presents the projected changes in twelve-month cumulative net interest income for the various rate shock levels at December 31, 2014 and 2013, respectively.

	200 Basis Point Rate Increase			100 Basis Point Rate Increase
December 31, 2014		5.0	%		2.4	%
December 31, 2013		3.5	%		1.4	%

As a result of current market conditions, 100 and 200 basis point decreases in market interest rates are not applicable for the periods presented as those decreases would result in some deposit interest rate assumptions

74

falling below zero. Nonetheless, the Company’s net interest income may decline in declining rate environments as yields on earning assets could continue to adjust downward.

As shown above, at December 31, 2014, the effect of an immediate 200 basis point increase in interest rates would increase the Company’s net interest income by 5.0%. Overall net interest income sensitivity remains within the Company’s guidelines.

The changes in the Company’s net interest income reflected above were due, in large part, to the optionality on both sides of the balance sheet. The changes in net interest income over the one year horizon for December 31, 2014 under the 100 basis point and 200 basis point increases in market interest rates scenarios are reflective of this optionality. In general, in a rising rate environment, yields on loans and investment securities are expected to re-price upwards more quickly than the cost of funds.

Mortgage-backed securities, including adjustable rate mortgage pools, are modeled in the above analysis based on their estimated repricing or principal paydowns obtained from outside analytical sources. Loans are modeled in the above analysis based on contractual maturity or contractual repricing dates, coupled with principal prepayment assumptions. Deposits are based on management’s analysis of industry trends and customer behavior.

The Company also uses these assumptions to estimate the market value of equity and the market risk to this value due to changes in interest rates. This focus helps model risks embedded in the balance sheet over a longer time horizon than the net interest income simulation. The calculation is based on the present value of projected future cash flows. As of December 31, 2014, the projected changes for the market value of equity were within the Company’s policy limits.

Computations of the prospective effects of hypothetical interest rate changes are dependent on numerous assumptions, including relative levels of market interest rates, loan prepayments and deposit decay rates. These computations should not be relied upon as indicative of actual results. Actual values may differ from those projections set forth above, should market conditions vary from assumptions used in preparing the analyses. Further, the computations do not contemplate any actions the Company may undertake in response to changes in interest rates. Because such assumptions can be no more than estimates, certain assets and liabilities modeled as maturing or otherwise repricing within a stated period may, in fact, mature or reprice at different times and at different volumes than those estimated. Also, the renewal or repricing of certain assets and liabilities can be discretionary and subject to competitive and other pressures. Therefore, the rate sensitivity results included above do not and cannot necessarily indicate the actual future impact of general interest rate movements on the Company’s net interest income.

75

Item 8. Financial Statements and Supplementary Data

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS OF ANCHOR

BANCORP WISCONSIN INC.

	Page
Consolidated Financial Statements
Reports of Independent Registered Public Accounting Firm		77
Consolidated Balance Sheets		79
Consolidated Statements of Operations and Comprehensive Income (Loss)		80
Consolidated Statements of Changes in Stockholders’ Equity (Deficit)		82
Consolidated Statements of Cash Flows		83
Notes to Consolidated Financial Statements		85

76

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders

Anchor BanCorp Wisconsin Inc.

We have audited the accompanying consolidated balance sheets of Anchor BanCorp Wisconsin Inc. and Subsidiaries (the Company) as of December 31, 2014 and 2013, and the related consolidated statements of operations and comprehensive income (loss), changes in stockholders’ equity (deficit), and cash flows for the year ended December 31, 2014, the nine months ended December 31, 2013 and the year ended March 31, 2013. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2014 and 2013, and the results of their operations and their cash flows for the year ended December 31, 2014, the nine months ended December 31, 2013 and the year ended March 31, 2013, in conformity with U.S. generally accepted accounting principles.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 and our report dated March 19, 2015 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

/s/ McGladrey LLP

Madison, Wisconsin

March 19, 2015

77

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders

Anchor BanCorp Wisconsin Inc.

We have audited Anchor BanCorp Wisconsin Inc. and Subsidiaries’ (the Company’s) internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion the Company maintained in all material respects effective internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Anchor BanCorp Wisconsin Inc. as of December 31, 2014 and 2013 and the related consolidated statements of operations and comprehensive income (loss), changes in stockholders’ equity (deficit), and cash flows for the year ended December 31, 2014, the nine months ended December 31, 2013 and the year ended March 31, 2013 and our report dated March 19, 2015 expressed an unqualified opinion.

/s/ McGladrey LLP

Madison, Wisconsin

March 19, 2015

78

ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES

Consolidated Balance Sheets

	December 31,
	2014			2013
	(In thousands, except share data)
Assets
Cash and due from banks	$	46,400		$	44,139
Interest-earning deposits		100,873			99,257
Cash and cash equivalents		147,273			143,396
Investment securities available for sale (AFS)		294,599			277,872
Loans held for sale		6,594			3,085
Loans held for investment		1,571,476			1,609,506
Less: Allowance for loan losses		(47,037	)		(65,182	)
Loans held for investment, net		1,524,439			1,544,324
Other real estate owned (OREO), net		35,491			63,460
Premises and equipment, net		23,569			24,800
Federal Home Loan Bank stock – at cost		11,940			11,940
Mortgage servicing rights, net		19,404			22,294
Accrued interest receivable		7,627			8,216
Other assets		11,443			13,087
Total assets	$	2,082,379		$	2,112,474
Liabilities and Stockholders’ Equity
Deposits
Non-interest bearing	$	291,248		$	259,926
Interest bearing		1,522,923			1,615,367
Total deposits		1,814,171			1,875,293
Other borrowed funds		13,752			12,877
Accrued interest payable		316			415
Accrued taxes, insurance and employee related expenses		7,259			7,302
Other liabilities		19,218			14,389
Total liabilities		1,854,716			1,910,276
Commitments and contingent liabilities (Note 14)
Preferred stock: par value $0.01, authorized 100,000 shares, none outstanding		—			—
Common stock: par value $0.01, authorized 11,900,000 shares, issued 9,552,094 shares, outstanding 9,547,587 shares at December 31, 2014; issued and outstanding 9,050,000 shares at December 31, 2013		95			91
Additional paid-in capital		195,083			188,370
Retained earnings		34,981			20,359
Accumulated other comprehensive loss related to AFS securities		(2,402	)		(6,378	)
Accumulated other comprehensive loss related to other than temporary impairment (OTTI) securities – non-credit factors		—			(244	)
Total accumulated other comprehensive loss		(2,402	)		(6,622	)
Treasury stock (4,507 shares and 0 shares at December 31, 2014 and 2013, respectively), at cost		(94	)		—
Total stockholders’ equity		227,663			202,198
Total liabilities and stockholders’ equity	$	2,082,379		$	2,112,474

See accompanying Notes to Consolidated Financial Statements

79

ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Income (Loss)

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands, except per share data)
Interest income
Loans	$	69,213		$	57,702		$	93,335
Investment securities and Federal Home Loan Bank stock		5,996			4,179			5,912
Interest-earning deposits		371			342			635
Total interest income		75,580			62,223			99,882
Interest expense
Deposits		4,099			4,108			10,324
Other borrowed funds		245			10,009			27,075
Total interest expense		4,344			14,117			37,399
Net interest income		71,236			48,106			62,483
Provision for loan losses		(4,585	)		275			7,733
Net interest income after provision for loan losses		75,821			47,831			54,750
Non-interest income
Service charges on deposits		10,017			7,751			10,435
Investment and insurance commissions		4,222			2,965			3,894
Loan servicing income (loss), net of amortization		2,821			1,382			(1,892	)
Net impairment losses recognized in earnings		(64	)		(23	)		(408	)
Net gain on sale of loans		2,797			5,086			23,195
Net gain (loss) on sale of investment securities		746			292			(247	)
Net gain on sale of OREO		2,540			3,260			6,876
Extinguishment of debt		—			134,514			—
Net gain (loss) on sale of disposition of property & equipment		1,328			(3	)		(651	)
Net gain on sale of branch		991			—			—
Other income		5,121			4,309			4,699
Total non-interest income		30,519			159,533			45,901

(Continued)

80

ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Income (Loss)

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands, except per share data)
Non-interest expense
Compensation and benefits	$	44,256		$	32,426		$	40,736
Occupancy		7,374			6,517			8,133
Furniture and equipment		3,038			2,510			4,563
Federal deposit insurance premiums		3,151			3,386			5,921
Data processing		5,602			4,300			6,223
Communications		1,987			1,517			1,840
Marketing		3,676			2,099			1,345
OREO expense, net		9,779			9,797			37,571
Investor loss reimbursement		50			687			4,530
Mortgage servicing rights impairment (recovery)		534			(1,664	)		(403	)
Provision for unfunded commitments		(2,107	)		2,708			1,392
Loan processing and servicing expense		2,435			2,549			3,871
Retail operations expense		2,490			1,793			2,255
Legal services		1,961			2,773			5,256
Other professional fees		1,452			1,699			2,346
Insurance		1,057			2,497			1,656
Debt prepayment penalty		—			16,149			3,549
Reorganization costs		(64	)		1,929			—
Other expense		5,037			2,060			4,220
Total non-interest expense		91,708			95,732			135,004
Income (loss) before income taxes		14,632			111,632			(34,353	)
Income tax expense (benefit)		10			9			(181	)
Net income (loss)		14,622			111,623			(34,172	)
Preferred stock dividends in arrears		—			(2,538	)		(6,560	)
Preferred stock discount accretion		—			(6,167	)		(7,412	)
Retirement of preferred shares		—			104,000			—
Net income (loss) available to common equity	$	14,622		$	206,918		$	(48,144	)
Net income (loss)	$	14,622		$	111,623		$	(34,172	)
Reclassification adjustment for realized net (gains) losses recognized in Consolidated Statements of Operations – Net gain (loss) on sale and call of investment securities		(746	)		(292	)		247
Reclassification adjustments recognized in Consolidated Statements of Operations – Net impairment losses recognized in earnings:
Net change in unrealized credit related other-than-temporary impairment		(157	)		(201	)		(310	)
Credit related other-than-temporary impairment previously recognized on securities paid-off during the period		—			—			(4	)
Realized credit losses		221			224			722
Change in net unrealized gains (losses) on available-for-sale securities		4,902			(9,932	)		2,792
Total other comprehensive income (loss)		4,220			(10,201	)		3,447
Comprehensive income (loss)	$	18,842		$	101,422		$	(30,725	)
Income (loss) per common share:
Basic	$	1.61		$	12.18		$	(2.27	)
Diluted		1.60			12.18			(2.27	)
Dividends declared per common share		—			—			—

See accompanying Notes to Consolidated Financial Statements

81

ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

	Preferred Stock			Common Stock			Additional Paid-in Capital			Retained Earnings (Deficit)			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Deferred Compensation Obligation			Total
	(In thousands)
Balance at March 31, 2012	$	96,421		$	2,536		$	110,402		$	(147,513	)	$	132		$	(90,259	)	$	(1,269	)	$	(29,550	)
Net loss		—			—			—			(34,172	)		—			—			—			(34,172	)
Other comprehensive income, net of tax		—			—			—			—			3,447			—			—			3,447
Vesting of restricted stock		—			—			—			—			—			411						411
Change in stock-based deferred compensation obligation		—			—			(368	)		—			—			—			368			—
Accretion of preferred stock discount		7,412			—			—			(7,412	)		—			—			—			—
Balance at March 31, 2013	$	103,833		$	2,536		$	110,034		$	(189,097	)	$	3,579		$	(89,848	)	$	(901	)	$	(59,864	)
Net income	$	—		$	—		$	—		$	111,623		$	—		$	—		$	—		$	111,623
Other comprehensive loss, net of tax		—			—			—			—			(10,201	)		—			—			(10,201	)
Recapitalization transaction fees		—			—			(14,360	)		—			—			—			—			(14,360	)
Cancellation of common stock		—			(2,536	)		(88,213	)		—			—			89,848			901			—
Issuance of common stock		—			88			174,912			—			—			—			—			175,000
Preferred stock exchanged for common stock		(110,000	)		3			5,997			104,000			—			—			—			—
Accretion of preferred stock discount		6,167			—			—			(6,167	)		—			—			—			—
Balance at December 31, 2013	$	—		$	91		$	188,370		$	20,359		$	(6,622	)	$	—		$	—		$	202,198
Net income	$	—		$	—		$	—		$	14,622		$	—		$	—		$	—		$	14,622
Other comprehensive income, net of tax		—			—			—			—			4,220			—			—			4,220
Stock issuance cost		—			—			(2,324	)		—			—			—			—			(2,324	)
Issuance of common stock		—			3			7,948			—			—			—			—			7,951
Issuance of shares of restricted stock		—			1			(83	)		—			—			82			—			—
Forfeiture of shares of restricted stock		—			—			176			—						(176	)		—			—
Stock-based compensation expense		—			—			996			—			—			—			—			996
Balance at December 31, 2014	$	—		$	95		$	195,083		$	34,981		$	(2,402	)	$	(94	)	$	—		$	227,663

See accompanying Notes to Consolidated Financial Statements

82

ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Operating Activities
Net income (loss)	$	14,622		$	111,623		$	(34,172	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization and accretion of investment securities premium, net		1,496			1,290			1,013
Net (gain) loss on sale of investment securities		(746	)		(292	)		247
Net impairment losses on investment securities		64			27			408
Origination of loans held for sale		(146,894	)		(228,748	)		(898,960	)
Proceeds from sale of loans held for sale		146,182			248,807			943,429
Net gain on sale of loans		(2,797	)		(5,086	)		(23,195	)
Provision for loan losses		(4,585	)		275			7,733
Provision for unfunded loan commitments		(2,107	)		2,708			1,392
Valuation adjustments for OREO		7,840			4,937			26,733
Loss provision on deposit method OREO property		—			—			3,301
Gain on sale of OREO		(2,540	)		(3,260	)		(6,876	)
Depreciation and amortization		2,404			1,871			3,079
Loss (gain) on disposal of premises and equipment, net		(1,328	)		3			651
Deferred gain on disposal of premises and equipment		(6,392	)		—			—
Gain on sale of branch		(991	)		—			—
Mortgage servicing rights impairment (recovery)		534			(1,664	)		(403	)
Impairment of real estate held for development and sale		—			212			535
Stock-based compensation expense		996			—			—
Extinguishment of debt		—			(134,514	)		—
Decrease in accrued interest receivable		583			1,347			2,512
Decrease in other assets		4,000			5,726			5,129
Increase (decrease) in accrued interest payable		(94	)		6,339			17,963
Increase (decrease) in accrued taxes, insurance and employee related expenses		(43	)		913			4
Increase (decrease) in other liabilities		6,936			(5,837	)		(10,357	)
Net cash provided by operating activities		17,140			6,677			40,166
Investing Activities
Proceeds from sale of investment securities		17,557			356			12,262
Purchase of investment securities		(84,406	)		(63,293	)		(81,202	)
Principal collected on investment securities		53,528			40,626			46,251
Decrease in loans held for investment		11,724			106,592			302,907
Branch sale-Richland Center		(13,173	)		—			—
Proceeds from sale of premises and equipment		10,550			27			2
Purchases of premises and equipment		(4,084	)		(2,232	)		(436	)
Proceeds from sale of OREO		33,301			38,864			54,498
Capitalized improvements of OREO		(251	)		(307	)		(300	)
FHLB stock redemption		—			13,690			10,162
Net cash provided by investing activities		24,746			134,323			344,144

(Continued)

83

ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Financing Activities
Decrease in deposits	$	(46,257	)	$	(129,750	)	$	(238,321	)
Increase (decrease) in advance payments by borrowers for taxes and insurance		1,746			(19,982	)		(1,555	)
Proceeds from borrowed funds		106,327			718,989			92,694
Repayment of borrowed funds		(105,452	)		(956,037	)		(251,572	)
Issuance of common stock		7,951			175,000			—
Stock issuance cost		(2,324	)		—			—
Recapitalization transaction fees		—			(14,360	)		—
Net cash used in financing activities		(38,009	)		(226,140	)		(398,754	)
Net increase (decrease) in cash and cash equivalents		3,877			(85,140	)		(14,444	)
Cash and cash equivalents at beginning of period		143,396			228,536			242,980
Cash and cash equivalents at end of period	$	147,273		$	143,396		$	228,536
Supplemental disclosures of cash flow information:
Cash paid (received) or credited to accounts:
Interest on deposits and borrowings	$	4,443		$	7,778		$	21,097
Income tax payments (receipts)		15			17			(1,735	)
Non-cash transactions:
Transfer of loans to OREO		10,381			19,352			75,169
Transfer of premises and equipment to OREO		—			—			558
Transfer of OREO to premises and equipment		—			—			2,870

See accompanying Notes to Consolidated Financial Statements

84

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Summary of Significant Accounting Policies

Business. Anchor BanCorp Wisconsin Inc. (the “Company”) is a savings and loan holding company incorporated under the laws of the state of Delaware and headquartered in Madison, Wisconsin. Through its wholly owned subsidiary, AnchorBank, fsb (the “Bank”), it provides a full range of financial services to individual customers through its branch locations in Wisconsin. The Bank is subject to competition from other financial institutions and other financial service providers. The Company and its subsidiary also are subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory authorities.

Change in Year End

On December 18, 2013, the Board of Directors (the “Board”) approved the change of our year end from March 31 to December 31, beginning with December 31, 2013. This report on Form 10-K covers the year ended March 31, 2013, nine months ended December 31, 2013, and the year ended December 31, 2014. The following table presents certain comparative transition period condensed financial information for the periods ended December 31, 2014, 2013 and 2012.

The comparative twelve months ended December 31, 2013 and nine months ended December 31, 2012 are unaudited as a portion represents an interim period during the fiscal year.

	Twelve Months Ended December 31,						Nine Months Ended December 31,
	2014			2013			2013			2012
				(Unaudited)						(Unaudited)
	(In thousands)
Interest income	$	75,580		$	84,939		$	62,223		$	77,166
Interest expense		4,344			22,013			14,117			29,503
Net interest income		71,236			62,926			48,106			47,663
Provision for loan losses		(4,585	)		950			275			7,058
Net interest income after provision for loan losses		75,821			61,976			47,831			40,605
Non-interest income		30,519			167,036			159,533			38,398
Non-interest expense		91,708			131,400			95,732			99,336
Income (loss) before income taxes		14,632			97,612			111,632			(20,333	)
Income tax expense (benefit)		10			9			9			(181	)
Net income (loss)		14,622			97,603			111,623			(20,152	)
Preferred stock dividends in arrears		—			(4,200	)		(2,538	)		(4,898	)
Preferred stock discount accretion		—			(8,010	)		(6,167	)		(5,569	)
Retirement of preferred shares		—			104,000			104,000			—
Net income (loss) available to common equity	$	14,622		$	189,393		$	206,918		$	(30,619	)

Basis of Financial Statement Presentation. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts and operations of the Company and its wholly owned subsidiaries, the Bank and Investment Directions, Inc. The Bank has one subsidiary ADPC Corporation. Significant intercompany accounts and transactions have been eliminated.

The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles. In the opinion of management, all adjustments, including normal recurring accruals, necessary for a fair presentation of the unaudited consolidated financial statements have been included.

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In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of other real estate owned, the net carrying value of mortgage servicing rights, deferred tax assets, the fair value of investment securities, interest rate lock commitments, forward contracts to sell mortgage loans and loans held for sale.

The Company has three distinct operating segments; the Bank, IDI and the holding company and produces discreet financial information for each which is available to management. However, operating revenues and related assets of IDI fall below the required reporting thresholds and therefore are not disclosed in the consolidated financial statements.

The Company has evaluated all subsequent events through the date of this filing.

Cash and Cash Equivalents. The Company considers interest-earning deposits that have an original maturity of three months or less to be cash equivalents.

Investment Securities Available For Sale. Debt securities that the Company has the intent and ability to hold to maturity may be classified as held to maturity and stated at amortized cost as adjusted for premium amortization and discount accretion. Securities not classified as held to maturity are classified as available for sale. Available for sale securities are stated at fair value with unrealized gains and losses, reported as a separate component of accumulated other comprehensive income (loss), net of tax (if any), in stockholders’ equity. Securities would be classified as trading if the Company intends to actively buy and sell securities in order to make a profit. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. There were no securities designated as held to maturity or trading during the year ended December 31, 2014, the nine months ended December 31, 2013 or the year ended March 31, 2013.

Realized gains and losses are included in net gain (loss) on sale of investment securities in the consolidated statements of operations as a component of non-interest income. The cost of securities sold is based on the specific identification method.

Declines in the fair value of investment securities below amortized cost basis that are deemed to be an other-than-temporary impairment (“OTTI”), are reflected as impairment losses. To determine if an other-than-temporary impairment exists on a debt security, the Company first determines if (a) it intends to sell the security or (b) it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of the conditions is met, the Company will recognize an other-than-temporary impairment in earnings equal to the difference between the fair value of the security and its amortized cost basis. If neither of the conditions is met, the Company determines (a) the amount of the impairment related to credit loss and (b) the amount of the impairment due to all other factors. The difference between the present values of the cash flows expected to be collected discounted at the purchase yield or current accounting yield and the amortized cost basis is the credit loss. The amount of the credit loss is included in the consolidated statements of operations as an other-than-temporary impairment on securities and is a reduction in the cost basis of the security. The portion of the total impairment that is related to all other factors is included in other comprehensive income (loss).

Loans Held for Sale. Loans held for sale generally consist of the current origination of certain fixed- and adjustable-rate mortgage loans. Effective for loans originated on or after April 1, 2013, residential mortgage loans held for sale are carried at fair value and upfront costs and fees related to these loans are recognized in earnings as incurred. Prior to April 1, 2013, loans held for sale were recorded at the lower of cost or fair value with fees received from the borrower and direct costs to originate the loan deferred and included as a basis adjustment of the loan.

Loans Held for Investment, net. Loans held for investment, net are stated at the amount of the gross principal, reduced by undisbursed loan proceeds, unamortized loan fees, net, unearned interest and an allowance for loan losses. Certain loan origination, commitment and other loan fees and associated direct loan origination costs are

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deferred and amortized as an adjustment to the related loan’s yield. These amounts, as well as discounts on purchased loans, are amortized using a method that approximates level yield, adjusted for prepayments, over the life of the related loans. Interest on loans is accrued into income on the gross loans as earned. Loans are placed on non-accrual status when they become 90 days past due or, when in the judgment of management, the probability of collection of principal and interest is deemed to be insufficient to warrant further accrual. Past due status is based on contractual terms of the loan. Factors that management considers when assessing the collectability of principal and interest include early stage delinquencies and financial difficulties of the borrower. When a loan is placed on non-accrual status, previously accrued but unpaid interest is deducted from interest income. Payments received on non-accrual loans are generally credited to the loan balance and no interest income is recognized on those loans until the principal balance is current. In cases in which the unpaid contractual principal balance of the loan, is deemed to be fully collectible, interest payments received may be recognized in income on a cash basis. Loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Loans held for investment are summarized into four different segments: residential loans, commercial and industrial loans, commercial real estate loans and consumer loans.

Residential Loans

Residential loans, substantially all of which finance the purchase of 1-to-4 family dwellings, are generally considered homogeneous as they exhibit similar product and risk characteristics. Residential loans are charged off to the fair value of collateral:

• at the time of an approved short sale with funds received;

• information is received indicating an insufficient value and the borrower is 180 days past due;

• a foreclosure sale is complete and the loan is being moved to other real estate owned; or

• the loan is otherwise deemed uncollectible.

Commercial and Industrial Loans

Commercial and industrial loans are funded for business purposes, including issuing letters of credit. The commercial and industrial loan portfolio is comprised of loans for a variety of purposes which are generally secured by equipment, owner occupied real estate and other working capital assets such as accounts receivable and inventory. Commercial business loans typically have terms of five years or less and are divided approximately even between interest rates that float in accordance with a designated published index and fixed rates. Most loans are secured and backed by the personal guarantees of the owners of the business. Commercial and industrial loans are charged off to the fair value of collateral when information confirms that any portion of the recorded investment in a collateral dependent loan is deemed a confirmed loss.

Commercial Real Estate Loans

Commercial real estate loans are primarily secured by apartment buildings, office and industrial buildings, land, warehouses, small retail shopping centers and various special purpose properties, including community-based residential facilities and senior housing. Although terms vary, commercial real estate loans generally have amortization periods of 15 to 30 years, as well as balloon payments of two to seven years. Commercial real estate loans are charged off to the fair value of the collateral when available information confirms that any portion of the recorded investment in a collateral dependent loan is deemed a confirmed loss.

Consumer Loans

Consumer loans generally have higher interest rates than residential loans. The risk involved in consumer loans is based on the type and nature of the collateral and, in certain cases, the absence of collateral. Consumer loans include first and second mortgage and home equity loans, consisting primarily of the Express Refinance Loan product which is the Bank’s expedited first mortgage refinance and home equity loan product. In addition,

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consumer loans include education loans, vehicle loans and other secured and unsecured loans that have been made for a variety of consumer purposes. Consumer loans are charged off to the fair value of collateral, upon repossession or sale of the collateral and deficiency is realized, upon reaching 120 days past due if unsecured or 180 days past due if secured, or the loan is otherwise deemed uncollectible.

Allowance for Loan Losses. The allowance for loan losses is maintained at a level believed appropriate by management to absorb probable and estimable losses inherent in the held for investment loan portfolio and is based on the size and current risk characteristics of the held for investment loan portfolio; an assessment of individual impaired loans; actual and anticipated loss experience; and current economic events in specific industries and geographical areas. These economic events include unemployment levels, regulatory guidance, and general economic conditions. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience, and consideration of current economic trends, all of which may be susceptible to significant change. Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for loan losses is recorded in the statement of operations based on management’s periodic evaluation of the factors previously mentioned as well as other pertinent factors. Conversely, the provision for loan losses may decline should credit metrics such as net charge offs and the amount of non-performing loans improve in the future. In addition, regulatory agencies periodically review the adequacy of the allowance for loan losses. These agencies may require the Company to make additions to the allowance for loan losses based on their judgments of collectability using information available to them at the time of their examination.

The allowance for loan losses consists of specific and general components. Specific allowance allocations are established for probable losses resulting from analysis of impaired loans. A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement. Impaired loans include all non-accrual loans and troubled debt restructurings. Troubled debt restructurings are loans that have been modified, due to financial difficulties of the borrower, where the terms of the modified loan are more favorable for the borrower than what the Company would normally accept. Impairment is determined when the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less costs to sell, if the loan is collateral dependent, is less than the carrying value of the loan. Cash collections on impaired loans are generally credited to the loan balance and no interest income is recognized on those loans until the principal balance is current and collection of principal and interest becomes probable.

The specific allowance component relates to impaired loans, loans reported as troubled debt restructurings (“TDRs”), and loans graded substandard or below. The company has certain loans rated substandard, which are not classified as impaired based on the facts of the credit. For these non-impaired and substandard loans, the Company does not follow the same allowance methodology as it does for all other non-impaired, collectively evaluated loans. Rather, the Company performs a more detailed analysis including evaluation of the cash flow and collateral valuations. Based upon this evaluation, an estimate of the probable loss in this portfolio is collectively evaluated under ASC 450-20. These non-impaired substandard loans exist primarily in the commercial and industrial and commercial real estate segments. For substandard loans, an allowance for loan losses is established when the discounted cash flows (or collateral value if repayment relies solely on the operation or sale of the collateral) of the impaired loan are lower than the carrying value of that loan.

The general allowance component is based on historical net loss experience adjusted for qualitative factors. In determining the general allowance, the Company has defined the following segments within its loan portfolio: residential, commercial and industrial, commercial real estate and consumer. The Company has disaggregated those segments into the following classes based on risk characteristics: residential; commercial and industrial; land and construction, multi-family, retail/office and other commercial real estate within the commercial real estate segment; and education and other consumer within the consumer segment. Consistent with the Bank’s allowance for loan losses policy, the appropriateness of the segmentation is periodically reviewed. This additional detail allows management to better identify trends in borrower behavior and loss severity within the

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segments and classes of the loan portfolio. A historical loss factor is computed for each class of loan and is used as the major determinate of the general allowance for loan losses. In determining the appropriate period of activity to use in computing the historical loss factor management considers trends in quarterly net charge-off ratios. It is management’s intention to utilize a period of activity that it believes to be most reflective of current experience. Changes in the historical period are made when there is a distinct change in the trend of net charge-off experience. Management reviews each class’ historical losses by quarter for any trends that indicate the most representative look-back period.

Beginning with the quarter ended June 30, 2014, the Bank modified its general allowance methodology to increase the historical loss period by an additional period each quarter until the historical look-back period is built to a twelve quarter look-back period. For the quarter ended December 31, 2014, the Bank utilized an eleven quarter look-back period compared to a ten quarter look-back period for the quarter ended September 30, 2014. The modification is being done to reflect a more stable economic environment to capture additional loss statistics considered reflective of the current portfolio and to conform to industry practices. The impact to the allowance for loan losses at December 31, 2014 after implementing the modification was a $36,000 reduction in the required reserve as compared to the previous methodology.

Management adjusts historical loss factors based on the following qualitative factors:

• Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses;

• Changes in national, regional and local economic and business conditions and developments that affect the collectability of the portfolio including the condition of various market segments;

• Changes in the nature and volume of the portfolio and in the terms of loans;

• Changes in the experience, ability and depth of lending management and other relevant staff;

• Changes in the volume and severity of past due loans, the volume of non-accrual loans, and volume and severity of adversely classified or graded loans;

• Changes in the quality of AnchorBank’s loan review system;

• Changes in the value of underlying collateral for collateral-dependent loans;

• The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and

• The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in AnchorBank’s current portfolio.

In determining the impact, if any, of an individual qualitative factor, management compares the current underlying facts and circumstances surrounding a particular factor with those in the historical periods, adjusting the historical loss factor based on changes in the qualitative factor. Management will continue to analyze the qualitative factors on a quarterly basis, adjusting the historical loss factor as necessary, to a factor believed to be appropriate for the probable and inherent risk of loss in the portfolio.

Other Real Estate Owned, net. Real estate acquired by foreclosure or by deed in lieu of foreclosure as well as other repossessed assets (“OREO”) are held for sale and are initially recorded at fair value less a discount for estimated selling costs at the date of foreclosure. Any write down to fair value less estimated selling costs is charged to the allowance for loan losses. If the discounted fair value exceeds the net carrying value of the loans, recoveries to the allowance for loan losses are recorded to the extent of previous charge-offs, with any excess, which is infrequent, recognized as a gain in non-interest income. Subsequent to foreclosure, valuations are periodically performed and a valuation allowance is established if the carrying value exceeds the fair value less estimated selling costs. Costs relating to the development and improvement of the property may be capitalized;

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generally those greater than $10,000; holding period costs and subsequent changes to the valuation allowance are charged to OREO expense, net included in non-interest expense. Incremental valuation adjustments may be recognized in the Statement of Operations if, in the opinion of management, additional losses are deemed probable.

Premises and Equipment. Premises and equipment are recorded at cost and include expenditures for new facilities and items that substantially increase the estimated useful lives of existing buildings and equipment. Expenditures for normal repairs and maintenance are charged to operations as incurred. When properties are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any resulting gain or loss is recorded in income. The cost of office properties and equipment is being depreciated principally by the straight-line method over the estimated useful lives (3 years to 40 years) of the assets. The cost of capitalized leasehold improvements is depreciated on the straight-line method over the lesser of the term of the respective lease or estimated economic life.

Federal Home Loan Bank Stock. The Bank is a member of the Federal Home Loan Bank (“FHLB”) system which is organized as a member owned cooperative. As a result of membership in the FHLB system, the Bank is required to maintain a minimum investment in FHLB stock. The stock is redeemable at par and is, therefore, carried at cost and periodically evaluated for impairment. Ownership in the FHLB provides a potential dividend and allows access to member privileges including loans, advances, letters of credit and mortgage purchases. The stock is not transferable and cannot be used as collateral. The Bank has concluded that its investment in the stock of FHLB Chicago was not impaired at December 31, 2014.

Mortgage Servicing Rights, net. Mortgage servicing rights are recorded as an asset when loans are sold to third parties with servicing rights retained. The amount allocated to the mortgage servicing rights retained has been recognized as a separate asset and is initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estimated net servicing revenues. The carrying value of these assets is periodically reviewed for impairment using a lower of amortized cost or fair value methodology. Mortgage servicing rights are valued monthly by an independent third party valuation service with income adjustments recorded monthly. On an annual basis the valuation is validated by a separate third party valuation service. The fair value of the servicing rights is determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs and other economic factors. For purposes of measuring fair value and impairment, the rights are stratified based on predominant risk characteristics of the underlying loans which include product type (i.e., fixed or adjustable) and interest rate. The amount of impairment recognized is the amount by which the amortized cost of the capitalized mortgage servicing rights on a product and interest rate strata basis exceed their fair value.

Transfers of Financial Assets. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrains it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Interest Rate Lock Commitments for Mortgage Loans Held for Sale. Interest rate lock commitments for mortgage loans originated for sale meet the definition of derivatives. These instruments are carried at fair value and included in other assets and other liabilities in the consolidated balance sheets with changes in value included in net gain on sale of loans in the consolidated statements of operations.

Income Taxes. The Company’s deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the

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amount expected to be realized. Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets and liabilities and associated valuation allowance. The Company and its subsidiaries file a consolidated federal income tax return and combined state income tax returns. An intercompany settlement of taxes paid is determined based on tax sharing agreements which generally provide for allocation of taxes to each entity on a separate return basis.

The Company is subject to the income tax laws of the U.S., its states and municipalities. These tax laws are complex and subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. Accounting guidance related to uncertainty in income taxes provides a comprehensive model for how companies should recognize, measure, present and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under the guidance, tax positions shall initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. The guidance also revised disclosure requirements to include an annual tabular roll forward of unrecognized tax benefits. In establishing a provision for income tax expense, the Company must make judgments and interpretations about the application of these inherently complex tax laws within the framework of existing U.S. generally accepted accounting principles. The Company recognizes interest and penalties related to uncertain tax positions in other non-interest expense if any were incurred.

Earnings Per Share. Basic earnings per share (“EPS”) is computed by dividing net income (loss) available to common equity of the Company by the weighted average number of common shares outstanding for the period. The basic EPS computation excludes the dilutive effect of all common stock equivalents, if any. Diluted EPS is computed by dividing net income (loss) available to common equity by the weighted average number of common shares outstanding plus all potentially dilutive common shares which could be issued if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock (“common stock equivalents”). The Company’s common stock equivalents represent shares issuable under a stock compensation plan. Such common stock equivalents were computed based on the treasury stock method using the average market price for the period.

Comprehensive Income (Loss). Comprehensive income or loss is the total of reported net income or loss and all other revenues, expenses, gains and losses that under generally accepted accounting principles are not reported as net income (loss). As such, the Company includes unrealized gains or losses on securities available for sale in other comprehensive income (loss).

New Accounting Pronouncements.

Accounting Standards Update, (“ASU”), No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20).” ASU 2015-01 addresses the elimination from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. This amended guidance will prohibit separate disclosure of extraordinary items in the income statement. This amendment is effective for years, and interim periods within those years, beginning after December 15, 2015. Entities may apply the amendment prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the year of adoption. The Company intends to adopt the accounting standard during the first quarter of 2016, as required, with no material impact.

ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” In May 2014, the Financial Accounting Standards Board (“FASB”) issued an amendment to clarify the principles for recognizing revenue and to develop a common revenue standard. The standard outlines a single comprehensive model for entities to

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use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity should apply the following steps: (1) Identify the contract(s) with a customer, (2) Identify the performance obligations in the contract, (3) Determine the transaction price, (4) Allocate the transaction price to the performance obligations in the contract, and (5) Recognize revenue when (or as) the entity satisfies a performance obligation. The standard applies to all contracts with customers except those that are within the scope of other topics in the FASB Codification. The standard also requires significantly expanded disclosures about revenue recognition. The amendment is effective for annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). Early application is not permitted. The Company intends to adopt the accounting standard during the first quarter of 2017, as required, and is currently evaluating the impact on its results of operations, financial position, and liquidity.

ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) – Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” These amendments are intended to clarify when a creditor should be considered to have received physical possession of residential real estate property when collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. Further, this amendment clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. ASU 2014-04 is effective for public companies for annual periods and interim periods within those annual periods beginning after December 15, 2014. The Company does not expect this ASU will have a material impact on its consolidated financial statements.

Accounting Standards Codification (“ASC”) Topic 740 “Income Taxes.” New authoritative accounting guidance under ASC Topic 740, “Income Taxes” amended prior guidance to include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The authoritative guidance is effective for reporting periods after January 1, 2014. The Company is in compliance with these requirements and adoption did not have an impact on the consolidated financial statements.

Reclassifications. Prior period amounts have been reclassified as needed to conform to the current period presentations. There was no impact on earnings or stockholders’ equity as a result of the reclassifications.

Note 2 – Significant Transactions

Initial Public Offering

In October 2014, the Company completed its initial public offering (the “IPO”) in which the Company issued and sold 250,000 shares of common stock at a public offering price of $26.00 per share. The Company also granted the underwriters a 30-day option to purchase up to 55,794 additional shares of common stock to cover any over-allotments which was executed for the full amount on October 30, 2014. The Company received net proceeds,

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which includes the proceeds from the over-allotments, of $5.6 million after deducting underwriting discounts and commissions of $517,000 and other offering expenses totaling $1.8 million. The underwriting discounts, commissions and other offering expenses were deducted against additional paid-in capital and were not included in operating expense of the Company. The Company’s shares are now listed on the Nasdaq Global Market under the symbol “ABCW.” Common shares outstanding at December 31, 2014 were 9,547,587.

Bankruptcy Proceedings and Emergence from Chapter 11

Background

The Company experienced significant operating losses beginning in 2009, significant levels of criticized assets, depleted levels of capital and difficulty in raising additional capital necessary to stabilize the Bank as required by our banking regulators, primarily due to the economic downturn that began in 2008. As a result, in 2009 both the Company and the Bank became subject to Orders to Cease and Desist issued by the Office of Thrift Supervision. Also, the Company owed $183.5 million under a credit facility, which the Company was unable to repay, and issued $110.0 million of Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the “TARP Preferred Stock”) and warrants to purchase common stock (the “TARP Warrant) to the United States Department of the Treasury (the “Treasury”) as part of the Troubled Asset Relief Program (“TARP”) in 2009. In order to facilitate our restructuring and the recapitalization of the Bank, on August 12, 2013 (the “Petition Date”), the Company filed a voluntary petition for relief (the “Chapter 11 Case”) under the provisions of Chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101, et seq., in the United States Bankruptcy Court for the Western District of Wisconsin (the “Bankruptcy Court”) to implement a “pre-packaged” plan of reorganization (the “Plan of Reorganization”).

Plan of Reorganization

Pursuant to the Plan of Reorganization, the following transactions (collectively, the “Recapitalization”) were consummated on September 27, 2013 (the “Effective Date”)

• Delaware Conversion and Reverse Stock Split

Pursuant to the Plan of Reorganization, on September 25, 2013, the Company (i) converted from a Wisconsin Company to a Delaware Company in accordance with Section 265 of the Delaware General Company Law and (ii) filed a Certificate of Incorporation with the Secretary of State of the State of Delaware (the “Amended Charter”), to, among other things, declassify our Board, increase the number of authorized shares of our common stock and adopt certain restrictions on acquisitions and dispositions of our securities. The Amended Charter provides for (a) 2,000,000,000 shares of authorized common stock, par value $0.01 per share (the “Common Stock”), and (b) 1,000,000 shares of authorized preferred stock, par value $0.01 per share. A reverse stock split was effected and a subsequent amendment to the corporate charter was filed on October 2, 2013 providing for 11,900,000 shares of authorized common stock, par value $0.01 per share and 100,000 shares of authorized preferred stock, par value $0.01. There are 9,547,587 shares of Common Stock outstanding as of December 31, 2014.

• Private Placements

In connection with the Plan of Reorganization, the Company entered into stock purchase agreements (the “Investor SPAs”) with investors for the purchase and sale of 1,750,000,000 shares of our common stock (adjusted to 8,750,000 shares on October 2, 2013 as a result of the Reverse Stock Split) at a pre-Reverse Stock Split purchase price of $0.10 per share (implying a $20.00 per share price after giving effect to the Reverse Stock Split) and received gross proceeds of $175.0 million (the “Private Placements”) and incurred transaction costs $14.4 million. The Investors were certain of our officers and directors and institutional investors.

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• TARP Exchange

On January 30, 2009, pursuant to the Treasury’s Capital Purchase Program, the Company issued and sold to the Treasury 110,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B of the Company with an aggregate liquidation preference of $110.0 million (the “TARP Preferred Stock”). In addition, the Company issued to the Treasury a warrant (the “TARP Warrant”) to purchase up to 7,399,103 shares of our common stock, par value $0.10 per share (the “Legacy Common Stock”), at an initial per share exercise price of $2.23. Pursuant to the Plan of Reorganization, we, on the Effective Date (i) exchanged the TARP Preferred Stock for 60.0 million shares of common stock (adjusted to 300,000 common shares as a result of the Reverse Stock Split) of common stock (the “Treasury Issuance”) and (ii) cancelled a warrant (the “TARP Warrant”) to purchase up to 7,399,103 shares of our pre-Reorganization common stock, par value $0.10 per share (the “Legacy Common Stock”) in its entirety (collectively, the “TARP Exchange”). The difference between the Common Stock issued and the Preferred Stock redeemed of $104.0 million was recorded as an increase directly to retained earnings. The $104.0 million represents a return from the Preferred stockholder thereby increasing the amount available to common stockholders for purposes of earnings per share.

Following the effectiveness of the Plan of Reorganization, the Treasury sold to certain institutional investors (the “Secondary Investors”) all of the shares of Common Stock delivered to the Treasury in connection with the Treasury Issuance at a purchase price equal to $0.10 per share (the “Secondary Treasury Sales”) under the securities purchase agreements, dated as of September 19, 2013, among the Treasury, the Secondary Investor and (with respect to certain provisions) the Company. In connection with the Secondary Treasury Sales, the Company entered into secondary sale purchaser agreements with the Secondary Investors pursuant to which the company made certain representations and warranties to the Investor and provided rights to the Secondary Investors similar to the rights provided to Investors under the Stock Purchase Agreements. The Treasury then sold all of the shares of common stock delivered and received gross proceeds of $6.0 million and ceased to be our stockholder.

• Senior Debt Settlement

The aggregate amount of our obligations under the Credit Agreement was approximately $183.5 million as of August 12, 2013 (including with respect to gross loans, accrued but unpaid interest thereon and all administrative and other fees or penalties). On the Effective Date the Company satisfied all of our obligations under the Credit Agreement by a cash payment to the Lenders of $49.0 million (plus expense reimbursement as contemplated by the Credit Agreement). As a result of the transaction, the Company recognized a gain on extinguishment of debt of $134.5 million. All other claims were unaffected by, and were paid in full under, the Plan of Reorganization.

• Legacy Common Stock

On the effective date all shares of the outstanding Legacy Common Stock including those shares held as treasury stock and in any stock incentive plans were cancelled for no consideration pursuant to the Plan of Reorganization.

Emergence Accounting

Upon emergence, we determined we did not meet the requirements to apply fresh start reporting under applicable accounting standards because we did not meet the solvency criteria of ASC 852-10-45-19. The reorganization value immediately before the date of confirmation was greater than the total of all post-petition liabilities and allowed claims and, therefore, indicative of not meeting the test to require fresh start accounting under ASC 852. As of the date of confirmation, we estimated our enterprise value (or reorganization value) to be approximately $2.2 billion. The Company utilized the equity value using the income and market approach to approximate fair value. Accordingly, our financial statements do not include fresh start reporting, whereby the Company would

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have to revalue all of its assets and liabilities. At the time of filing for the Chapter 11 Case, we identified liabilities subject to compromise of $188.3 million, which included the outstanding Credit Agreement of approximately $116.3 million, interest and fees due under the Credit Agreement of $67.2 million and $4.8 million in other liabilities.

Regulatory Agreements

The Bank’s primary regulator is the Office of the Comptroller of the Currency (“OCC”). The Federal Reserve is the primary regulator of the Company. On June 26, 2009, the Company and the Bank each consented to the issuance of an Order to Cease and Desist (the “Company Order” and the “Bank Order,” respectively). On August 31, 2010, a Prompt and Corrective Action Directive (“PCA Directive”) was issued for the Bank. The Company Order required among other things a larger capital ratio and the submission of a capital restoration plan along with a revised business plan.

On April 2, 2014, the Bank was notified that the Bank Order and the PCA Directive were terminated. On July 31, 2014, the Company was notified that the Company Order was terminated.

Note 3 – Cash and Due From Banks

The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank based on a percentage of deposits. The average amount of required reserve balances for the year ended December 31, 2014, and the nine months ended December 31, 2013 was approximately $1.3 million for both periods. The Bank met the required reserves with cash balances in the branch system.

The Bank is required to maintain an account with its official check service provider equal to one day’s average remittance. The balance in this restricted account was $2.5 million and $4.5 million at December 31, 2014 and 2013 respectively.

The Bank was previously required to maintain an account pledged in favor of a Government-sponsored enterprise to enter into cash purchase contracts and/or mandatory master commitments. This requirement was terminated in 2014 and as such there was no balance in the restricted account at December 31, 2014. There was a balance of $1.0 million at December 31, 2013.

The nature of the Company’s business requires that it maintain amounts due from banks and federal funds sold which, at times, may exceed federally insured limits. Management monitors these correspondent relationships and has not experienced any losses in such accounts.

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Note 4 – Investment Securities

The amortized cost and fair value of investment securities are as follows:

	Amortized Cost		Gross Unrealized					Fair Value
			Gains		Losses
	(In thousands)
December 31, 2014
Available for sale:
U.S. government sponsored and federal agency obligations	$	3,245	$	16	$	—		$	3,261
Corporate stock and bonds		1		2		—			3
Non-agency CMOs (1)		59		—		(32	)		27
Government sponsored agency mortgage-backed securities (1)		120,627		411		(417	)		120,621
GNMA mortgage-backed securities (1)		173,069		411		(2,793	)		170,687
	$	297,001	$	840	$	(3,242	)	$	294,599
December 31, 2013
Available for sale:
U.S. government sponsored and federal agency obligations	$	3,359	$	17	$	—		$	3,376
Corporate stock and bonds		88		267		—			355
Non-agency CMOs (1)		6,452		9		(253	)		6,208
Government sponsored agency mortgage-backed securities (1)		50,721		160		(723	)		50,158
GNMA mortgage-backed securities (1)		223,874		1,056		(7,155	)		217,775
	$	284,494	$	1,509	$	(8,131	)	$	277,872

⁽¹⁾  CMOs (collateralized mortgage obligations), government sponsored agencies and GNMA (Ginnie Mae) mortgage-backed securities are primarily collateralized by residential mortgages.

Independent pricing services are used to value all investment securities. One pricing service is used to value all securities except the non-agency CMOs. A specialized pricing service was used for valuation of the non-agency CMO portfolio.

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The table below presents the fair value and gross unrealized losses of securities in a loss position, aggregated by investment category and length of time that individual holdings have been in a continuous unrealized loss position at December 31, 2014 and 2013.

	Unrealized Loss Position
	Less than 12 months					12 months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
December 31, 2014
Non-agency CMOs	$	2	$	(1	)	$	25	$	(31	)	$	27	$	(32	)
Government sponsored agency mortgage-backed securities (1)		54,020		(228	)		8,178		(189	)		62,198		(417	)
GNMA mortgage-backed securities		27,113		(110	)		98,230		(2,683	)		125,343		(2,793	)
	$	81,135	$	(339	)	$	106,433	$	(2,903	)	$	187,568	$	(3,242	)
December 31, 2013
Non-agency CMOs	$	1,219	$	(7	)	$	4,776	$	(246	)	$	5,995	$	(253	)
Government sponsored agency mortgage-backed securities (1)		47,480		(723	)		—		—			47,480		(723	)
GNMA mortgage-backed securities		140,824		(5,143	)		25,449		(2,012	)		166,273		(7,155	)
	$	189,523	$	(5,873	)	$	30,225	$	(2,258	)	$	219,748	$	(8,131	)

⁽¹⁾  Includes mortgage-backed securities and CMOs.

Management evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. In estimating other-than-temporary impairment losses on investment securities, management considers many factors which include: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value.

At December 31, 2014, there were no securities classified as other-than-temporarily impaired. At December 31, 2013, six non-agency CMOs with a fair value of $6.2 million and an adjusted cost basis of $6.4 million were other-than-temporarily impaired. Unrealized other-than-temporary impairment due to credit losses of $64,000 and $23,000 was included in earnings for the year ended December 31, 2014 and the nine months ended December 31, 2013, respectively. For the year ended December 31, 2014 and the nine months ended December 31, 2013, realized losses of $221,000 and $224,000, respectively, related to credit issues (i.e. – principal reduced without a receipt of cash) were incurred that were previously recognized in earnings as unrealized other-than-temporary impairment. During 2014, these other-than-temporarily impaired securities were sold at a loss of $37,000.

Unrealized losses on U.S. government sponsored and federal agency obligations, corporate stocks and bonds and Ginnie Mae mortgage-backed securities as of December 31, 2014 and 2013 due to changes in interest rates and other non-credit related factors totaled $3.2 million and $7.9 million, respectively. The number of individual securities in the tables above total 34 at December 31, 2014 and 35 at December 31, 2013. The Company has analyzed these securities for evidence of other-than-temporary impairment and concluded that no OTTI exists and that the unrealized losses are properly classified in accumulated other comprehensive income (loss).

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The following table is a roll forward of the amount of other-than-temporary impairment related to credit losses that have been recognized in earnings for which a portion of impairment was deemed temporary and recognized in other comprehensive income (loss) for the periods presented:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Beginning balance of unrealized OTTI related to credit losses	$	801		$	1,002		$	2,391
Additional unrealized OTTI related to credit losses for which OTTI was previously recognized		64			23			412
Additional debit related OTTI previously recognized for OTTI recovery during the period		4			5			—
Credit related OTTI previously recognized for securities sold during the period		(644	)		—			(1,075	)
Credit related OTTI previously recognized for securities paid-off during the period		—			—			(4	)
Decrease for realized amount of credit losses for which unrealized credit related OTTI was previously recognized		(225	)		(229	)		(722	)
Ending balance of unrealized OTTI related to credit losses	$	—		$	801		$	1,002

The cost of investment securities sold is determined using the specific identification method. Sales of investment securities available for sale are summarized below:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Proceeds from sales	$	17,557		$	356	$	12,780
Gross gains	$	825		$	292	$	91
Gross losses		(79	)		—		(338	)
Net gain/(loss) on sales	$	746		$	292	$	(247	)

At December 31, 2014 and 2013, investment securities with a fair value of approximately $121.5 million and $162.8 million, respectively, were pledged to secure deposits, borrowings and for other purposes as permitted or required by law.

The fair values of investment securities by contractual maturity at December 31, 2014 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties.

	Within 1 Year		After 1 Year through 5 Years		After 5 Years through 10 Years		Over Ten Years		Total
	(In thousands)
U.S. government sponsored and federal agency obligations	$	—	$	3,261	$	—	$	—	$	3,261
Corporate stock and bonds		—		—		—		3		3
Non-agency CMOs		—		—		2		25		27
Government sponsored agency mortgage-backed securities (1)		—		96		11,998		108,527		120,621
GNMA mortgage-backed securities		—		188		—		170,499		170,687
Total	$	—	$	3,545	$	12,000	$	279,054	$	294,599

⁽¹⁾  Includes mortgage-backed securities and CMOs.

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In 2008, the Company received proceeds in connection with shares redeemed as part of the Visa, Inc. initial public offering. The Bank was a member of the former Visa, Inc. payments organization and was issued shares when Visa, Inc. was organized. Approximately 39% of those shares were redeemed in connection with the public offering. The remaining shares are restricted because of unsettled litigation pending against Visa, Inc. At its discretion, Visa, Inc. may redeem additional shares in order to resolve pending litigation. The restriction expires upon resolution of the pending litigation. Accordingly, the Company has recorded these shares at zero in the consolidated balance sheets. Upon expiration of the restriction, the Company expects to record the fair value of the remaining shares.

Note 5 – Loans Held for Investment, net

Loans held for investment, net consist of the following:

	December 31,
	2014			2013
	(In thousands)
Residential	$	541,211		$	529,777
Commercial and industrial		16,514			21,591
Commercial real estate:
Land and construction		106,436			92,050
Multi-family		265,735			281,917
Retail/office		155,095			154,075
Other commercial real estate		156,243			174,313
Total commercial real estate		683,509			702,355
Consumer:
Education		108,384			129,520
Other consumer		233,487			238,311
Total consumer loans		341,871			367,831
Total gross loans		1,583,105			1,621,554
Undisbursed loan proceeds (1)		(10,080	)		(10,322	)
Unamortized loan fees, net		(1,544	)		(1,722	)
Unearned interest		(5	)		(4	)
Total loan contra balances		(11,629	)		(12,048	)
Loans held for investment		1,571,476			1,609,506
Allowance for loan losses		(47,037	)		(65,182	)
Loans held for investment, net	$	1,524,439		$	1,544,324

⁽¹⁾  Undisbursed loan proceeds are funds to be released upon a draw request approved by the Corporation.

Residential Loans

At December 31, 2014, $541.2 million, or 34.2%, of the total gross loans consisted of residential loans, substantially all of which were 1-to-4 family dwellings. Residential loans consist of both adjustable and fixed-rate loans. The adjustable-rate loans currently in the portfolio were originated with up to 30-year maturities and terms which provide for annual increases or decreases of the rate on the loans, based on a designated index. These rate changes are generally subject to a limit of 2% per adjustment and an aggregate 6% adjustment over the life of the loan. These loans are documented according to standard industry practices. The Company does not originate negative amortization and option payment adjustable rate mortgages.

At December 31, 2014, approximately $313.5 million, or 57.9%, of the held for investment residential gross loans consisted of loans with adjustable interest rates. At December 31, 2014, approximately $227.7 million, or

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42.1%, of the held for investment residential gross loans consisted of loans with fixed rates of interest. Although these loans generally provide for repayments of principal over a fixed period of 10 to 30 years, because of prepayments and due-on-sale clauses, such loans generally remain outstanding for a shorter period of time.

Commercial and Industrial Loans

The Company originates loans for commercial and business purposes, including issuing letters of credit. At December 31, 2014, the commercial and industrial gross loans amounted to $16.5 million, or 1.0%, of the total gross loans.

Commercial Real Estate Loans

At December 31, 2014, $683.5 million of gross loans were secured by commercial real estate, which represented 43.3% of the total gross loans. The origination of such loans is generally limited to the Company’s primary market area.

Consumer Loans

The Company offers consumer loans in order to provide a wider range of financial services to its customers. Consumer loans primarily consist of home equity loans and lines and education loans. At December 31, 2014, $341.9 million, or 21.5%, of the total gross loans consisted of consumer loans.

Approximately $108.4 million, or 6.8%, of the total gross loans at December 31, 2014 consisted of education loans. The origination of student loans was discontinued October 1, 2010 following the March 2010 law ending loan guarantees provided by the U.S. Department of Education. Both the principal amount of an education loan and interest thereon are generally guaranteed by the Great Lakes Higher Education Company up to 97% of the balance of the loan. Education loans may be sold to the U.S. Department of Education or to other investors. No education loans were sold during the year ended December 31, 2014 and the nine months ended December 31, 2013.

The primary home equity loan product has an adjustable rate that is linked to the prime interest rate and is secured by a mortgage, either a primary or a junior lien, on the borrower’s residence.

Other consumer loans consist of credit cards, vehicle loans and other secured and unsecured loans made for a variety of consumer purposes. Credit is extended to Bank customers through credit cards issued by a third party, ELAN Financial Services (ELAN), pursuant to an agency arrangement.

A new agreement was signed with ELAN on December 31, 2014, effective January 1, 2015, providing the Company an origination fee for each card sold. The Company also receives a monthly fee from ELAN resulting from the performance of the originated portfolio, based on 11% of the interest income and 25% of the interchange income, and the Bank is no longer exposed to credit risk from the underlying consumer credit. As part of the new agreement, the Bank agreed to sell back to ELAN its participation in outstanding credit card balances totaling $6.6 million with no gain or loss recognized. This transaction settled on February 10, 2015.

Allowances for Loan Losses

The following table presents the allowance for loan losses by component:

	December 31,
	2014		2013
	(In thousands)
General reserve	$	34,027	$	34,466
Specific reserve:
Substandard rated loans, excluding TDR accrual		4,569		6,225
Impaired loans		8,441		24,491
Total allowance for loan losses	$	47,037	$	65,182

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The following table presents the gross balance of loans by risk category:

	December 31,
	2014		2013
	(In thousands)
Pass	$	1,465,224	$	1,429,283
Special mention		6,243		24,203
Total pass and special mention rated loans		1,471,467		1,453,486
Substandard rated loans, excluding TDR accrual (1)		16,353		35,310
Troubled debt restructurings – accrual (2)		60,170		64,261
Non-accrual		35,115		68,497
Total impaired loans		95,285		132,758
Total gross loans	$	1,583,105	$	1,621,554

⁽¹⁾  Includes residential and consumer loans identified as substandard that are not necessarily on non-accrual.

⁽²⁾  Includes TDR loans performing to contract terms of $55.4 million and $31.2 million at December 31, 2014 and 2013, respectively.

The following table presents activity in the allowance for loan losses by portfolio segment:

	Residential			Commercial and Industrial			Commercial Real Estate			Consumer			Total
	(In thousands)
For the Year Ended:
December 31, 2014
Beginning balance	$	13,059		$	6,402		$	42,065		$	3,656		$	65,182
Provision		(599	)		(2,622	)		(6,129	)		4,765			(4,585	)
Charge-offs		(2,212	)		(5,220	)		(16,041	)		(2,599	)		(26,072	)
Recoveries		436			2,876			8,821			379			12,512
Ending balance	$	10,684		$	1,436		$	28,716		$	6,201		$	47,037
For the Nine Months Ended:
December 31, 2013
Beginning balance	$	14,525		$	7,072		$	54,581		$	3,637		$	79,815
Provision		2,224			(599	)		(2,942	)		1,592			275
Charge-offs		(4,419	)		(864	)		(13,100	)		(1,903	)		(20,286	)
Recoveries		729			793			3,526			330			5,378
Ending balance	$	13,059		$	6,402		$	42,065		$	3,656		$	65,182
For the Year Ended:
March 31, 2013
Beginning balance	$	13,027		$	10,568		$	85,153		$	2,467		$	111,215
Provision		6,414			(1,471	)		(3,107	)		5,897			7,733
Charge-offs		(6,659	)		(3,483	)		(34,265	)		(4,946	)		(49,353	)
Recoveries		1,743			1,458			6,800			219			10,220
Ending balance	$	14,525		$	7,072		$	54,581		$	3,637		$	79,815

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The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013:

	Residential		Commercial and Industrial		Commercial Real Estate		Consumer		Total
	(In thousands)
December 31, 2014
Allowance for loan losses:
Associated with impaired loans	$	1,400	$	140	$	6,475	$	426	$	8,441
Associated with all other loans		9,284		1,296		22,241		5,775		38,596
Total	$	10,684	$	1,436	$	28,716	$	6,201	$	47,037
Loans:
Impaired loans individually evaluated	$	14,497	$	113	$	79,160	$	1,515	$	95,285
All other loans		526,714		16,401		604,349		340,356		1,487,820
Total	$	541,211	$	16,514	$	683,509	$	341,871	$	1,583,105
December 31, 2013
Allowance for loan losses:
Associated with impaired loans	$	2,424	$	1,745	$	19,845	$	477	$	24,491
Associated with all other loans		10,635		4,657		22,220		3,179		40,691
Total	$	13,059	$	6,402	$	42,065	$	3,656	$	65,182
Loans:
Impaired loans individually evaluated	$	20,502	$	2,315	$	106,657	$	3,284	$	132,758
All other loans		509,275		19,276		595,698		364,547		1,488,796
Total	$	529,777	$	21,591	$	702,355	$	367,831	$	1,621,554

A substantial portion of loans, 98.0%, are collateralized by real estate in Wisconsin and adjacent states. Accordingly, the ultimate collectability of the loan portfolio is susceptible to changes in real estate market conditions in that area.

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The following table presents impaired loans segregated by loans with no specific allowance and loans with an allowance by class of loans. The recorded investment amounts represent the gross loan balance less charge-offs. The unpaid principal balance represents the contractual loan balance less any principal payments applied. The interest income recognized column represents all interest income recorded either on a cash or accrual basis after the loan became impaired.

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Carrying Amount (1)		Year-to-Date Interest Income Recognized
	(In thousands)
December 31, 2014
With no specific allowance recorded:
Residential	$	4,992	$	6,406	$	—	$	5,455	$	165
Commercial and industrial		—		268		—		843		26
Land and construction		9,421		19,334		—		12,192		208
Multi-family		17,614		19,863		—		17,979		780
Retail/office		7,840		15,581		—		8,040		354
Other commercial real estate		13,972		15,318		—		14,617		467
Education (3)		205		205		—		101		—
Other consumer		469		845		—		1,003		89
Subtotal		54,513		77,820		—		60,230		2,089
With an allowance recorded (2):
Residential	$	9,505	$	9,671	$	1,400	$	8,574	$	403
Commercial and industrial		113		236		140		111		1
Land and construction		8,362		12,536		3,657		4,440		180
Multi-family		11,641		11,641		1,308		10,465		485
Retail/office		9,387		9,566		1,391		8,207		356
Other commercial real estate		923		936		119		854		17
Education (3)		—		—		—		—		—
Other consumer		841		841		426		617		48
Subtotal		40,772		45,427		8,441		33,268		1,490
Total
Residential	$	14,497	$	16,077	$	1,400	$	14,029	$	568
Commercial and industrial		113		504		140		954		27
Land and construction		17,783		31,870		3,657		16,632		388
Multi-family		29,255		31,504		1,308		28,444		1,265
Retail/office		17,227		25,147		1,391		16,247		710
Other commercial real estate		14,895		16,254		119		15,471		484
Education (3)		205		205		—		101		—
Other consumer		1,310		1,686		426		1,620		137
	$	95,285	$	123,247	$	8,441	$	93,498	$	3,579

⁽¹⁾  Calculated on a trailing 12 month basis for December 31, 2014, and a trailing 9 month basis for December 31, 2013.

⁽²⁾  Includes ratio-based allowance for loan losses of $0.5 million and $2.1 million associated with loans totaling $1.9 million and $12.5 million at December 31, 2014 and 2013, respectively, for which individual reviews have not been completed but an allowance established based on the ratio of allowance for loan losses to gross loans individually reviewed, by class of loan.

⁽³⁾  Excludes the guaranteed portion of education loans 90+ days past due with balance of $6.6 million and $8.9 million and average carrying amounts totaling $7.7 million and $13.7 million at December 31, 2014 and 2013, respectively, that are not considered impaired based on a guarantee provided by government agencies.

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	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Carrying Amount (1)		Nine Months Ended December 31, 2013 Interest Income Recognized
	(In thousands)
December 31, 2013
With no specific allowance recorded:
Residential	$	5,009	$	6,292	$	—	$	5,275	$	94
Commercial and industrial		61		370		—		58		246
Land and construction		4,311		13,299		—		4,692		14
Multi-family		16,102		16,286		—		7,338		74
Retail/office		11,279		12,501		—		11,916		128
Other commercial real estate		19,660		23,597		—		12,523		225
Education (3)		276		276		—		343		—
Other consumer		479		745		—		841		84
Subtotal		57,177		73,366		—		42,986		865
With an allowance recorded (2):
Residential	$	15,493	$	15,623	$	2,424	$	13,572	$	250
Commercial and industrial		2,254		2,278		1,745		934		70
Land and construction		20,417		26,020		7,512		15,281		128
Multi-family		14,311		14,329		3,693		4,118		159
Retail/office		17,878		18,062		8,254		14,072		476
Other commercial real estate		2,699		2,731		386		2,298		87
Education (3)		—		—		—		—		—
Other consumer		2,529		2,529		477		2,190		62
Subtotal		75,581		81,572		24,491		52,465		1,232
Total
Residential	$	20,502	$	21,915	$	2,424	$	18,847	$	344
Commercial and industrial		2,315		2,648		1,745		992		316
Land and construction		24,728		39,319		7,512		19,973		142
Multi-family		30,413		30,615		3,693		11,456		233
Retail/office		29,157		30,563		8,254		25,988		604
Other commercial real estate		22,359		26,328		386		14,821		312
Education (3)		276		276		—		343		—
Other consumer		3,008		3,274		477		3,031		146
	$	132,758	$	154,938	$	24,491	$	95,451	$	2,097

⁽¹⁾  Calculated on a trailing 12 month basis for December 31, 2014, and a trailing 9 month basis for December 31, 2013.

⁽²⁾  Includes ratio-based allowance for loan losses of $0.5 million and $2.1 million associated with loans totaling $1.9 million and $12.5 million at December 31, 2014 and 2013, respectively, for which individual reviews have not been completed but an allowance established based on the ratio of allowance for loan losses to gross loans individually reviewed, by class of loan.

⁽³⁾  Excludes the guaranteed portion of education loans 90+ days past due with balance of $6.6 million and $8.9 million and average carrying amounts totaling $7.7 million and $13.7 million at December 31, 2014 and 2013, respectively, that are not considered impaired based on a guarantee provided by government agencies.

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The average recorded investment in impaired loans and interest income recognized on impaired loans follows:

	Year Ended December 31, 2014				Nine Months Ended December 31, 2013				Year Ended March 31, 2013
	Average Carrying Amount (1)		Interest Income Recognized		Average Carrying Amount (1)		Interest Income Recognized		Average Carrying Amount (1)		Interest Income Recognized
	(In thousands)
Residential	$	14,029	$	568	$	18,847	$	344	$	34,649	$	717
Commercial and industrial		954		27		992		316		2,864		443
Land and construction		16,632		388		19,973		142		27,832		183
Multi-family		28,444		1,265		11,456		233		25,833		652
Retail/office		16,247		710		25,988		604		28,745		1,005
Other commercial real estate		15,471		484		14,821		312		33,992		1,316
Education		101		—		343		—		615		—
Other consumer		1,620		137		3,031		146		4,604		355
	$	93,498	$	3,579	$	95,451	$	2,097	$	159,134	$	4,671

⁽¹⁾  The average carry amount was calculated on a trailing 12 month basis for December 31, 2014 and March 31, 2013 and on a trailing 9 month basis for December 31, 2013.

The following is additional information regarding impaired loans:

	December 31,
	2014		2013
	(In thousands)
Carrying amount of impaired loans	$	86,844	$	108,267
Average carrying amount of impaired loans		93,498		95,451
Loans and troubled debt restructurings on non – accrual status		35,115		68,497
Troubled debt restructurings – accrual		60,170		64,261
Troubled debt restructurings – non-accrual (1)		16,483		29,346
Troubled debt restructurings valuation allowance		8,593		15,210
Loans past due ninety days or more and still accruing (2)		6,613		8,930

⁽¹⁾  Troubled debt restructurings – non-accrual are included in the loans and troubled debt restructurings on non-accrual status line item above.

⁽²⁾  Represents the guaranteed portion of education loans that were 90+ days past due which continue to accrue interest due to a guarantee provided by government agencies covering approximately 97% of the outstanding balance.

Although the Company is currently not committed to lend any additional funds on impaired loans in accordance with the original terms of these loans, it is not legally obligated to, and will cautiously disburse additional funds on any loans while in nonaccrual status or if the borrower is in default.

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The following table presents the aging of the recorded investment in past due loans by class of loans:

	Days Past Due
	30-59		60-89		90 or More		Current		Total
	(In thousands)
December 31, 2014
Residential	$	1,186	$	802	$	2,995	$	536,228	$	541,211
Commercial and industrial		205		—		196		16,113		16,514
Land and construction		267		29		1,111		105,029		106,436
Multi-family		—		—		3,518		262,217		265,735
Retail/office		—		—		2,172		152,923		155,095
Other commercial real estate		—		—		3,011		153,232		156,243
Education		3,505		2,140		6,818		95,921		108,384
Other consumer		632		126		517		232,212		233,487
	$	5,795	$	3,097	$	20,338	$	1,553,875	$	1,583,105
December 31, 2013
Residential	$	1,287	$	564	$	8,897	$	519,029	$	529,777
Commercial and industrial		1,609		—		1,461		18,521		21,591
Land and construction		105		—		11,307		80,638		92,050
Multi-family		1,612		—		1,079		279,226		281,917
Retail/office		968		83		10,887		142,137		154,075
Other commercial real estate		184		506		3,785		169,838		174,313
Education		5,210		2,914		9,206		112,190		129,520
Other consumer		910		213		2,395		234,793		238,311
	$	11,885	$	4,280	$	49,017	$	1,556,372	$	1,621,554

Total delinquencies (loans past due 30 days or more) at December 31, 2014 were $29.2 million. Non-accrual loans were $35.1 million and $68.5 million as of December 31, 2014 and 2013, respectively. The Company has experienced a significant reduction in delinquencies since December 31, 2013 primarily due to improving credit conditions and $10.4 million of loans moving to OREO. The Company has $6.6 million of education loans past due 90 days or more at December 31, 2014 that are still accruing interest due to the approximate 97% guarantee provided by governmental agencies. Loans less than 90 days delinquent may be placed on non-accrual status when the probability of collection of principal and interest is deemed to be insufficient to warrant further accrual.

Credit Quality Indicators:

The Company classifies commercial and industrial loans and commercial real estate loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. This analysis is updated on a monthly basis. The following definitions are used for risk ratings:

Pass. Loans classified as pass represent assets that are evaluated and are performing under the stated terms.

Watch. Loans classified as watch possess potential weaknesses that require management attention, but do not yet warrant adverse classification. These loans are treated the same as loans classified as “Pass” for reporting purposes.

Special Mention. Loans classified as special mention exhibit material negative financial trends due to company specific or industry conditions which, if not corrected or mitigated, threaten their capacity to meet current or continuing debt obligations.

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Substandard. Loans classified as substandard are inadequately protected by the current net worth, paying capacity of the obligor, or by the collateral pledged. Substandard assets must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.

Non-Accrual. Loans classified as non-accrual have the weaknesses of those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

The risk category of loans by class of loans, and based on the most recent analysis performed, is as follows:

	Pass (1)			Special Mention			Substandard			Non-Accrual			Total Gross Loans
	(In thousands)
December 31, 2014
Commercial and industrial	$	14,990		$	—		$	1,491		$	33		$	16,514
Commercial real estate:
Land and construction		85,425			946			2,870			17,195			106,436
Multi-family		261,254			—			915			3,566			265,735
Retail/office		143,260			4,753			3,112			3,970			155,095
Other		145,995			174			6,452			3,622			156,243
	$	650,924		$	5,873		$	14,840		$	28,386		$	700,023
Percent of total gross loans		93.0	%		0.8	%		2.1	%		4.1	%		100.0	%
December 31, 2013
Commercial and industrial	$	16,542		$	—		$	3,540		$	1,509		$	21,591
Commercial real estate:
Land and construction		57,221			75			10,025			24,729			92,050
Multi-family		255,741			465			22,053			3,658			281,917
Retail/office		130,966			2,967			5,777			14,365			154,075
Other		135,045			20,696			11,770			6,802			174,313
	$	595,515		$	24,203		$	53,165		$	51,063		$	723,946
Percent of total gross loans		82.3	%		3.3	%		7.3	%		7.1	%		100.0	%

⁽¹⁾  Includes TDR accruing loans.

Residential and consumer loans are managed on a pool basis due to their homogeneous nature. Loans that are delinquent 90 days or more are considered non-accrual. The following table presents the residential and consumer gross loans based on accrual status:

	December 31, 2014						December 31, 2013
	Accrual (1)		Non-Accrual		Total Gross Loans		Accrual (1)		Non-Accrual		Total Gross Loans
	(In thousands)
Residential	$	535,338	$	5,873	$	541,211	$	515,373	$	14,404	$	529,777
Consumer
Education (2)		108,179		205		108,384		129,244		276		129,520
Other consumer		232,836		651		233,487		235,557		2,754		238,311
	$	876,353	$	6,729	$	883,082	$	880,174	$	17,434	$	897,608

⁽¹⁾  Accrual residential and consumer loans includes substandard rated loans including TDR-accrual.

⁽²⁾  Non-accrual education loans represent the portion of these loans 90+ days past due that are not covered by a guarantee provided by government agencies that is limited to approximately 97% of the outstanding balance.

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Troubled Debt Restructurings

Modifications of loan terms in a TDR are generally in the form of an extension of payment terms or lowering of the interest rate, although occasionally the Company has reduced the outstanding principal balance.

Loans modified in a troubled debt restructuring that are currently on non-accrual status will remain on non-accrual status for a period of at least six months, or longer period, sufficient to prove that the borrower demonstrates that they can make the payments under the modified terms. If after this period, the borrower has made payments in accordance with the modified terms, the loan is returned to accrual status but retains its designation as a TDR. Once a TDR loan is returned to accrual, further review of the credit could take place resulting in a further upgrade into the pass category but still remaining as a TDR.

The following table presents information related to loans modified in a troubled debt restructuring by class:

	Year Ended December 31, 2014
Troubled Debt Restructurings (1)	Number of Modifications		Gross Loans (at beginning of period)		Gross Loans (2) (at period end)
	(Dollars in thousands)
Residential	$	13	$	1,632	$	1,620
Commercial and industrial		2		64		97
Land and construction		3		427		410
Multi-family		3		1,283		1,183
Retail/office		—		—		—
Other commercial real estate		2		251		256
Education		—		—		—
Other consumer		11		353		305
	$	34	$	4,010	$	3,871

⁽¹⁾  Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

⁽²⁾  Gross loans is inclusive of all partial paydowns and charge-offs since the modification date.

	Nine Months Ended December 31, 2013
Troubled Debt Restructurings (1)	Number of Modifications		Gross Loans (at beginning of period)		Gross Loans (2) (at period end)
	(Dollars in thousands)
Residential	$	21	$	3,761	$	3,788
Commercial and industrial		19		13,322		12,788
Land and construction		—		—		—
Multi-family		20		25,556		23,531
Retail/office		6		1,673		1,604
Other commercial real estate		8		15,269		15,346
Education		—		—		—
Other consumer		12		401		423
	$	86	$	59,982	$	57,480

⁽¹⁾  Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

⁽²⁾  Gross loans is inclusive of all partial paydowns and charge-offs since the modification date.

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The following tables present gross loans modified in a troubled debt restructuring during the year ended December 31, 2014 and the nine months ended December 31, 2013 by class and by type of modification:

Troubled Debt Restructurings (1)(2)	Year Ended December 31, 2014
	Principal and Interest to Interest Only		Interest Rate Reduction				Below Market Rate (4)		Other (5)		Total
			To Below Market Rate		To Interest Only (3)
	(In thousands)
Residential	$	175	$	788	$	—	$	119	$	538	$	1,620
Commercial and industrial		—		—		—		—		97		97
Land and construction		—		63		—		—		347		410
Multi-family		—		—		—		921		262		1,183
Retail/office		—		—		—		—		—		—
Other commercial real estate		—		—		—		214		42		256
Education		—		—		—		—		—		—
Other consumer		—		252		—		—		53		305
	$	175	$	1,103	$	—	$	1,254	$	1,339	$	3,871

Troubled Debt Restructurings (1)(2)	Nine Months Ended December 31, 2013
	Principal and Interest to Interest Only		Interest Rate Reduction				Below Market Rate (4)		Other (5)		Total
			To Below Market Rate		To Interest Only (3)
	(In thousands)
Residential	$	—	$	1,318	$	—	$	—	$	2,470	$	3,788
Commercial and industrial		—		345		—		—		12,443		12,788
Land and construction		—		—		—		—		—		—
Multi-family		—		231		—		—		23,300		23,531
Retail/office		—		45		216		—		1,343		1,604
Other commercial real estate		—		701		—		144		14,501		15,346
Education		—		—		—		—		—		—
Other consumer		—		411		—		—		12		423
	$	—	$	3,051	$	216	$	144	$	54,069	$	57,480

⁽¹⁾  Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

⁽²⁾  Gross loans is inclusive of all partial pay downs and charge-offs since the modification date.

⁽³⁾  Includes modifications of loan repayment terms from principal and interest to interest only, along with a reduction in the contractual interest rate.

⁽⁴⁾  Includes loans modified at below market rates for borrowers with similar risk profiles and having comparable loan terms and conditions. Market rates are determined by reference to internal new loan pricing grids that specify credit spreads based on loan risk rating and term to maturity.

⁽⁵⁾  Other modifications primarily include providing for the deferral of interest currently due to the new maturity date of the loan.

There were no loans modified in a troubled debt restructuring during the year ended December 31, 2014 and the nine months ended December 31, 2013, that subsequently defaulted.

Pledged Loans

At December 31, 2014 and 2013, residential, multi-family, education and other consumer loans with unpaid principal of approximately $726.6 million and $744.1 million, respectively were pledged to secure borrowings

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and for other purposes as permitted or required by law. Certain real-estate related loans are pledged as collateral for FHLB borrowings. See Note 10-Other Borrowed Funds.

Related Party Loans

In the ordinary course of business, the Bank has granted loans to principal officers and directors and their affiliates with outstanding balances amounting to $49,000 and $83,000 at December 31, 2014 and 2013, respectively. During the year ended December 31, 2014, there were no principal additions and principal payments totaled $34,000.

Note 6 – Other Real Estate Owned

A summary of the activity in other real estate owned is as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013
	(In thousands)
Balance at beginning of period	$	63,460		$	84,342
Additions		10,381			19,352
Capitalized improvements		251			307
OREO valuation adjustments, net (1)		(7,840	)		(4,937	)
Sales		(30,761	)		(35,604	)
Balance at end of period	$	35,491		$	63,460

⁽¹⁾  Includes adjustments to the OREO reserve for probable losses and property writedowns.

The balances at end of period above are net of a valuation allowance of $20.6 million, $30.8 million and $36.0 million at December 31, 2014 and 2013 and March 31, 2013, respectively recognized during the holding period for declines in fair value subsequent to foreclosure or acceptance of deed in lieu of foreclosure. A summary of activity in the OREO valuation allowance is as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Balance at beginning of period	$	30,842		$	36,009		$	22,521
Valuation adjustments (1)		7,840			4,937			26,733
Sales		(18,099	)		(10,104	)		(13,245	)
Balance at end of period	$	20,583		$	30,842		$	36,009

⁽¹⁾  Includes adjustments to the OREO reserve for probable losses and property writedowns.

Net OREO expense consisted of the following components:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Valuation adjustments	$	7,840	$	4,937	$	26,733
Foreclosure cost expense		498		1,541		2,602
Expenses from operations, net		1,441		3,319		8,236
OREO expense, net	$	9,779	$	9,797	$	37,571

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Note 7 – Premises, Equipment and Lease Commitments

Premises and equipment are summarized as follows:

	December 31, 2014			December 31, 2013
	(In thousands)
Land and land improvements	$	6,615		$	7,947
Office buildings		30,930			41,510
Furniture and equipment		26,444			38,483
Leasehold improvements		4,171			4,264
		68,160			92,204
Less accumulated depreciation and amortization		(44,591	)		(67,404	)
	$	23,569		$	24,800

Depreciation expense is summarized as follows:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Building depreciation expense	$	1,059	$	959	$	1,397
Furniture and fixture depreciation expense		1,345		912		1,682
	$	2,404	$	1,871	$	3,079

The Company leases 21 branch offices and office facilities under non-cancelable operating leases which expire on various dates through 2029. Future minimum payments under non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2014 are as follows:

Year Ending December 31,	Amount of Future Minimum Payments
	(In thousands)
2015	$	2,987
2016		1,959
2017		1,872
2018		1,952
2019		1,755
Thereafter		6,493
Total	$	17,018

For the year ended December 31, 2014, the nine months ended December 31, 2013 and for the year ended March 31, 2013, land and building lease rental expense was $1.8 million, $1.3 million, and $1.9 million, respectively.

In February 2014, the Bank entered into a purchase agreement with an unrelated third party to sell the Bank’s main office building located at 25 West Main Street, Madison, Wisconsin, the adjacent surface parking lot immediately behind the main office building at 115 South Carroll Street and the 261-stall parking ramp located at 126 South Carroll Street. The transaction closed on December 19, 2014 and a $1.4 million gain was recognized on the parcels that were not included in the subsequent lease between the Bank and the buyer. The Bank entered into a nine year lease to rent a portion of the building, to house the branch currently located in the building and additional office space. The future lease payments for this facility have been added to the table above presenting “Amount of Future Minimum Payments.” The gain of $6.4 million related to the leased space sold has been deferred and will be amortized into income over the remaining term of the lease.

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On December 31, 2014 the Bank sold the Richland Center branch, which was a leased facility, in rural Wisconsin. The sale consisted of selected loans, furniture and equipment and deposits. The amount of deposits sold were $16.6 million and a gain of $1.0 million was recorded on the sale. The future lease payments for this facility have been removed from the table above presenting “Amount of Future Minimum Payments”.

Note 8 – Mortgage Servicing Rights

Accounting for mortgage loan servicing rights (MSRs) is based on the amortization method. Under this method, servicing assets are amortized in proportion to and over the period of net servicing income. Income generated as the result of the capitalization of new servicing assets is reported as net gain on sale of loans and the amortization of servicing assets is reported as a reduction to loan servicing income in the consolidated statements of operations. Ancillary income is recorded in other non-interest income.

Information regarding the Company’s mortgage servicing rights is as follows:

	Year Ended December 31,			Nine Months Ended December 31,
	2014			2013
	(In thousands)
Balance at beginning of period	$	23,041		$	24,235
Additions		1,442			2,751
Amortization		(3,798	)		(3,945	)
Balance at end of period – before valuation allowance		20,685			23,041
Valuation allowance		(1,281	)		(747	)
Balance at end of period	$	19,404		$	22,294
Fair value at the end of the period	$	19,590		$	23,553
Key assumptions:
Weighted average discount rate		11.45	%		12.02	%
Weighted average prepayment speed		10.01	%		7.06	%

The projections of amortization expense for mortgage servicing rights set forth below are based on asset balances as of December 31, 2014 and an assumed amortization rate of 20% per year. Future amortization expense may be significantly different depending upon changes in the mortgage servicing portfolio, mortgage interest rates and market conditions.

	MSR Amortization
	(In thousands)
Year ended December 31, 2014	$	3,798
Estimate for the year ended December 31,
2015	$	4,137
2016		3,310
2017		2,648
2018		2,118
2019		1,694
Thereafter		6,778
Total	$	20,685

The unpaid principal balance of mortgage loans serviced for others is not included in the consolidated balance sheets. The unpaid principal of mortgage loans serviced was approximately $2.47 billion and $2.71 billion at December 31, 2014 and 2013, respectively.

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Loans intended to be sold are originated in accordance with specific criteria established by the investor agencies-these are known as “conforming loans”. During the sale of these loans, certain representations and warranties are made that the loans conform to these previously established underwriting standards. In the event that any of these representations and warranties or standards are found to be out of compliance, the Company may be responsible for repurchasing the loan at the unpaid principal balance or indemnifying the buyer against loss related to that loan.

Note 9 – Deposits

Deposits are summarized as follows:

	December 31, 2014					December 31, 2013
	Carrying Amount		Weighted Average Rate			Carrying Amount		Weighted Average Rate
	(Dollars in thousands)
Non-interest-bearing checking	$	291,248		—	%	$	259,926		—	%
Interest-bearing checking		305,004		0.06			301,956		0.07
Total checking accounts		596,252		0.03			561,882		0.04
Money market accounts		455,594		0.20			468,461		0.19
Regular savings		312,544		0.10			293,159		0.10
Advance payments by borrowers for taxes and insurance		2,568		0.07			822		0.10
Certificates of deposit:
0.00% to 0.99%		363,890		0.32			457,407		0.33
1.00% to 1.99%		71,618		1.27			67,762		1.28
2.00% to 2.99%		11,705		2.27			16,116		2.37
3.00% to 3.99%		—		—			7,310		3.59
4.00% and above		—		—			2,374		4.24
Total certificates of deposit		447,213		0.52			550,969		0.57
Total deposits	$	1,814,171		0.21	%	$	1,875,293		0.24	%

Annual maturities of certificates of deposit outstanding at December 31, 2014 are summarized as follows:

	Amount
	(In thousands)
Matures During Year Ending December 31:
2015	$	278,845
2016		103,894
2017		30,126
2018		20,273
2019		14,075
Total	$	447,213

At December 31, 2014 and 2013, certificates of deposit with balances greater than or equal to $100,000 totaled $69.2 million and $88.7 million, respectively.

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At December 31, 2014 the scheduled maturities of certificates of deposit of $100,000 or more are as follows:

	December 31, 2014
	(In thousands)
3 months or less	$	15,975
Over 3 months through 6 months		9,459
Over 6 months through 12 months		16,954
Over 12 months		26,838
Total	$	69,226

Certificates of deposit with balances greater than or equal to the FDIC insurance limit of $250,000 totaled $7.9 million and $10.6 million at December 31, 2014 and 2013, respectively.

The Bank has previously entered into agreements with certain brokers that will provide deposits obtained from their customers at specified interest rates for an identified fee, or so called “brokered deposits.” The Bank had no active broker deposit arrangements or outstanding brokered deposits at December 31, 2014 and 2013.

Note 10 – Other Borrowed Funds

Other borrowed funds consist of the following:

			December 31,
			2014					2013
	Maturing		Amount		Weighted Average Rate			Amount		Weighted Average Rate
			(Dollars in thousands)
FHLB advances		Dec 19, 2018	$	10,000		2.33	%	$	10,000		2.33	%
Repurchase agreements				3,569		0.10			2,636		0.10
Long term lease obligation				183		2.46			241		2.46
			$	13,752		1.75	%	$	12,877		1.88	%

FHLB Advances

The Bank pledges certain loans that meet underwriting criteria established by the Federal Home Loan Bank of Chicago (“FHLB of Chicago”) as collateral for outstanding advances. The unpaid principal balance of loans pledged to secure FHLB of Chicago borrowings totaled $652.3 million and $659.4 million at December 31, 2014 and 2013, respectively. The FHLB of Chicago borrowings are also collateralized by mortgage-related securities totaling $88.9 million and $122.2 million at December 31, 2014 and 2013, respectively. At December 31, 2014, there were no FHLB of Chicago borrowings with call features that may be exercised by the FHLB of Chicago.

On September 19, 2013, FHLB of Chicago advances totaling $176.0 million were prepaid. The prepaid advances were fixed rate, due to mature in January 2018, with a then-current weighted average rate of 3.18%. The prepayment triggered an early termination penalty of $16.1 million, which was recorded in non-interest expense for the nine months ended December 31, 2013.

Repurchase Agreements (Securities Sold Under Agreements to Repurchase)

The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the

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assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company’s Consolidated Balance Sheet, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts.

Long term lease obligation

The Company enters into agreements from time to time that give the right to use property in exchange for making a series of payments. The term of the lease obligations typically exceed three years and provide an opportunity to purchase the leased item at the end of the lease term at a price below market rate. These types of lease are considered a capital lease because the Company has in essence accepted the risks and benefits of ownership. As a result a capital lease requires an asset that must be subsequently depreciated and included as property and equipment on the balance sheet.

Note 11 – Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by bank regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Qualitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of tier 1 leverage, tier 1 risk-based and total risk-based capital. Under standard regulatory guidelines, a bank must have a total risk-based capital ratio of 8% or greater to be considered “adequately capitalized.”

The Company is organized as a savings and loan holding company and does not have specific capital requirements. The following table summarizes the Bank’s capital ratios to be considered adequately or well capitalized under standard regulatory guidelines:

						Minimum Required
	Actual					To be Adequately Capitalized					To be Well Capitalized
	Capital		Ratio			Capital		Ratio			Capital		Ratio
	(Dollars in thousands)
December 31, 2014
Tier 1 leverage (1)	$	216,659		10.43	%	$	83,123		4.00	%	$	103,904		5.00	%
Tier 1 risk-based capital (2)		216,659		16.97			51,066		4.00			76,598		6.00
Total risk-based capital (3)		233,032		18.25			102,131		8.00			127,664		10.00
December 31, 2013
Tier 1 leverage (1)	$	201,995		9.60	%	$	84,170		4.00	%	$	105,212		5.00	%
Tier 1 risk-based capital (2)		201,995		15.77			51,226		4.00			76,839		6.00
Total risk-based capital (3)		218,668		17.07			102,452		8.00			128,065		10.00

⁽¹⁾  Tier 1 capital divided by adjusted total assets.

⁽²⁾ Tier 1 capital divided by total risk-weighted assets.

⁽³⁾ Total risk-based capital divided by total risk-weighted assets.

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The following table presents the components of the Bank’s regulatory capital:

	December 31, 2014			December 31, 2013
	(In thousands)
Stockholders’ equity of the Bank	$	216,030		$	196,469
Less: Disallowed servicing assets		(1,773	)		(1,096	)
Accumulated other comprehensive loss		2,402			6,622
Tier 1 capital		216,659			201,995
Plus: Allowable allowance for loan losses		16,373			16,673
Total risk-based capital	$	233,032		$	218,668

In July 2013, the federal banking agencies published final rules (the “Basel III Capital Rules”) that revised their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to implement, in part, agreements reached by the Basel Committee and certain provisions of the Dodd-Frank Act. The Basel III Capital Rules will apply to banking organizations, including the Company and the Bank.

Among other things, the Basel III Capital Rules: (i) introduce a new capital measure entitled “Common Equity Tier 1” (“CET1”); (ii) specify that tier 1 capital consist of CET1 and additional financial instruments satisfying specified requirements that permit inclusion in tier 1 capital; (iii) define CET1 narrowly by requiring that most deductions or adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions or adjustments from capital as compared to the existing regulations.

A minimum leverage ratio (tier 1 capital as a percentage of total assets) of 4.0% is also required under the Basel III Capital Rules (even for highly rated institutions). The Basel III Capital Rules additionally require institutions to retain a capital conservation buffer of 2.5% above these required minimum capital ratio levels. Banking organizations that fail to maintain the minimum 2.5% capital conservation buffer could face restrictions on capital distributions or discretionary bonus payments to executive officers.

The Basel III Capital Rules become effective as applied to us and the Bank on January 1, 2015, with a phase in period that generally extends from January 1, 2015 through January 1, 2019. The Company and the Bank anticipate being “Well Capitalized” under Basel III Capital Rules.

Note 12 – Employee Benefit Plans

Defined Contribution Plan

The Company maintains a defined contribution plan under Sections 401(a) and 401(k) of the Internal Revenue Code, the AnchorBank, fsb Retirement Plan, in which all employees are eligible to participate. Employees become eligible on the first of the month following 60 days of employment. Participating employees may contribute up to 100% of their base compensation on a pre-tax basis up to annual IRS limits. In January 2013, the Company reinstated the matching contribution which had been suspended since October 2009. The Company previously matched the first 2% contributed with a dollar-for-dollar match and the next 2% of employee contributions at a rate of $.50 for each dollar. These amounts were increased beginning in January 2014 to the first 2% contributed with a dollar-for-dollar match, the next 2% matched at a rate of $0.50 for each dollar and the next 4% matched at $0.25 for each dollar. The plan offers 20 investment options and employees are allowed to self-direct their investments on a daily basis. The Company may also contribute additional amounts at its discretion. The Company contributed $992,000 for the year ended December 31, 2014, $579,000 for the nine months ended December 31, 2013 and $213,000 for the year ended March 31, 2013.

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Omnibus Incentive Plan

On August 12, 2014, the Board of Directors (“Board”) of the Company approved a new incentive plan, the Anchor Bancorp Wisconsin Inc. 2014 Omnibus Incentive Plan (the “Omnibus Plan”) which was subsequently approved by shareholders. The Omnibus Plan provides for the issuance of awards of incentive or nonqualified stock options, stock appreciation rights, performance and restricted stock awards or units, dividend equivalent units and other stock based awards as determined by the Board or the Plan Administrator. The purpose of the Omnibus Plan is to promote the interest of the Company and its stockholders by attracting, retaining and motivating executives and other selected employees, directors, consultants and advisors by enabling such individuals to participate in the long-term growth and financial success of the Company.

The maximum number of shares of common stock (each, a “Share”) that may be issued to participants pursuant to awards under the 2014 Omnibus Plan will be equal to 600,000. Such Shares may be either authorized and unissued Shares or Shares reacquired at any time and now or hereafter held as treasury stock. At December 31, 2014, 408,200 Shares were available to grant pursuant to the 2014 Plan.

Restricted stock grants vest over various periods of time typically from one to three years and are included in outstanding shares at the time of grant. The fair value of restricted stock grants determined at the grant date is amortized to compensation and benefits expense over the vesting period. The restricted stock grant plan expense for the year ended December 31, 2014 was $1.0 million. Dividends, if declared, will accrue for the benefit of the individuals who are granted restricted stock and will be paid out as the stock vests. Unvested shares will be voted by the employees in the same manner as the vested shares.

The restricted stock activity is summarized as follows:

	Year Ended December 31, 2014
	Shares			Weighted Average Grant Date     Fair Value
Balance at beginning of year		—		$	—
Granted		200,200			21.17
Vested		(12,500	)		20.95
Forfeited		(8,400	)		20.95
Balance outstanding at end of period		179,300		$	21.20
Available to grant		408,200

As of December 31, 2014, there was approximately $3.1 million of unrecognized compensation expense related to nonvested restricted stock awards granted under the Plan. The remaining weighted average term of nonvested awards is 1.3 years.

Management Recognition Plan

The Company previously maintained a Management Recognition Plan (“MRP”), under which a total of 4% of the shares of the Company’s common stock was acquired and reserved for issuance under the MRP. The Bank previously contributed $2.0 million to the MRP with which the MRP trustee acquired a total of 1,000,000 shares of the Company’s common stock. In 2001, the MRP was amended and restated to extend the term. There were no shares granted, no compensation expense and no shares vested related to the MRP during the year ended March 31, 2013. These shares were cancelled upon reorganization in September 2013.

Stock Compensation Plan

The Company previously had several stock-based compensation plans (“Plan(s)”) including the 2004 Equity Incentive Plan under which shares of common stock are reserved for the grant of incentive and non-incentive

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stock options and restricted stock or restricted stock units to directors, officers and employees. The purpose of the Plans was to promote the interests of the Company and its stockholders by (i) attracting and retaining exceptional executive personnel and other key employees; (ii) motivating such employees by means of performance-related incentives to achieve long-range performance goals; and (iii) enabling such employees to participate in the long-term growth and financial success of the Company. Under the Plan, up to 921,990 shares of Common Stock were authorized and available for issuance. Of the 921,990 shares available, up to 300,000 shares could have been awarded in the form of restricted stock or restricted stock units which were not subject to the achievement of a performance target or targets. The date the options were first exercisable was determined by a committee of the Board of Directors of the Company. These options were cancelled upon reorganization in September 2013.

Restricted Stock

Restricted stock grants primarily vest over a period of three to five years and were included in outstanding shares at the time of grant. The fair value of restricted stock equals the average of the high and low market value on the date of grant and that amount was amortized on a straight-line basis to compensation and benefits expense over the vesting period. There were no shares granted under the plan for the year ended March 31, 2013. The restricted stock grant plan expense was $55,000 for the year ended March 31, 2013. These shares were cancelled upon reorganization in September 2013.

Deferred Compensation Plans

The deferred compensation plan included an agreement with a previous executive established in 1986 to provide recognition of services performed and additional compensation for services to be performed. The Bank established a grantor trust in 1992 and fully funded the vehicle to facilitate distribution obligations under the agreement, and the trust subsequently purchased shares as all benefits payable under the agreement were payable in the Company’s stock. The benefits were 100% vested and the first distribution was made on December 3, 2010. The remaining balance payable of 166,480 shares was cancelled as part of the Plan of Reorganization.

The Company also established an Excess Benefit Plan to provide deferred compensation to certain members of management. As contributions were made to a participant’s account, funds were deposited into a trust account for the participant and in turn shares of ABCW stock were purchased. No contributions were made during the year- ended March 31, 2013 or the nine months ended December 31, 2013. All shares previously issued under the plan were cancelled as part of the Plan of Reorganization.

An obligation totaling $901,000 at March 31, 2013, representing the cost basis of undistributed shares in both plans described above was included in the deferred compensation obligation component of stockholders’ deficit. This amount was offset by the cost basis of undistributed shares purchased included in the additional paid in capital component of stockholders’ deficit. All shares issued under the plan were cancelled as part of the Plan of Reorganization.

Note 13 – Offsetting Assets and Liabilities

ASC 210-20-50 requires entities to provide disclosures of both gross information and net information about instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards, (“IFRS”).

Offsetting, otherwise known as netting, takes place when entities present their rights and obligations to each other as a net amount in their statement of financial condition. The Company has certain assets and liabilities on the Consolidated Balance Sheets which could be subject to the right of setoff and related arrangements associated with financial instruments and derivatives. Derivative instruments reported are used as part of a risk management

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strategy to address exposure to changes in interest rates inherent in the Company’s origination and sale of certain residential mortgages into the secondary market, as presented in Note 15 – Derivative Financial Instruments. A repurchase agreement is a transaction that involves the “sale” of financial assets by one party to another, subject to an agreement by the “seller” to repurchase the assets at a specified date or in specified circumstances.

The following table reflects the gross and net amounts of such assets and liabilities as of December 31, 2014 and 2013.

	Gross Amounts of Recognized Assets or Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets			Net Amount of Assets Presented in the Consolidated Balance Sheets
	(in thousands)
As of December 31, 2014
Assets
Interest rate commitments	$	154	$	—		$	154
Forward sale contracts		2		—			2
Liabilities
Interest rate commitments		14		—			14
Forward sale contracts		174		—			174
Repurchase Agreements		3,569		—			3,569
As of December 31, 2013
Assets
Interest rate commitments	$	40	$	—		$	40
Forward sale contracts		33		(1	)		32
Liabilities
Interest rate commitments		16		—			16
Forward sale contracts		1		(1	)		—
Repurchase Agreements		2,636		—			2,636

Note 14 – Commitments and Contingent Liabilities

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and financial guarantees which involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. The contract amounts of those instruments reflect the extent of involvement and exposure to credit loss the Company has in particular classes of financial instruments. The same credit policies are used in making commitments and conditional obligations as for on-balance-sheet instruments.

Financial instruments whose contract amounts represent credit risk are as follows:

	December 31,
	2014		2013
	(In thousands)
Commitments to extend credit	$	39,251	$	26,054
Unused commitments		—		657
Unused lines of credit:
Home equity		111,365		109,414
Credit cards		23,249		22,751
Commercial		144,333		54,840
Letters of credit		8,564		17,131
Credit enhancement under the Federal Home Loan Bank of Chicago Mortgage Partnership Finance Program		7,644		15,877

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Commitments to extend credit are in the form of a loan in the near future. Unused lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract and may be drawn upon at the borrowers’ discretion. Letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. Commitments and letters of credit primarily have fixed expiration dates or other termination clauses and may require payment of a fee. As some such commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. With the exception of credit card lines of credit, the Company primarily extends credit on a secured basis. Collateral obtained consists primarily of single-family residences and income-producing commercial properties.

The Bank previously participated in the MPF Program of the FHLB of Chicago. Pursuant to the credit enhancement feature of the MPF Program, the Bank retained a secondary credit loss exposure in the amount of $7.6 million at December 31, 2014 related to approximately $165.9 million of residential mortgage loans that the Bank has originated and are still outstanding. The Bank acts as a servicing agent for the FHLB of Chicago. Under the credit enhancement, the FHLB of Chicago is liable for losses on loans up to one percent of the original delivered loan balances in each pool up to the point the credit enhancement is reset. After the credit enhancement resets, the FHLB of Chicago and the Bank’s loss contingency could be reduced depending upon losses experienced and loan balances remaining. The Bank is liable for losses over and above the FHLB of Chicago first loss position up to a contractually agreed-upon maximum amount in each pool that was delivered to the MPF Program. The Bank receives a monthly fee for this credit enhancement obligation based on the outstanding loan balances. The monthly fee received is net of losses under the MPF Program. The Bank discontinued funding loans through the MPF Program in 2008.

Other loans sold to investors must meet specific criteria as determined by the investor at the time of sale. If it is determined at a later date, that a loan did not meet these requirements or was a fraudulent transaction, the investor may require the Bank to either repurchase the loan or make the investor whole in the event of a loss. As the Company expects relatively few such loans to become delinquent, the total amount of loans sold with recourse does not necessarily represent future cash requirements. Collateral obtained on such loans consists primarily of single-family residences. The unpaid principal balance of loans repurchased from investors totaled $1.1 million, $1.8 million and $1.6 million for the year ended December 31, 2014, the nine months ended December 31, 2013 and for the year ended March 31, 2013, respectively. Alternatively, investors make requests to be made whole on a loan whereby the property has been disposed of at a loss. The related amounts for requests by the investor to be made whole was $754,000, $687,000 and $1.9 million for the year ended December 31, 2014, the nine months ended December 31, 2013 and for the year ended March 31, 2013, respectively. All losses incurred are recorded against the reserve for repurchased loans on the Consolidated Balance Sheets.

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Unfunded Commitments and Repurchase Loan Reserve

In addition to the allowance for loan losses reflected on the Consolidated Balance Sheets, a reserve is also provided for unfunded loan commitments and for the repurchase of previously sold loans. The reserve for unfunded loan commitments includes unfunded commitments to lend and commercial letters of credit. These reserves are classified in other liabilities on the Consolidated Balance Sheets. The balances of these reserves for the periods presented is as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Reserve for unfunded commitment losses beginning balance	$	4,664		$	1,956	$	564
Provision for unfunded commitments		(2,107	)		2,708		1,392
Ending reserve for unfunded commitment losses	$	2,557		$	4,664	$	1,956
Reserve for repurchased loans beginning balance	$	2,600		$	2,600	$	—
Charge off		(1,176	)		—		—
Recovery		27			—		—
Provision for repurchased loans		(113	)		—		2,600
Ending reserve for repurchased loans	$	1,338		$	2,600	$	2,600

The amount of the allowance for unfunded loan commitments is determined using the average reserve rate by risk rating that applies to the associated funded loan category multiplied by the unfunded commitment amount. The reserve also covers potential loss on letters of credit outstanding for which the Bank may be unable to recover the amount outstanding. At December 31, 2014, a liability of $2.6 million was required as compared to a liability of $4.7 million at December 31, 2013 and reflects a decrease primarily due to a release of a $2.7 million specific reserve related to the letter of credit litigation that was resolved during the third quarter of 2014. The increase during the nine months ended December 31, 2013 included an increase for the specific reserve of this outstanding credit.

Loans intended to be sold are originated in accordance with specific criteria established by the investor agencies – these are known as “conforming loans”. During the sale of these loans, certain representations and warranties are made that the loans conform to these previously established underwriting standards. In the event that any of these representations and warranties or standards are found to be out of compliance, the Company may be responsible for repurchasing the loan at the unpaid principal balance or indemnifying the buyer against loss related to that loan.

The amount of the reserve for repurchased loans is determined using the serviced portfolio balances multiplied by historical and expected loss rates to provide for the probable losses related to sold mortgage loans. The reserve declined $1.3 million during the twelve months ended December 31, 2014 compared to remaining unchanged during the nine months ended December 31, 2013. Total expense incurred for investor loss reimbursements, including any provision recorded or reserve released, was $50,000 and $687,000 for the twelve months ended December 31, 2014 and the nine months ended December 31, 2013, respectively. Losses may result from the repurchase of loans or indemnification of losses incurred upon foreclosure and disposition of related collateral. The analysis of the reserve at December 31, 2014 required a liability of $1.3 million.

In the ordinary course of business, there are legal proceedings against the Company and its subsidiaries. Management considers that the aggregate liabilities, if any, resulting from such actions would not have a material, adverse effect on the consolidated financial position of the Company.

Note 15 – Derivative Financial Instruments

The Company enters into contracts that meet the definition of derivative financial instruments in accordance with ASC 815 – Derivative and Hedging. Derivatives are used as part of a risk management strategy to address

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exposure to changes in interest rates inherent in the Company’s origination and sale of certain residential mortgages into the secondary market. These derivative contracts used for risk management purposes include: (1) interest rate lock commitments provided to customers to fund mortgage loans intended to be sold; and (2) forward sale contracts for the future delivery of funded residential mortgages.

Forward sale contracts are entered into when interest rate lock commitments are granted to customers in an effort to economically hedge the effect of future changes in interest rates on the commitments to fund mortgage loans intended to be sold (the “pipeline”), as well as on the portfolio of funded mortgages not yet sold (the “warehouse”). For accounting purposes, these derivatives are not designated as being in a hedging relationship. The contracts are carried at fair value on the Consolidated Balance Sheets, with changes in fair value recorded in the Consolidated Statements of Operations.

Derivative financial instruments are summarized as follows:

		December 31,
		2014				2013
	Balance Sheet Location	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value
		(In thousands)
Derivative assets:
Interest rate lock commitments (1)	Other assets	$	14,633	$	154	$	3,863	$	37
Unused commitments (2)	Other assets		—		—		369		3
Forward contracts to sell mortgage loans (3)	Other assets		4,000		2		8,000		33
Derivative liabilities:
Interest rate lock commitments (1)	Other liabilities		2,108		14		2,172		12
Unused commitments (2)	Other liabilities		—		—		288		4
Forward contracts to sell mortgage loans (3)	Other assets		16,000		174		1,000		1

⁽¹⁾  Interest rate lock commitments include $7.9 million and $1.5 million of commitments not yet approved in the credit underwriting process at December 31, 2014 and 2013, respectively, yet represent potential interest rate risk exposure to the extent of those mortgage loan applications eventually approved for funding.

⁽²⁾  The Company recognizes fair value of unused commitments held for trading which consists of closed residential real estate loans in rescission at period end.

⁽³⁾  The Company has elected to offset the fair value of individual forward sale contracts and present a net amount on the Consolidated Balance Sheets in accordance with ASC 815-45, Derivatives and Hedging.

Net gains (losses) included in the consolidated statements of operations related to derivative financial instruments, recognized in net gain on sale of loans, are summarized as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Interest rate lock commitments	$	141		$	(688	)	$	(184	)
Unused commitments		(26	)		26			—
Forward contracts to sell mortgage loans		(848	)		2,463			(6,836	)
Total	$	(733	)	$	1,801		$	(7,020	)

The Company has developed a program to enter into interest rate swap arrangements to manage the interest rate risk exposure associated with specific commercial loan relationships at the time such loans are originated. These interest rate swaps, as well as the embedded derivatives associated with certain of its commercial loan relationships, are derivative financial instruments under GAAP. None of these derivative financial instruments

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would be designated by the Company as accounting hedges as specified in GAAP. As such, the fair market value of the interest rate swaps and embedded derivatives will be carried on the Company’s balance sheet as derivative assets or liabilities, as the case may be, and periodic changes in fair market value of such financial instruments will be recorded through periodic earnings in other non-interest income. At December 31, 2014 there were no outstanding commercial loan related interest rate swap transactions.

Note 16 – Fair Value of Financial Instruments

ASC Topic 820 establishes a framework for measuring fair value and disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

In determining fair value, various valuation methods are used including market, income and cost approaches. Assumptions that market participants would use in pricing the asset or liability are utilized in these valuation methods, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, market corroborated or generally unobservable inputs. Valuation methodologies are employed that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on observability of the inputs used in the valuation methodologies, financial assets and liabilities measured at fair value on a recurring and nonrecurring basis are categorized according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities that are adjusted to fair value are classified in one of the following three categories:

• Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

• Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

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Fair Value on a Recurring Basis

The table below presents the financial instruments carried at fair value by the valuation hierarchy (as described above):

	Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2014
Financial assets
Investment securities available for sale:
U.S. government sponsored and federal agency obligations	$	—	$	3,261	$	—	$	3,261
Corporate stock and bonds		3		—		—		3
Non-agency CMOs		—		27		—		27
Government sponsored agency mortgage-backed securities		—		120,621		—		120,621
GNMA mortgage-backed securities		—		170,687		—		170,687
Loans held for sale		—		6,594		—		6,594
Other assets:
Interest rate lock commitments		—		154		—		154
Forward contracts to sell mortgage loans		—		2		—		2
Total	$	3	$	301,346	$	—	$	301,349
Financial liabilities
Other liabilities:
Interest rate lock commitments	$	—	$	14	$	—	$	14
Forward contracts to sell mortgage loans		—		174		—		174
Total	$	—	$	188	$	—	$	188

	Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2013
Financial assets
Investment securities available for sale:
U.S. government sponsored and federal agency obligations	$	—	$	3,376	$	—	$	3,376
Corporate stock and bonds		355		—		—		355
Non-agency CMOs		—		—		6,208		6,208
Government sponsored agency mortgage-backed securities		—		50,158		—		50,158
GNMA mortgage-backed securities		—		217,775		—		217,775
Loans held for sale		—		3,085		—		3,085
Other assets:
Interest rate lock commitments		—		37		—		37
Unused commitments		—		3		—		3
Forward contracts to sell mortgage loans		—		33		—		33
Total	$	355	$	274,467	$	6,208	$	281,030
Financial liabilities
Other liabilities:
Interest rate lock commitments	$	—	$	12	$	—	$	12
Unused commitments		—		4		—		4
Forward contracts to sell mortgage loans		—		1		—		1
Total	$	—	$	17	$	—	$	17

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An independent service is used to price available-for-sale U.S. government sponsored and federal agency obligations, government sponsored agency mortgage-backed securities, and GNMA mortgage-backed securities using a market data model under Level 2. The significant inputs used to price GNMA mortgage-backed securities are as follows:

	December 31, 2014						Weighted Average			December 31, 2013						Weighted Average
	From			To						From			To
Coupon rate		2.0	%		4.6	%		2.5	%		1.6	%		4.6	%		2.4	%
Duration (in years)		0.5			5.4			3.5			1.1			5.7			3.6
PSA prepayment speed		142			399			259			128			458			346

As of December 31, 2014, the Corporation had sold 98.9% of its non-agency CMOs. The remaining CMOs are not validated by an independent pricing service.

	December 31, 2013						Weighted Average
	From			To
Observable inputs:
30 to 59 day delinquency rate		1.6	%		5.8	%		4.0	%
60 to 89 day delinquency rate		0.8			2.5			1.9
90 plus day delinquency rate		4.6			9.9			6.5
Loss severity		52.0			68.5			57.1
Coupon rate		5.0			6.0			5.5
Current credit support		—			4.3			—
Unobservable inputs:
Month 1 to month 24 constant default rate		5.3			11.6			8.2
Discount rate		4.0			7.0			6.6

Other assets and other liabilities include interest rate lock commitments provided to customers to fund mortgage loans intended to be sold and forward sale contracts for future delivery of funded residential mortgages to investors. The Company relies on an internal valuation model to estimate the fair value of its interest rate lock commitments, which includes applying an estimated pull-through rate (the percentage of commitments expected to result in a closed loan) based on historical experience; multiplied by quoted investor prices on closed loans for future delivery determined to be reasonably applicable to the loan commitment based on interest rate, terms and rate lock expiration.

The Company also relies on an internal valuation model to estimate the fair value of its forward contracts to sell residential mortgage loans (i.e., an estimate of what the Company would receive or pay to terminate the forward delivery contract) based on market prices for similar financial instruments, which includes matching specific terms and maturities of the forward commitments against applicable investor pricing available.

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The following is a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (level 3):

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013
	(in thousands)
Non-agency CMOs
Beginning balance	$	6,208		$	7,549
Total realized/unrealized gains (losses):
Included in earnings		(37	)		2
Included in other comprehensive income		212			93
Included in earnings as unrealized other-than-temporary impairment		(64	)		(23	)
Included in earnings as realized other-than-temporary impairment		222			224
Principal repayments		(1,126	)		(1,637	)
Sales		(5,388	)		—
Transfers out of level 3		(27	)		—
Ending balance	$	—		$	6,208

There was a transfer out of Level 3 to Level 2 of $27,000 for the twelve months ended December 31, 2014, there were no other transfers between levels during 2013. The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria changes and result in transfers between levels.

Fair Value on a Nonrecurring Basis

Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Loans held for sale and mortgage servicing rights includes only those items that were adjusted to fair value as of the dates indicated.

The following table presents such assets carried on the consolidated balance sheet by caption and by level within the fair value hierarchy:

	Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2014
Impaired loans, with an allowance recorded, net	$	—	$	—	$	32,331	$	32,331
Mortgage servicing rights		—		—		18,918		18,918
Other real estate owned		—		—		35,491		35,491
Total assets at fair value	$	—	$	—	$	86,740	$	86,740
December 31, 2013
Impaired loans, with an allowance recorded, net	$	—	$	—	$	51,090	$	51,090
Mortgage servicing rights		—		—		6,448		6,448
Other real estate owned		—		—		63,460		63,460
Total assets at fair value	$	—	$	—	$	120,998	$	120,998

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The significant inputs for those assets measured at fair value on a nonrecurring basis are as follows:

	December 31, 2014
	Method	Inputs
Impaired loans, with an allowance recorded, net	Appraised Values	External appraised values- adjustments made to values due to management factors including age of appraisal, age of comparables, known changes in the market and in the collateral and selling and commission cost of 15 % to 35%.
Mortgage servicing rights	Discounted Cash Flow	Weighted average prepayment speed 10.01%; weighted average discount rate 11.45%.
Other real estate owned	Appraised Values	External appraised values less selling and commission cost of 15 % to 35%.

The Company does not adjust loans held for investment to fair value on a recurring basis. However, some loans are considered impaired and an allowance for loan losses is established. The specific reserves for collateral dependent impaired loans are based on the fair value of the underlying collateral less estimated costs to sell. The fair value of collateral is usually determined based on appraisals. In some cases, adjustments are made to appraised values due to various factors including age of the appraisal, age of comparables included in the appraisal, and known changes in the market and in the collateral. Since adjustments to appraised values are based on unobservable inputs, the resulting fair value measurement is categorized as a Level 3 measurement.

MSRs are recorded as an asset when loans are sold to third parties with servicing rights retained. Mortgage servicing rights are initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estimated net servicing revenues. The carrying value of these assets is reviewed for impairment on a monthly basis using a lower of carrying value or fair value methodology. Mortgage servicing rights are valued monthly by an independent third party valuation service with income adjustments recorded monthly. On an annual basis the valuation is validated by a separate third party valuation service. The fair value of servicing rights is determined by estimating the present value of future net cash flows using a discounted cash flow model, taking into consideration market loan prepayment speeds, discount rates, servicing costs and other economic factors. For purposes of measuring impairment, the rights are stratified based on predominant risk characteristics of the underlying loans which include product type (i.e., fixed, adjustable or balloon) and interest rate. If the aggregate carrying value of the capitalized mortgage servicing rights for a stratum exceeds its fair value, the difference is recognized in non-interest expense as an impairment loss.

Critical assumptions used in the MSR discounted cash flow model include mortgage prepayment speeds, discount rates, costs to service, ancillary and late fee income. Variations in the assumptions could materially affect the estimated fair values. Changes to the assumptions are made when market data indicate that new trends have developed. Current market participant assumptions based on loan product types – fixed rate, adjustable rate and balloon loans – include discount rates in the range of 11.0% to 24.5% as well as portfolio weighted average prepayment speeds of 4.1% to 54.0% annual CPR. Many of these assumptions are subjective and involve a high degree of management judgment. MSR valuation assumptions are reviewed and approved by management on a quarterly basis.

Prepayment speeds may be affected by economic factors such as changes in home prices, market interest rates, the availability of other credit products to borrowers and customer payment patterns. Prepayment speeds include the impact of all borrower prepayments, including full payoffs, additional principal payments and the impact of loans paid off due to foreclosure liquidations. As market interest rates decline, prepayment speeds will generally increase as customers refinance existing mortgages to more favorable interest rate terms. As prepayment speeds increase, anticipated cash flows will generally decline resulting in a potential reduction, or impairment, of the fair

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value of the capitalized MSRs. Alternatively, an increase in market interest rates may cause a decrease in prepayment speeds and therefore an increase in fair value of MSRs. Annually, external data is obtained to test the values and assumptions that are used for the initial valuations in the discounted cash flow model.

Real estate acquired by foreclosure, real estate acquired by deed in lieu of foreclosure and other repossessed assets (OREO) are held for sale and are initially recorded at fair value less estimated selling expenses at the date of foreclosure. OREO is re-measured at the lower of cost or fair value after initial recognition and reported using a valuation allowance on foreclosed assets. Fair value is generally based on third party appraisals subject to discounting and is therefore considered a Level 3 measurement.

Fair Value Summary

ASC Topic 825 requires disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, whether or not recognized in the Consolidated Balance Sheets, including those financial assets and liabilities that are not measured and reported at fair value on a recurring or nonrecurring basis. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Results from these techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in immediate settlement of the instruments. Certain financial instruments with a fair value that is not practicable to estimate and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented in the table below do not necessarily represent the underlying value of the Company.

The following methods and assumptions were used in estimating the fair value of financial instruments that were not previously disclosed:

Cash and cash equivalents and accrued interest: The carrying amounts reported in the balance sheets approximate the fair values for those assets and liabilities. In accordance with ASC Topic 820, cash and cash equivalents and accrued interest have been categorized as a Level 2 fair value measurement.

Loans held for investment, net: The fair value of residential mortgage loans held for investment, commercial real estate loans, commercial and industrial loans, and consumer and other loans held for investment are estimated using observable inputs including estimated cash flows, and discount rates based on interest rates currently being offered for loans with similar terms, to borrowers of similar credit quality. In accordance with ASC Topic 820, loans held for investment that are not included with impaired loans in the preceding section titled Fair Value on a Nonrecurring Basis have been categorized as a Level 2 fair value measurement.

Federal Home Loan Bank stock: The carrying amount of FHLB stock approximates its fair value as it can only be redeemed with the FHLB at par value. In accordance with ASC Topic 820, Federal Home Loan Bank stock has been categorized as a Level 2 fair value measurement.

Deposits: The fair value of checking, savings and money market accounts are reported at book value, which is the amount payable on demand. The fair values of fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies current interest rates being offered on certificates of deposit to a schedule of aggregated expected monthly maturities of the outstanding certificates of deposit. In accordance with ASC Topic 820, deposits have been categorized as a Level 2 fair value measurement.

Other borrowed funds: The fair value of FHLB advances and repurchase agreements are estimated using discounted cash flow analysis, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair value of the long-term lease obligation is reported at book value, which represents the present value of the cash flows at the time of inception and is indicative of the fair value in the current stable rate environment. In accordance with ASC Topic 820, other borrowed funds have been categorized as a Level 2 fair value measurement.

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Off-balance-sheet instruments: The fair value of off-balance-sheet instruments (held for investment lending commitments and unused lines of credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the counterparties’ credit standing and discounted cash flow analyses. The fair value of these off-balance-sheet items approximates the recorded amounts of the related fees and is not material at December 31, 2014 and 2013.

The carrying amount and fair value of the Company’s financial instruments consist of the following:

	December 31,
	2014				2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Financial assets:
Cash and cash equivalents	$	147,273	$	147,273	$	143,396	$	143,396
Investment securities available for sale		294,599		294,599		277,872		277,872
Loans held for sale		6,594		6,594		3,085		3,085
Loans held for investment, net		1,524,439		1,496,791		1,544,324		1,488,677
Mortgage servicing rights		19,404		19,590		22,294		23,553
Federal Home Loan Bank stock		11,940		11,940		11,940		11,940
Accrued interest receivable		7,627		7,627		8,216		8,216
Interest rate lock commitments		154		154		37		37
Unused commitments		—		—		3		3
Forward contracts to sell mortgage loans (1)		2		2		33		33
Financial liabilities:
Non-maturity deposits		1,366,958		1,366,958		1,324,324		1,324,324
Deposits with stated maturities		447,213		445,938		550,969		549,668
Other borrowed funds		13,752		14,077		12,877		13,121
Accrued interest payable		316		316		415		415
Interest rate lock commitments		14		14		12		12
Unused commitments		—		—		4		4
Forward contracts to sell mortgage loans (1)		174		174		1		1

⁽¹⁾  The Company has elected to offset the fair value of individual forward sale contracts and present a net amount on the Consolidated Balance Sheets in accordance with ASC 815-45, Derivatives and Hedging.

Note 17 – Income Taxes

The Company and its subsidiaries file a consolidated federal income tax return and combined state income tax returns. The provision for income taxes consists of the following:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Current:
Federal	$	—	$	—	$	(51	)
State		10		9		(130	)
		10		9		(181	)
Deferred:
Federal		—		—		—
State		—		—		—
		—		—		—
Total income tax expense (benefit)	$	10	$	9	$	(181	)

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At December 31, 2014 and 2013, the affiliated group had a federal net operating loss and tax credit carryover of $200.6 million and $185.1 million, respectively, and at December 31, 2014 and 2013, certain subsidiaries had state net operating loss carryovers of $320.1 million and $301.8 million, respectively. These carryovers expire in varying amounts in 2015 through 2034.

The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows:

	Year Ended December 31, 2014						Nine Months Ended December 31, 2013						Year Ended March 31, 2013
	Amount			% of Pretax Income			Amount			% of Pretax Income			Amount			% of Pretax Income
	(Dollars in thousands)
Net income (loss) before income taxes	$	14,632			100.0	%	$	111,632			100.0	%	$	(34,353	)		100.0	%
Income tax expense (benefit) at federal statutory rate	$	5,121			35.0	%	$	39,071			35.0	%	$	(12,024	)		35.0	%
State income taxes, net of federal income tax benefits		746			5.1			(1,008	)		(0.9	)		(1,840	)		5.3
Cancellation of indebtedness income exclusion		—			—			(47,080	)		(42.2	)		—			—
Increase (decrease) in valuation allowance		(5,806	)		(39.7	)		7,906			7.1			13,643			(39.7	)
Other		(51	)		(0.3	)		1,120			1.0			40			(0.1	)
Income tax expense (benefit)	$	10			0.1	%	$	9			—	%	$	(181	)		0.5	%

The Company accounts for income taxes based on the asset and liability method. Deferred tax assets and liabilities are recorded based on the difference between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates. Significant net deferred tax assets have been created for net operating loss (NOL) carryforwards and deductible temporary differences, the largest of which relates to our allowance for loan losses. For income tax purposes, only net charge-offs on uncollectible loans are deductible, not the provision for credit losses.

Under generally accepted accounting principles, a valuation allowance is required to be recognized if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon management’s evaluation and judgment of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of the current and future economic and business conditions. The Company considers both positive and negative evidence regarding the ultimate realizability of deferred tax assets. Positive evidence includes the existence of taxes paid in available carry back years as well as the probability that taxable income will be generated in future periods while negative evidence includes significant cumulative losses in the past several years as well as general business and economic trends.

At December 31, 2014 and 2013, the Company determined that a valuation allowance relating to the deferred tax asset was necessary. This determination was based largely on the negative evidence represented by the losses in the prior years caused by the significant loss provisions associated with the loan portfolio. Therefore, a valuation allowance of $113.1 million and $119.8 million at December 31, 2014 and 2013, respectively, was recorded to offset net deferred tax assets.

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The significant components of deferred tax assets (liabilities) are as follows:

	December 31, 2014			December 31, 2013
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	18,871		$	27,193
OREO valuation allowance and other loss reserves		10,307			15,026
Federal NOL carryforwards		72,630			66,359
State NOL carryforwards		16,657			15,710
Unrealized securities losses, net		963			2,657
Other		2,964			3,154
Total deferred tax assets		122,392			130,099
Valuation allowance		(113,099	)		(119,780	)
Adjusted deferred tax assets		9,293			10,319
Deferred tax liabilities:
FHLB stock dividends		(833	)		(833	)
Mortgage servicing rights		(7,785	)		(8,944	)
Other		(675	)		(542	)
Total deferred tax liabilities		(9,293	)		(10,319	)
Net deferred tax assets	$	—		$	—

The Company is subject to U.S. federal income tax as well as income tax of various state jurisdictions. The tax years 2011-2014 remain open to examination by the Internal Revenue Service and certain state jurisdictions while the years 2010-2014 remain open to examination by certain other state jurisdictions.

Note 18 – Earnings Per Share

Basic earnings per share for the years ended December 31, 2014 and 2013 have been determined by dividing net income available to common equity for the respective periods by the weighted average number of shares of common stock outstanding. Unvested shares of restricted stock are not considered outstanding for purposes of basic earnings per share. Diluted earnings per share is computed by dividing net income available to common equity by the weighted average number of common shares outstanding plus the effect of dilutive securities. The effects of dilutive securities, if any, are computed using the treasury stock method.

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The computation of earnings per share is as follows:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013 (1)		Year Ended March 31, 2013 (1)
	(in thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share – net income (loss) available to common equity	$	14,622	$	206,918	$	(48,144	)
Denominator:
Denominator for basic earnings per share – weighted average shares		9,107		16,989		21,247
Effect of dilutive securities:
Restricted stock (2)		44		—		—
Denominator for diluted earnings per share – weighted average shares		9,151		16,989		21,247
Basic income (loss) per common share	$	1.61	$	12.18	$	(2.27	)
Diluted income (loss) per common share	$	1.60	$	12.18	$	(2.27	)

⁽¹⁾  The calculation of weighted average shares included 21,247,000 shares of Legacy Common Stock outstanding through September 26, 2013 and 9,050,000 shares of common stock outstanding from September 27 through December 31, 2013.

⁽²⁾  Computed based on the treasury stock method using the average market price per period. The value used prior to the issuance of shares pursuant to the recapitalization transaction on September 27, 2013 was approximately 90% of book value. Since the time of the transaction, the position of the Company has remained relatively the same, therefore the issuance of the August 15, 2014 grant of restricted stock shares at 90% of book value as of the most recent month end was a reasonable approximation of fair value.

Note 19 – Condensed Parent Only Financial Information

The following represents parent company only financial information:

Condensed Balance Sheets

	December 31,
	2014		2013
	(In thousands)
Assets
Cash and cash equivalents	$	10,081	$	5,238
Investment in subsidiaries		216,547		196,824
Intercompany receivable from non-bank subsidiaries		996		95
Other		133		511
Total assets	$	227,757	$	202,668
Liabilities
Loans payable	$	—	$	—
Accrued interest and fees payable		—		—
Other liabilities		94		470
Total liabilities		94		470
Stockholders’ Equity
Total stockholders’ equity		227,663		202,198
Total liabilities and stockholders’ equity	$	227,757	$	202,668

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Condensed Statements of Operations

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Interest income	$	8		$	4		$	5
Interest expense		—			7,053			19,119
Net interest income (expense)		8			(7,049	)		(19,114	)
Equity in net income (loss) from subsidiaries		15,502			18,787			(14,781	)
Non-interest income		100			—			4
Extinguishment of debt		—			134,514			—
Income (loss) from operations		15,610			146,252			(33,891	)
Reorganization costs		(64	)		1,929			—
Non-interest expense		1,052			1,031			687
Income (loss) before income taxes		14,622			143,292			(34,578	)
Income tax expense (benefit)		—			31,669			(406	)
Net income (loss)		14,622			111,623			(34,172	)
Preferred stock dividends in arrears		—			(2,538	)		(6,560	)
Preferred stock discount accretion		—			(6,167	)		(7,412	)
Retirement of preferred shares		—			104,000			—
Net income (loss) available to common equity	$	14,622		$	206,918		$	(48,144	)

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Condensed Statements of Cash Flows

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Operating Activities
Net income (loss)	$	14,622		$	111,623		$	(34,172	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in income (loss) of subsidiaries		(15,502	)		(18,787	)		14,781
Extinguishment of debt		—			(134,514	)		—
Increase in accrued interest and fees payable		—			7,053			19,119
Costs associated with stock plan		—			2,922			—
Increase (decrease) in other		96			(2,872	)		(3,561	)
Net cash used in operating activities		(784	)		(34,575	)		(3,833	)
Investing Activities
Net decrease in intercompany loans		—			—			4,225
Dividend received from subsidiaries		—			5,402			—
Capital contribution to subsidiaries		—			(80,205	)		—
Net cash provided by (used in) investing activities		—			(74,803	)		4,225
Financing Activities
Repayment of borrowed funds		—			(49,000	)		—
Recapitalization transaction fees		—			(14,360	)		—
Issuance of common stock		7,951			175,000			—
Stock issuance cost		(2,324	)		—			—
Net cash provided by financing activities		5,627			111,640			—
Increase in cash and cash equivalents		4,843			2,262			392
Cash and cash equivalents at beginning of year		5,238			2,976			2,584
Cash and cash equivalents at end of year	$	10,081		$	5,238		$	2,976

Note 20 – Subsequent Events

On January 27, 2015 the Bank announced the sale of its Viroqua branch to another bank located in Wisconsin. The purchasing bank will assume approximately $12.0 million in deposits along with loans and other assets. The transaction is subject to regulatory approval and customary closing conditions and is targeted to close by the end of May, 2015.

On January 28, 2015 the Bank completed the purchase of a new building located on the east side of Madison, Wisconsin at a purchase price of $4.0 million. This facility will house a number of support departments involving several hundred employees. Management believes this move should improve workgroup efficiencies.

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Note 21 – Quarterly Financial Data (unaudited)

Unaudited condensed financial data by quarter for year ended December 31, 2014 and the nine months ended December 31, 2013 is as follows:

	Three Months Ended
	12/31/2014			9/30/2014			6/30/2014		3/31/2014		12/31/2013		9/30/2013			6/30/2013
	(Dollars in thousands – except per share amounts)
Operations Data:
Net interest income	$	17,501		$	17,558		$	17,862	$	18,315	$	18,877	$	15,812		$	13,417
Provision for loan losses		(3,281	)		(1,304	)		—		—		—		—			275
Non-interest income		8,962			8,015			7,610		5,932		8,002		142,679			8,852
Non-interest expense		24,621			21,915			22,855		22,317		23,125		45,232			27,375
Income (loss) before income tax expense		5,123			4,962			2,617		1,930		3,754		113,259			(5,381	)
Income tax expense		—			—			10		—		—		9			—
Net income (loss)		5,123			4,962			2,607		1,930		3,754		113,250			(5,381	)
Preferred stock dividends in arrears (1)		—			—			—		—		—		103,163			(1,701	)
Preferred stock discount accretion		—			—			—		—		—		(4,304	)		(1,863	)
Net income (loss) available to common equity		5,123			4,962			2,607		1,930		3,754		212,109			(8,945	)
Per Share:
Basic income (loss) per common share	$	0.56		$	0.55		$	0.29	$	0.21	$	0.41	$	10.24		$	(0.42	)
Diluted income (loss) per common share		0.55			0.55			0.29		0.21		0.41		10.24			(0.42	)
Dividends per common share		—			—			—		—		—		—			—
Book value per common share		23.85			23.22			23.37		22.84		22.34		22.21			(8.33	)

⁽¹⁾  Including compounding, and $104,000 in quarter ended 9/30/2013 for retirement of preferred shares.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Disclosure Controls and Procedures. The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. The design of any system of disclosure controls and procedures is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any disclosure controls and procedures will succeed in achieving their stated goals under all potential future conditions.

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the design and operation of our disclosure and control procedures as of December 31, 2014. As of December 31, 2014, the CEO and CFO have concluded that the disclosure and control procedures set forth above were effective.

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Management’s Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Our internal control over financial reporting is a process designed by, or under the supervision of, our Chief Executive Officer and Chief Financial Officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Internal control over financial reporting includes those policies and procedures that:

• Pertain to the maintenance of reports that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the Company;

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made in accordance with authorizations of management and directors of the Corporaton; and

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of Company assets.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of the changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2014. In making its assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) Internal Control – Integrated Framework in 2013. These criteria include the control environment, risk assessment, control activities, information and communication and monitoring of each of the above criteria. Based on management’s assessment, it determined that the Company’s internal control over financial reporting was effective as of December 31, 2014.

McGladrey LLP, an independent registered public accounting firm that audited the Consolidated Financial Statements of the Company included in this Annual Report on Form 10-K, has issued an attestation report on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2014. The report, which expresses an unqualified opinion of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2014, is included in this Item under the heading “Report of Independent Registered Public Accounting Firm.”

Changes in Internal Control over Financial Reporting

There has been no change in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the three months ended December 31, 2014 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

None.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The information related to Directors and Executive Officers is incorporated herein by reference to “Election of Directors” and “Section 16(a) Beneficial Ownership Reporting Compliance” in the Company’s Proxy Statement for the Annual Meeting of Stockholders to be held on April 29, 2015.

136

The Company has adopted a code of business conduct and ethics for the CEO and CFO which is available on the Company’s website at www.anchorbank.com.

Item 11. Executive Compensation

The information relating to executive compensation is incorporated herein by reference to “Compensation of Directors” and “Executive Compensation” in the Company’s Proxy Statement for the Annual Meeting of Stockholders to be held on April 29, 2015.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.

The information relating to security ownership of certain beneficial owners and management is incorporated herein by reference to “Beneficial Ownership of Common Stock by Certain Beneficial Owners and Management” in the Company’s Proxy Statement for the Annual Meeting of Stockholders to be held on April 29, 2015.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information relating to certain relationships and related transactions is incorporated herein by reference to “Election of Directors” in the Registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held on April 29, 2015.

Item 14. Principal Accountant Fees and Services

The information required by this item is incorporated herein by reference to “Relationship with Independent Registered Public Accounting Firm” in the Company’s Proxy Statement for the Annual Meeting of Stockholders to be held on April 29, 2015.

137

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a) (1)    Financial Statements

The following consolidated audited financial statements of the Company and its subsidiaries, together with the related reports of McGladrey LLP, dated March 19, 2015, are incorporated herein by reference to Item 8 of this Annual Report on Form 10-K:

Consolidated Balance Sheets at December 31, 2014 and 2013.

Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2014, the nine months ended December 31, 2013 and the fiscal year ended March 31, 2013.

Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the year ended December 31, 2014, the nine months ended December 31, 2013 and the fiscal year ended March 31, 2013.

Consolidated Statements of Cash Flows for the year ended December 31, 2014, the nine months ended December 31, 2013 and the fiscal year ended March 31, 2013.

Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements.

Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting.

Notes to Consolidated Financial Statements.

(a) (2)    Financial Statement Schedules

All schedules are omitted because they are not required or are not applicable or the required information is shown in the consolidated financial statements or notes thereto.

(a) (3)    Exhibits

Exhibit Number	Description
2.1	Confirmation Order, dated August 30, 2013 (incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K filed on September 6, 2013).
3.1	Amended and Restated Certificate of Incorporation of Anchor BanCorp Wisconsin Inc. (incorporated by reference to Exhibits 3.1 of the Registrant’s Forms 8-K filed on September 27, 2013 and November 29, 2013).
3.2	Amended and Restated Bylaws of Anchor BanCorp Wisconsin Inc. (Effective September 25, 2013) (incorporated by reference to Exhibit 3.2 of the Registrant’s Form 8-K filed on September 27, 2013).
4.1	Form of 9.9% Investor Stock Purchase Agreement dated August 12, 2013 by and between the Company and the investors named therein (incorporated by reference to Exhibit 10.1 of the Registrant’s Form 8-K filed on August 13, 2013).
4.2	Form of 4.9% Investor Stock Purchase Agreement dated August 12, 2013 by and between the Company and the investors named therein (incorporated by reference to Exhibit 10.2 of the Registrant’s Form 8-K filed on August 13, 2013).
4.3	Form of Management Investor Stock Purchase Agreement dated August 12, 2013 by and between the Company and the investors named therein (incorporated by reference to Exhibit 10.3 of the Registrant’s Form 8-K filed on August 13, 2013).

138

Exhibit Number	Description
4.4	Form of Secondary Sale Purchaser Agreement dated September 19, 2013 by and between the Company and the investors named therein (incorporated by reference to Exhibit 4.5 of the Registrant’s Form S-1 Registration Statement filed on December 19, 2013).
10.1	Anchor BanCorp Wisconsin Inc. Retirement Plan (incorporated by reference to Exhibit 10.1 of Registrant’s Form S-1 Registration Statement filed on March 19, 1992).
10.2	Employment Agreement between the Bank and Chris M. Bauer, dated September 5, 2014 (incorporated by reference to Exhibit 10.9 of the Company’s Registration Statement on Form S-1, filed September 9, 2014, File No. 333-192964).
10.3	Key Executive Employment and Severance Agreement between the Bank and Thomas Dolan, dated September 5, 2014 and effective September 3, 2014 (incorporated by reference to Exhibit 10.10 of the Company’s Registration Statement on Form S-1, filed September 9, 2014, File No. 333-192964).
10.4	Key Executive Employment and Severance Agreement between the Bank and Martha M. Hayes, dated September 5, 2014 (incorporated by reference to Exhibit 10.11 of the Company’s Registration Statement on Form S-1, filed September 9, 2014, File No. 333-192964).
10.5	Key Executive Employment and Severance Agreement between the Bank and William T. James, dated September 5, 2014 and effective September 3, 2014 (incorporated by reference to Exhibit 10.12 of the Company’s Registration Statement on Form S-1, filed September 9, 2014, File No. 333-192964).
10.6	Key Executive Employment and Severance Agreement between the Bank and Scott M. McBrair, dated September 5, 2014 (incorporated by reference to Exhibit 10.13 of the Company’s Registration Statement on Form S-1, filed September 9, 2014, File No. 333-192964).
10.7	Key Executive Employment and Severance Agreement between the Bank and Mark D. Timmerman, dated September 5, 2014 (incorporated by reference to Exhibit 10.14 of the Company’s Registration Statement on Form S-1, filed September 9, 2014, File No. 333-192964).
11.1	Computation of Earnings per Share. Refer to Note 18 – Earnings Per Share to the Consolidated Financial Statements in Item 8.
21.1	List of Subsidiaries of the Registrant. Subsidiary information is incorporated by reference to “Part I, Item 1, Business – General” and “Part I, Item 1, Business – Subsidiaries.”
24.1	Powers of Attorney.
31.1	Certification of Chief Executive Officer Pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer Pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
101	The following financial statements from the Anchor Bancorp Wisconsin, Inc. Annual Report on Form 10-K for the year ended December 31, 2014, formatted in Extensive Business Reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Consolidated Statements of Changes in Stockholders’ Equity (Deficit), (iv) Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements.

139

(b) Exhibits

Exhibits to the Form 10-K required by Item 601 of Regulation S-K are attached or incorporated herein by reference as stated in (a)(3) and the Index to Exhibits.

(c) Financial Statements excluded from Annual Report to Stockholders pursuant to Rule 14a-3(b)

Not applicable

140

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ANCHOR BANCORP WISCONSIN INC.
By:	/s/ Chris M. Bauer
	Name:	Chris M. Bauer
	Title:	President and Chief Executive Officer
	Date:	March 19, 2015

In accordance with the requirements of the Securities Exchange Act of 1934, this annual report has been signed by the following persons in the capacities and on the dates stated.

By:	*	By:	*
	Chris M. Bauer President and Chief Executive Officer, Director (principal executive officer) Date: March 19, 2015		William T James Senior Vice President, Chief Financial Officer and Treasurer Date: March 19, 2015
By:	*	By:	*
	Richard A. Bergstrom Director Date: March 19, 2015		Pat Richter Director Date: March 19, 2015
By:	*	By:	*
	David L. Omachinski Director Date: March 19, 2015		Holly Cremer Director Date: March 19, 2015
By:	*	By:	*
	Martin S. Friedman Director Date: March 19, 2015		Bradley E. Cooper Director Date: March 19, 2015

*By:	/s/ Chris M. Bauer
	Chris M. Bauer Attorney-in-fact

141

EX-24.1

EXHIBIT 24.1

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned constitutes, designates and appoints Chris M. Bauer, William T. James, and Mark D. Timmerman as such person’s true and lawful attorneys-in-fact and agents, each with full power of substitution and re-substitution and full power to act alone and without the other, for the undersigned and in the undersigned name, place and stead, in any and all capacities, to execute, acknowledge, deliver and file any and all statements on Form 10K, as may be required by the Securities Act of 1933 and the Securities Exchange Act of 1934 and the rules thereunder, and requisite documents in connection with such statements, with respect to Anchor BanCorp Wisconsin Inc. This power of attorney supersedes any previous version of the same, and shall be valid from the date hereof until revoked by the undersigned.

IN WITNESS WHEREOF, the undersigned has executed this instrument as of the 19th day of March, 2015.

By:	/s/ Richard A. Bergstrom	By:	/s/ Pat Richter
	Richard A. Bergstrom Director		Pat Richter Director
By:	/s/ David L. Omachinski	By:	/s/ Holly Cremer
	David L. Omachinski Director and Chairman of the Board		Holly Cremer Director
By:	/s/ Martin S. Friedman	By:	/s/ Bradley E. Cooper
	Martin S. Friedman Director		Bradley E. Cooper Director

By:	/s/ Chris M. Bauer
	Chris M. Bauer Director, President and Chief Executive Officer

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934

and Section 302 of the Sarbanes-Oxley Act of 2002

I, Chris Bauer, President and Chief Executive Officer of Anchor BanCorp Wisconsin Inc. certify that:

1. I have reviewed this annual report on Form 10-K of Anchor BanCorp Wisconsin Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 19, 2015	/s/Chris Bauer
	Chris Bauer
	President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934

and Section 302 of the Sarbanes-Oxley Act of 2002

I, William T. James, Chief Financial Officer and Treasurer of Anchor BanCorp Wisconsin Inc. certify that:

1. I have reviewed this annual report on Form 10-K of Anchor BanCorp Wisconsin Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 19, 2015	/s/William T. James
	William T. James, Senior Vice President, Treasurer and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

The undersigned executive officer of Anchor BanCorp Wisconsin, Inc. (the “Registrant”) hereby certifies that the Registrant’s Form 10-K for the year ended December 31, 2014 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Chris Bauer

Chris Bauer, President and Chief Executive Officer

March 19, 2015

Note: A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Anchor BanCorp Wisconsin, Inc. and will be retained by Anchor BanCorp Wisconsin, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

The undersigned executive officer of Anchor BanCorp Wisconsin, Inc. (the “Registrant”) hereby certifies that the Registrant’s Form 10-K for the year ended December 31, 2014 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/William T. James

William T. James, Senior Vice President, Treasurer and Chief Financial Officer

March 19, 2015

Note: A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Anchor BanCorp Wisconsin, Inc. and will be retained by Anchor BanCorp Wisconsin, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Offsetting Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Gross and Net Amount of Derivative Assets and Liabilities

The following table reflects the gross and net amounts of such assets and liabilities as of December 31, 2014 and 2013.

	Gross Amounts of Recognized Assets or Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets			Net Amount of Assets Presented in the Consolidated Balance Sheets
	(in thousands)
As of December 31, 2014
Assets
Interest rate commitments	$	154	$	—		$	154
Forward sale contracts		2		—			2
Liabilities
Interest rate commitments		14		—			14
Forward sale contracts		174		—			174
Repurchase Agreements		3,569		—			3,569
As of December 31, 2013
Assets
Interest rate commitments	$	40	$	—		$	40
Forward sale contracts		33		(1	)		32
Liabilities
Interest rate commitments		16		—			16
Forward sale contracts		1		(1	)		—
Repurchase Agreements		2,636		—			2,636

XML

Fair Value of Financial Instruments - Carrying Amount and Fair Value of Company's Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Mar. 31, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, carrying value	$ 147,273	$ 143,396	$ 228,536	$ 242,980
Investment securities available for sale, carrying value	294,599	277,872
Loans held for sale, carrying value	6,594	3,085
Loans held for investment, net, carrying value	1,524,439	1,544,324
Mortgage servicing rights, carrying value	19,404	22,294
Federal Home Loan Bank stock, carrying value	11,940	11,940
Accrued interest receivable, carrying value	7,627	8,216
Non-maturity deposits, carrying value	1,366,958	1,324,324
Deposits with stated maturities, carrying value	447,213	550,969
Other borrowed funds, carrying value	13,752	12,877
Accrued interest payable, carrying value	316	415
Cash and cash equivalents, fair value	147,273	143,396
Loans held for sale, fair value	6,594	3,085
Loans held for investment, net, fair value	1,496,791	1,488,677
Mortgage servicing rights, fair value	19,590	23,553
Federal Home Loan Bank stock, fair value	11,940	11,940
Accrued interest receivable, fair value	7,627	8,216
Non-maturity deposits, fair value	1,366,958	1,324,324
Deposits with stated maturities, fair value	445,938	549,668
Other borrowed funds, fair value	14,077	13,121
Accrued interest payable, fair value	316	415
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale, carrying value	294,599	277,872
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale, carrying value	294,599	277,872
Interest Rate Lock Commitments | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets	154	37
Financial liabilities	14	12
Interest Rate Lock Commitments | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets	154	37
Financial liabilities	14	12
Unused Commitments | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets		3
Financial liabilities		4
Unused Commitments | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets		3
Financial liabilities		4
Forward Contracts to Sell Mortgage Loans | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets	2	33
Financial liabilities	174	1
Forward Contracts to Sell Mortgage Loans | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets	2	33
Financial liabilities	$ 174	$ 1

XML

Investment Securities - Roll Forward of Other-Than-Temporary Impairment Related to Credit Losses (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Mar. 31, 2013
Investments, Debt and Equity Securities [Abstract]
Beginning balance of unrealized OTTI related to credit losses	$ 1,002	$ 801	$ 2,391
Additional unrealized OTTI related to credit losses for which OTTI was previously recognized	23	64	412
Additional debit related OTTI previously recognized for OTTI recovery during the period	5	4
Credit related OTTI previously recognized for securities sold during the period		(644)	(1,075)
Credit related OTTI previously recognized for securities paid-off during the period			(4)
Decrease for realized amount of credit losses for which unrealized credit related OTTI was previously recognized	(229)	(225)	(722)
Ending balance of unrealized OTTI related to credit losses	$ 801		$ 1,002

XML

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014 Segment Subsidiary	Dec. 31, 2013
Significant Accounting Policies [Line Items]
Number of subsidiaries	1
Number of operating segments	3
Securities designated as trading	$ 0	$ 0
Securities designated as held to maturity	0	0
Past due unsecured loans	120 days
Past due secured loans	180 days
Decrease in reserve of allowance for loan losses	(36,000)
Minimum
Significant Accounting Policies [Line Items]
Capitalized costs relating to development and improvement of property	$ 10,000
Minimum | Office properties and equipment
Significant Accounting Policies [Line Items]
Premises and equipment estimated useful lives	3 years
Maximum | Office properties and equipment
Significant Accounting Policies [Line Items]
Premises and equipment estimated useful lives	40 years
Loans Held for Investment
Significant Accounting Policies [Line Items]
Non-accrual loans past due	90 days
Commercial and Industrial Loans
Significant Accounting Policies [Line Items]
Terms of commercial business loans	5 years
Commercial Real Estate Loans | Minimum
Significant Accounting Policies [Line Items]
Amortization period	15 years
Balloon payments	2 years
Commercial Real Estate Loans | Maximum
Significant Accounting Policies [Line Items]
Amortization period	30 years
Balloon payments	7 years

XML

Condensed Parent Only Financial Information - Condensed Statements of Cash Flows (Detail) (USD $)	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Operating Activities
Net income (loss)	$ (111,623,000)	$ (14,622,000)	$ (97,603,000)	$ 34,172,000
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Extinguishment of debt	(134,514,000)
Costs associated with stock plan		996,000
Financing Activities
Repayment of borrowed funds	(956,037,000)	(105,452,000)		(251,572,000)
Recapitalization transaction fees	(14,360,000)
Issuance of common stock	175,000,000	7,951,000
Stock issuance cost		(2,324,000)
Increase in cash and cash equivalents	(85,140,000)	3,877,000		(14,444,000)
Cash and cash equivalents at beginning of period	228,536,000	143,396,000		242,980,000
Cash and cash equivalents at end of period	143,396,000	147,273,000	143,396,000	228,536,000
Parent Company
Operating Activities
Net income (loss)	111,623,000	14,622,000		(34,172,000)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in income (loss) of subsidiaries	(18,787,000)	(15,502,000)		14,781,000
Extinguishment of debt	(134,514,000)
Increase in accrued interest and fees payable	7,053,000			19,119,000
Costs associated with stock plan	2,922,000
Increase (decrease) in other	(2,872,000)	96,000		(3,561,000)
Net cash used in operating activities	(34,575,000)	(784,000)		(3,833,000)
Investing Activities
Net decrease in intercompany loans				4,225,000
Dividend received from subsidiaries	5,402,000
Capital contribution to subsidiaries	(80,205,000)
Net cash provided by (used in) investing activities	(74,803,000)			4,225,000
Financing Activities
Repayment of borrowed funds	(49,000,000)
Recapitalization transaction fees	(14,360,000)
Issuance of common stock	175,000,000	7,951,000
Stock issuance cost		(2,324,000)
Net cash provided by financing activities	111,640,000	5,627,000
Increase in cash and cash equivalents	2,262,000	4,843,000		392,000
Cash and cash equivalents at beginning of period	2,976,000	5,238,000		2,584,000
Cash and cash equivalents at end of period	$ 5,238,000	$ 10,081,000	$ 5,238,000	$ 2,976,000

XML

Loans Held for Investment, net - Risk Category of Loans by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014		Mar. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Non-Accrual	$ 68,497		$ 35,115
Total gross loans	1,621,554		1,583,105
Total gross loans	95,451	[1]	93,498	[1]	159,134	[1]
Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	702,355		683,509
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	21,591		16,514
Total gross loans	992	[1]	954	[1]	2,864	[1]
Land and construction
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	19,973	[1]	16,632	[1]	27,832	[1]
Land and construction | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	92,050		106,436
Multi-family
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	11,456	[1]	28,444	[1]	25,833	[1]
Multi-family | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	281,917		265,735
Retail/office
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	25,988	[1]	16,247	[1]	28,745	[1]
Retail/office | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	154,075		155,095
Other consumer
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	3,031	[1]	1,620	[1]	4,604	[1]
Pass
Financing Receivable, Recorded Investment [Line Items]
Percent of total gross loans	82.30%	[2]	93.00%	[2]
Total gross loans	1,429,283		1,465,224
Pass | Total
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	595,515	[2]	650,924	[2]
Pass | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	16,542	[2]	14,990	[2]
Pass | Land and construction | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	57,221	[2]	85,425	[2]
Pass | Multi-family | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	255,741	[2]	261,254	[2]
Pass | Retail/office | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	130,966	[2]	143,260	[2]
Pass | Other consumer | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	135,045	[2]	145,995	[2]
Special mention
Financing Receivable, Recorded Investment [Line Items]
Percent of total gross loans	3.30%		0.80%
Total gross loans	24,203		6,243
Special mention | Total
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	24,203		5,873
Special mention | Land and construction | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	75		946
Special mention | Multi-family | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	465
Special mention | Retail/office | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	2,967		4,753
Special mention | Other consumer | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	20,696		174
Substandard
Financing Receivable, Recorded Investment [Line Items]
Percent of total gross loans	7.30%		2.10%
Substandard | Total
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	53,165		14,840
Substandard | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	3,540		1,491
Substandard | Land and construction | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	10,025		2,870
Substandard | Multi-family | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	22,053		915
Substandard | Retail/office | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	5,777		3,112
Substandard | Other consumer | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	11,770		6,452
Total Gross Loans
Financing Receivable, Recorded Investment [Line Items]
Percent of total gross loans	100.00%		100.00%
Total Gross Loans | Total
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	723,946		700,023
Total Gross Loans | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	21,591		16,514
Total Gross Loans | Land and construction | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	92,050		106,436
Total Gross Loans | Multi-family | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	281,917		265,735
Total Gross Loans | Retail/office | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	154,075		155,095
Total Gross Loans | Other consumer | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	174,313		156,243
Non-accrual
Financing Receivable, Recorded Investment [Line Items]
Percent of total gross loans	7.10%		4.10%
Non-Accrual	51,063		28,386
Total gross loans	68,497		35,115
Non-accrual | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Non-Accrual	1,509		33
Non-accrual | Land and construction | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Non-Accrual	24,729		17,195
Non-accrual | Multi-family | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Non-Accrual	3,658		3,566
Non-accrual | Retail/office | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Non-Accrual	14,365		3,970
Non-accrual | Other consumer | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Non-Accrual	$ 6,802		$ 3,622

[1] The average carry amount was calculated on a trailing 12 month basis for December 31, 2014 and March 31, 2013 and on a trailing 9 month basis for December 31, 2013.

[2] Includes TDR accruing loans.

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Quarterly Financial Data (unaudited) - Unaudited Condensed Financial Data (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013
Quarterly Financial Information Disclosure [Abstract]
Preferred stock redemption amount	$ 104

XML

Investment Securities - Sales of Investment Securities Available for Sale (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Mar. 31, 2013
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 356	$ 17,557	$ 12,780
Gross gains	292	825	91
Gross losses		(79)	(338)
Net gain/(loss) on sales	$ 292	$ 746	$ (247)

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Other Real Estate Owned - Summary of Net OREO Expenses (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014		Mar. 31, 2013
Banking and Thrift [Abstract]
Valuation adjustments	$ 4,937	[1]	$ 7,840	[1]	$ 26,733	[1]
Foreclosure cost expense	1,541		498		2,602
Expenses from operations, net	3,319		1,441		8,236
OREO expense, net	$ 9,797		$ 9,779		$ 37,571

[1] Includes adjustments to the OREO reserve for probable losses and property writedowns.

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Fair Value of Financial Instruments - Presentation of Financial Instruments Carried at Fair Value by Valuation Hierarchy (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	$ 86,740	$ 120,998
Recurring Basis
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	301,349	281,030
Financial liabilities	188	17
Recurring Basis | Loans Held for Sale
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	6,594	3,085
Recurring Basis | Interest Rate Lock Commitments | Other Assets
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	154	37
Recurring Basis | Interest Rate Lock Commitments | Other Liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial liabilities	14	12
Recurring Basis | Unused Commitments | Other Assets
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets		3
Recurring Basis | Unused Commitments | Other Liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial liabilities		4
Recurring Basis | Forward Contracts to Sell Mortgage Loans | Other Assets
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	2	33
Recurring Basis | Forward Contracts to Sell Mortgage Loans | Other Liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial liabilities	174	1
Recurring Basis | Investment Securities Available-for-sale | Government sponsored agency mortgage-backed securities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	120,621	50,158
Recurring Basis | Investment Securities Available-for-sale | U.S. government sponsored and federal agency obligations
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	3,261	3,376
Recurring Basis | Investment Securities Available-for-sale | Corporate stock and bonds
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	3	355
Recurring Basis | Investment Securities Available-for-sale | Non-agency CMOs
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	27	6,208
Recurring Basis | Investment Securities Available-for-sale | GNMA mortgage-backed securities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	170,687	217,775
Level 1 | Recurring Basis
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	3	355
Level 1 | Recurring Basis | Investment Securities Available-for-sale | Corporate stock and bonds
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	3	355
Level 2 | Recurring Basis
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	301,346	274,467
Financial liabilities	188	17
Level 2 | Recurring Basis | Loans Held for Sale
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	6,594	3,085
Level 2 | Recurring Basis | Interest Rate Lock Commitments | Other Assets
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	154	37
Level 2 | Recurring Basis | Interest Rate Lock Commitments | Other Liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial liabilities	14	12
Level 2 | Recurring Basis | Unused Commitments | Other Assets
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets		3
Level 2 | Recurring Basis | Unused Commitments | Other Liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial liabilities		4
Level 2 | Recurring Basis | Forward Contracts to Sell Mortgage Loans | Other Assets
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	2	33
Level 2 | Recurring Basis | Forward Contracts to Sell Mortgage Loans | Other Liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial liabilities	174	1
Level 2 | Recurring Basis | Investment Securities Available-for-sale | Government sponsored agency mortgage-backed securities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	120,621	50,158
Level 2 | Recurring Basis | Investment Securities Available-for-sale | U.S. government sponsored and federal agency obligations
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	3,261	3,376
Level 2 | Recurring Basis | Investment Securities Available-for-sale | Non-agency CMOs
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	27
Level 2 | Recurring Basis | Investment Securities Available-for-sale | GNMA mortgage-backed securities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	170,687	217,775
Level 3
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets	86,740	120,998
Level 3 | Recurring Basis
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets		6,208
Level 3 | Recurring Basis | Investment Securities Available-for-sale | Non-agency CMOs
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Financial assets		$ 6,208

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Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Unaudited Condensed Financial Data

Unaudited condensed financial data by quarter for year ended December 31, 2014 and the nine months ended December 31, 2013 is as follows:

	Three Months Ended
	12/31/2014			9/30/2014			6/30/2014		3/31/2014		12/31/2013		9/30/2013			6/30/2013
	(Dollars in thousands – except per share amounts)
Operations Data:
Net interest income	$	17,501		$	17,558		$	17,862	$	18,315	$	18,877	$	15,812		$	13,417
Provision for loan losses		(3,281	)		(1,304	)		—		—		—		—			275
Non-interest income		8,962			8,015			7,610		5,932		8,002		142,679			8,852
Non-interest expense		24,621			21,915			22,855		22,317		23,125		45,232			27,375
Income (loss) before income tax expense		5,123			4,962			2,617		1,930		3,754		113,259			(5,381	)
Income tax expense		—			—			10		—		—		9			—
Net income (loss)		5,123			4,962			2,607		1,930		3,754		113,250			(5,381	)
Preferred stock dividends in arrears (1)		—			—			—		—		—		103,163			(1,701	)
Preferred stock discount accretion		—			—			—		—		—		(4,304	)		(1,863	)
Net income (loss) available to common equity		5,123			4,962			2,607		1,930		3,754		212,109			(8,945	)
Per Share:
Basic income (loss) per common share	$	0.56		$	0.55		$	0.29	$	0.21	$	0.41	$	10.24		$	(0.42	)
Diluted income (loss) per common share		0.55			0.55			0.29		0.21		0.41		10.24			(0.42	)
Dividends per common share		—			—			—		—		—		—			—
Book value per common share		23.85			23.22			23.37		22.84		22.34		22.21			(8.33	)

⁽¹⁾  Including compounding, and $104,000 in quarter ended 9/30/2013 for retirement of preferred shares.

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Premises, Equipment and Lease Commitments (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Summary of Premises and Equipment

Premises and equipment are summarized as follows:

	December 31, 2014			December 31, 2013
	(In thousands)
Land and land improvements	$	6,615		$	7,947
Office buildings		30,930			41,510
Furniture and equipment		26,444			38,483
Leasehold improvements		4,171			4,264
		68,160			92,204
Less accumulated depreciation and amortization		(44,591	)		(67,404	)
	$	23,569		$	24,800

Summary of Depreciation Expense

Depreciation expense is summarized as follows:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Building depreciation expense	$	1,059	$	959	$	1,397
Furniture and fixture depreciation expense		1,345		912		1,682
	$	2,404	$	1,871	$	3,079

Summary of Future Minimum Payments Under Leases

 Future minimum payments under non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2014 are as follows:

Year Ending December 31,	Amount of Future Minimum Payments
	(In thousands)
2015	$	2,987
2016		1,959
2017		1,872
2018		1,952
2019		1,755
Thereafter		6,493
Total	$	17,018

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Premises, Equipment and Lease Commitments - Summary of Premises and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 68,160	$ 92,204
Less accumulated depreciation and amortization	(44,591)	(67,404)
Premises and equipment, net	23,569	24,800
Land and land improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	6,615	7,947
Office buildings
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	30,930	41,510
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	26,444	38,483
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 4,171	$ 4,264

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Earnings Per Share - Computation of Basic and Diluted Loss Per Common Share (Parenthetical) (Detail)	0 Months Ended		9 Months Ended		12 Months Ended			6 Months Ended	3 Months Ended
	Aug. 15, 2014	Sep. 27, 2013	Dec. 31, 2013		Dec. 31, 2014	Mar. 31, 2013		Sep. 26, 2013	Dec. 31, 2014
Computation of Earnings Per Share [Line Items]
Weighted average number of shares of common stock outstanding			16,989,000	[1]	9,107,000	21,247,000	[1]
Recapitalization transaction, percentage on book value		90.00%
Restricted stock, percentage on book value	90.00%
Legacy Common Stock
Computation of Earnings Per Share [Line Items]
Weighted average number of shares of common stock outstanding								21,247,000
Common Stock
Computation of Earnings Per Share [Line Items]
Weighted average number of shares of common stock outstanding									9,050,000

[1] The calculation of weighted average shares included 21,247,000 shares of Legacy Common Stock outstanding through September 26, 2013 and 9,050,000 shares of common stock outstanding from September 27 through December 31, 2013.

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Loans Held for Investment, net - Loans Modified Troubled Debt Restructuring by Class (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013 LoansModifications		Dec. 31, 2014 LoansModifications		Dec. 31, 2013		Mar. 31, 2013
Financing Receivable, Impaired [Line Items]
Number of Modifications	86	[1]	34	[1]
Gross Loans	$ 57,480	[1],[2]	$ 3,871	[1],[2]	$ 4,010	[1]	$ 59,982	[1]
Residential
Financing Receivable, Impaired [Line Items]
Number of Modifications	21	[1]	13	[1]
Gross Loans	3,788	[1],[2]	1,620	[1],[2]	1,632	[1]	3,761	[1]
Commercial and industrial
Financing Receivable, Impaired [Line Items]
Number of Modifications	19	[1]	2	[1]
Gross Loans	12,788	[1],[2]	97	[1],[2]	64	[1]	13,322	[1]
Land and construction
Financing Receivable, Impaired [Line Items]
Number of Modifications			3	[1]
Gross Loans			410	[1],[2]	427	[1]
Multi-family
Financing Receivable, Impaired [Line Items]
Number of Modifications	20	[1]	3	[1]
Gross Loans	23,531	[1],[2]	1,183	[1],[2]	1,283	[1]	25,556	[1]
Retail/office
Financing Receivable, Impaired [Line Items]
Number of Modifications	6	[1]
Gross Loans	1,604	[1],[2]					1,673	[1]
Other commercial real estate
Financing Receivable, Impaired [Line Items]
Number of Modifications	8	[1]	2	[1]
Gross Loans	15,346	[1],[2]	256	[1],[2]	251	[1]	15,269	[1]
Other consumer
Financing Receivable, Impaired [Line Items]
Number of Modifications	12	[1]	11	[1]
Gross Loans	$ 423	[1],[2]	$ 305	[1],[2]	$ 353	[1]	$ 401	[1]

[1] Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

[2] Gross loans is inclusive of all partial pay downs and charge-offs since the modification date.

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Deposits - Schedule of Maturities of Certificates of Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Banking and Thrift [Abstract]
3 months or less	$ 15,975
Over 3 months through 6 months	9,459
Over 6 months through 12 months	16,954
Over 12 months	26,838
Total	$ 69,226	$ 88,700

XML

Loans Held for Investment, net - Loans Held for Investment, Net (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 1,583,105		$ 1,621,554
Undisbursed loan proceeds	(10,080)	[1]	(10,322)	[1]
Unamortized loan fees, net	(1,544)		(1,722)
Unearned interest	(5)		(4)
Total loan contra balances	(11,629)		(12,048)
Loans held for investment	1,571,476		1,609,506
Allowance for loan losses	(47,037)		(65,182)
Loans held for investment, net	1,524,439		1,544,324
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	541,211		529,777
Allowance for loan losses	(10,684)		(13,059)
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	16,514		21,591
Allowance for loan losses	(1,436)		(6,402)
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	683,509		702,355
Allowance for loan losses	(28,716)		(42,065)
Commercial Real Estate | Land and construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	106,436		92,050
Commercial Real Estate | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	265,735		281,917
Commercial Real Estate | Retail/office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	155,095		154,075
Commercial Real Estate | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	156,243		174,313
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	341,871		367,831
Allowance for loan losses	(6,201)		(3,656)
Consumer Loans | Education
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	108,384		129,520
Consumer Loans | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 233,487		$ 238,311

[1] Undisbursed loan proceeds are funds to be released upon a draw request approved by the Corporation.

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Fair Value of Financial Instruments - Fair Value on Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Impaired loans, with an allowance recorded, net	$ 32,331	$ 51,090
Mortgage servicing rights	18,918	6,448
Other real estate owned	35,491	63,460
Total assets at fair value	86,740	120,998
Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Impaired loans, with an allowance recorded, net	32,331	51,090
Mortgage servicing rights	18,918	6,448
Other real estate owned	35,491	63,460
Total assets at fair value	$ 86,740	$ 120,998

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Other Real Estate Owned - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Mar. 31, 2012
Banking and Thrift [Abstract]
OREO valuation allowance, net	$ 20,583	$ 30,842	$ 36,009	$ 22,521

XML

Deposits - Summary of Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Deposits [Line Items]
Non-interest-bearing checking	0.00%	0.00%
Interest-bearing checking	0.06%	0.07%
Total checking accounts	0.03%	0.04%
Money market accounts	0.20%	0.19%
Regular savings	0.10%	0.10%
Advance payments by borrowers for taxes and insurance	0.07%	0.10%
Certificate of deposit, Weighted Average Rate	0.52%	0.57%
Total deposits, Weighted Average Rate	0.21%	0.24%
Non-interest-bearing checking	$ 291,248	$ 259,926
Interest-bearing checking	305,004	301,956
Total checking accounts	596,252	561,882
Money market accounts	455,594	468,461
Regular savings	312,544	293,159
Advance payments by borrowers for taxes and insurance	2,568	822
Certificates of deposit, Carrying Amount	447,213	550,969
Total deposits	1,814,171	1,875,293
0.00% to 0.99%
Deposits [Line Items]
Certificate of deposit, Weighted Average Rate	0.32%	0.33%
Certificates of deposit, Carrying Amount	363,890	457,407
0.00% to 0.99% | Maximum
Deposits [Line Items]
Percentage of interest on certificates of deposit	0.99%
0.00% to 0.99% | Minimum
Deposits [Line Items]
Percentage of interest on certificates of deposit	0.00%
1.00% to 1.99%
Deposits [Line Items]
Certificate of deposit, Weighted Average Rate	1.27%	1.28%
Certificates of deposit, Carrying Amount	71,618	67,762
1.00% to 1.99% | Maximum
Deposits [Line Items]
Percentage of interest on certificates of deposit	1.99%
1.00% to 1.99% | Minimum
Deposits [Line Items]
Percentage of interest on certificates of deposit	1.00%
2.00% to 2.99%
Deposits [Line Items]
Certificate of deposit, Weighted Average Rate	2.27%	2.37%
Certificates of deposit, Carrying Amount	11,705	16,116
2.00% to 2.99% | Maximum
Deposits [Line Items]
Percentage of interest on certificates of deposit	2.99%
2.00% to 2.99% | Minimum
Deposits [Line Items]
Percentage of interest on certificates of deposit	2.00%
3.00% to 3.99%
Deposits [Line Items]
Certificate of deposit, Weighted Average Rate		3.59%
Certificates of deposit, Carrying Amount		7,310
3.00% to 3.99% | Maximum
Deposits [Line Items]
Percentage of interest on certificates of deposit	3.99%
3.00% to 3.99% | Minimum
Deposits [Line Items]
Percentage of interest on certificates of deposit	3.00%
4.00% and above
Deposits [Line Items]
Certificate of deposit, Weighted Average Rate		4.24%
Certificates of deposit, Carrying Amount		$ 2,374
4.00% and above | Minimum
Deposits [Line Items]
Percentage of interest on certificates of deposit	4.00%

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Premises, Equipment and Lease Commitments - Additional Information (Detail) (USD $)	0 Months Ended	1 Months Ended	9 Months Ended	12 Months Ended
	Dec. 19, 2014	Feb. 28, 2014 Property	Dec. 31, 2013	Dec. 31, 2014 Facility	Mar. 31, 2013
Schedule of Operating Leases [Line Items]
Number of facilities leased				21
Operating lease expiration year				2029
Land and building lease rental expense			$ 1,300,000	$ 1,800,000	$ 1,900,000
Number of stall parking ramp		261,000,000
Transaction closing date on purchase agreement				Dec. 19, 2014
Gain (loss) from the sale of deposits	1,400,000			6,392,000
Lease term				9 years
Deferred gain (loss) related to disposition				6,400,000
Richard Center
Schedule of Operating Leases [Line Items]
Gain (loss) from the sale of deposits				1,000,000
Deposits sold				$ 16,600,000
Minimum
Schedule of Operating Leases [Line Items]
Non-cancelable operating lease remaining term				1 year

XML

Deposits - Maturities of Certificates of Deposit Outstanding (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Banking and Thrift [Abstract]
2015	$ 278,845
2016	103,894
2017	30,126
2018	20,273
2019	14,075
Total	$ 447,213

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Other Real Estate Owned - Summary of OREO Valuation Allowance Activity (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014		Mar. 31, 2013
Banking and Thrift [Abstract]
Balance at beginning of period	$ 36,009		$ 30,842		$ 22,521
Valuation adjustments	4,937	[1]	7,840	[1]	26,733	[1]
Sales	(10,104)		(18,099)		(13,245)
Balance at end of period	$ 30,842		$ 20,583		$ 36,009

[1] Includes adjustments to the OREO reserve for probable losses and property writedowns.

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Loans Held for Investment, net - Residential and Consumer Gross Loans Based on Accrual Status (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Accrual	$ 1,553,875		$ 1,556,372
Non-Accrual	35,115		68,497
Total	1,583,105		1,621,554
Residential
Financing Receivable, Impaired [Line Items]
Accrual	536,228		519,029
Total	541,211		529,777
Education
Financing Receivable, Impaired [Line Items]
Accrual	95,921		112,190
Other consumer
Financing Receivable, Impaired [Line Items]
Accrual	232,212		234,793
Residential and Consumer Loans Based on Accrual Status
Financing Receivable, Impaired [Line Items]
Accrual	876,353	[1]	880,174	[1]
Non-Accrual	6,729		17,434
Total	883,082		897,608
Residential and Consumer Loans Based on Accrual Status | Residential
Financing Receivable, Impaired [Line Items]
Accrual	535,338	[1]	515,373	[1]
Non-Accrual	5,873		14,404
Total	541,211		529,777
Residential and Consumer Loans Based on Accrual Status | Education
Financing Receivable, Impaired [Line Items]
Accrual	108,179	[1],[2]	129,244	[1],[2]
Non-Accrual	205	[2]	276	[2]
Total	108,384	[2]	129,520	[2]
Residential and Consumer Loans Based on Accrual Status | Other consumer
Financing Receivable, Impaired [Line Items]
Accrual	232,836	[1]	235,557	[1]
Non-Accrual	651		2,754
Total	$ 233,487		$ 238,311

[1] Accrual residential and consumer loans includes substandard rated loans including TDR-accrual.

[2] Non-accrual education loans represent the portion of these loans 90+ days past due that are not covered by a guarantee provided by government agencies that is limited to approximately 97% of the outstanding balance.

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Condensed Parent Only Financial Information

12 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Parent Only Financial Information

Note 19 – Condensed Parent Only Financial Information

The following represents parent company only financial information:

Condensed Balance Sheets

	December 31,
	2014		2013
	(In thousands)
Assets
Cash and cash equivalents	$	10,081	$	5,238
Investment in subsidiaries		216,547		196,824
Intercompany receivable from non-bank subsidiaries		996		95
Other		133		511
Total assets	$	227,757	$	202,668
Liabilities
Loans payable	$	—	$	—
Accrued interest and fees payable		—		—
Other liabilities		94		470
Total liabilities		94		470
Stockholders’ Equity
Total stockholders’ equity		227,663		202,198
Total liabilities and stockholders’ equity	$	227,757	$	202,668

Condensed Statements of Operations

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Interest income	$	8		$	4		$	5
Interest expense		—			7,053			19,119
Net interest income (expense)		8			(7,049	)		(19,114	)
Equity in net income (loss) from subsidiaries		15,502			18,787			(14,781	)
Non-interest income		100			—			4
Extinguishment of debt		—			134,514			—
Income (loss) from operations		15,610			146,252			(33,891	)
Reorganization costs		(64	)		1,929			—
Non-interest expense		1,052			1,031			687
Income (loss) before income taxes		14,622			143,292			(34,578	)
Income tax expense (benefit)		—			31,669			(406	)
Net income (loss)		14,622			111,623			(34,172	)
Preferred stock dividends in arrears		—			(2,538	)		(6,560	)
Preferred stock discount accretion		—			(6,167	)		(7,412	)
Retirement of preferred shares		—			104,000			—
Net income (loss) available to common equity	$	14,622		$	206,918		$	(48,144	)

Condensed Statements of Cash Flows

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Operating Activities
Net income (loss)	$	14,622		$	111,623		$	(34,172	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in income (loss) of subsidiaries		(15,502	)		(18,787	)		14,781
Extinguishment of debt		—			(134,514	)		—
Increase in accrued interest and fees payable		—			7,053			19,119
Costs associated with stock plan		—			2,922			—
Increase (decrease) in other		96			(2,872	)		(3,561	)
Net cash used in operating activities		(784	)		(34,575	)		(3,833	)
Investing Activities
Net decrease in intercompany loans		—			—			4,225
Dividend received from subsidiaries		—			5,402			—
Capital contribution to subsidiaries		—			(80,205	)		—
Net cash provided by (used in) investing activities		—			(74,803	)		4,225
Financing Activities
Repayment of borrowed funds		—			(49,000	)		—
Recapitalization transaction fees		—			(14,360	)		—
Issuance of common stock		7,951			175,000			—
Stock issuance cost		(2,324	)		—			—
Net cash provided by financing activities		5,627			111,640			—
Increase in cash and cash equivalents		4,843			2,262			392
Cash and cash equivalents at beginning of year		5,238			2,976			2,584
Cash and cash equivalents at end of year	$	10,081		$	5,238		$	2,976

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Cash and Due From Banks - Additional Information (Detail) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Restricted Cash and Cash Equivalents Items [Line Items]
Average reserve balance with federal reserve bank	$ 1,300,000	$ 1,300,000
Official Check Service Provider
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted account	2,500,000	4,500,000
Government-sponsored enterprise [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted account	$ 0	$ 1,000,000

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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Presentation of Financial Instruments Carried at Fair Value by Valuation Hierarchy

The table below presents the financial instruments carried at fair value by the valuation hierarchy (as described above):

	Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2014
Financial assets
Investment securities available for sale:
U.S. government sponsored and federal agency obligations	$	—	$	3,261	$	—	$	3,261
Corporate stock and bonds		3		—		—		3
Non-agency CMOs		—		27		—		27
Government sponsored agency mortgage-backed securities		—		120,621		—		120,621
GNMA mortgage-backed securities		—		170,687		—		170,687
Loans held for sale		—		6,594		—		6,594
Other assets:
Interest rate lock commitments		—		154		—		154
Forward contracts to sell mortgage loans		—		2		—		2
Total	$	3	$	301,346	$	—	$	301,349
Financial liabilities
Other liabilities:
Interest rate lock commitments	$	—	$	14	$	—	$	14
Forward contracts to sell mortgage loans		—		174		—		174
Total	$	—	$	188	$	—	$	188

	Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2013
Financial assets
Investment securities available for sale:
U.S. government sponsored and federal agency obligations	$	—	$	3,376	$	—	$	3,376
Corporate stock and bonds		355		—		—		355
Non-agency CMOs		—		—		6,208		6,208
Government sponsored agency mortgage-backed securities		—		50,158		—		50,158
GNMA mortgage-backed securities		—		217,775		—		217,775
Loans held for sale		—		3,085		—		3,085
Other assets:
Interest rate lock commitments		—		37		—		37
Unused commitments		—		3		—		3
Forward contracts to sell mortgage loans		—		33		—		33
Total	$	355	$	274,467	$	6,208	$	281,030
Financial liabilities
Other liabilities:
Interest rate lock commitments	$	—	$	12	$	—	$	12
Unused commitments		—		4		—		4
Forward contracts to sell mortgage loans		—		1		—		1
Total	$	—	$	17	$	—	$	17

Summary of Price Ginnie Mae Mortgage-Backed Securities

The significant inputs used to price GNMA mortgage-backed securities are as follows:

	December 31, 2014						Weighted Average			December 31, 2013						Weighted Average
	From			To						From			To
Coupon rate		2.0	%		4.6	%		2.5	%		1.6	%		4.6	%		2.4	%
Duration (in years)		0.5			5.4			3.5			1.1			5.7			3.6
PSA prepayment speed		142			399			259			128			458			346

Schedule of Observable and Unobservable Inputs

	December 31, 2013						Weighted Average
	From			To
Observable inputs:
30 to 59 day delinquency rate		1.6	%		5.8	%		4.0	%
60 to 89 day delinquency rate		0.8			2.5			1.9
90 plus day delinquency rate		4.6			9.9			6.5
Loss severity		52.0			68.5			57.1
Coupon rate		5.0			6.0			5.5
Current credit support		—			4.3			—
Unobservable inputs:
Month 1 to month 24 constant default rate		5.3			11.6			8.2
Discount rate		4.0			7.0			6.6

Reconciliation of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following is a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (level 3):

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013
	(in thousands)
Non-agency CMOs
Beginning balance	$	6,208		$	7,549
Total realized/unrealized gains (losses):
Included in earnings		(37	)		2
Included in other comprehensive income		212			93
Included in earnings as unrealized other-than-temporary impairment		(64	)		(23	)
Included in earnings as realized other-than-temporary impairment		222			224
Principal repayments		(1,126	)		(1,637	)
Sales		(5,388	)		—
Transfers out of level 3		(27	)		—
Ending balance	$	—		$	6,208

Fair Value on Nonrecurring Basis

The following table presents such assets carried on the consolidated balance sheet by caption and by level within the fair value hierarchy:

	Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2014
Impaired loans, with an allowance recorded, net	$	—	$	—	$	32,331	$	32,331
Mortgage servicing rights		—		—		18,918		18,918
Other real estate owned		—		—		35,491		35,491
Total assets at fair value	$	—	$	—	$	86,740	$	86,740
December 31, 2013
Impaired loans, with an allowance recorded, net	$	—	$	—	$	51,090	$	51,090
Mortgage servicing rights		—		—		6,448		6,448
Other real estate owned		—		—		63,460		63,460
Total assets at fair value	$	—	$	—	$	120,998	$	120,998

Significant Inputs Used for Assets Measured at Fair Value on a Nonrecurring Basis

The significant inputs for those assets measured at fair value on a nonrecurring basis are as follows:

	December 31, 2014
	Method	Inputs
Impaired loans, with an allowance recorded, net	Appraised Values	External appraised values- adjustments made to values due to management factors including age of appraisal, age of comparables, known changes in the market and in the collateral and selling and commission cost of 15 % to 35%.
Mortgage servicing rights	Discounted Cash Flow	Weighted average prepayment speed 10.01%; weighted average discount rate 11.45%.
Other real estate owned	Appraised Values	External appraised values less selling and commission cost of 15 % to 35%.

Carrying Amount and Fair Value of Company's Financial Instruments

The carrying amount and fair value of the Company’s financial instruments consist of the following:

	December 31,
	2014				2013
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
	(In thousands)
Financial assets:
Cash and cash equivalents	$	147,273	$	147,273	$	143,396	$	143,396
Investment securities available for sale		294,599		294,599		277,872		277,872
Loans held for sale		6,594		6,594		3,085		3,085
Loans held for investment, net		1,524,439		1,496,791		1,544,324		1,488,677
Mortgage servicing rights		19,404		19,590		22,294		23,553
Federal Home Loan Bank stock		11,940		11,940		11,940		11,940
Accrued interest receivable		7,627		7,627		8,216		8,216
Interest rate lock commitments		154		154		37		37
Unused commitments		—		—		3		3
Forward contracts to sell mortgage loans (1)		2		2		33		33
Financial liabilities:
Non-maturity deposits		1,366,958		1,366,958		1,324,324		1,324,324
Deposits with stated maturities		447,213		445,938		550,969		549,668
Other borrowed funds		13,752		14,077		12,877		13,121
Accrued interest payable		316		316		415		415
Interest rate lock commitments		14		14		12		12
Unused commitments		—		—		4		4
Forward contracts to sell mortgage loans (1)		174		174		1		1

⁽¹⁾  The Company has elected to offset the fair value of individual forward sale contracts and present a net amount on the Consolidated Balance Sheets in accordance with ASC 815-45, Derivatives and Hedging.

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Other Real Estate Owned - Summary of Other Real Estate Owned Activity (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014		Mar. 31, 2013
Banking and Thrift [Abstract]
Balance at beginning of period	$ 84,342		$ 63,460
Additions	19,352		10,381
Capitalized improvements	307		251
OREO valuation adjustments, net	(4,937)	[1]	(7,840)	[1]	(26,733)	[1]
Sales	(35,604)		(30,761)
Balance at end of period	$ 63,460		$ 35,491		$ 84,342

[1] Includes adjustments to the OREO reserve for probable losses and property writedowns.

XML

Offsetting Assets and Liabilities - Gross and Net Amounts of Derivative Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Interest rate commitments
Derivative Instruments, Gain (Loss) [Line Items]
Gross Amounts of Recognized Liabilities	$ 14	$ 16
Net Amount of Assets Presented in the Consolidated Balance Sheets	14	16
Gross Amounts of Recognized Assets	154	40
Net Amount of Assets Presented in the Consolidated Balance Sheets	154	40
Forward sale contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gross Amounts of Recognized Liabilities	174	1
Gross Amounts Offset in the Consolidated Balance Sheets		(1)
Net Amount of Assets Presented in the Consolidated Balance Sheets	174
Gross Amounts of Recognized Assets	2	33
Gross Amounts Offset in the Consolidated Balance Sheets		(1)
Net Amount of Assets Presented in the Consolidated Balance Sheets	2	32
Repurchase agreements
Derivative Instruments, Gain (Loss) [Line Items]
Gross Amounts of Recognized Liabilities	3,569	2,636
Net Amount of Assets Presented in the Consolidated Balance Sheets	$ 3,569	$ 2,636

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Regulatory Capital (Tables)

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Summary of Bank's Capital Ratios and Ratios Required by Federal Regulators

The following table summarizes the Bank’s capital ratios to be considered adequately or well capitalized under standard regulatory guidelines:

						Minimum Required
	Actual					To be Adequately Capitalized					To be Well Capitalized
	Capital		Ratio			Capital		Ratio			Capital		Ratio
	(Dollars in thousands)
December 31, 2014
Tier 1 leverage (1)	$	216,659		10.43	%	$	83,123		4.00	%	$	103,904		5.00	%
Tier 1 risk-based capital (2)		216,659		16.97			51,066		4.00			76,598		6.00
Total risk-based capital (3)		233,032		18.25			102,131		8.00			127,664		10.00
December 31, 2013
Tier 1 leverage (1)	$	201,995		9.60	%	$	84,170		4.00	%	$	105,212		5.00	%
Tier 1 risk-based capital (2)		201,995		15.77			51,226		4.00			76,839		6.00
Total risk-based capital (3)		218,668		17.07			102,452		8.00			128,065		10.00

⁽¹⁾  Tier 1 capital divided by adjusted total assets.

⁽²⁾ Tier 1 capital divided by total risk-weighted assets.

⁽³⁾ Total risk-based capital divided by total risk-weighted assets.

Reconciliation of Bank's Stockholders' Equity to Federal Regulatory Capital

The following table presents the components of the Bank’s regulatory capital:

	December 31, 2014			December 31, 2013
	(In thousands)
Stockholders’ equity of the Bank	$	216,030		$	196,469
Less: Disallowed servicing assets		(1,773	)		(1,096	)
Accumulated other comprehensive loss		2,402			6,622
Tier 1 capital		216,659			201,995
Plus: Allowable allowance for loan losses		16,373			16,673
Total risk-based capital	$	233,032		$	218,668

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Investment Securities - Fair Value and Gross Unrealized Losses (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Unrealized Loss Position Less than 12 months	$ 81,135		$ 189,523
Unrealized Loss, Unrealized Loss Position Less than 12 months	(339)		(5,873)
Fair Value, Unrealized Loss Position 12 months or More	106,433		30,225
Unrealized Loss, Unrealized Loss Position 12 months or More	(2,903)		(2,258)
Total Fair Value	187,568		219,748
Total Unrealized Loss	(3,242)		(8,131)
Government sponsored agency mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Unrealized Loss Position Less than 12 months	54,020	[1]	47,480	[1]
Unrealized Loss, Unrealized Loss Position Less than 12 months	(228)	[1]	(723)	[1]
Fair Value, Unrealized Loss Position 12 months or More	8,178	[1]
Unrealized Loss, Unrealized Loss Position 12 months or More	(189)	[1]
Total Fair Value	62,198	[1]	47,480	[1]
Total Unrealized Loss	(417)	[1]	(723)	[1]
Non-agency CMOs
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Unrealized Loss Position Less than 12 months	2		1,219
Unrealized Loss, Unrealized Loss Position Less than 12 months	(1)		(7)
Fair Value, Unrealized Loss Position 12 months or More	25		4,776
Unrealized Loss, Unrealized Loss Position 12 months or More	(31)		(246)
Total Fair Value	27		5,995
Total Unrealized Loss	(32)		(253)
GNMA mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Unrealized Loss Position Less than 12 months	27,113		140,824
Unrealized Loss, Unrealized Loss Position Less than 12 months	(110)		(5,143)
Fair Value, Unrealized Loss Position 12 months or More	98,230		25,449
Unrealized Loss, Unrealized Loss Position 12 months or More	(2,683)		(2,012)
Total Fair Value	125,343		166,273
Total Unrealized Loss	$ (2,793)		$ (7,155)

[1] Includes mortgage-backed securities and CMOs.

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Loans Held for Investment, net - Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013		Mar. 31, 2013
Receivables [Abstract]
Carrying amount of impaired loans	$ 86,844		$ 108,267
Average carrying amount of impaired loans	93,498	[1]	95,451	[1]	159,134	[1]
Loans and troubled debt restructurings on non-accrual status	35,115		68,497
Troubled debt restructurings - accrual	60,170		64,261
Troubled debt restructurings - non-accrual	16,483	[2]	29,346	[2]
Troubled debt restructurings valuation allowance	8,593		15,210
Loans past due ninety days or more and still accruing	$ 6,613	[3]	$ 8,930	[3]

[1] The average carry amount was calculated on a trailing 12 month basis for December 31, 2014 and March 31, 2013 and on a trailing 9 month basis for December 31, 2013.

[2] Troubled debt restructurings - non-accrual are included in the loans and troubled debt restructurings on non-accrual status line item above.

[3] Represents the guaranteed portion of education loans that were 90+ days past due which continue to accrue interest due to a guarantee provided by government agencies covering approximately 97% of the outstanding balance.

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Fair Value of Financial Instruments - Significant Inputs Used for Assets Measured at Fair Value on a Nonrecurring Basis (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2014
Mortgage Servicing Rights
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total portfolio lifetime weighted average prepayment speeds	10.01%
Weighted average discount rate	11.45%
Minimum | Impaired loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	15.00%
Minimum | Mortgage Servicing Rights
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Weighted average discount rate	11.00%
Minimum | Other Real Estate Owned
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	15.00%
Maximum | Impaired loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	35.00%
Maximum | Mortgage Servicing Rights
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Weighted average discount rate	24.50%
Maximum | Other Real Estate Owned
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	35.00%

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Loans Held for Investment, net - Gross Balance of Loans by Risk Category (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Total unpaid principal balance	$ 1,583,105	$ 1,621,554
Pass
Financing Receivable, Recorded Investment [Line Items]
Total unpaid principal balance	1,465,224	1,429,283
Pass | TDR loans
Financing Receivable, Recorded Investment [Line Items]
Total unpaid principal balance	$ 55,400	$ 31,200

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Summary of Significant Accounting Policies - Schedule of Comparative Transition Period Condensed Financial Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended							9 Months Ended			12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2013		Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest income								$ 62,223		$ 77,166	$ 75,580	$ 84,939	$ 99,882
Interest expense								14,117		29,503	4,344	22,013	37,399
Net interest income	17,501	17,558	17,862	18,315	18,877	15,812	13,417	48,106		47,663	71,236	62,926	62,483
Provision for loan losses	(3,281)	(1,304)					275	275		7,058	(4,585)	950	7,733
Net interest income after provision for loan losses								47,831		40,605	75,821	61,976	54,750
Non-interest income	8,962	8,015	7,610	5,932	8,002	142,679	8,852	159,533		38,398	30,519	167,036	45,901
Non-interest expense	24,621	21,915	22,855	22,317	23,125	45,232	27,375	95,732		99,336	91,708	131,400	135,004
Income (loss) before income taxes	5,123	4,962	2,617	1,930	3,754	113,259	(5,381)	111,632		(20,333)	14,632	97,612	(34,353)
Income tax expense (benefit)			10			9		9		(181)	10	9	(181)
Net income (loss)	5,123	4,962	2,607	1,930	3,754	113,250	(5,381)	111,623		(20,152)	14,622	97,603	(34,172)
Preferred stock dividends in arrears						103,163	(1,701)	(2,538)		(4,898)		(4,200)	(6,560)
Preferred stock discount accretion						(4,304)	(1,863)	(6,167)		(5,569)		(8,010)	(7,412)
Retirement of preferred shares								104,000				104,000
Net income (loss) available to common equity	$ 5,123	$ 4,962	$ 2,607	$ 1,930	$ 3,754	$ 212,109	$ (8,945)	$ 206,918	[1]	$ (30,619)	$ 14,622	$ 189,393	$ (48,144)	[1]

[1] The calculation of weighted average shares included 21,247,000 shares of Legacy Common Stock outstanding through September 26, 2013 and 9,050,000 shares of common stock outstanding from September 27 through December 31, 2013.

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Cash and Due From Banks

12 Months Ended

Dec. 31, 2014

Cash and Cash Equivalents [Abstract]

Cash and Due From Banks

Note 3 – Cash and Due From Banks

The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank based on a percentage of deposits. The average amount of required reserve balances for the year ended December 31, 2014, and the nine months ended December 31, 2013 was approximately $1.3 million for both periods. The Bank met the required reserves with cash balances in the branch system.

The Bank is required to maintain an account with its official check service provider equal to one day’s average remittance. The balance in this restricted account was $2.5 million and $4.5 million at December 31, 2014 and 2013 respectively.

The Bank was previously required to maintain an account pledged in favor of a Government-sponsored enterprise to enter into cash purchase contracts and/or mandatory master commitments. This requirement was terminated in 2014 and as such there was no balance in the restricted account at December 31, 2014. There was a balance of $1.0 million at December 31, 2013.

The nature of the Company’s business requires that it maintain amounts due from banks and federal funds sold which, at times, may exceed federally insured limits. Management monitors these correspondent relationships and has not experienced any losses in such accounts.

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Income Taxes - Components of Deferred Tax Assets (Liabilities) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Deferred tax assets:
Allowance for loan losses	$ 18,871	$ 27,193
OREO valuation allowance and other loss reserves	10,307	15,026
Federal NOL carryforwards	72,630	66,359
State NOL carryforwards	16,657	15,710
Unrealized securities losses, net	963	2,657
Other	2,964	3,154
Total deferred tax assets	122,392	130,099
Valuation allowance	(113,099)	(119,780)
Adjusted deferred tax assets	9,293	10,319
Deferred tax liabilities:
FHLB stock dividends	(833)	(833)
Mortgage servicing rights	(7,785)	(8,944)
Other	(675)	(542)
Total deferred tax liabilities	(9,293)	(10,319)
Net deferred tax assets	$ 0	$ 0

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Loans Held for Investment, net - Allowance for Loan Losses by Portfolio Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended			9 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			$ 79,815	$ 79,815	$ 111,215	$ 65,182		$ 111,215
Provision	(3,281)	(1,304)	275	275	7,058	(4,585)	950	7,733
Charge-offs				(20,286)		(26,072)		(49,353)
Recoveries				5,378		12,512		10,220
Ending balance	47,037			65,182		47,037	65,182	79,815
Residential
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			14,525	14,525	13,027	13,059		13,027
Provision				2,224		(599)		6,414
Charge-offs				(4,419)		(2,212)		(6,659)
Recoveries				729		436		1,743
Ending balance	10,684			13,059		10,684	13,059	14,525
Commercial and industrial
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			7,072	7,072	10,568	6,402		10,568
Provision				(599)		(2,622)		(1,471)
Charge-offs				(864)		(5,220)		(3,483)
Recoveries				793		2,876		1,458
Ending balance	1,436			6,402		1,436	6,402	7,072
Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			54,581	54,581	85,153	42,065		85,153
Provision				(2,942)		(6,129)		(3,107)
Charge-offs				(13,100)		(16,041)		(34,265)
Recoveries				3,526		8,821		6,800
Ending balance	28,716			42,065		28,716	42,065	54,581
Consumer Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			3,637	3,637	2,467	3,656		2,467
Provision				1,592		4,765		5,897
Charge-offs				(1,903)		(2,599)		(4,946)
Recoveries				330		379		219
Ending balance	$ 6,201			$ 3,656		$ 6,201	$ 3,656	$ 3,637

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consists of the following:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Current:
Federal	$	—	$	—	$	(51	)
State		10		9		(130	)
		10		9		(181	)
Deferred:
Federal		—		—		—
State		—		—		—
		—		—		—
Total income tax expense (benefit)	$	10	$	9	$	(181	)

Computation of Federal Statutory Corporate Tax Rate

The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows:

	Year Ended December 31, 2014						Nine Months Ended December 31, 2013						Year Ended March 31, 2013
	Amount			% of Pretax Income			Amount			% of Pretax Income			Amount			% of Pretax Income
	(Dollars in thousands)
Net income (loss) before income taxes	$	14,632			100.0	%	$	111,632			100.0	%	$	(34,353	)		100.0	%
Income tax expense (benefit) at federal statutory rate	$	5,121			35.0	%	$	39,071			35.0	%	$	(12,024	)		35.0	%
State income taxes, net of federal income tax benefits		746			5.1			(1,008	)		(0.9	)		(1,840	)		5.3
Cancellation of indebtedness income exclusion		—			—			(47,080	)		(42.2	)		—			—
Increase (decrease) in valuation allowance		(5,806	)		(39.7	)		7,906			7.1			13,643			(39.7	)
Other		(51	)		(0.3	)		1,120			1.0			40			(0.1	)
Income tax expense (benefit)	$	10			0.1	%	$	9			—	%	$	(181	)		0.5	%

Components of Deferred Tax Assets (Liabilities)

The significant components of deferred tax assets (liabilities) are as follows:

	December 31, 2014			December 31, 2013
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	18,871		$	27,193
OREO valuation allowance and other loss reserves		10,307			15,026
Federal NOL carryforwards		72,630			66,359
State NOL carryforwards		16,657			15,710
Unrealized securities losses, net		963			2,657
Other		2,964			3,154
Total deferred tax assets		122,392			130,099
Valuation allowance		(113,099	)		(119,780	)
Adjusted deferred tax assets		9,293			10,319
Deferred tax liabilities:
FHLB stock dividends		(833	)		(833	)
Mortgage servicing rights		(7,785	)		(8,944	)
Other		(675	)		(542	)
Total deferred tax liabilities		(9,293	)		(10,319	)
Net deferred tax assets	$	—		$	—

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Schedule of Comparative Transition Period Condensed Financial Information

The following table presents certain comparative transition period condensed financial information for the periods ended December 31, 2014, 2013 and 2012.

The comparative twelve months ended December 31, 2013 and nine months ended December 31, 2012 are unaudited as a portion represents an interim period during the fiscal year.

	Twelve Months Ended December 31,						Nine Months Ended December 31,
	2014			2013			2013			2012
				(Unaudited)						(Unaudited)
	(In thousands)
Interest income	$	75,580		$	84,939		$	62,223		$	77,166
Interest expense		4,344			22,013			14,117			29,503
Net interest income		71,236			62,926			48,106			47,663
Provision for loan losses		(4,585	)		950			275			7,058
Net interest income after provision for loan losses		75,821			61,976			47,831			40,605
Non-interest income		30,519			167,036			159,533			38,398
Non-interest expense		91,708			131,400			95,732			99,336
Income (loss) before income taxes		14,632			97,612			111,632			(20,333	)
Income tax expense (benefit)		10			9			9			(181	)
Net income (loss)		14,622			97,603			111,623			(20,152	)
Preferred stock dividends in arrears		—			(4,200	)		(2,538	)		(4,898	)
Preferred stock discount accretion		—			(8,010	)		(6,167	)		(5,569	)
Retirement of preferred shares		—			104,000			104,000			—
Net income (loss) available to common equity	$	14,622		$	189,393		$	206,918		$	(30,619	)

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Change in Year End

Change in Year End

On December 18, 2013, the Board of Directors (the “Board”) approved the change of our year end from March 31 to December 31, beginning with December 31, 2013. This report on Form 10-K covers the year ended March 31, 2013, nine months ended December 31, 2013, and the year ended December 31, 2014. The following table presents certain comparative transition period condensed financial information for the periods ended December 31, 2014, 2013 and 2012.

The comparative twelve months ended December 31, 2013 and nine months ended December 31, 2012 are unaudited as a portion represents an interim period during the fiscal year.

	Twelve Months Ended December 31,						Nine Months Ended December 31,
	2014			2013			2013			2012
				(Unaudited)						(Unaudited)
	(In thousands)
Interest income	$	75,580		$	84,939		$	62,223		$	77,166
Interest expense		4,344			22,013			14,117			29,503
Net interest income		71,236			62,926			48,106			47,663
Provision for loan losses		(4,585	)		950			275			7,058
Net interest income after provision for loan losses		75,821			61,976			47,831			40,605
Non-interest income		30,519			167,036			159,533			38,398
Non-interest expense		91,708			131,400			95,732			99,336
Income (loss) before income taxes		14,632			97,612			111,632			(20,333	)
Income tax expense (benefit)		10			9			9			(181	)
Net income (loss)		14,622			97,603			111,623			(20,152	)
Preferred stock dividends in arrears		—			(4,200	)		(2,538	)		(4,898	)
Preferred stock discount accretion		—			(8,010	)		(6,167	)		(5,569	)
Retirement of preferred shares		—			104,000			104,000			—
Net income (loss) available to common equity	$	14,622		$	189,393		$	206,918		$	(30,619	)

Basis of Financial Statement Presentation

Basis of Financial Statement Presentation. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts and operations of the Company and its wholly owned subsidiaries, the Bank and Investment Directions, Inc. The Bank has one subsidiary ADPC Corporation. Significant intercompany accounts and transactions have been eliminated.

The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles. In the opinion of management, all adjustments, including normal recurring accruals, necessary for a fair presentation of the unaudited consolidated financial statements have been included.

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of other real estate owned, the net carrying value of mortgage servicing rights, deferred tax assets, the fair value of investment securities, interest rate lock commitments, forward contracts to sell mortgage loans and loans held for sale.

The Company has three distinct operating segments; the Bank, IDI and the holding company and produces discreet financial information for each which is available to management. However, operating revenues and related assets of IDI fall below the required reporting thresholds and therefore are not disclosed in the consolidated financial statements.

The Company has evaluated all subsequent events through the date of this filing.

Cash and Cash Equivalents

Cash and Cash Equivalents. The Company considers interest-earning deposits that have an original maturity of three months or less to be cash equivalents.

Investment Securities Available For Sale

Investment Securities Available For Sale. Debt securities that the Company has the intent and ability to hold to maturity may be classified as held to maturity and stated at amortized cost as adjusted for premium amortization and discount accretion. Securities not classified as held to maturity are classified as available for sale. Available for sale securities are stated at fair value with unrealized gains and losses, reported as a separate component of accumulated other comprehensive income (loss), net of tax (if any), in stockholders’ equity. Securities would be classified as trading if the Company intends to actively buy and sell securities in order to make a profit. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. There were no securities designated as held to maturity or trading during the year ended December 31, 2014, the nine months ended December 31, 2013 or the year ended March 31, 2013.

Realized gains and losses are included in net gain (loss) on sale of investment securities in the consolidated statements of operations as a component of non-interest income. The cost of securities sold is based on the specific identification method.

Declines in the fair value of investment securities below amortized cost basis that are deemed to be an other-than-temporary impairment (“OTTI”), are reflected as impairment losses. To determine if an other-than-temporary impairment exists on a debt security, the Company first determines if (a) it intends to sell the security or (b) it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of the conditions is met, the Company will recognize an other-than-temporary impairment in earnings equal to the difference between the fair value of the security and its amortized cost basis. If neither of the conditions is met, the Company determines (a) the amount of the impairment related to credit loss and (b) the amount of the impairment due to all other factors. The difference between the present values of the cash flows expected to be collected discounted at the purchase yield or current accounting yield and the amortized cost basis is the credit loss. The amount of the credit loss is included in the consolidated statements of operations as an other-than-temporary impairment on securities and is a reduction in the cost basis of the security. The portion of the total impairment that is related to all other factors is included in other comprehensive income (loss).

Loans Held for Sale

Loans Held for Sale. Loans held for sale generally consist of the current origination of certain fixed- and adjustable-rate mortgage loans. Effective for loans originated on or after April 1, 2013, residential mortgage loans held for sale are carried at fair value and upfront costs and fees related to these loans are recognized in earnings as incurred. Prior to April 1, 2013, loans held for sale were recorded at the lower of cost or fair value with fees received from the borrower and direct costs to originate the loan deferred and included as a basis adjustment of the loan.

Loans Held for Investment, net

Loans Held for Investment, net. Loans held for investment, net are stated at the amount of the gross principal, reduced by undisbursed loan proceeds, unamortized loan fees, net, unearned interest and an allowance for loan losses. Certain loan origination, commitment and other loan fees and associated direct loan origination costs are deferred and amortized as an adjustment to the related loan’s yield. These amounts, as well as discounts on purchased loans, are amortized using a method that approximates level yield, adjusted for prepayments, over the life of the related loans. Interest on loans is accrued into income on the gross loans as earned. Loans are placed on non-accrual status when they become 90 days past due or, when in the judgment of management, the probability of collection of principal and interest is deemed to be insufficient to warrant further accrual. Past due status is based on contractual terms of the loan. Factors that management considers when assessing the collectability of principal and interest include early stage delinquencies and financial difficulties of the borrower. When a loan is placed on non-accrual status, previously accrued but unpaid interest is deducted from interest income. Payments received on non-accrual loans are generally credited to the loan balance and no interest income is recognized on those loans until the principal balance is current. In cases in which the unpaid contractual principal balance of the loan, is deemed to be fully collectible, interest payments received may be recognized in income on a cash basis. Loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Loans held for investment are summarized into four different segments: residential loans, commercial and industrial loans, commercial real estate loans and consumer loans.

Residential Loans

Residential loans, substantially all of which finance the purchase of 1-to-4 family dwellings, are generally considered homogeneous as they exhibit similar product and risk characteristics. Residential loans are charged off to the fair value of collateral:

• at the time of an approved short sale with funds received;

• information is received indicating an insufficient value and the borrower is 180 days past due;

• a foreclosure sale is complete and the loan is being moved to other real estate owned; or

• the loan is otherwise deemed uncollectible.

Commercial and Industrial Loans

Commercial and industrial loans are funded for business purposes, including issuing letters of credit. The commercial and industrial loan portfolio is comprised of loans for a variety of purposes which are generally secured by equipment, owner occupied real estate and other working capital assets such as accounts receivable and inventory. Commercial business loans typically have terms of five years or less and are divided approximately even between interest rates that float in accordance with a designated published index and fixed rates. Most loans are secured and backed by the personal guarantees of the owners of the business. Commercial and industrial loans are charged off to the fair value of collateral when information confirms that any portion of the recorded investment in a collateral dependent loan is deemed a confirmed loss.

Commercial Real Estate Loans

Commercial real estate loans are primarily secured by apartment buildings, office and industrial buildings, land, warehouses, small retail shopping centers and various special purpose properties, including community-based residential facilities and senior housing. Although terms vary, commercial real estate loans generally have amortization periods of 15 to 30 years, as well as balloon payments of two to seven years. Commercial real estate loans are charged off to the fair value of the collateral when available information confirms that any portion of the recorded investment in a collateral dependent loan is deemed a confirmed loss.

Consumer Loans

Consumer loans generally have higher interest rates than residential loans. The risk involved in consumer loans is based on the type and nature of the collateral and, in certain cases, the absence of collateral. Consumer loans include first and second mortgage and home equity loans, consisting primarily of the Express Refinance Loan product which is the Bank’s expedited first mortgage refinance and home equity loan product. In addition, consumer loans include education loans, vehicle loans and other secured and unsecured loans that have been made for a variety of consumer purposes. Consumer loans are charged off to the fair value of collateral, upon repossession or sale of the collateral and deficiency is realized, upon reaching 120 days past due if unsecured or 180 days past due if secured, or the loan is otherwise deemed uncollectible.

Allowance for Loan Losses

Allowance for Loan Losses. The allowance for loan losses is maintained at a level believed appropriate by management to absorb probable and estimable losses inherent in the held for investment loan portfolio and is based on the size and current risk characteristics of the held for investment loan portfolio; an assessment of individual impaired loans; actual and anticipated loss experience; and current economic events in specific industries and geographical areas. These economic events include unemployment levels, regulatory guidance, and general economic conditions. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience, and consideration of current economic trends, all of which may be susceptible to significant change. Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for loan losses is recorded in the statement of operations based on management’s periodic evaluation of the factors previously mentioned as well as other pertinent factors. Conversely, the provision for loan losses may decline should credit metrics such as net charge offs and the amount of non-performing loans improve in the future. In addition, regulatory agencies periodically review the adequacy of the allowance for loan losses. These agencies may require the Company to make additions to the allowance for loan losses based on their judgments of collectability using information available to them at the time of their examination.

The allowance for loan losses consists of specific and general components. Specific allowance allocations are established for probable losses resulting from analysis of impaired loans. A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement. Impaired loans include all non-accrual loans and troubled debt restructurings. Troubled debt restructurings are loans that have been modified, due to financial difficulties of the borrower, where the terms of the modified loan are more favorable for the borrower than what the Company would normally accept. Impairment is determined when the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less costs to sell, if the loan is collateral dependent, is less than the carrying value of the loan. Cash collections on impaired loans are generally credited to the loan balance and no interest income is recognized on those loans until the principal balance is current and collection of principal and interest becomes probable.

The specific allowance component relates to impaired loans, loans reported as troubled debt restructurings (“TDRs”), and loans graded substandard or below. The company has certain loans rated substandard, which are not classified as impaired based on the facts of the credit. For these non-impaired and substandard loans, the Company does not follow the same allowance methodology as it does for all other non-impaired, collectively evaluated loans. Rather, the Company performs a more detailed analysis including evaluation of the cash flow and collateral valuations. Based upon this evaluation, an estimate of the probable loss in this portfolio is collectively evaluated under ASC 450-20. These non-impaired substandard loans exist primarily in the commercial and industrial and commercial real estate segments. For substandard loans, an allowance for loan losses is established when the discounted cash flows (or collateral value if repayment relies solely on the operation or sale of the collateral) of the impaired loan are lower than the carrying value of that loan.

The general allowance component is based on historical net loss experience adjusted for qualitative factors. In determining the general allowance, the Company has defined the following segments within its loan portfolio: residential, commercial and industrial, commercial real estate and consumer. The Company has disaggregated those segments into the following classes based on risk characteristics: residential; commercial and industrial; land and construction, multi-family, retail/office and other commercial real estate within the commercial real estate segment; and education and other consumer within the consumer segment. Consistent with the Bank’s allowance for loan losses policy, the appropriateness of the segmentation is periodically reviewed. This additional detail allows management to better identify trends in borrower behavior and loss severity within the segments and classes of the loan portfolio. A historical loss factor is computed for each class of loan and is used as the major determinate of the general allowance for loan losses. In determining the appropriate period of activity to use in computing the historical loss factor management considers trends in quarterly net charge-off ratios. It is management’s intention to utilize a period of activity that it believes to be most reflective of current experience. Changes in the historical period are made when there is a distinct change in the trend of net charge-off experience. Management reviews each class’ historical losses by quarter for any trends that indicate the most representative look-back period.

Beginning with the quarter ended June 30, 2014, the Bank modified its general allowance methodology to increase the historical loss period by an additional period each quarter until the historical look-back period is built to a twelve quarter look-back period. For the quarter ended December 31, 2014, the Bank utilized an eleven quarter look-back period compared to a ten quarter look-back period for the quarter ended September 30, 2014. The modification is being done to reflect a more stable economic environment to capture additional loss statistics considered reflective of the current portfolio and to conform to industry practices. The impact to the allowance for loan losses at December 31, 2014 after implementing the modification was a $36,000 reduction in the required reserve as compared to the previous methodology.

Management adjusts historical loss factors based on the following qualitative factors:

• Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses;

• Changes in national, regional and local economic and business conditions and developments that affect the collectability of the portfolio including the condition of various market segments;

• Changes in the nature and volume of the portfolio and in the terms of loans;

• Changes in the experience, ability and depth of lending management and other relevant staff;

• Changes in the volume and severity of past due loans, the volume of non-accrual loans, and volume and severity of adversely classified or graded loans;

• Changes in the quality of AnchorBank’s loan review system;

• Changes in the value of underlying collateral for collateral-dependent loans;

• The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and

• The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in AnchorBank’s current portfolio.

In determining the impact, if any, of an individual qualitative factor, management compares the current underlying facts and circumstances surrounding a particular factor with those in the historical periods, adjusting the historical loss factor based on changes in the qualitative factor. Management will continue to analyze the qualitative factors on a quarterly basis, adjusting the historical loss factor as necessary, to a factor believed to be appropriate for the probable and inherent risk of loss in the portfolio.

Other Real Estate Owned, net

Other Real Estate Owned, net. Real estate acquired by foreclosure or by deed in lieu of foreclosure as well as other repossessed assets (“OREO”) are held for sale and are initially recorded at fair value less a discount for estimated selling costs at the date of foreclosure. Any write down to fair value less estimated selling costs is charged to the allowance for loan losses. If the discounted fair value exceeds the net carrying value of the loans, recoveries to the allowance for loan losses are recorded to the extent of previous charge-offs, with any excess, which is infrequent, recognized as a gain in non-interest income. Subsequent to foreclosure, valuations are periodically performed and a valuation allowance is established if the carrying value exceeds the fair value less estimated selling costs. Costs relating to the development and improvement of the property may be capitalized; generally those greater than $10,000; holding period costs and subsequent changes to the valuation allowance are charged to OREO expense, net included in non-interest expense. Incremental valuation adjustments may be recognized in the Statement of Operations if, in the opinion of management, additional losses are deemed probable.

Premises and Equipment

Premises and Equipment. Premises and equipment are recorded at cost and include expenditures for new facilities and items that substantially increase the estimated useful lives of existing buildings and equipment. Expenditures for normal repairs and maintenance are charged to operations as incurred. When properties are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any resulting gain or loss is recorded in income. The cost of office properties and equipment is being depreciated principally by the straight-line method over the estimated useful lives (3 years to 40 years) of the assets. The cost of capitalized leasehold improvements is depreciated on the straight-line method over the lesser of the term of the respective lease or estimated economic life.

Federal Home Loan Bank Stock

Federal Home Loan Bank Stock. The Bank is a member of the Federal Home Loan Bank (“FHLB”) system which is organized as a member owned cooperative. As a result of membership in the FHLB system, the Bank is required to maintain a minimum investment in FHLB stock. The stock is redeemable at par and is, therefore, carried at cost and periodically evaluated for impairment. Ownership in the FHLB provides a potential dividend and allows access to member privileges including loans, advances, letters of credit and mortgage purchases. The stock is not transferable and cannot be used as collateral. The Bank has concluded that its investment in the stock of FHLB Chicago was not impaired at December 31, 2014.

Mortgage Servicing Rights, net

Mortgage Servicing Rights, net. Mortgage servicing rights are recorded as an asset when loans are sold to third parties with servicing rights retained. The amount allocated to the mortgage servicing rights retained has been recognized as a separate asset and is initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estimated net servicing revenues. The carrying value of these assets is periodically reviewed for impairment using a lower of amortized cost or fair value methodology. Mortgage servicing rights are valued monthly by an independent third party valuation service with income adjustments recorded monthly. On an annual basis the valuation is validated by a separate third party valuation service. The fair value of the servicing rights is determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs and other economic factors. For purposes of measuring fair value and impairment, the rights are stratified based on predominant risk characteristics of the underlying loans which include product type (i.e., fixed or adjustable) and interest rate. The amount of impairment recognized is the amount by which the amortized cost of the capitalized mortgage servicing rights on a product and interest rate strata basis exceed their fair value.

Transfers of Financial Assets

Transfers of Financial Assets. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrains it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Interest Rate Lock Commitments for Mortgage Loans Held for Sale

Interest Rate Lock Commitments for Mortgage Loans Held for Sale. Interest rate lock commitments for mortgage loans originated for sale meet the definition of derivatives. These instruments are carried at fair value and included in other assets and other liabilities in the consolidated balance sheets with changes in value included in net gain on sale of loans in the consolidated statements of operations.

Income Taxes

Income Taxes. The Company’s deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets and liabilities and associated valuation allowance. The Company and its subsidiaries file a consolidated federal income tax return and combined state income tax returns. An intercompany settlement of taxes paid is determined based on tax sharing agreements which generally provide for allocation of taxes to each entity on a separate return basis.

The Company is subject to the income tax laws of the U.S., its states and municipalities. These tax laws are complex and subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. Accounting guidance related to uncertainty in income taxes provides a comprehensive model for how companies should recognize, measure, present and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under the guidance, tax positions shall initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. The guidance also revised disclosure requirements to include an annual tabular roll forward of unrecognized tax benefits. In establishing a provision for income tax expense, the Company must make judgments and interpretations about the application of these inherently complex tax laws within the framework of existing U.S. generally accepted accounting principles. The Company recognizes interest and penalties related to uncertain tax positions in other non-interest expense if any were incurred.

Earnings Per Share

Earnings Per Share. Basic earnings per share (“EPS”) is computed by dividing net income (loss) available to common equity of the Company by the weighted average number of common shares outstanding for the period. The basic EPS computation excludes the dilutive effect of all common stock equivalents, if any. Diluted EPS is computed by dividing net income (loss) available to common equity by the weighted average number of common shares outstanding plus all potentially dilutive common shares which could be issued if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock (“common stock equivalents”). The Company’s common stock equivalents represent shares issuable under a stock compensation plan. Such common stock equivalents were computed based on the treasury stock method using the average market price for the period.

Comprehensive Income (Loss)

Comprehensive Income (Loss). Comprehensive income or loss is the total of reported net income or loss and all other revenues, expenses, gains and losses that under generally accepted accounting principles are not reported as net income (loss). As such, the Company includes unrealized gains or losses on securities available for sale in other comprehensive income (loss).

New Accounting Pronouncements

New Accounting Pronouncements.

Accounting Standards Update, (“ASU”), No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20).” ASU 2015-01 addresses the elimination from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. This amended guidance will prohibit separate disclosure of extraordinary items in the income statement. This amendment is effective for years, and interim periods within those years, beginning after December 15, 2015. Entities may apply the amendment prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the year of adoption. The Company intends to adopt the accounting standard during the first quarter of 2016, as required, with no material impact.

ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” In May 2014, the Financial Accounting Standards Board (“FASB”) issued an amendment to clarify the principles for recognizing revenue and to develop a common revenue standard. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity should apply the following steps: (1) Identify the contract(s) with a customer, (2) Identify the performance obligations in the contract, (3) Determine the transaction price, (4) Allocate the transaction price to the performance obligations in the contract, and (5) Recognize revenue when (or as) the entity satisfies a performance obligation. The standard applies to all contracts with customers except those that are within the scope of other topics in the FASB Codification. The standard also requires significantly expanded disclosures about revenue recognition. The amendment is effective for annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). Early application is not permitted. The Company intends to adopt the accounting standard during the first quarter of 2017, as required, and is currently evaluating the impact on its results of operations, financial position, and liquidity.

ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) – Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” These amendments are intended to clarify when a creditor should be considered to have received physical possession of residential real estate property when collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. Further, this amendment clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. ASU 2014-04 is effective for public companies for annual periods and interim periods within those annual periods beginning after December 15, 2014. The Company does not expect this ASU will have a material impact on its consolidated financial statements.

Accounting Standards Codification (“ASC”) Topic 740 “Income Taxes.” New authoritative accounting guidance under ASC Topic 740, “Income Taxes” amended prior guidance to include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The authoritative guidance is effective for reporting periods after January 1, 2014. The Company is in compliance with these requirements and adoption did not have an impact on the consolidated financial statements.

Reclassifications

Reclassifications. Prior period amounts have been reclassified as needed to conform to the current period presentations. There was no impact on earnings or stockholders’ equity as a result of the reclassifications.

Regulatory Agreements

Regulatory Agreements

The Bank’s primary regulator is the Office of the Comptroller of the Currency (“OCC”). The Federal Reserve is the primary regulator of the Company. On June 26, 2009, the Company and the Bank each consented to the issuance of an Order to Cease and Desist (the “Company Order” and the “Bank Order,” respectively). On August 31, 2010, a Prompt and Corrective Action Directive (“PCA Directive”) was issued for the Bank. The Company Order required among other things a larger capital ratio and the submission of a capital restoration plan along with a revised business plan.

On April 2, 2014, the Bank was notified that the Bank Order and the PCA Directive were terminated. On July 31, 2014, the Company was notified that the Company Order was terminated.

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Commitments and Contingent Liabilities - Reserve for Unfunded Loan Commitments and for Repurchase of Previously Sold Loans (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Reserve for unfunded commitment losses beginning balance	$ 1,956	$ 4,664	$ 564
Provision for unfunded commitments	2,708	(2,107)	1,392
Ending reserve for unfunded commitment losses	4,664	2,557	1,956
Reserve for repurchased loans beginning balance	2,600	2,600
Charge off		(1,176)
Recovery		27
Provision for repurchased loans		(113)	2,600
Ending reserve for repurchased loans	$ 2,600	$ 1,338	$ 2,600

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Investment Securities - Fair Value of Investment Securities Available for Sale by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Investments Classified by Contractual Maturity Date [Line Items]
Within 1 Year	$ 0
After 1 Year through 5 Years	3,545
After 5 Years through 10 Years	12,000
Over Ten Years	279,054
Total	294,599
Government sponsored agency mortgage-backed securities
Investments Classified by Contractual Maturity Date [Line Items]
Within 1 Year	0	[1]
After 1 Year through 5 Years	96	[1]
After 5 Years through 10 Years	11,998	[1]
Over Ten Years	108,527	[1]
Total	120,621	[1]
U.S. government sponsored and federal agency obligations
Investments Classified by Contractual Maturity Date [Line Items]
Within 1 Year	0
After 1 Year through 5 Years	3,261
Total	3,261
Corporate stock and bonds
Investments Classified by Contractual Maturity Date [Line Items]
Within 1 Year	0
Over Ten Years	3
Total	3
Non-agency CMOs
Investments Classified by Contractual Maturity Date [Line Items]
Within 1 Year	0
After 5 Years through 10 Years	2
Over Ten Years	25
Total	27
GNMA mortgage-backed securities
Investments Classified by Contractual Maturity Date [Line Items]
Within 1 Year	0
After 1 Year through 5 Years	188
Over Ten Years	170,499
Total	$ 170,687

[1] Includes mortgage-backed securities and CMOs.

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Computation of Basic and Diluted Loss Per Common Share

The computation of earnings per share is as follows:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013 (1)		Year Ended March 31, 2013 (1)
	(in thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share – net income (loss) available to common equity	$	14,622	$	206,918	$	(48,144	)
Denominator:
Denominator for basic earnings per share – weighted average shares		9,107		16,989		21,247
Effect of dilutive securities:
Restricted stock (2)		44		—		—
Denominator for diluted earnings per share – weighted average shares		9,151		16,989		21,247
Basic income (loss) per common share	$	1.61	$	12.18	$	(2.27	)
Diluted income (loss) per common share	$	1.60	$	12.18	$	(2.27	)

⁽¹⁾  The calculation of weighted average shares included 21,247,000 shares of Legacy Common Stock outstanding through September 26, 2013 and 9,050,000 shares of common stock outstanding from September 27 through December 31, 2013.

⁽²⁾  Computed based on the treasury stock method using the average market price per period. The value used prior to the issuance of shares pursuant to the recapitalization transaction on September 27, 2013 was approximately 90% of book value. Since the time of the transaction, the position of the Company has remained relatively the same, therefore the issuance of the August 15, 2014 grant of restricted stock shares at 90% of book value as of the most recent month end was a reasonable approximation of fair value.

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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Fair Value of Investment Securities

The amortized cost and fair value of investment securities are as follows:

	Amortized Cost		Gross Unrealized					Fair Value
			Gains		Losses
	(In thousands)
December 31, 2014
Available for sale:
U.S. government sponsored and federal agency obligations	$	3,245	$	16	$	—		$	3,261
Corporate stock and bonds		1		2		—			3
Non-agency CMOs (1)		59		—		(32	)		27
Government sponsored agency mortgage-backed securities (1)		120,627		411		(417	)		120,621
GNMA mortgage-backed securities (1)		173,069		411		(2,793	)		170,687
	$	297,001	$	840	$	(3,242	)	$	294,599
December 31, 2013
Available for sale:
U.S. government sponsored and federal agency obligations	$	3,359	$	17	$	—		$	3,376
Corporate stock and bonds		88		267		—			355
Non-agency CMOs (1)		6,452		9		(253	)		6,208
Government sponsored agency mortgage-backed securities (1)		50,721		160		(723	)		50,158
GNMA mortgage-backed securities (1)		223,874		1,056		(7,155	)		217,775
	$	284,494	$	1,509	$	(8,131	)	$	277,872

⁽¹⁾  CMOs (collateralized mortgage obligations), government sponsored agencies and GNMA (Ginnie Mae) mortgage-backed securities are primarily collateralized by residential mortgages.

Fair Value and Gross Unrealized Losses

The table below presents the fair value and gross unrealized losses of securities in a loss position, aggregated by investment category and length of time that individual holdings have been in a continuous unrealized loss position at December 31, 2014 and 2013.

	Unrealized Loss Position
	Less than 12 months					12 months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
December 31, 2014
Non-agency CMOs	$	2	$	(1	)	$	25	$	(31	)	$	27	$	(32	)
Government sponsored agency mortgage-backed securities (1)		54,020		(228	)		8,178		(189	)		62,198		(417	)
GNMA mortgage-backed securities		27,113		(110	)		98,230		(2,683	)		125,343		(2,793	)
	$	81,135	$	(339	)	$	106,433	$	(2,903	)	$	187,568	$	(3,242	)
December 31, 2013
Non-agency CMOs	$	1,219	$	(7	)	$	4,776	$	(246	)	$	5,995	$	(253	)
Government sponsored agency mortgage-backed securities (1)		47,480		(723	)		—		—			47,480		(723	)
GNMA mortgage-backed securities		140,824		(5,143	)		25,449		(2,012	)		166,273		(7,155	)
	$	189,523	$	(5,873	)	$	30,225	$	(2,258	)	$	219,748	$	(8,131	)

⁽¹⁾  Includes mortgage-backed securities and CMOs.

Roll Forward of Other-Than-Temporary Impairment Related to Credit Losses

The following table is a roll forward of the amount of other-than-temporary impairment related to credit losses that have been recognized in earnings for which a portion of impairment was deemed temporary and recognized in other comprehensive income (loss) for the periods presented:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Beginning balance of unrealized OTTI related to credit losses	$	801		$	1,002		$	2,391
Additional unrealized OTTI related to credit losses for which OTTI was previously recognized		64			23			412
Additional debit related OTTI previously recognized for OTTI recovery during the period		4			5			—
Credit related OTTI previously recognized for securities sold during the period		(644	)		—			(1,075	)
Credit related OTTI previously recognized for securities paid-off during the period		—			—			(4	)
Decrease for realized amount of credit losses for which unrealized credit related OTTI was previously recognized		(225	)		(229	)		(722	)
Ending balance of unrealized OTTI related to credit losses	$	—		$	801		$	1,002

Sales of Investment Securities Available for Sale

The cost of investment securities sold is determined using the specific identification method. Sales of investment securities available for sale are summarized below:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Proceeds from sales	$	17,557		$	356	$	12,780
Gross gains	$	825		$	292	$	91
Gross losses		(79	)		—		(338	)
Net gain/(loss) on sales	$	746		$	292	$	(247	)

Fair Value of Investment Securities Available for Sale by Contractual Maturity

The fair values of investment securities by contractual maturity at December 31, 2014 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties.

	Within 1 Year		After 1 Year through 5 Years		After 5 Years through 10 Years		Over Ten Years		Total
	(In thousands)
U.S. government sponsored and federal agency obligations	$	—	$	3,261	$	—	$	—	$	3,261
Corporate stock and bonds		—		—		—		3		3
Non-agency CMOs		—		—		2		25		27
Government sponsored agency mortgage-backed securities (1)		—		96		11,998		108,527		120,621
GNMA mortgage-backed securities		—		188		—		170,499		170,687
Total	$	—	$	3,545	$	12,000	$	279,054	$	294,599

(1) Includes mortgage-backed securities and CMOs.

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Loans Held for Investment, net (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Loans Held for Investment, Net

Loans held for investment, net consist of the following:

	December 31,
	2014			2013
	(In thousands)
Residential	$	541,211		$	529,777
Commercial and industrial		16,514			21,591
Commercial real estate:
Land and construction		106,436			92,050
Multi-family		265,735			281,917
Retail/office		155,095			154,075
Other commercial real estate		156,243			174,313
Total commercial real estate		683,509			702,355
Consumer:
Education		108,384			129,520
Other consumer		233,487			238,311
Total consumer loans		341,871			367,831
Total gross loans		1,583,105			1,621,554
Undisbursed loan proceeds (1)		(10,080	)		(10,322	)
Unamortized loan fees, net		(1,544	)		(1,722	)
Unearned interest		(5	)		(4	)
Total loan contra balances		(11,629	)		(12,048	)
Loans held for investment		1,571,476			1,609,506
Allowance for loan losses		(47,037	)		(65,182	)
Loans held for investment, net	$	1,524,439		$	1,544,324

(1) Undisbursed loan proceeds are funds to be released upon a draw request approved by the Corporation.

Allowance for Loan Losses by Component

The following table presents the allowance for loan losses by component:

	December 31,
	2014		2013
	(In thousands)
General reserve	$	34,027	$	34,466
Specific reserve:
Substandard rated loans, excluding TDR accrual		4,569		6,225
Impaired loans		8,441		24,491
Total allowance for loan losses	$	47,037	$	65,182

Gross Balance of Loans by Risk Category

The following table presents the gross balance of loans by risk category:

	December 31,
	2014		2013
	(In thousands)
Pass	$	1,465,224	$	1,429,283
Special mention		6,243		24,203
Total pass and special mention rated loans		1,471,467		1,453,486
Substandard rated loans, excluding TDR accrual (1)		16,353		35,310
Troubled debt restructurings – accrual (2)		60,170		64,261
Non-accrual		35,115		68,497
Total impaired loans		95,285		132,758
Total gross loans	$	1,583,105	$	1,621,554

⁽¹⁾  Includes residential and consumer loans identified as substandard that are not necessarily on non-accrual.

⁽²⁾  Includes TDR loans performing to contract terms of $55.4 million and $31.2 million at December 31, 2014 and 2013, respectively.

Allowance for Loan Losses by Portfolio Segment

The following table presents activity in the allowance for loan losses by portfolio segment:

	Residential			Commercial and Industrial			Commercial Real Estate			Consumer			Total
	(In thousands)
For the Year Ended:
December 31, 2014
Beginning balance	$	13,059		$	6,402		$	42,065		$	3,656		$	65,182
Provision		(599	)		(2,622	)		(6,129	)		4,765			(4,585	)
Charge-offs		(2,212	)		(5,220	)		(16,041	)		(2,599	)		(26,072	)
Recoveries		436			2,876			8,821			379			12,512
Ending balance	$	10,684		$	1,436		$	28,716		$	6,201		$	47,037
For the Nine Months Ended:
December 31, 2013
Beginning balance	$	14,525		$	7,072		$	54,581		$	3,637		$	79,815
Provision		2,224			(599	)		(2,942	)		1,592			275
Charge-offs		(4,419	)		(864	)		(13,100	)		(1,903	)		(20,286	)
Recoveries		729			793			3,526			330			5,378
Ending balance	$	13,059		$	6,402		$	42,065		$	3,656		$	65,182
For the Year Ended:
March 31, 2013
Beginning balance	$	13,027		$	10,568		$	85,153		$	2,467		$	111,215
Provision		6,414			(1,471	)		(3,107	)		5,897			7,733
Charge-offs		(6,659	)		(3,483	)		(34,265	)		(4,946	)		(49,353	)
Recoveries		1,743			1,458			6,800			219			10,220
Ending balance	$	14,525		$	7,072		$	54,581		$	3,637		$	79,815

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013:

	Residential		Commercial and Industrial		Commercial Real Estate		Consumer		Total
	(In thousands)
December 31, 2014
Allowance for loan losses:
Associated with impaired loans	$	1,400	$	140	$	6,475	$	426	$	8,441
Associated with all other loans		9,284		1,296		22,241		5,775		38,596
Total	$	10,684	$	1,436	$	28,716	$	6,201	$	47,037
Loans:
Impaired loans individually evaluated	$	14,497	$	113	$	79,160	$	1,515	$	95,285
All other loans		526,714		16,401		604,349		340,356		1,487,820
Total	$	541,211	$	16,514	$	683,509	$	341,871	$	1,583,105
December 31, 2013
Allowance for loan losses:
Associated with impaired loans	$	2,424	$	1,745	$	19,845	$	477	$	24,491
Associated with all other loans		10,635		4,657		22,220		3,179		40,691
Total	$	13,059	$	6,402	$	42,065	$	3,656	$	65,182
Loans:
Impaired loans individually evaluated	$	20,502	$	2,315	$	106,657	$	3,284	$	132,758
All other loans		509,275		19,276		595,698		364,547		1,488,796
Total	$	529,777	$	21,591	$	702,355	$	367,831	$	1,621,554

Impaired Loans Segregated by Loans with No Specific Allowance and Loans with Allowance by Class of Loans

The following table presents impaired loans segregated by loans with no specific allowance and loans with an allowance by class of loans. The recorded investment amounts represent the gross loan balance less charge-offs. The unpaid principal balance represents the contractual loan balance less any principal payments applied. The interest income recognized column represents all interest income recorded either on a cash or accrual basis after the loan became impaired.

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Carrying Amount (1)		Year-to-Date Interest Income Recognized
	(In thousands)
December 31, 2014
With no specific allowance recorded:
Residential	$	4,992	$	6,406	$	—	$	5,455	$	165
Commercial and industrial		—		268		—		843		26
Land and construction		9,421		19,334		—		12,192		208
Multi-family		17,614		19,863		—		17,979		780
Retail/office		7,840		15,581		—		8,040		354
Other commercial real estate		13,972		15,318		—		14,617		467
Education (3)		205		205		—		101		—
Other consumer		469		845		—		1,003		89
Subtotal		54,513		77,820		—		60,230		2,089
With an allowance recorded (2):
Residential	$	9,505	$	9,671	$	1,400	$	8,574	$	403
Commercial and industrial		113		236		140		111		1
Land and construction		8,362		12,536		3,657		4,440		180
Multi-family		11,641		11,641		1,308		10,465		485
Retail/office		9,387		9,566		1,391		8,207		356
Other commercial real estate		923		936		119		854		17
Education (3)		—		—		—		—		—
Other consumer		841		841		426		617		48
Subtotal		40,772		45,427		8,441		33,268		1,490
Total
Residential	$	14,497	$	16,077	$	1,400	$	14,029	$	568
Commercial and industrial		113		504		140		954		27
Land and construction		17,783		31,870		3,657		16,632		388
Multi-family		29,255		31,504		1,308		28,444		1,265
Retail/office		17,227		25,147		1,391		16,247		710
Other commercial real estate		14,895		16,254		119		15,471		484
Education (3)		205		205		—		101		—
Other consumer		1,310		1,686		426		1,620		137
	$	95,285	$	123,247	$	8,441	$	93,498	$	3,579

⁽¹⁾  Calculated on a trailing 12 month basis for December 31, 2014, and a trailing 9 month basis for December 31, 2013.

⁽²⁾  Includes ratio-based allowance for loan losses of $0.5 million and $2.1 million associated with loans totaling $1.9 million and $12.5 million at December 31, 2014 and 2013, respectively, for which individual reviews have not been completed but an allowance established based on the ratio of allowance for loan losses to gross loans individually reviewed, by class of loan.

⁽³⁾  Excludes the guaranteed portion of education loans 90+ days past due with balance of $6.6 million and $8.9 million and average carrying amounts totaling $7.7 million and $13.7 million at December 31, 2014 and 2013, respectively, that are not considered impaired based on a guarantee provided by government agencies.

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Carrying Amount (1)		Nine Months Ended December 31, 2013 Interest Income Recognized
	(In thousands)
December 31, 2013
With no specific allowance recorded:
Residential	$	5,009	$	6,292	$	—	$	5,275	$	94
Commercial and industrial		61		370		—		58		246
Land and construction		4,311		13,299		—		4,692		14
Multi-family		16,102		16,286		—		7,338		74
Retail/office		11,279		12,501		—		11,916		128
Other commercial real estate		19,660		23,597		—		12,523		225
Education (3)		276		276		—		343		—
Other consumer		479		745		—		841		84
Subtotal		57,177		73,366		—		42,986		865
With an allowance recorded (2):
Residential	$	15,493	$	15,623	$	2,424	$	13,572	$	250
Commercial and industrial		2,254		2,278		1,745		934		70
Land and construction		20,417		26,020		7,512		15,281		128
Multi-family		14,311		14,329		3,693		4,118		159
Retail/office		17,878		18,062		8,254		14,072		476
Other commercial real estate		2,699		2,731		386		2,298		87
Education (3)		—		—		—		—		—
Other consumer		2,529		2,529		477		2,190		62
Subtotal		75,581		81,572		24,491		52,465		1,232
Total
Residential	$	20,502	$	21,915	$	2,424	$	18,847	$	344
Commercial and industrial		2,315		2,648		1,745		992		316
Land and construction		24,728		39,319		7,512		19,973		142
Multi-family		30,413		30,615		3,693		11,456		233
Retail/office		29,157		30,563		8,254		25,988		604
Other commercial real estate		22,359		26,328		386		14,821		312
Education (3)		276		276		—		343		—
Other consumer		3,008		3,274		477		3,031		146
	$	132,758	$	154,938	$	24,491	$	95,451	$	2,097

⁽¹⁾  Calculated on a trailing 12 month basis for December 31, 2014, and a trailing 9 month basis for December 31, 2013.

⁽²⁾  Includes ratio-based allowance for loan losses of $0.5 million and $2.1 million associated with loans totaling $1.9 million and $12.5 million at December 31, 2014 and 2013, respectively, for which individual reviews have not been completed but an allowance established based on the ratio of allowance for loan losses to gross loans individually reviewed, by class of loan.

⁽³⁾  Excludes the guaranteed portion of education loans 90+ days past due with balance of $6.6 million and $8.9 million and average carrying amounts totaling $7.7 million and $13.7 million at December 31, 2014 and 2013, respectively, that are not considered impaired based on a guarantee provided by government agencies.

Schedule of Average Recorded Investment in Impaired Loans and Interest Income Recognized on Impaired Loans

The average recorded investment in impaired loans and interest income recognized on impaired loans follows:

	Year Ended December 31, 2014				Nine Months Ended December 31, 2013				Year Ended March 31, 2013
	Average Carrying Amount (1)		Interest Income Recognized		Average Carrying Amount (1)		Interest Income Recognized		Average Carrying Amount (1)		Interest Income Recognized
	(In thousands)
Residential	$	14,029	$	568	$	18,847	$	344	$	34,649	$	717
Commercial and industrial		954		27		992		316		2,864		443
Land and construction		16,632		388		19,973		142		27,832		183
Multi-family		28,444		1,265		11,456		233		25,833		652
Retail/office		16,247		710		25,988		604		28,745		1,005
Other commercial real estate		15,471		484		14,821		312		33,992		1,316
Education		101		—		343		—		615		—
Other consumer		1,620		137		3,031		146		4,604		355
	$	93,498	$	3,579	$	95,451	$	2,097	$	159,134	$	4,671

⁽¹⁾  The average carry amount was calculated on a trailing 12 month basis for December 31, 2014 and March 31, 2013 and on a trailing 9 month basis for December 31, 2013.

Impaired Loans

The following is additional information regarding impaired loans:

	December 31,
	2014		2013
	(In thousands)
Carrying amount of impaired loans	$	86,844	$	108,267
Average carrying amount of impaired loans		93,498		95,451
Loans and troubled debt restructurings on non – accrual status		35,115		68,497
Troubled debt restructurings – accrual		60,170		64,261
Troubled debt restructurings – non-accrual (1)		16,483		29,346
Troubled debt restructurings valuation allowance		8,593		15,210
Loans past due ninety days or more and still accruing (2)		6,613		8,930

⁽¹⁾  Troubled debt restructurings – non-accrual are included in the loans and troubled debt restructurings on non-accrual status line item above.

⁽²⁾  Represents the guaranteed portion of education loans that were 90+ days past due which continue to accrue interest due to a guarantee provided by government agencies covering approximately 97% of the outstanding balance.

Aging of Recorded Investment in Past Due Loans, by Class of Loans

The following table presents the aging of the recorded investment in past due loans by class of loans:

	Days Past Due
	30-59		60-89		90 or More		Current		Total
	(In thousands)
December 31, 2014
Residential	$	1,186	$	802	$	2,995	$	536,228	$	541,211
Commercial and industrial		205		—		196		16,113		16,514
Land and construction		267		29		1,111		105,029		106,436
Multi-family		—		—		3,518		262,217		265,735
Retail/office		—		—		2,172		152,923		155,095
Other commercial real estate		—		—		3,011		153,232		156,243
Education		3,505		2,140		6,818		95,921		108,384
Other consumer		632		126		517		232,212		233,487
	$	5,795	$	3,097	$	20,338	$	1,553,875	$	1,583,105
December 31, 2013
Residential	$	1,287	$	564	$	8,897	$	519,029	$	529,777
Commercial and industrial		1,609		—		1,461		18,521		21,591
Land and construction		105		—		11,307		80,638		92,050
Multi-family		1,612		—		1,079		279,226		281,917
Retail/office		968		83		10,887		142,137		154,075
Other commercial real estate		184		506		3,785		169,838		174,313
Education		5,210		2,914		9,206		112,190		129,520
Other consumer		910		213		2,395		234,793		238,311
	$	11,885	$	4,280	$	49,017	$	1,556,372	$	1,621,554

Risk Category of Loans by Class of Loans

The risk category of loans by class of loans, and based on the most recent analysis performed, is as follows:

	Pass (1)			Special Mention			Substandard			Non-Accrual			Total Gross Loans
	(In thousands)
December 31, 2014
Commercial and industrial	$	14,990		$	—		$	1,491		$	33		$	16,514
Commercial real estate:
Land and construction		85,425			946			2,870			17,195			106,436
Multi-family		261,254			—			915			3,566			265,735
Retail/office		143,260			4,753			3,112			3,970			155,095
Other		145,995			174			6,452			3,622			156,243
	$	650,924		$	5,873		$	14,840		$	28,386		$	700,023
Percent of total gross loans		93.0	%		0.8	%		2.1	%		4.1	%		100.0	%
December 31, 2013
Commercial and industrial	$	16,542		$	—		$	3,540		$	1,509		$	21,591
Commercial real estate:
Land and construction		57,221			75			10,025			24,729			92,050
Multi-family		255,741			465			22,053			3,658			281,917
Retail/office		130,966			2,967			5,777			14,365			154,075
Other		135,045			20,696			11,770			6,802			174,313
	$	595,515		$	24,203		$	53,165		$	51,063		$	723,946
Percent of total gross loans		82.3	%		3.3	%		7.3	%		7.1	%		100.0	%

⁽¹⁾  Includes TDR accruing loans.

Residential and Consumer Gross Loans Based on Accrual Status

The following table presents the residential and consumer gross loans based on accrual status:

	December 31, 2014						December 31, 2013
	Accrual(1)		Non-Accrual		Total Gross Loans		Accrual(1)		Non-Accrual		Total Gross Loans
	(In thousands)
Residential	$	535,338	$	5,873	$	541,211	$	515,373	$	14,404	$	529,777
Consumer
Education (2)		108,179		205		108,384		129,244		276		129,520
Other consumer		232,836		651		233,487		235,557		2,754		238,311
	$	876,353	$	6,729	$	883,082	$	880,174	$	17,434	$	897,608

(1) Accrual residential and consumer loans includes substandard rated loans including TDR-accrual.

(2) Non-accrual education loans represent the portion of these loans 90+ days past due that are not covered by a guarantee provided by government agencies that is limited to approximately 97% of the outstanding balance.

Loans Modified Troubled Debt Restructuring by Class

The following table presents information related to loans modified in a troubled debt restructuring by class:

	Year Ended December 31, 2014
Troubled Debt Restructurings (1)	Number of Modifications		Gross Loans (at beginning of period)		Gross Loans (2) (at period end)
	(Dollars in thousands)
Residential	$	13	$	1,632	$	1,620
Commercial and industrial		2		64		97
Land and construction		3		427		410
Multi-family		3		1,283		1,183
Retail/office		—		—		—
Other commercial real estate		2		251		256
Education		—		—		—
Other consumer		11		353		305
	$	34	$	4,010	$	3,871

⁽¹⁾  Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

⁽²⁾  Gross loans is inclusive of all partial paydowns and charge-offs since the modification date.

	Nine Months Ended December 31, 2013
Troubled Debt Restructurings (1)	Number of Modifications		Gross Loans (at beginning of period)		Gross Loans (2) (at period end)
	(Dollars in thousands)
Residential	$	21	$	3,761	$	3,788
Commercial and industrial		19		13,322		12,788
Land and construction		—		—		—
Multi-family		20		25,556		23,531
Retail/office		6		1,673		1,604
Other commercial real estate		8		15,269		15,346
Education		—		—		—
Other consumer		12		401		423
	$	86	$	59,982	$	57,480

⁽¹⁾  Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

⁽²⁾  Gross loans is inclusive of all partial paydowns and charge-offs since the modification date.

Gross Loans Modified in TDR by Class and by Type of Modification

The following tables present gross loans modified in a troubled debt restructuring during the year ended December 31, 2014 and the nine months ended December 31, 2013 by class and by type of modification:

Troubled Debt Restructurings (1)(2)	Year Ended December 31, 2014
	Principal and Interest to Interest Only		Interest Rate Reduction				Below Market Rate (4)		Other (5)		Total
			To Below Market Rate		To Interest Only (3)
	(In thousands)
Residential	$	175	$	788	$	—	$	119	$	538	$	1,620
Commercial and industrial		—		—		—		—		97		97
Land and construction		—		63		—		—		347		410
Multi-family		—		—		—		921		262		1,183
Retail/office		—		—		—		—		—		—
Other commercial real estate		—		—		—		214		42		256
Education		—		—		—		—		—		—
Other consumer		—		252		—		—		53		305
	$	175	$	1,103	$	—	$	1,254	$	1,339	$	3,871

Troubled Debt Restructurings (1)(2)	Nine Months Ended December 31, 2013
	Principal and Interest to Interest Only		Interest Rate Reduction				Below Market Rate (4)		Other (5)		Total
			To Below Market Rate		To Interest Only (3)
	(In thousands)
Residential	$	—	$	1,318	$	—	$	—	$	2,470	$	3,788
Commercial and industrial		—		345		—		—		12,443		12,788
Land and construction		—		—		—		—		—		—
Multi-family		—		231		—		—		23,300		23,531
Retail/office		—		45		216		—		1,343		1,604
Other commercial real estate		—		701		—		144		14,501		15,346
Education		—		—		—		—		—		—
Other consumer		—		411		—		—		12		423
	$	—	$	3,051	$	216	$	144	$	54,069	$	57,480

⁽¹⁾  Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

⁽²⁾  Gross loans is inclusive of all partial pay downs and charge-offs since the modification date.

⁽³⁾  Includes modifications of loan repayment terms from principal and interest to interest only, along with a reduction in the contractual interest rate.

⁽⁴⁾  Includes loans modified at below market rates for borrowers with similar risk profiles and having comparable loan terms and conditions. Market rates are determined by reference to internal new loan pricing grids that specify credit spreads based on loan risk rating and term to maturity.

⁽⁵⁾  Other modifications primarily include providing for the deferral of interest currently due to the new maturity date of the loan.

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Significant Transactions

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Significant Transactions

Note 2 – Significant Transactions

Initial Public Offering

In October 2014, the Company completed its initial public offering (the “IPO”) in which the Company issued and sold 250,000 shares of common stock at a public offering price of $26.00 per share. The Company also granted the underwriters a 30-day option to purchase up to 55,794 additional shares of common stock to cover any over-allotments which was executed for the full amount on October 30, 2014. The Company received net proceeds, which includes the proceeds from the over-allotments, of $5.6 million after deducting underwriting discounts and commissions of $517,000 and other offering expenses totaling $1.8 million. The underwriting discounts, commissions and other offering expenses were deducted against additional paid-in capital and were not included in operating expense of the Company. The Company’s shares are now listed on the Nasdaq Global Market under the symbol “ABCW.” Common shares outstanding at December 31, 2014 were 9,547,587.

Bankruptcy Proceedings and Emergence from Chapter 11

Background

The Company experienced significant operating losses beginning in 2009, significant levels of criticized assets, depleted levels of capital and difficulty in raising additional capital necessary to stabilize the Bank as required by our banking regulators, primarily due to the economic downturn that began in 2008. As a result, in 2009 both the Company and the Bank became subject to Orders to Cease and Desist issued by the Office of Thrift Supervision. Also, the Company owed $183.5 million under a credit facility, which the Company was unable to repay, and issued $110.0 million of Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the “TARP Preferred Stock”) and warrants to purchase common stock (the “TARP Warrant) to the United States Department of the Treasury (the “Treasury”) as part of the Troubled Asset Relief Program (“TARP”) in 2009. In order to facilitate our restructuring and the recapitalization of the Bank, on August 12, 2013 (the “Petition Date”), the Company filed a voluntary petition for relief (the “Chapter 11 Case”) under the provisions of Chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101, et seq., in the United States Bankruptcy Court for the Western District of Wisconsin (the “Bankruptcy Court”) to implement a “pre-packaged” plan of reorganization (the “Plan of Reorganization”).

Plan of Reorganization

Pursuant to the Plan of Reorganization, the following transactions (collectively, the “Recapitalization”) were consummated on September 27, 2013 (the “Effective Date”)

• Delaware Conversion and Reverse Stock Split

Pursuant to the Plan of Reorganization, on September 25, 2013, the Company (i) converted from a Wisconsin Company to a Delaware Company in accordance with Section 265 of the Delaware General Company Law and (ii) filed a Certificate of Incorporation with the Secretary of State of the State of Delaware (the “Amended Charter”), to, among other things, declassify our Board, increase the number of authorized shares of our common stock and adopt certain restrictions on acquisitions and dispositions of our securities. The Amended Charter provides for (a) 2,000,000,000 shares of authorized common stock, par value $0.01 per share (the “Common Stock”), and (b) 1,000,000 shares of authorized preferred stock, par value $0.01 per share. A reverse stock split was effected and a subsequent amendment to the corporate charter was filed on October 2, 2013 providing for 11,900,000 shares of authorized common stock, par value $0.01 per share and 100,000 shares of authorized preferred stock, par value $0.01. There are 9,547,587 shares of Common Stock outstanding as of December 31, 2014.

• Private Placements

In connection with the Plan of Reorganization, the Company entered into stock purchase agreements (the “Investor SPAs”) with investors for the purchase and sale of 1,750,000,000 shares of our common stock (adjusted to 8,750,000 shares on October 2, 2013 as a result of the Reverse Stock Split) at a pre-Reverse Stock Split purchase price of $0.10 per share (implying a $20.00 per share price after giving effect to the Reverse Stock Split) and received gross proceeds of $175.0 million (the “Private Placements”) and incurred transaction costs $14.4 million. The Investors were certain of our officers and directors and institutional investors.

• TARP Exchange

On January 30, 2009, pursuant to the Treasury’s Capital Purchase Program, the Company issued and sold to the Treasury 110,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B of the Company with an aggregate liquidation preference of $110.0 million (the “TARP Preferred Stock”). In addition, the Company issued to the Treasury a warrant (the “TARP Warrant”) to purchase up to 7,399,103 shares of our common stock, par value $0.10 per share (the “Legacy Common Stock”), at an initial per share exercise price of $2.23. Pursuant to the Plan of Reorganization, we, on the Effective Date (i) exchanged the TARP Preferred Stock for 60.0 million shares of common stock (adjusted to 300,000 common shares as a result of the Reverse Stock Split) of common stock (the “Treasury Issuance”) and (ii) cancelled a warrant (the “TARP Warrant”) to purchase up to 7,399,103 shares of our pre-Reorganization common stock, par value $0.10 per share (the “Legacy Common Stock”) in its entirety (collectively, the “TARP Exchange”). The difference between the Common Stock issued and the Preferred Stock redeemed of $104.0 million was recorded as an increase directly to retained earnings. The $104.0 million represents a return from the Preferred stockholder thereby increasing the amount available to common stockholders for purposes of earnings per share.

Following the effectiveness of the Plan of Reorganization, the Treasury sold to certain institutional investors (the “Secondary Investors”) all of the shares of Common Stock delivered to the Treasury in connection with the Treasury Issuance at a purchase price equal to $0.10 per share (the “Secondary Treasury Sales”) under the securities purchase agreements, dated as of September 19, 2013, among the Treasury, the Secondary Investor and (with respect to certain provisions) the Company. In connection with the Secondary Treasury Sales, the Company entered into secondary sale purchaser agreements with the Secondary Investors pursuant to which the company made certain representations and warranties to the Investor and provided rights to the Secondary Investors similar to the rights provided to Investors under the Stock Purchase Agreements. The Treasury then sold all of the shares of common stock delivered and received gross proceeds of $6.0 million and ceased to be our stockholder.

• Senior Debt Settlement

The aggregate amount of our obligations under the Credit Agreement was approximately $183.5 million as of August 12, 2013 (including with respect to gross loans, accrued but unpaid interest thereon and all administrative and other fees or penalties). On the Effective Date the Company satisfied all of our obligations under the Credit Agreement by a cash payment to the Lenders of $49.0 million (plus expense reimbursement as contemplated by the Credit Agreement). As a result of the transaction, the Company recognized a gain on extinguishment of debt of $134.5 million. All other claims were unaffected by, and were paid in full under, the Plan of Reorganization.

• Legacy Common Stock

On the effective date all shares of the outstanding Legacy Common Stock including those shares held as treasury stock and in any stock incentive plans were cancelled for no consideration pursuant to the Plan of Reorganization.

Emergence Accounting

Upon emergence, we determined we did not meet the requirements to apply fresh start reporting under applicable accounting standards because we did not meet the solvency criteria of ASC 852-10-45-19. The reorganization value immediately before the date of confirmation was greater than the total of all post-petition liabilities and allowed claims and, therefore, indicative of not meeting the test to require fresh start accounting under ASC 852. As of the date of confirmation, we estimated our enterprise value (or reorganization value) to be approximately $2.2 billion. The Company utilized the equity value using the income and market approach to approximate fair value. Accordingly, our financial statements do not include fresh start reporting, whereby the Company would have to revalue all of its assets and liabilities. At the time of filing for the Chapter 11 Case, we identified liabilities subject to compromise of $188.3 million, which included the outstanding Credit Agreement of approximately $116.3 million, interest and fees due under the Credit Agreement of $67.2 million and $4.8 million in other liabilities.

Regulatory Agreements

The Bank’s primary regulator is the Office of the Comptroller of the Currency (“OCC”). The Federal Reserve is the primary regulator of the Company. On June 26, 2009, the Company and the Bank each consented to the issuance of an Order to Cease and Desist (the “Company Order” and the “Bank Order,” respectively). On August 31, 2010, a Prompt and Corrective Action Directive (“PCA Directive”) was issued for the Bank. The Company Order required among other things a larger capital ratio and the submission of a capital restoration plan along with a revised business plan.

On April 2, 2014, the Bank was notified that the Bank Order and the PCA Directive were terminated. On July 31, 2014, the Company was notified that the Company Order was terminated.

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Other Real Estate Owned (Tables)

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Summary of Other Real Estate Owned Activity

A summary of the activity in other real estate owned is as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013
	(In thousands)
Balance at beginning of period	$	63,460		$	84,342
Additions		10,381			19,352
Capitalized improvements		251			307
OREO valuation adjustments, net (1)		(7,840	)		(4,937	)
Sales		(30,761	)		(35,604	)
Balance at end of period	$	35,491		$	63,460

⁽¹⁾  Includes adjustments to the OREO reserve for probable losses and property writedowns.

Summary of OREO Valuation Allowance Activity

A summary of activity in the OREO valuation allowance is as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Balance at beginning of period	$	30,842		$	36,009		$	22,521
Valuation adjustments (1)		7,840			4,937			26,733
Sales		(18,099	)		(10,104	)		(13,245	)
Balance at end of period	$	20,583		$	30,842		$	36,009

⁽¹⁾  Includes adjustments to the OREO reserve for probable losses and property writedowns.

Summary of Net OREO Expenses

Net OREO expense consisted of the following components:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Valuation adjustments	$	7,840	$	4,937	$	26,733
Foreclosure cost expense		498		1,541		2,602
Expenses from operations, net		1,441		3,319		8,236
OREO expense, net	$	9,779	$	9,797	$	37,571

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Mortgage Servicing Rights - Summary of Mortgage Servicing Rights (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014
Transfers and Servicing [Abstract]
Balance at beginning of period	$ 24,235	$ 23,041
Additions	2,751	1,442
Amortization	(3,945)	(3,798)
Balance at end of period - before valuation allowance	23,041	20,685
Valuation allowance	(747)	(1,281)
Balance at end of period	22,294	19,404
Fair value at the end of the period	$ 23,553	$ 19,590
Key assumptions:
Weighted average discount rate	1202.00%	1145.00%
Weighted average prepayment speed	706.00%	1001.00%

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Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Carryovers expire date	2015 through 2034
Valuation allowance	$ 113,099,000	$ 119,780,000
Federal
Income Tax Disclosure [Abstract]
Operating loss carryover	200,600,000	185,100,000
State
Income Tax Disclosure [Abstract]
Operating loss carryover	$ 320,100,000	$ 301,800,000

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Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Schedule of Contract Amounts Represent Credit Risk

Financial instruments whose contract amounts represent credit risk are as follows:

	December 31,
	2014		2013
	(In thousands)
Commitments to extend credit	$	39,251	$	26,054
Unused commitments		—		657
Unused lines of credit:
Home equity		111,365		109,414
Credit cards		23,249		22,751
Commercial		144,333		54,840
Letters of credit		8,564		17,131
Credit enhancement under the Federal Home Loan Bank of Chicago Mortgage Partnership Finance Program		7,644		15,877

Reserve for Unfunded Loan Commitments and for Repurchase of Previously Sold Loans

The balances of these reserves for the periods presented is as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Reserve for unfunded commitment losses beginning balance	$	4,664		$	1,956	$	564
Provision for unfunded commitments		(2,107	)		2,708		1,392
Ending reserve for unfunded commitment losses	$	2,557		$	4,664	$	1,956
Reserve for repurchased loans beginning balance	$	2,600		$	2,600	$	—
Charge off		(1,176	)		—		—
Recovery		27			—		—
Provision for repurchased loans		(113	)		—		2,600
Ending reserve for repurchased loans	$	1,338		$	2,600	$	2,600

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Investment Securities - Additional Information (Detail) (USD $)	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014		Mar. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Public offering redemption shares percentage			39.00%
Available for sale securities, fair value	$ 277,872,000		$ 294,599,000
Available for sale securities, adjusted cost basis	284,494,000		297,001,000
Other-than-temporary impairment securities sold			644,000		1,075,000
Unrealized other-than-temporary impairment due to credit losses	23,000		64,000		412,000
Net realized losses related to credit issues (i.e. principal reduced without a receipt of cash)	224,000		221,000
Unrealized losses on U.S. government sponsored and federal agency obligations, corporate stocks and bonds and Ginnie Mae ("GNMA") mortgage-backed securities as of June 30, 2012 due to changes in interest rates and other non-credit related factors totaled	7,900,000		3,200,000
Number of individual securities	35		34
Investment securities with a fair value	277,872,000		294,599,000
Non-agency CMOs
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, fair value	6,208,000	[1]	27,000	[1]
Available for sale securities, adjusted cost basis	6,452,000	[1]	59,000	[1]
Other-than-temporarily impaired
Schedule of Available-for-sale Securities [Line Items]
Other-than-temporary impairment securities sold			37,000
Other-than-temporarily impaired | Non-agency CMOs
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, fair value			0.0
Other-than-temporarily impaired | Six non-agency CMOs
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, fair value	6,200,000
Available for sale securities, adjusted cost basis	6,400,000
Investment Securities
Schedule of Available-for-sale Securities [Line Items]
Investment securities with a fair value	$ 162,800,000		$ 121,500,000

[1] CMOs (collateralized mortgage obligations), government sponsored agencies and GNMA (Ginnie Mae) mortgage-backed securities are primarily collateralized by residential mortgages.

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Loans Held for Investment, net - Residential and Consumer Gross Loans Based on Accrual Status (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2014
Receivables [Abstract]
Period of education loans	90 days
Guarantee provided by government agencies against outstanding balances of education loans	97.00%

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Assets
Cash and due from banks	$ 46,400	$ 44,139
Interest-earning deposits	100,873	99,257
Cash and cash equivalents	147,273	143,396
Investment securities available for sale (AFS)	294,599	277,872
Loans held for sale	6,594	3,085
Loans held for investment	1,571,476	1,609,506
Less: Allowance for loan losses	(47,037)	(65,182)
Loans held for investment, net	1,524,439	1,544,324
Other real estate owned (OREO), net	35,491	63,460
Premises and equipment, net	23,569	24,800
Federal Home Loan Bank stock - at cost	11,940	11,940
Mortgage servicing rights, net	19,404	22,294
Accrued interest receivable	7,627	8,216
Other assets	11,443	13,087
Total assets	2,082,379	2,112,474
Deposits
Non-interest bearing	291,248	259,926
Interest bearing	1,522,923	1,615,367
Total deposits	1,814,171	1,875,293
Other borrowed funds	13,752	12,877
Accrued interest payable	316	415
Accrued taxes, insurance and employee related expenses	7,259	7,302
Other liabilities	19,218	14,389
Total liabilities	1,854,716	1,910,276
Commitments and contingent liabilities (Note 14)
Preferred stock: par value $0.01, authorized 100,000 shares, none outstanding
Common stock: par value $0.01, authorized 11,900,000 shares, issued 9,552,094 shares, outstanding 9,547,587 shares at December 31, 2014; issued and outstanding 9,050,000 shares at December 31, 2013	95	91
Additional paid-in capital	195,083	188,370
Retained earnings	34,981	20,359
Accumulated other comprehensive loss related to AFS securities	(2,402)	(6,378)
Accumulated other comprehensive loss related to other than temporary impairment (OTTI) securities - non-credit factors		(244)
Total accumulated other comprehensive loss	(2,402)	(6,622)
Treasury stock (4,507 shares and 0 shares at December 31, 2014 and 2013, respectively), at cost	(94)
Total stockholders' equity	227,663	202,198
Total liabilities and stockholders' equity	$ 2,082,379	$ 2,112,474

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Condensed Parent Only Financial Information (Tables)

12 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheets

Condensed Balance Sheets

	December 31,
	2014		2013
	(In thousands)
Assets
Cash and cash equivalents	$	10,081	$	5,238
Investment in subsidiaries		216,547		196,824
Intercompany receivable from non-bank subsidiaries		996		95
Other		133		511
Total assets	$	227,757	$	202,668
Liabilities
Loans payable	$	—	$	—
Accrued interest and fees payable		—		—
Other liabilities		94		470
Total liabilities		94		470
Stockholders’ Equity
Total stockholders’ equity		227,663		202,198
Total liabilities and stockholders’ equity	$	227,757	$	202,668

Condensed Statements of Operations

Condensed Statements of Operations

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Interest income	$	8		$	4		$	5
Interest expense		—			7,053			19,119
Net interest income (expense)		8			(7,049	)		(19,114	)
Equity in net income (loss) from subsidiaries		15,502			18,787			(14,781	)
Non-interest income		100			—			4
Extinguishment of debt		—			134,514			—
Income (loss) from operations		15,610			146,252			(33,891	)
Reorganization costs		(64	)		1,929			—
Non-interest expense		1,052			1,031			687
Income (loss) before income taxes		14,622			143,292			(34,578	)
Income tax expense (benefit)		—			31,669			(406	)
Net income (loss)		14,622			111,623			(34,172	)
Preferred stock dividends in arrears		—			(2,538	)		(6,560	)
Preferred stock discount accretion		—			(6,167	)		(7,412	)
Retirement of preferred shares		—			104,000			—
Net income (loss) available to common equity	$	14,622		$	206,918		$	(48,144	)

Condensed Statements of Cash Flows

Condensed Statements of Cash Flows

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Operating Activities
Net income (loss)	$	14,622		$	111,623		$	(34,172	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in income (loss) of subsidiaries		(15,502	)		(18,787	)		14,781
Extinguishment of debt		—			(134,514	)		—
Increase in accrued interest and fees payable		—			7,053			19,119
Costs associated with stock plan		—			2,922			—
Increase (decrease) in other		96			(2,872	)		(3,561	)
Net cash used in operating activities		(784	)		(34,575	)		(3,833	)
Investing Activities
Net decrease in intercompany loans		—			—			4,225
Dividend received from subsidiaries		—			5,402			—
Capital contribution to subsidiaries		—			(80,205	)		—
Net cash provided by (used in) investing activities		—			(74,803	)		4,225
Financing Activities
Repayment of borrowed funds		—			(49,000	)		—
Recapitalization transaction fees		—			(14,360	)		—
Issuance of common stock		7,951			175,000			—
Stock issuance cost		(2,324	)		—			—
Net cash provided by financing activities		5,627			111,640			—
Increase in cash and cash equivalents		4,843			2,262			392
Cash and cash equivalents at beginning of year		5,238			2,976			2,584
Cash and cash equivalents at end of year	$	10,081		$	5,238		$	2,976

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Employee Benefit Plans - Schedule of Restricted Stock Awards Including Restricted Stock Units (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares, Granted	200,200
Shares, Vested	(12,500)
Shares, Forfeited	(8,400)
Shares, Non-vested outstanding at end of period	179,300
Available to grant	408,200
Weighted Average Grant Date Fair Value, Granted	$ 21.17
Weighted Average Grant Date Fair Value, Vested	$ 20.95
Weighted Average Grant Date Fair Value, Forfeited	$ 20.95
Weighted Average Grant Date Fair Value, Non-vested at end of year	$ 21.20

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Income Taxes - Provision for Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Current:
Federal							$ (51)
State			9		10		(130)
Total			9		10		(181)
Deferred:
Federal			0		0		0
State			0		0		0
Total			0		0		0
Income tax expense (benefit)	$ 10	$ 9	$ 9	$ (181)	$ 10	$ 9	$ (181)

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014		Mar. 31, 2013
Operating Activities
Net income (loss)	$ 111,623		$ 14,622		$ (34,172)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization and accretion of investment securities premium, net	1,290		1,496		1,013
Net (gain) loss on sale of investment securities	(292)		(746)		247
Net impairment losses on investment securities	27		64		408
Origination of loans held for sale	(228,748)		(146,894)		(898,960)
Proceeds from sale of loans held for sale	248,807		146,182		943,429
Net gain on sale of loans	(5,086)		(2,797)		(23,195)
Provision for loan losses	275		(4,585)		7,733
Provision for unfunded loan commitments	2,708		(2,107)		1,392
Valuation adjustments for OREO	4,937	[1]	7,840	[1]	26,733	[1]
Loss provision on deposit method OREO property					3,301
Gain on sale of OREO	(3,260)		(2,540)		(6,876)
Depreciation and amortization	1,871		2,404		3,079
Loss (gain) on disposal of premises and equipment, net	3		(1,328)		651
Deferred gain on disposal of premises and equipment			(6,392)
Gain on sale of branch			(991)
Mortgage servicing rights impairment (recovery)	(1,664)		534		(403)
Impairment of real estate held for development and sale	212				535
Stock-based compensation expense			996
Extinguishment of debt	(134,514)
Decrease in accrued interest receivable	1,347		583		2,512
Decrease in other assets	5,726		4,000		5,129
Increase (decrease) in accrued interest payable	6,339		(94)		17,963
Increase (decrease) in accrued taxes, insurance and employee related expenses	913		(43)		4
Increase (decrease) in other liabilities	(5,837)		6,936		(10,357)
Net cash provided by operating activities	6,677		17,140		40,166
Investing Activities
Proceeds from sale of investment securities	356		17,557		12,262
Purchase of investment securities	(63,293)		(84,406)		(81,202)
Principal collected on investment securities	40,626		53,528		46,251
Decrease in loans held for investment	106,592		11,724		302,907
Branch sale-Richland Center			(13,173)
Proceeds from sale of premises and equipment	27		10,550		2
Purchases of premises and equipment	(2,232)		(4,084)		(436)
Proceeds from sale of OREO	38,864		33,301		54,498
Capitalized improvements of OREO	(307)		(251)		(300)
FHLB stock redemption	13,690				10,162
Net cash provided by investing activities	134,323		24,746		344,144
Financing Activities
Decrease in deposits	(129,750)		(46,257)		(238,321)
Increase (decrease) in advance payments by borrowers for taxes and insurance	(19,982)		1,746		(1,555)
Proceeds from borrowed funds	718,989		106,327		92,694
Repayment of borrowed funds	(956,037)		(105,452)		(251,572)
Issuance of common stock	175,000		7,951
Stock issuance cost			(2,324)
Recapitalization transaction fees	(14,360)
Net cash used in financing activities	(226,140)		(38,009)		(398,754)
Increase in cash and cash equivalents	(85,140)		3,877		(14,444)
Cash and cash equivalents at beginning of period	228,536		143,396		242,980
Cash and cash equivalents at end of period	143,396		147,273		228,536
Cash paid (received) or credited to accounts:
Interest on deposits and borrowings	7,778		4,443		21,097
Income tax payments (receipts)	17		15		(1,735)
Non-cash transactions:
Transfer of loans to OREO	19,352		10,381		75,169
Transfer of premises and equipment to OREO					558
Transfer of OREO to premises and equipment					$ 2,870

[1] Includes adjustments to the OREO reserve for probable losses and property writedowns.

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Regulatory Capital - Reconciliation of Bank's Stockholders' Equity to Federal Regulatory Capital (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014
Banking and Thrift [Abstract]
Stockholders' equity of the Bank	$ 196,469		$ 216,030
Less: Disallowed servicing assets	(1,096)		(1,773)
Accumulated other comprehensive loss	6,622		2,402
Tier 1 capital	201,995		216,659
Plus: Allowable allowance for loan losses	16,673		16,373
Total risk-based capital	$ 218,668	[1]	$ 233,032	[1]

[1] Total risk-based capital divided by total risk-weighted assets.

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Loans Held for Investment, net - Allowance for Loan Losses by Component (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 47,037	$ 65,182
General reserve
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	34,027	34,466
Substandard rated loans, excluding TDR accrual
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	4,569	6,225
Impaired loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 8,441	$ 24,491

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Commitments and Contingent Liabilities - Additional Information (Detail) (USD $)	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Mar. 31, 2013	Mar. 31, 2012	Sep. 30, 2014
Loss Contingencies [Line Items]
Retained secondary credit loss exposure	$ 15,877,000	$ 7,644,000
Unpaid principal balance of loans repurchased from investors	1,800,000	1,100,000	1,600,000
Asset disposition related expense including reserves for repurchased loans	687,000	754,000	1,900,000
Reserve for unfunded commitment losses	4,664,000	2,557,000	1,956,000	564,000
Inrease (decrease) reserve for repurchase of previously sold loans		(1,300,000)
Investor loss reimbursement	687,000	50,000	4,530,000
Reserve for repurchase of previously sold loans		1,300,000
Letters of Credit
Loss Contingencies [Line Items]
Reserve for unfunded commitment losses	4,700,000	2,600,000
Reserve for unfunded commitment losses					2,700,000
Residential Loans
Loss Contingencies [Line Items]
Retained secondary mortgage loans originated for FHLB		$ 165,900,000

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Deposits (Tables)

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Summary of Deposits

Deposits are summarized as follows:

	December 31, 2014					December 31, 2013
	Carrying Amount		Weighted Average Rate			Carrying Amount		Weighted Average Rate
	(Dollars in thousands)
Non-interest-bearing checking	$	291,248		—	%	$	259,926		—	%
Interest-bearing checking		305,004		0.06			301,956		0.07
Total checking accounts		596,252		0.03			561,882		0.04
Money market accounts		455,594		0.20			468,461		0.19
Regular savings		312,544		0.10			293,159		0.10
Advance payments by borrowers for taxes and insurance		2,568		0.07			822		0.10
Certificates of deposit:
0.00% to 0.99%		363,890		0.32			457,407		0.33
1.00% to 1.99%		71,618		1.27			67,762		1.28
2.00% to 2.99%		11,705		2.27			16,116		2.37
3.00% to 3.99%		—		—			7,310		3.59
4.00% and above		—		—			2,374		4.24
Total certificates of deposit		447,213		0.52			550,969		0.57
Total deposits	$	1,814,171		0.21	%	$	1,875,293		0.24	%

Maturities of Certificates of Deposit Outstanding

Annual maturities of certificates of deposit outstanding at December 31, 2014 are summarized as follows:

	Amount
	(In thousands)
Matures During Year Ending December 31:
2015	$	278,845
2016		103,894
2017		30,126
2018		20,273
2019		14,075
Total	$	447,213

Schedule of Maturities of Certificates of Deposits

At December 31, 2014 the scheduled maturities of certificates of deposit of $100,000 or more are as follows:

	December 31, 2014
	(In thousands)
3 months or less	$	15,975
Over 3 months through 6 months		9,459
Over 6 months through 12 months		16,954
Over 12 months		26,838
Total	$	69,226

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Loans Held for Investment, net - Impaired Loans Segregated by Loans with No Specific Allowance and Loans with Allowance by Class of Loans (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014
Receivables [Abstract]
Proportion based allowance for loan losses	$ 2.1	$ 0.5
Total value of loans for which an allowance established but individual reviews not completed	12.5	1.9
Period for loans deemed as non-accrual to return to accrual status		90 days
Guaranteed portion of education loans	8.9	6.6
Average carrying amount not considered impaired	$ 13.7	$ 7.7

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Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 16 – Fair Value of Financial Instruments

ASC Topic 820 establishes a framework for measuring fair value and disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

In determining fair value, various valuation methods are used including market, income and cost approaches. Assumptions that market participants would use in pricing the asset or liability are utilized in these valuation methods, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, market corroborated or generally unobservable inputs. Valuation methodologies are employed that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on observability of the inputs used in the valuation methodologies, financial assets and liabilities measured at fair value on a recurring and nonrecurring basis are categorized according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities that are adjusted to fair value are classified in one of the following three categories:

• Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

• Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Fair Value on a Recurring Basis

The table below presents the financial instruments carried at fair value by the valuation hierarchy (as described above):

	Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2014
Financial assets
Investment securities available for sale:
U.S. government sponsored and federal agency obligations	$	—	$	3,261	$	—	$	3,261
Corporate stock and bonds		3		—		—		3
Non-agency CMOs		—		27		—		27
Government sponsored agency mortgage-backed securities		—		120,621		—		120,621
GNMA mortgage-backed securities		—		170,687		—		170,687
Loans held for sale		—		6,594		—		6,594
Other assets:
Interest rate lock commitments		—		154		—		154
Forward contracts to sell mortgage loans		—		2		—		2
Total	$	3	$	301,346	$	—	$	301,349
Financial liabilities
Other liabilities:
Interest rate lock commitments	$	—	$	14	$	—	$	14
Forward contracts to sell mortgage loans		—		174		—		174
Total	$	—	$	188	$	—	$	188

	Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2013
Financial assets
Investment securities available for sale:
U.S. government sponsored and federal agency obligations	$	—	$	3,376	$	—	$	3,376
Corporate stock and bonds		355		—		—		355
Non-agency CMOs		—		—		6,208		6,208
Government sponsored agency mortgage-backed securities		—		50,158		—		50,158
GNMA mortgage-backed securities		—		217,775		—		217,775
Loans held for sale		—		3,085		—		3,085
Other assets:
Interest rate lock commitments		—		37		—		37
Unused commitments		—		3		—		3
Forward contracts to sell mortgage loans		—		33		—		33
Total	$	355	$	274,467	$	6,208	$	281,030
Financial liabilities
Other liabilities:
Interest rate lock commitments	$	—	$	12	$	—	$	12
Unused commitments		—		4		—		4
Forward contracts to sell mortgage loans		—		1		—		1
Total	$	—	$	17	$	—	$	17

An independent service is used to price available-for-sale U.S. government sponsored and federal agency obligations, government sponsored agency mortgage-backed securities, and GNMA mortgage-backed securities using a market data model under Level 2. The significant inputs used to price GNMA mortgage-backed securities are as follows:

	December 31, 2014						Weighted Average			December 31, 2013						Weighted Average
	From			To						From			To
Coupon rate		2.0	%		4.6	%		2.5	%		1.6	%		4.6	%		2.4	%
Duration (in years)		0.5			5.4			3.5			1.1			5.7			3.6
PSA prepayment speed		142			399			259			128			458			346

As of December 31, 2014, the Corporation had sold 98.9% of its non-agency CMOs. The remaining CMOs are not validated by an independent pricing service.

	December 31, 2013						Weighted Average
	From			To
Observable inputs:
30 to 59 day delinquency rate		1.6	%		5.8	%		4.0	%
60 to 89 day delinquency rate		0.8			2.5			1.9
90 plus day delinquency rate		4.6			9.9			6.5
Loss severity		52.0			68.5			57.1
Coupon rate		5.0			6.0			5.5
Current credit support		—			4.3			—
Unobservable inputs:
Month 1 to month 24 constant default rate		5.3			11.6			8.2
Discount rate		4.0			7.0			6.6

Other assets and other liabilities include interest rate lock commitments provided to customers to fund mortgage loans intended to be sold and forward sale contracts for future delivery of funded residential mortgages to investors. The Company relies on an internal valuation model to estimate the fair value of its interest rate lock commitments, which includes applying an estimated pull-through rate (the percentage of commitments expected to result in a closed loan) based on historical experience; multiplied by quoted investor prices on closed loans for future delivery determined to be reasonably applicable to the loan commitment based on interest rate, terms and rate lock expiration.

The Company also relies on an internal valuation model to estimate the fair value of its forward contracts to sell residential mortgage loans (i.e., an estimate of what the Company would receive or pay to terminate the forward delivery contract) based on market prices for similar financial instruments, which includes matching specific terms and maturities of the forward commitments against applicable investor pricing available.

The following is a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (level 3):

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013
	(in thousands)
Non-agency CMOs
Beginning balance	$	6,208		$	7,549
Total realized/unrealized gains (losses):
Included in earnings		(37	)		2
Included in other comprehensive income		212			93
Included in earnings as unrealized other-than-temporary impairment		(64	)		(23	)
Included in earnings as realized other-than-temporary impairment		222			224
Principal repayments		(1,126	)		(1,637	)
Sales		(5,388	)		—
Transfers out of level 3		(27	)		—
Ending balance	$	—		$	6,208

There was a transfer out of Level 3 to Level 2 of $27,000 for the twelve months ended December 31, 2014, there were no other transfers between levels during 2013. The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria changes and result in transfers between levels.

Fair Value on a Nonrecurring Basis

Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Loans held for sale and mortgage servicing rights includes only those items that were adjusted to fair value as of the dates indicated.

The following table presents such assets carried on the consolidated balance sheet by caption and by level within the fair value hierarchy:

	Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2014
Impaired loans, with an allowance recorded, net	$	—	$	—	$	32,331	$	32,331
Mortgage servicing rights		—		—		18,918		18,918
Other real estate owned		—		—		35,491		35,491
Total assets at fair value	$	—	$	—	$	86,740	$	86,740
December 31, 2013
Impaired loans, with an allowance recorded, net	$	—	$	—	$	51,090	$	51,090
Mortgage servicing rights		—		—		6,448		6,448
Other real estate owned		—		—		63,460		63,460
Total assets at fair value	$	—	$	—	$	120,998	$	120,998

The significant inputs for those assets measured at fair value on a nonrecurring basis are as follows:

	December 31, 2014
	Method	Inputs
Impaired loans, with an allowance recorded, net	Appraised Values	External appraised values- adjustments made to values due to management factors including age of appraisal, age of comparables, known changes in the market and in the collateral and selling and commission cost of 15 % to 35%.
Mortgage servicing rights	Discounted Cash Flow	Weighted average prepayment speed 10.01%; weighted average discount rate 11.45%.
Other real estate owned	Appraised Values	External appraised values less selling and commission cost of 15 % to 35%.

The Company does not adjust loans held for investment to fair value on a recurring basis. However, some loans are considered impaired and an allowance for loan losses is established. The specific reserves for collateral dependent impaired loans are based on the fair value of the underlying collateral less estimated costs to sell. The fair value of collateral is usually determined based on appraisals. In some cases, adjustments are made to appraised values due to various factors including age of the appraisal, age of comparables included in the appraisal, and known changes in the market and in the collateral. Since adjustments to appraised values are based on unobservable inputs, the resulting fair value measurement is categorized as a Level 3 measurement.

MSRs are recorded as an asset when loans are sold to third parties with servicing rights retained. Mortgage servicing rights are initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estimated net servicing revenues. The carrying value of these assets is reviewed for impairment on a monthly basis using a lower of carrying value or fair value methodology. Mortgage servicing rights are valued monthly by an independent third party valuation service with income adjustments recorded monthly. On an annual basis the valuation is validated by a separate third party valuation service. The fair value of servicing rights is determined by estimating the present value of future net cash flows using a discounted cash flow model, taking into consideration market loan prepayment speeds, discount rates, servicing costs and other economic factors. For purposes of measuring impairment, the rights are stratified based on predominant risk characteristics of the underlying loans which include product type (i.e., fixed, adjustable or balloon) and interest rate. If the aggregate carrying value of the capitalized mortgage servicing rights for a stratum exceeds its fair value, the difference is recognized in non-interest expense as an impairment loss.

Critical assumptions used in the MSR discounted cash flow model include mortgage prepayment speeds, discount rates, costs to service, ancillary and late fee income. Variations in the assumptions could materially affect the estimated fair values. Changes to the assumptions are made when market data indicate that new trends have developed. Current market participant assumptions based on loan product types – fixed rate, adjustable rate and balloon loans – include discount rates in the range of 11.0% to 24.5% as well as portfolio weighted average prepayment speeds of 4.1% to 54.0% annual CPR. Many of these assumptions are subjective and involve a high degree of management judgment. MSR valuation assumptions are reviewed and approved by management on a quarterly basis.

Prepayment speeds may be affected by economic factors such as changes in home prices, market interest rates, the availability of other credit products to borrowers and customer payment patterns. Prepayment speeds include the impact of all borrower prepayments, including full payoffs, additional principal payments and the impact of loans paid off due to foreclosure liquidations. As market interest rates decline, prepayment speeds will generally increase as customers refinance existing mortgages to more favorable interest rate terms. As prepayment speeds increase, anticipated cash flows will generally decline resulting in a potential reduction, or impairment, of the fair value of the capitalized MSRs. Alternatively, an increase in market interest rates may cause a decrease in prepayment speeds and therefore an increase in fair value of MSRs. Annually, external data is obtained to test the values and assumptions that are used for the initial valuations in the discounted cash flow model.

Real estate acquired by foreclosure, real estate acquired by deed in lieu of foreclosure and other repossessed assets (OREO) are held for sale and are initially recorded at fair value less estimated selling expenses at the date of foreclosure. OREO is re-measured at the lower of cost or fair value after initial recognition and reported using a valuation allowance on foreclosed assets. Fair value is generally based on third party appraisals subject to discounting and is therefore considered a Level 3 measurement.

Fair Value Summary

ASC Topic 825 requires disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, whether or not recognized in the Consolidated Balance Sheets, including those financial assets and liabilities that are not measured and reported at fair value on a recurring or nonrecurring basis. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Results from these techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in immediate settlement of the instruments. Certain financial instruments with a fair value that is not practicable to estimate and all non-financialinstruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented in the table below do not necessarily represent the underlying value of the Company.

The following methods and assumptions were used in estimating the fair value of financial instruments that were not previously disclosed:

Cash and cash equivalents and accrued interest: The carrying amounts reported in the balance sheets approximate the fair values for those assets and liabilities. In accordance with ASC Topic 820, cash and cash equivalents and accrued interest have been categorized as a Level 2 fair value measurement.

Loans held for investment, net: The fair value of residential mortgage loans held for investment, commercial real estate loans, commercial and industrial loans, and consumer and other loans held for investment are estimated using observable inputs including estimated cash flows, and discount rates based on interest rates currently being offered for loans with similar terms, to borrowers of similar credit quality. In accordance with ASC Topic 820, loans held for investment that are not included with impaired loans in the preceding section titled Fair Value on a Nonrecurring Basis have been categorized as a Level 2 fair value measurement.

Federal Home Loan Bank stock: The carrying amount of FHLB stock approximates its fair value as it can only be redeemed with the FHLB at par value. In accordance with ASC Topic 820, Federal Home Loan Bank stock has been categorized as a Level 2 fair value measurement.

Deposits: The fair value of checking, savings and money market accounts are reported at book value, which is the amount payable on demand. The fair values of fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies current interest rates being offered on certificates of deposit to a schedule of aggregated expected monthly maturities of the outstanding certificates of deposit. In accordance with ASC Topic 820, deposits have been categorized as a Level 2 fair value measurement.

Other borrowed funds: The fair value of FHLB advances and repurchase agreements are estimated using discounted cash flow analysis, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair value of the long-term lease obligation is reported at book value, which represents the present value of the cash flows at the time of inception and is indicative of the fair value in the current stable rate environment. In accordance with ASC Topic 820, other borrowed funds have been categorized as a Level 2 fair value measurement.

Off-balance-sheet instruments: The fair value of off-balance-sheet instruments (held for investment lending commitments and unused lines of credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the counterparties’ credit standing and discounted cash flow analyses. The fair value of these off-balance-sheet items approximates the recorded amounts of the related fees and is not material at December 31, 2014 and 2013.

The carrying amount and fair value of the Company’s financial instruments consist of the following:

	December 31,
	2014				2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Financial assets:
Cash and cash equivalents	$	147,273	$	147,273	$	143,396	$	143,396
Investment securities available for sale		294,599		294,599		277,872		277,872
Loans held for sale		6,594		6,594		3,085		3,085
Loans held for investment, net		1,524,439		1,496,791		1,544,324		1,488,677
Mortgage servicing rights		19,404		19,590		22,294		23,553
Federal Home Loan Bank stock		11,940		11,940		11,940		11,940
Accrued interest receivable		7,627		7,627		8,216		8,216
Interest rate lock commitments		154		154		37		37
Unused commitments		—		—		3		3
Forward contracts to sell mortgage loans (1)		2		2		33		33
Financial liabilities:
Non-maturity deposits		1,366,958		1,366,958		1,324,324		1,324,324
Deposits with stated maturities		447,213		445,938		550,969		549,668
Other borrowed funds		13,752		14,077		12,877		13,121
Accrued interest payable		316		316		415		415
Interest rate lock commitments		14		14		12		12
Unused commitments		—		—		4		4
Forward contracts to sell mortgage loans (1)		174		174		1		1

⁽¹⁾  The Company has elected to offset the fair value of individual forward sale contracts and present a net amount on the Consolidated Balance Sheets in accordance with ASC 815-45, Derivatives and Hedging.

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Other Borrowed Funds (Tables)

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Summary of Other Borrowed Funds

Other borrowed funds consist of the following:

			December 31,
			2014					2013
	Maturing		Amount		Weighted Average Rate			Amount		Weighted Average Rate
			(Dollars in thousands)
FHLB advances		Dec 19, 2018	$	10,000		2.33	%	$	10,000		2.33	%
Repurchase agreements				3,569		0.10			2,636		0.10
Long term lease obligation				183		2.46			241		2.46
			$	13,752		1.75	%	$	12,877		1.88	%

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Commitments and Contingent Liabilities - Schedule of Contract Amounts Represent Credit Risk (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Credit enhancement under the Federal Home Loan Bank of Chicago Mortgage Partnership Finance Program	$ 15,877	$ 7,644
Letters of Credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contract amounts represent credit risk	17,131	8,564
Commitments to Extend Credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contract amounts represent credit risk	26,054	39,251
Unused Commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contract amounts represent credit risk	657
Home Equity
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contract amounts represent credit risk	109,414	111,365
Credit Cards
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contract amounts represent credit risk	22,751	23,249
Commercial
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contract amounts represent credit risk	$ 54,840	$ 144,333

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Quarterly Financial Data (unaudited) - Unaudited Condensed Financial Data (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended							9 Months Ended			12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2013		Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Operations Data:
Net interest income	$ 17,501	$ 17,558	$ 17,862	$ 18,315	$ 18,877	$ 15,812	$ 13,417	$ 48,106		$ 47,663	$ 71,236	$ 62,926	$ 62,483
Provision for loan losses	(3,281)	(1,304)					275	275		7,058	(4,585)	950	7,733
Non-interest income	8,962	8,015	7,610	5,932	8,002	142,679	8,852	159,533		38,398	30,519	167,036	45,901
Non-interest expense	24,621	21,915	22,855	22,317	23,125	45,232	27,375	95,732		99,336	91,708	131,400	135,004
Income (loss) before income tax expense	5,123	4,962	2,617	1,930	3,754	113,259	(5,381)	111,632		(20,333)	14,632	97,612	(34,353)
Income tax expense			10			9		9		(181)	10	9	(181)
Net income (loss)	5,123	4,962	2,607	1,930	3,754	113,250	(5,381)	111,623		(20,152)	14,622	97,603	(34,172)
Preferred stock dividends in arrears						103,163	(1,701)	(2,538)		(4,898)		(4,200)	(6,560)
Preferred stock discount accretion						(4,304)	(1,863)	(6,167)		(5,569)		(8,010)	(7,412)
Net income (loss) available to common equity	$ 5,123	$ 4,962	$ 2,607	$ 1,930	$ 3,754	$ 212,109	$ (8,945)	$ 206,918	[1]	$ (30,619)	$ 14,622	$ 189,393	$ (48,144)	[1]
Per Share:
Basic income (loss) per common share	$ 0.56	$ 0.55	$ 0.29	$ 0.21	$ 0.41	$ 10.24	$ (0.42)	$ 12.18	[1]		$ 1.61		$ (2.27)	[1]
Diluted income (loss) per common share	$ 0.55	$ 0.55	$ 0.29	$ 0.21	$ 0.41	$ 10.24	$ (0.42)	$ 12.18	[1]		$ 1.60		$ (2.27)	[1]
Dividends per common share	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0			$ 0		$ 0
Book value per common share	$ 23.85	$ 23.22	$ 23.37	$ 22.84	$ 22.34	$ 22.21	$ (8.33)

[1] The calculation of weighted average shares included 21,247,000 shares of Legacy Common Stock outstanding through September 26, 2013 and 9,050,000 shares of common stock outstanding from September 27 through December 31, 2013.

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Earnings Per Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Note 18 – Earnings Per Share

Basic earnings per share for the years ended December 31, 2014 and 2013 have been determined by dividing net income available to common equity for the respective periods by the weighted average number of shares of common stock outstanding. Unvested shares of restricted stock are not considered outstanding for purposes of basic earnings per share. Diluted earnings per share is computed by dividing net income available to common equity by the weighted average number of common shares outstanding plus the effect of dilutive securities. The effects of dilutive securities, if any, are computed using the treasury stock method.

The computation of earnings per share is as follows:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013 (1)		Year Ended March 31, 2013 (1)
	(in thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share – net income (loss) available to common equity	$	14,622	$	206,918	$	(48,144	)
Denominator:
Denominator for basic earnings per share – weighted average shares		9,107		16,989		21,247
Effect of dilutive securities:
Restricted stock (2)		44		—		—
Denominator for diluted earnings per share – weighted average shares		9,151		16,989		21,247
Basic income (loss) per common share	$	1.61	$	12.18	$	(2.27	)
Diluted income (loss) per common share	$	1.60	$	12.18	$	(2.27	)

⁽¹⁾  The calculation of weighted average shares included 21,247,000 shares of Legacy Common Stock outstanding through September 26, 2013 and 9,050,000 shares of common stock outstanding from September 27 through December 31, 2013.

⁽²⁾  Computed based on the treasury stock method using the average market price per period. The value used prior to the issuance of shares pursuant to the recapitalization transaction on September 27, 2013 was approximately 90% of book value. Since the time of the transaction, the position of the Company has remained relatively the same, therefore the issuance of the August 15, 2014 grant of restricted stock shares at 90% of book value as of the most recent month end was a reasonable approximation of fair value.

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Loans Held for Investment, net - Impaired Loans (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2014
Receivables [Abstract]
Period for loans deemed as non-accrual to return to accrual status	90 days
Guarantee provided by government agencies against outstanding balances of education loans	97.00%

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Fair Value of Financial Instruments - Reconciliation of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Mar. 31, 2013
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs
Total realized/unrealized gains (losses) included in earnings as realized other- than-temporary impairment	$ 23	$ 64	$ 408
Transfers out of level 3		(27)
Non-agency CMOs
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	7,549	6,208
Total realized/unrealized gains (losses) included in earnings	2	(37)
Total realized/unrealized gains (losses) included in other comprehensive income	93	212
Total realized/unrealized gains (losses) included in earnings as unrealized other- than-temporary impairment	(23)	(64)
Total realized/unrealized gains (losses) included in earnings as realized other- than-temporary impairment	224	222
Principal repayments	(1,637)	(1,126)
Sales		(5,388)
Transfers out of level 3		(27)
Ending balance	$ 6,208

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1 – Summary of Significant Accounting Policies

Business. Anchor BanCorp Wisconsin Inc. (the “Company”) is a savings and loan holding company incorporated under the laws of the state of Delaware and headquartered in Madison, Wisconsin. Through its wholly owned subsidiary, AnchorBank, fsb (the “Bank”), it provides a full range of financial services to individual customers through its branch locations in Wisconsin. The Bank is subject to competition from other financial institutions and other financial service providers. The Company and its subsidiary also are subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory authorities.

Change in Year End

On December 18, 2013, the Board of Directors (the “Board”) approved the change of our year end from March 31 to December 31, beginning with December 31, 2013. This report on Form 10-K covers the year ended March 31, 2013, nine months ended December 31, 2013, and the year ended December 31, 2014. The following table presents certain comparative transition period condensed financial information for the periods ended December 31, 2014, 2013 and 2012.

The comparative twelve months ended December 31, 2013 and nine months ended December 31, 2012 are unaudited as a portion represents an interim period during the fiscal year.

	Twelve Months Ended December 31,						Nine Months Ended December 31,
	2014			2013			2013			2012
				(Unaudited)						(Unaudited)
	(In thousands)
Interest income	$	75,580		$	84,939		$	62,223		$	77,166
Interest expense		4,344			22,013			14,117			29,503
Net interest income		71,236			62,926			48,106			47,663
Provision for loan losses		(4,585	)		950			275			7,058
Net interest income after provision for loan losses		75,821			61,976			47,831			40,605
Non-interest income		30,519			167,036			159,533			38,398
Non-interest expense		91,708			131,400			95,732			99,336
Income (loss) before income taxes		14,632			97,612			111,632			(20,333	)
Income tax expense (benefit)		10			9			9			(181	)
Net income (loss)		14,622			97,603			111,623			(20,152	)
Preferred stock dividends in arrears		—			(4,200	)		(2,538	)		(4,898	)
Preferred stock discount accretion		—			(8,010	)		(6,167	)		(5,569	)
Retirement of preferred shares		—			104,000			104,000			—
Net income (loss) available to common equity	$	14,622		$	189,393		$	206,918		$	(30,619	)

Basis of Financial Statement Presentation. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts and operations of the Company and its wholly owned subsidiaries, the Bank and Investment Directions, Inc. The Bank has one subsidiary ADPC Corporation. Significant intercompany accounts and transactions have been eliminated.

The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles. In the opinion of management, all adjustments, including normal recurring accruals, necessary for a fair presentation of the unaudited consolidated financial statements have been included.

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of other real estate owned, the net carrying value of mortgage servicing rights, deferred tax assets, the fair value of investment securities, interest rate lock commitments, forward contracts to sell mortgage loans and loans held for sale.

The Company has three distinct operating segments; the Bank, IDI and the holding company and produces discreet financial information for each which is available to management. However, operating revenues and related assets of IDI fall below the required reporting thresholds and therefore are not disclosed in the consolidated financial statements.

The Company has evaluated all subsequent events through the date of this filing.

Cash and Cash Equivalents. The Company considers interest-earning deposits that have an original maturity of three months or less to be cash equivalents.

Investment Securities Available For Sale. Debt securities that the Company has the intent and ability to hold to maturity may be classified as held to maturity and stated at amortized cost as adjusted for premium amortization and discount accretion. Securities not classified as held to maturity are classified as available for sale. Available for sale securities are stated at fair value with unrealized gains and losses, reported as a separate component of accumulated other comprehensive income (loss), net of tax (if any), in stockholders’ equity. Securities would be classified as trading if the Company intends to actively buy and sell securities in order to make a profit. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. There were no securities designated as held to maturity or trading during the year ended December 31, 2014, the nine months ended December 31, 2013 or the year ended March 31, 2013.

Realized gains and losses are included in net gain (loss) on sale of investment securities in the consolidated statements of operations as a component of non-interest income. The cost of securities sold is based on the specific identification method.

Declines in the fair value of investment securities below amortized cost basis that are deemed to be an other-than-temporary impairment (“OTTI”), are reflected as impairment losses. To determine if an other-than-temporary impairment exists on a debt security, the Company first determines if (a) it intends to sell the security or (b) it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of the conditions is met, the Company will recognize an other-than-temporary impairment in earnings equal to the difference between the fair value of the security and its amortized cost basis. If neither of the conditions is met, the Company determines (a) the amount of the impairment related to credit loss and (b) the amount of the impairment due to all other factors. The difference between the present values of the cash flows expected to be collected discounted at the purchase yield or current accounting yield and the amortized cost basis is the credit loss. The amount of the credit loss is included in the consolidated statements of operations as an other-than-temporary impairment on securities and is a reduction in the cost basis of the security. The portion of the total impairment that is related to all other factors is included in other comprehensive income (loss).

Loans Held for Sale. Loans held for sale generally consist of the current origination of certain fixed- and adjustable-rate mortgage loans. Effective for loans originated on or after April 1, 2013, residential mortgage loans held for sale are carried at fair value and upfront costs and fees related to these loans are recognized in earnings as incurred. Prior to April 1, 2013, loans held for sale were recorded at the lower of cost or fair value with fees received from the borrower and direct costs to originate the loan deferred and included as a basis adjustment of the loan.

Loans Held for Investment, net. Loans held for investment, net are stated at the amount of the gross principal, reduced by undisbursed loan proceeds, unamortized loan fees, net, unearned interest and an allowance for loan losses. Certain loan origination, commitment and other loan fees and associated direct loan origination costs are deferred and amortized as an adjustment to the related loan’s yield. These amounts, as well as discounts on purchased loans, are amortized using a method that approximates level yield, adjusted for prepayments, over the life of the related loans. Interest on loans is accrued into income on the gross loans as earned. Loans are placed on non-accrual status when they become 90 days past due or, when in the judgment of management, the probability of collection of principal and interest is deemed to be insufficient to warrant further accrual. Past due status is based on contractual terms of the loan. Factors that management considers when assessing the collectability of principal and interest include early stage delinquencies and financial difficulties of the borrower. When a loan is placed on non-accrual status, previously accrued but unpaid interest is deducted from interest income. Payments received on non-accrual loans are generally credited to the loan balance and no interest income is recognized on those loans until the principal balance is current. In cases in which the unpaid contractual principal balance of the loan, is deemed to be fully collectible, interest payments received may be recognized in income on a cash basis. Loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Loans held for investment are summarized into four different segments: residential loans, commercial and industrial loans, commercial real estate loans and consumer loans.

Residential Loans

Residential loans, substantially all of which finance the purchase of 1-to-4 family dwellings, are generally considered homogeneous as they exhibit similar product and risk characteristics. Residential loans are charged off to the fair value of collateral:

• at the time of an approved short sale with funds received;

• information is received indicating an insufficient value and the borrower is 180 days past due;

• a foreclosure sale is complete and the loan is being moved to other real estate owned; or

• the loan is otherwise deemed uncollectible.

Commercial and Industrial Loans

Commercial and industrial loans are funded for business purposes, including issuing letters of credit. The commercial and industrial loan portfolio is comprised of loans for a variety of purposes which are generally secured by equipment, owner occupied real estate and other working capital assets such as accounts receivable and inventory. Commercial business loans typically have terms of five years or less and are divided approximately even between interest rates that float in accordance with a designated published index and fixed rates. Most loans are secured and backed by the personal guarantees of the owners of the business. Commercial and industrial loans are charged off to the fair value of collateral when information confirms that any portion of the recorded investment in a collateral dependent loan is deemed a confirmed loss.

Commercial Real Estate Loans

Commercial real estate loans are primarily secured by apartment buildings, office and industrial buildings, land, warehouses, small retail shopping centers and various special purpose properties, including community-based residential facilities and senior housing. Although terms vary, commercial real estate loans generally have amortization periods of 15 to 30 years, as well as balloon payments of two to seven years. Commercial real estate loans are charged off to the fair value of the collateral when available information confirms that any portion of the recorded investment in a collateral dependent loan is deemed a confirmed loss.

Consumer Loans

Consumer loans generally have higher interest rates than residential loans. The risk involved in consumer loans is based on the type and nature of the collateral and, in certain cases, the absence of collateral. Consumer loans include first and second mortgage and home equity loans, consisting primarily of the Express Refinance Loan product which is the Bank’s expedited first mortgage refinance and home equity loan product. In addition, consumer loans include education loans, vehicle loans and other secured and unsecured loans that have been made for a variety of consumer purposes. Consumer loans are charged off to the fair value of collateral, upon repossession or sale of the collateral and deficiency is realized, upon reaching 120 days past due if unsecured or 180 days past due if secured, or the loan is otherwise deemed uncollectible.

Allowance for Loan Losses. The allowance for loan losses is maintained at a level believed appropriate by management to absorb probable and estimable losses inherent in the held for investment loan portfolio and is based on the size and current risk characteristics of the held for investment loan portfolio; an assessment of individual impaired loans; actual and anticipated loss experience; and current economic events in specific industries and geographical areas. These economic events include unemployment levels, regulatory guidance, and general economic conditions. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience, and consideration of current economic trends, all of which may be susceptible to significant change. Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for loan losses is recorded in the statement of operations based on management’s periodic evaluation of the factors previously mentioned as well as other pertinent factors. Conversely, the provision for loan losses may decline should credit metrics such as net charge offs and the amount of non-performing loans improve in the future. In addition, regulatory agencies periodically review the adequacy of the allowance for loan losses. These agencies may require the Company to make additions to the allowance for loan losses based on their judgments of collectability using information available to them at the time of their examination.

The allowance for loan losses consists of specific and general components. Specific allowance allocations are established for probable losses resulting from analysis of impaired loans. A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement. Impaired loans include all non-accrual loans and troubled debt restructurings. Troubled debt restructurings are loans that have been modified, due to financial difficulties of the borrower, where the terms of the modified loan are more favorable for the borrower than what the Company would normally accept. Impairment is determined when the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less costs to sell, if the loan is collateral dependent, is less than the carrying value of the loan. Cash collections on impaired loans are generally credited to the loan balance and no interest income is recognized on those loans until the principal balance is current and collection of principal and interest becomes probable.

The specific allowance component relates to impaired loans, loans reported as troubled debt restructurings (“TDRs”), and loans graded substandard or below. The company has certain loans rated substandard, which are not classified as impaired based on the facts of the credit. For these non-impaired and substandard loans, the Company does not follow the same allowance methodology as it does for all other non-impaired, collectively evaluated loans. Rather, the Company performs a more detailed analysis including evaluation of the cash flow and collateral valuations. Based upon this evaluation, an estimate of the probable loss in this portfolio is collectively evaluated under ASC 450-20. These non-impaired substandard loans exist primarily in the commercial and industrial and commercial real estate segments. For substandard loans, an allowance for loan losses is established when the discounted cash flows (or collateral value if repayment relies solely on the operation or sale of the collateral) of the impaired loan are lower than the carrying value of that loan.

The general allowance component is based on historical net loss experience adjusted for qualitative factors. In determining the general allowance, the Company has defined the following segments within its loan portfolio: residential, commercial and industrial, commercial real estate and consumer. The Company has disaggregated those segments into the following classes based on risk characteristics: residential; commercial and industrial; land and construction, multi-family, retail/office and other commercial real estate within the commercial real estate segment; and education and other consumer within the consumer segment. Consistent with the Bank’s allowance for loan losses policy, the appropriateness of the segmentation is periodically reviewed. This additional detail allows management to better identify trends in borrower behavior and loss severity within the segments and classes of the loan portfolio. A historical loss factor is computed for each class of loan and is used as the major determinate of the general allowance for loan losses. In determining the appropriate period of activity to use in computing the historical loss factor management considers trends in quarterly net charge-off ratios. It is management’s intention to utilize a period of activity that it believes to be most reflective of current experience. Changes in the historical period are made when there is a distinct change in the trend of net charge-off experience. Management reviews each class’ historical losses by quarter for any trends that indicate the most representative look-back period.

Beginning with the quarter ended June 30, 2014, the Bank modified its general allowance methodology to increase the historical loss period by an additional period each quarter until the historical look-back period is built to a twelve quarter look-back period. For the quarter ended December 31, 2014, the Bank utilized an eleven quarter look-back period compared to a ten quarter look-back period for the quarter ended September 30, 2014. The modification is being done to reflect a more stable economic environment to capture additional loss statistics considered reflective of the current portfolio and to conform to industry practices. The impact to the allowance for loan losses at December 31, 2014 after implementing the modification was a $36,000 reduction in the required reserve as compared to the previous methodology.

Management adjusts historical loss factors based on the following qualitative factors:

• Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses;

• Changes in national, regional and local economic and business conditions and developments that affect the collectability of the portfolio including the condition of various market segments;

• Changes in the nature and volume of the portfolio and in the terms of loans;

• Changes in the experience, ability and depth of lending management and other relevant staff;

• Changes in the volume and severity of past due loans, the volume of non-accrual loans, and volume and severity of adversely classified or graded loans;

• Changes in the quality of AnchorBank’s loan review system;

• Changes in the value of underlying collateral for collateral-dependent loans;

• The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and

• The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in AnchorBank’s current portfolio.

In determining the impact, if any, of an individual qualitative factor, management compares the current underlying facts and circumstances surrounding a particular factor with those in the historical periods, adjusting the historical loss factor based on changes in the qualitative factor. Management will continue to analyze the qualitative factors on a quarterly basis, adjusting the historical loss factor as necessary, to a factor believed to be appropriate for the probable and inherent risk of loss in the portfolio.

Other Real Estate Owned, net. Real estate acquired by foreclosure or by deed in lieu of foreclosure as well as other repossessed assets (“OREO”) are held for sale and are initially recorded at fair value less a discount for estimated selling costs at the date of foreclosure. Any write down to fair value less estimated selling costs is charged to the allowance for loan losses. If the discounted fair value exceeds the net carrying value of the loans, recoveries to the allowance for loan losses are recorded to the extent of previous charge-offs, with any excess, which is infrequent, recognized as a gain in non-interest income. Subsequent to foreclosure, valuations are periodically performed and a valuation allowance is established if the carrying value exceeds the fair value less estimated selling costs. Costs relating to the development and improvement of the property may be capitalized; generally those greater than $10,000; holding period costs and subsequent changes to the valuation allowance are charged to OREO expense, net included in non-interest expense. Incremental valuation adjustments may be recognized in the Statement of Operations if, in the opinion of management, additional losses are deemed probable.

Premises and Equipment. Premises and equipment are recorded at cost and include expenditures for new facilities and items that substantially increase the estimated useful lives of existing buildings and equipment. Expenditures for normal repairs and maintenance are charged to operations as incurred. When properties are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any resulting gain or loss is recorded in income. The cost of office properties and equipment is being depreciated principally by the straight-line method over the estimated useful lives (3 years to 40 years) of the assets. The cost of capitalized leasehold improvements is depreciated on the straight-line method over the lesser of the term of the respective lease or estimated economic life.

Federal Home Loan Bank Stock. The Bank is a member of the Federal Home Loan Bank (“FHLB”) system which is organized as a member owned cooperative. As a result of membership in the FHLB system, the Bank is required to maintain a minimum investment in FHLB stock. The stock is redeemable at par and is, therefore, carried at cost and periodically evaluated for impairment. Ownership in the FHLB provides a potential dividend and allows access to member privileges including loans, advances, letters of credit and mortgage purchases. The stock is not transferable and cannot be used as collateral. The Bank has concluded that its investment in the stock of FHLB Chicago was not impaired at December 31, 2014.

Mortgage Servicing Rights, net. Mortgage servicing rights are recorded as an asset when loans are sold to third parties with servicing rights retained. The amount allocated to the mortgage servicing rights retained has been recognized as a separate asset and is initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estimated net servicing revenues. The carrying value of these assets is periodically reviewed for impairment using a lower of amortized cost or fair value methodology. Mortgage servicing rights are valued monthly by an independent third party valuation service with income adjustments recorded monthly. On an annual basis the valuation is validated by a separate third party valuation service. The fair value of the servicing rights is determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs and other economic factors. For purposes of measuring fair value and impairment, the rights are stratified based on predominant risk characteristics of the underlying loans which include product type (i.e., fixed or adjustable) and interest rate. The amount of impairment recognized is the amount by which the amortized cost of the capitalized mortgage servicing rights on a product and interest rate strata basis exceed their fair value.

Transfers of Financial Assets. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrains it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Interest Rate Lock Commitments for Mortgage Loans Held for Sale. Interest rate lock commitments for mortgage loans originated for sale meet the definition of derivatives. These instruments are carried at fair value and included in other assets and other liabilities in the consolidated balance sheets with changes in value included in net gain on sale of loans in the consolidated statements of operations.

Income Taxes. The Company’s deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets and liabilities and associated valuation allowance. The Company and its subsidiaries file a consolidated federal income tax return and combined state income tax returns. An intercompany settlement of taxes paid is determined based on tax sharing agreements which generally provide for allocation of taxes to each entity on a separate return basis.

The Company is subject to the income tax laws of the U.S., its states and municipalities. These tax laws are complex and subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. Accounting guidance related to uncertainty in income taxes provides a comprehensive model for how companies should recognize, measure, present and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under the guidance, tax positions shall initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. The guidance also revised disclosure requirements to include an annual tabular roll forward of unrecognized tax benefits. In establishing a provision for income tax expense, the Company must make judgments and interpretations about the application of these inherently complex tax laws within the framework of existing U.S. generally accepted accounting principles. The Company recognizes interest and penalties related to uncertain tax positions in other non-interest expense if any were incurred.

Earnings Per Share. Basic earnings per share (“EPS”) is computed by dividing net income (loss) available to common equity of the Company by the weighted average number of common shares outstanding for the period. The basic EPS computation excludes the dilutive effect of all common stock equivalents, if any. Diluted EPS is computed by dividing net income (loss) available to common equity by the weighted average number of common shares outstanding plus all potentially dilutive common shares which could be issued if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock (“common stock equivalents”). The Company’s common stock equivalents represent shares issuable under a stock compensation plan. Such common stock equivalents were computed based on the treasury stock method using the average market price for the period.

Comprehensive Income (Loss). Comprehensive income or loss is the total of reported net income or loss and all other revenues, expenses, gains and losses that under generally accepted accounting principles are not reported as net income (loss). As such, the Company includes unrealized gains or losses on securities available for sale in other comprehensive income (loss).

New Accounting Pronouncements.

Accounting Standards Update, (“ASU”), No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20).” ASU 2015-01 addresses the elimination from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. This amended guidance will prohibit separate disclosure of extraordinary items in the income statement. This amendment is effective for years, and interim periods within those years, beginning after December 15, 2015. Entities may apply the amendment prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the year of adoption. The Company intends to adopt the accounting standard during the first quarter of 2016, as required, with no material impact.

ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” In May 2014, the Financial Accounting Standards Board (“FASB”) issued an amendment to clarify the principles for recognizing revenue and to develop a common revenue standard. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity should apply the following steps: (1) Identify the contract(s) with a customer, (2) Identify the performance obligations in the contract, (3) Determine the transaction price, (4) Allocate the transaction price to the performance obligations in the contract, and (5) Recognize revenue when (or as) the entity satisfies a performance obligation. The standard applies to all contracts with customers except those that are within the scope of other topics in the FASB Codification. The standard also requires significantly expanded disclosures about revenue recognition. The amendment is effective for annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). Early application is not permitted. The Company intends to adopt the accounting standard during the first quarter of 2017, as required, and is currently evaluating the impact on its results of operations, financial position, and liquidity.

ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) – Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” These amendments are intended to clarify when a creditor should be considered to have received physical possession of residential real estate property when collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. Further, this amendment clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. ASU 2014-04 is effective for public companies for annual periods and interim periods within those annual periods beginning after December 15, 2014. The Company does not expect this ASU will have a material impact on its consolidated financial statements.

Accounting Standards Codification (“ASC”) Topic 740 “Income Taxes.” New authoritative accounting guidance under ASC Topic 740, “Income Taxes” amended prior guidance to include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The authoritative guidance is effective for reporting periods after January 1, 2014. The Company is in compliance with these requirements and adoption did not have an impact on the consolidated financial statements.

Reclassifications. Prior period amounts have been reclassified as needed to conform to the current period presentations. There was no impact on earnings or stockholders’ equity as a result of the reclassifications.

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Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000	100,000
Preferred Stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	11,900,000	11,900,000
Common stock, shares issued	9,552,094	9,050,000
Common stock, shares outstanding	9,547,587	9,050,000
Treasury Stock Shares	4,507	0

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Regulatory Capital

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Regulatory Capital

Note 11 – Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by bank regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Qualitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of tier 1 leverage, tier 1 risk-based and total risk-based capital. Under standard regulatory guidelines, a bank must have a total risk-based capital ratio of 8% or greater to be considered “adequately capitalized.”

The Company is organized as a savings and loan holding company and does not have specific capital requirements. The following table summarizes the Bank’s capital ratios to be considered adequately or well capitalized under standard regulatory guidelines:

						Minimum Required
	Actual					To be Adequately Capitalized					To be Well Capitalized
	Capital		Ratio			Capital		Ratio			Capital		Ratio
	(Dollars in thousands)
December 31, 2014
Tier 1 leverage (1)	$	216,659		10.43	%	$	83,123		4.00	%	$	103,904		5.00	%
Tier 1 risk-based capital (2)		216,659		16.97			51,066		4.00			76,598		6.00
Total risk-based capital (3)		233,032		18.25			102,131		8.00			127,664		10.00
December 31, 2013
Tier 1 leverage (1)	$	201,995		9.60	%	$	84,170		4.00	%	$	105,212		5.00	%
Tier 1 risk-based capital (2)		201,995		15.77			51,226		4.00			76,839		6.00
Total risk-based capital (3)		218,668		17.07			102,452		8.00			128,065		10.00

⁽¹⁾  Tier 1 capital divided by adjusted total assets.

⁽²⁾ Tier 1 capital divided by total risk-weighted assets.

⁽³⁾ Total risk-based capital divided by total risk-weighted assets.

The following table presents the components of the Bank’s regulatory capital:

	December 31, 2014			December 31, 2013
	(In thousands)
Stockholders’ equity of the Bank	$	216,030		$	196,469
Less: Disallowed servicing assets		(1,773	)		(1,096	)
Accumulated other comprehensive loss		2,402			6,622
Tier 1 capital		216,659			201,995
Plus: Allowable allowance for loan losses		16,373			16,673
Total risk-based capital	$	233,032		$	218,668

In July 2013, the federal banking agencies published final rules (the “Basel III Capital Rules”) that revised their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to implement, in part, agreements reached by the Basel Committee and certain provisions of the Dodd-Frank Act. The Basel III Capital Rules will apply to banking organizations, including the Company and the Bank.

Among other things, the Basel III Capital Rules: (i) introduce a new capital measure entitled “Common Equity Tier 1” (“CET1”); (ii) specify that tier 1 capital consist of CET1 and additional financial instruments satisfying specified requirements that permit inclusion in tier 1 capital; (iii) define CET1 narrowly by requiring that most deductions or adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions or adjustments from capital as compared to the existing regulations.

A minimum leverage ratio (tier 1 capital as a percentage of total assets) of 4.0% is also required under the Basel III Capital Rules (even for highly rated institutions). The Basel III Capital Rules additionally require institutions to retain a capital conservation buffer of 2.5% above these required minimum capital ratio levels. Banking organizations that fail to maintain the minimum 2.5% capital conservation buffer could face restrictions on capital distributions or discretionary bonus payments to executive officers.

The Basel III Capital Rules become effective as applied to us and the Bank on January 1, 2015, with a phase in period that generally extends from January 1, 2015 through January 1, 2019. The Company and the Bank anticipate being “Well Capitalized” under Basel III Capital Rules.

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Derivative Financial Instruments - Net Gains (Losses) Related to Derivative Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Mar. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative financial instruments	$ 1,801	$ (733)	$ (7,020)
Interest Rate Lock Commitments
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative financial instruments	(688)	141	(184)
Unused Commitments
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative financial instruments	26	(26)
Forward Contracts to Sell Mortgage Loans
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivative financial instruments	$ 2,463	$ (848)	$ (6,836)

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Regulatory Capital - Summary of Bank's Capital Ratios and Ratios Required by Federal Regulators (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual Amount of total risk-based capital	$ 233,032	[1]	$ 218,668	[1]
Actual Ratio of total risk-based capital	18.25%	[1]	17.07%	[1]
Amount of total risk-based capital To be Adequately Capitalized	102,131	[1]	102,452	[1]
Ratio of total risk-based capital To be Adequately Capitalized	8.00%	[1]	8.00%	[1]
Amount of total risk-based capital To be Well Capitalized	127,664	[1]	128,065	[1]
Ratio of total risk-based capital To be Well Capitalized	10.00%	[1]	10.00%	[1]
Tier 1 leverage	216,659		201,995
Leverage
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 leverage	216,659	[2]	201,995	[2]
Actual Ratio of Tier 1 leverage (core)	10.43%	[2]	9.60%	[2]
Amount of Tier 1 leverage To be Adequately Capitalized	83,123	[2]	84,170	[2]
Ratio of Tier 1 leverage To be Adequately Capitalized	4.00%	[2]	4.00%	[2]
Amount of Tier 1 leverage To be Well Capitalized	103,904	[2]	105,212	[2]
Ratio of Tier 1 leverage To be Well Capitalized	5.00%	[2]	5.00%	[2]
Risk Based Capital
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 leverage	216,659	[3]	201,995	[3]
Actual Ratio of Tier 1 leverage (core)	16.97%	[3]	15.77%	[3]
Amount of Tier 1 leverage To be Adequately Capitalized	51,066	[3]	51,226	[3]
Ratio of Tier 1 leverage To be Adequately Capitalized	4.00%	[3]	4.00%	[3]
Amount of Tier 1 leverage To be Well Capitalized	$ 76,598	[3]	$ 76,839	[3]
Ratio of Tier 1 leverage To be Well Capitalized	6.00%	[3]	6.00%	[3]

[1] Total risk-based capital divided by total risk-weighted assets.

[2] Tier 1 capital divided by adjusted total assets.

[3] Tier 1 capital divided by total risk-weighted assets.

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Other Borrowed Funds - Additional Information (Detail) (USD $)	0 Months Ended	9 Months Ended	12 Months Ended
	Sep. 19, 2013	Dec. 31, 2013	Dec. 31, 2014
Borrowings [Line Items]
Prepaid FHLB advances	$ 176,000,000
Prepaid FHLB advances, year of maturity	2018
Prepaid FHLB advances, current weighted average interest rate	3.18%
Prepaid FHLB advances, early termination penalty		16,100,000
Federal Home Loan Bank Advances
Borrowings [Line Items]
Unpaid principal balance of pledged secure FHLB of Chicago borrowings		659,400,000	652,300,000
FHLB of Chicago borrowings collateralized by mortgage-related securities		122,200,000	88,900,000
Federal Home Loan Bank Advances | Call Features
Borrowings [Line Items]
FHLB of Chicago borrowings collateralized by mortgage-related securities			$ 0

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Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) In Millions, unless otherwise specified	0 Months Ended
	Jan. 28, 2015	Jan. 27, 2015
Subsequent Event [Line Items]
Building acquired, purchase price	$ 4.0
Viroqua Branch [Member]
Subsequent Event [Line Items]
Deposits assets		$ 12.0
Expected date of closure of sale		2015-05

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Condensed Parent Only Financial Information - Condensed Balance Sheets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Mar. 31, 2012
Assets
Cash and cash equivalents	$ 147,273	$ 143,396	$ 228,536	$ 242,980
Other	11,443	13,087
Total assets	2,082,379	2,112,474
Liabilities
Accrued interest and fees payable	316	415
Other liabilities	19,218	14,389
Total liabilities	1,854,716	1,910,276
Stockholders' Equity
Total stockholders' equity	227,663	202,198	(59,864)	(29,550)
Total liabilities and stockholders' equity	2,082,379	2,112,474
Parent Company
Assets
Cash and cash equivalents	10,081	5,238	2,976	2,584
Investment in subsidiaries	216,547	196,824
Intercompany receivable from non-bank subsidiaries	996	95
Other	133	511
Total assets	227,757	202,668
Liabilities
Loans payable	0	0
Accrued interest and fees payable	0	0
Other liabilities	94	470
Total liabilities	94	470
Stockholders' Equity
Total stockholders' equity	227,663	202,198
Total liabilities and stockholders' equity	$ 227,757	$ 202,668

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Document and Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Feb. 28, 2015	Jun. 30, 2014
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Trading Symbol	ABCW
Entity Registrant Name	ANCHOR BANCORP WISCONSIN INC
Entity Central Index Key	0000885322
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,546,987
Entity Public Float			$ 125.3

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2014

Postemployment Benefits [Abstract]

Employee Benefit Plans

Note 12 – Employee Benefit Plans

Defined Contribution Plan

The Company maintains a defined contribution plan under Sections 401(a) and 401(k) of the Internal Revenue Code, the AnchorBank, fsb Retirement Plan, in which all employees are eligible to participate. Employees become eligible on the first of the month following 60 days of employment. Participating employees may contribute up to 100% of their base compensation on a pre-tax basis up to annual IRS limits. In January 2013, the Company reinstated the matching contribution which had been suspended since October 2009. The Company previously matched the first 2% contributed with a dollar-for-dollar match and the next 2% of employee contributions at a rate of $.50 for each dollar. These amounts were increased beginning in January 2014 to the first 2% contributed with a dollar-for-dollar match, the next 2% matched at a rate of $0.50 for each dollar and the next 4% matched at $0.25 for each dollar. The plan offers 20 investment options and employees are allowed to self-direct their investments on a daily basis. The Company may also contribute additional amounts at its discretion. The Company contributed $992,000 for the year ended December 31, 2014, $579,000 for the nine months ended December 31, 2013 and $213,000 for the year ended March 31, 2013.

Omnibus Incentive Plan

On August 12, 2014, the Board of Directors (“Board”) of the Company approved a new incentive plan, the Anchor Bancorp Wisconsin Inc. 2014 Omnibus Incentive Plan (the “Omnibus Plan”) which was subsequently approved by shareholders. The Omnibus Plan provides for the issuance of awards of incentive or nonqualified stock options, stock appreciation rights, performance and restricted stock awards or units, dividend equivalent units and other stock based awards as determined by the Board or the Plan Administrator. The purpose of the Omnibus Plan is to promote the interest of the Company and its stockholders by attracting, retaining and motivating executives and other selected employees, directors, consultants and advisors by enabling such individuals to participate in the long-term growth and financial success of the Company.

The maximum number of shares of common stock (each, a “Share”) that may be issued to participants pursuant to awards under the 2014 Omnibus Plan will be equal to 600,000. Such Shares may be either authorized and unissued Shares or Shares reacquired at any time and now or hereafter held as treasury stock. At December 31, 2014, 408,200 Shares were available to grant pursuant to the 2014 Plan.

Restricted stock grants vest over various periods of time typically from one to three years and are included in outstanding shares at the time of grant. The fair value of restricted stock grants determined at the grant date is amortized to compensation and benefits expense over the vesting period. The restricted stock grant plan expense for the year ended December 31, 2014 was $1.0 million. Dividends, if declared, will accrue for the benefit of the individuals who are granted restricted stock and will be paid out as the stock vests. Unvested shares will be voted by the employees in the same manner as the vested shares.

The restricted stock activity is summarized as follows:

	Year Ended December 31, 2014
	Shares			Weighted Average Grant Date     Fair Value
Balance at beginning of year		—		$	—
Granted		200,200			21.17
Vested		(12,500	)		20.95
Forfeited		(8,400	)		20.95
Balance outstanding at end of period		179,300		$	21.20
Available to grant		408,200

As of December 31, 2014, there was approximately $3.1 million of unrecognized compensation expense related to nonvested restricted stock awards granted under the Plan. The remaining weighted average term of nonvested awards is 1.3 years.

Management Recognition Plan

The Company previously maintained a Management Recognition Plan (“MRP”), under which a total of 4% of the shares of the Company’s common stock was acquired and reserved for issuance under the MRP. The Bank previously contributed $2.0 million to the MRP with which the MRP trustee acquired a total of 1,000,000 shares of the Company’s common stock. In 2001, the MRP was amended and restated to extend the term. There were no shares granted, no compensation expense and no shares vested related to the MRP during the year ended March 31, 2013. These shares were cancelled upon reorganization in September 2013.

Stock Compensation Plan

The Company previously had several stock-based compensation plans (“Plan(s)”) including the 2004 Equity Incentive Plan under which shares of common stock are reserved for the grant of incentive and non-incentive stock options and restricted stock or restricted stock units to directors, officers and employees. The purpose of the Plans was to promote the interests of the Company and its stockholders by (i) attracting and retaining exceptional executive personnel and other key employees; (ii) motivating such employees by means of performance-related incentives to achieve long-range performance goals; and (iii) enabling such employees to participate in the long-term growth and financial success of the Company. Under the Plan, up to 921,990 shares of Common Stock were authorized and available for issuance. Of the 921,990 shares available, up to 300,000 shares could have been awarded in the form of restricted stock or restricted stock units which were not subject to the achievement of a performance target or targets. The date the options were first exercisable was determined by a committee of the Board of Directors of the Company. These options were cancelled upon reorganization in September 2013.

Restricted Stock

Restricted stock grants primarily vest over a period of three to five years and were included in outstanding shares at the time of grant. The fair value of restricted stock equals the average of the high and low market value on the date of grant and that amount was amortized on a straight-line basis to compensation and benefits expense over the vesting period. There were no shares granted under the plan for the year ended March 31, 2013. The restricted stock grant plan expense was $55,000 for the year ended March 31, 2013. These shares were cancelled upon reorganization in September 2013.

Deferred Compensation Plans

The deferred compensation plan included an agreement with a previous executive established in 1986 to provide recognition of services performed and additional compensation for services to be performed. The Bank established a grantor trust in 1992 and fully funded the vehicle to facilitate distribution obligations under the agreement, and the trust subsequently purchased shares as all benefits payable under the agreement were payable in the Company’s stock. The benefits were 100% vested and the first distribution was made on December 3, 2010. The remaining balance payable of 166,480 shares was cancelled as part of the Plan of Reorganization.

The Company also established an Excess Benefit Plan to provide deferred compensation to certain members of management. As contributions were made to a participant’s account, funds were deposited into a trust account for the participant and in turn shares of ABCW stock were purchased. No contributions were made during the year- ended March 31, 2013 or the nine months ended December 31, 2013. All shares previously issued under the plan were cancelled as part of the Plan of Reorganization.

An obligation totaling $901,000 at March 31, 2013, representing the cost basis of undistributed shares in both plans described above was included in the deferred compensation obligation component of stockholders’ deficit. This amount was offset by the cost basis of undistributed shares purchased included in the additional paid in capital component of stockholders’ deficit. All shares issued under the plan were cancelled as part of the Plan of Reorganization.

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Premises, Equipment and Lease Commitments - Summary of Depreciation Expense (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014	Mar. 31, 2013
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Depreciation expense	$ 1,871	$ 2,404	$ 3,079
Building
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Depreciation expense	959	1,059	1,397
Furniture and Fixtures
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Depreciation expense	$ 912	$ 1,345	$ 1,682

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Other Borrowed Funds - Summary of Other Borrowed Funds (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Line of Credit Facility [Line Items]
FHLB advances, Maturing date	Dec. 19, 2018
FHLB advances	$ 10,000	$ 10,000
Other borrowings	13,752	12,877
FHLB advances	2.33%	2.33%
Other borrowings, Weighted Average Rate	1.75%	1.88%
Repurchase agreements
Line of Credit Facility [Line Items]
Other borrowings	3,569	2,636
Other borrowings, Weighted Average Rate	0.10%	0.10%
Long term lease obligation
Line of Credit Facility [Line Items]
Other borrowings	$ 183	$ 241
Other borrowings, Weighted Average Rate	2.46%	2.46%

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Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014	Mar. 31, 2013
Interest income
Loans	$ 57,702		$ 69,213	$ 93,335
Investment securities and Federal Home Loan Bank stock	4,179		5,996	5,912
Interest-earning deposits	342		371	635
Total interest income	62,223		75,580	99,882
Interest expense
Deposits	4,108		4,099	10,324
Other borrowed funds	10,009		245	27,075
Total interest expense	14,117		4,344	37,399
Net interest income	48,106		71,236	62,483
Provision for loan losses	275		(4,585)	7,733
Net interest income after provision for loan losses	47,831		75,821	54,750
Non-interest income
Service charges on deposits	7,751		10,017	10,435
Investment and insurance commissions	2,965		4,222	3,894
Loan servicing income (loss), net of amortization	1,382		2,821	(1,892)
Net impairment losses recognized in earnings	(23)		(64)	(408)
Net gain on sale of loans	5,086		2,797	23,195
Net gain (loss) on sale of investment securities	292		746	(247)
Net gain on sale of OREO	3,260		2,540	6,876
Extinguishment of debt	134,514
Net gain (loss) on sale of disposition of property & equipment	(3)		1,328	(651)
Net gain on sale of branch			991
Other income	4,309		5,121	4,699
Total non-interest income	159,533		30,519	45,901
Non-interest expense
Compensation and benefits	32,426		44,256	40,736
Occupancy	6,517		7,374	8,133
Furniture and equipment	2,510		3,038	4,563
Federal deposit insurance premiums	3,386		3,151	5,921
Data processing	4,300		5,602	6,223
Communications	1,517		1,987	1,840
Marketing	2,099		3,676	1,345
OREO expense, net	9,797		9,779	37,571
Investor loss reimbursement	687		50	4,530
Mortgage servicing rights impairment (recovery)	(1,664)		534	(403)
Provision for unfunded commitments	2,708		(2,107)	1,392
Loan processing and servicing expense	2,549		2,435	3,871
Retail operations expense	1,793		2,490	2,255
Legal services	2,773		1,961	5,256
Other professional fees	1,699		1,452	2,346
Insurance	2,497		1,057	1,656
Debt prepayment penalty	16,149			3,549
Reorganization costs	1,929		(64)
Other expense	2,060		5,037	4,220
Total non-interest expense	95,732		91,708	135,004
Income (loss) before income taxes	111,632		14,632	(34,353)
Income tax expense (benefit)	9		10	(181)
Net income (loss)	111,623		14,622	(34,172)
Preferred stock dividends in arrears	(2,538)			(6,560)
Preferred stock discount accretion	(6,167)			(7,412)
Retirement of preferred shares	104,000
Net income (loss) available to common equity	206,918	[1]	14,622	(48,144)	[1]
Net income (loss)	111,623		14,622	(34,172)
Reclassification adjustment for realized net (gains) losses recognized in Consolidated Statements of Operations - Net gain (loss) on sale and call of investment securities	(292)		(746)	247
Reclassification adjustments recognized in Consolidated Statements of Operations - Net impairment losses recognized in earnings:
Net change in unrealized credit related other-than-temporary impairment	(201)		(157)	(310)
Credit related other-than-temporary impairment previously recognized on securities paid-off during the period				(4)
Realized credit losses	224		221	722
Change in net unrealized gains (losses) on available-for-sale securities	(9,932)		4,902	2,792
Total other comprehensive income (loss)	(10,201)		4,220	3,447
Comprehensive income (loss)	$ 101,422		$ 18,842	$ (30,725)
Income (loss) per common share:
Basic	$ 12.18	[1]	$ 1.61	$ (2.27)	[1]
Diluted	$ 12.18	[1]	$ 1.60	$ (2.27)	[1]
Dividends declared per common share	$ 0		$ 0	$ 0

[1] The calculation of weighted average shares included 21,247,000 shares of Legacy Common Stock outstanding through September 26, 2013 and 9,050,000 shares of common stock outstanding from September 27 through December 31, 2013.

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Other Real Estate Owned

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Other Real Estate Owned

Note 6 – Other Real Estate Owned

A summary of the activity in other real estate owned is as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013
	(In thousands)
Balance at beginning of period	$	63,460		$	84,342
Additions		10,381			19,352
Capitalized improvements		251			307
OREO valuation adjustments, net (1)		(7,840	)		(4,937	)
Sales		(30,761	)		(35,604	)
Balance at end of period	$	35,491		$	63,460

⁽¹⁾  Includes adjustments to the OREO reserve for probable losses and property writedowns.

The balances at end of period above are net of a valuation allowance of $20.6 million, $30.8 million and $36.0 million at December 31, 2014 and 2013 and March 31, 2013, respectively recognized during the holding period for declines in fair value subsequent to foreclosure or acceptance of deed in lieu of foreclosure. A summary of activity in the OREO valuation allowance is as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Balance at beginning of period	$	30,842		$	36,009		$	22,521
Valuation adjustments (1)		7,840			4,937			26,733
Sales		(18,099	)		(10,104	)		(13,245	)
Balance at end of period	$	20,583		$	30,842		$	36,009

⁽¹⁾  Includes adjustments to the OREO reserve for probable losses and property writedowns.

Net OREO expense consisted of the following components:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Valuation adjustments	$	7,840	$	4,937	$	26,733
Foreclosure cost expense		498		1,541		2,602
Expenses from operations, net		1,441		3,319		8,236
OREO expense, net	$	9,779	$	9,797	$	37,571

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Loans Held for Investment, net

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Loans Held for Investment, net

Note 5 – Loans Held for Investment, net

Loans held for investment, net consist of the following:

	December 31,
	2014			2013
	(In thousands)
Residential	$	541,211		$	529,777
Commercial and industrial		16,514			21,591
Commercial real estate:
Land and construction		106,436			92,050
Multi-family		265,735			281,917
Retail/office		155,095			154,075
Other commercial real estate		156,243			174,313
Total commercial real estate		683,509			702,355
Consumer:
Education		108,384			129,520
Other consumer		233,487			238,311
Total consumer loans		341,871			367,831
Total gross loans		1,583,105			1,621,554
Undisbursed loan proceeds (1)		(10,080	)		(10,322	)
Unamortized loan fees, net		(1,544	)		(1,722	)
Unearned interest		(5	)		(4	)
Total loan contra balances		(11,629	)		(12,048	)
Loans held for investment		1,571,476			1,609,506
Allowance for loan losses		(47,037	)		(65,182	)
Loans held for investment, net	$	1,524,439		$	1,544,324

⁽¹⁾  Undisbursed loan proceeds are funds to be released upon a draw request approved by the Corporation.

Residential Loans

At December 31, 2014, $541.2 million, or 34.2%, of the total gross loans consisted of residential loans, substantially all of which were 1-to-4 family dwellings. Residential loans consist of both adjustable and fixed-rate loans. The adjustable-rate loans currently in the portfolio were originated with up to30-year maturities and terms which provide for annual increases or decreases of the rate on the loans, based on a designated index. These rate changes are generally subject to a limit of 2% per adjustment and an aggregate 6% adjustment over the life of the loan. These loans are documented according to standard industry practices. The Company does not originate negative amortization and option payment adjustable rate mortgages.

At December 31, 2014, approximately $313.5 million, or 57.9%, of the held for investment residential gross loans consisted of loans with adjustable interest rates. At December 31, 2014, approximately $227.7 million, or 42.1%, of the held for investment residential gross loans consisted of loans with fixed rates of interest. Although these loans generally provide for repayments of principal over a fixed period of 10 to 30 years, because of prepayments and due-on-sale clauses, such loans generally remain outstanding for a shorter period of time.

Commercial and Industrial Loans

The Company originates loans for commercial and business purposes, including issuing letters of credit. At December 31, 2014, the commercial and industrial gross loans amounted to $16.5 million, or 1.0%, of the total gross loans.

Commercial Real Estate Loans

At December 31, 2014, $683.5 million of gross loans were secured by commercial real estate, which represented 43.3% of the total gross loans. The origination of such loans is generally limited to the Company’s primary market area.

Consumer Loans

The Company offers consumer loans in order to provide a wider range of financial services to its customers. Consumer loans primarily consist of home equity loans and lines and education loans. At December 31, 2014, $341.9 million, or 21.5%, of the total gross loans consisted of consumer loans.

Approximately $108.4 million, or 6.8%, of the total gross loans at December 31, 2014 consisted of education loans. The origination of student loans was discontinued October 1, 2010 following the March 2010 law ending loan guarantees provided by the U.S. Department of Education. Both the principal amount of an education loan and interest thereon are generally guaranteed by the Great Lakes Higher Education Company up to 97% of the balance of the loan. Education loans may be sold to the U.S. Department of Education or to other investors. No education loans were sold during the year ended December 31, 2014 and the nine months ended December 31, 2013.

The primary home equity loan product has an adjustable rate that is linked to the prime interest rate and is secured by a mortgage, either a primary or a junior lien, on the borrower’s residence.

Other consumer loans consist of credit cards, vehicle loans and other secured and unsecured loans made for a variety of consumer purposes. Credit is extended to Bank customers through credit cards issued by a third party, ELAN Financial Services (ELAN), pursuant to an agency arrangement.

A new agreement was signed with ELAN on December 31, 2014, effective January 1, 2015, providing the Company an origination fee for each card sold. The Company also receives a monthly fee from ELAN resulting from the performance of the originated portfolio, based on 11% of the interest income and 25% of the interchange income, and the Bank is no longer exposed to credit risk from the underlying consumer credit. As part of the new agreement, the Bank agreed to sell back to ELAN its participation in outstanding credit card balances totaling $6.6 million with no gain or loss recognized. This transaction settled on February 10, 2015.

Allowances for Loan Losses

The following table presents the allowance for loan losses by component:

	December 31,
	2014		2013
	(In thousands)
General reserve	$	34,027	$	34,466
Specific reserve:
Substandard rated loans, excluding TDR accrual		4,569		6,225
Impaired loans		8,441		24,491
Total allowance for loan losses	$	47,037	$	65,182

The following table presents the gross balance of loans by risk category:

	December 31,
	2014		2013
	(In thousands)
Pass	$	1,465,224	$	1,429,283
Special mention		6,243		24,203
Total pass and special mention rated loans		1,471,467		1,453,486
Substandard rated loans, excluding TDR accrual (1)		16,353		35,310
Troubled debt restructurings – accrual (2)		60,170		64,261
Non-accrual		35,115		68,497
Total impaired loans		95,285		132,758
Total gross loans	$	1,583,105	$	1,621,554

⁽¹⁾  Includes residential and consumer loans identified as substandard that are not necessarily on non-accrual.

⁽²⁾  Includes TDR loans performing to contract terms of $55.4 million and $31.2 million at December 31, 2014 and 2013, respectively.

The following table presents activity in the allowance for loan losses by portfolio segment:

	Residential			Commercial and Industrial			Commercial Real Estate			Consumer			Total
	(In thousands)
For the Year Ended:
December 31, 2014
Beginning balance	$	13,059		$	6,402		$	42,065		$	3,656		$	65,182
Provision		(599	)		(2,622	)		(6,129	)		4,765			(4,585	)
Charge-offs		(2,212	)		(5,220	)		(16,041	)		(2,599	)		(26,072	)
Recoveries		436			2,876			8,821			379			12,512
Ending balance	$	10,684		$	1,436		$	28,716		$	6,201		$	47,037
For the Nine Months Ended:
December 31, 2013
Beginning balance	$	14,525		$	7,072		$	54,581		$	3,637		$	79,815
Provision		2,224			(599	)		(2,942	)		1,592			275
Charge-offs		(4,419	)		(864	)		(13,100	)		(1,903	)		(20,286	)
Recoveries		729			793			3,526			330			5,378
Ending balance	$	13,059		$	6,402		$	42,065		$	3,656		$	65,182
For the Year Ended:
March 31, 2013
Beginning balance	$	13,027		$	10,568		$	85,153		$	2,467		$	111,215
Provision		6,414			(1,471	)		(3,107	)		5,897			7,733
Charge-offs		(6,659	)		(3,483	)		(34,265	)		(4,946	)		(49,353	)
Recoveries		1,743			1,458			6,800			219			10,220
Ending balance	$	14,525		$	7,072		$	54,581		$	3,637		$	79,815

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013:

	Residential		Commercial and Industrial		Commercial Real Estate		Consumer		Total
	(In thousands)
December 31, 2014
Allowance for loan losses:
Associated with impaired loans	$	1,400	$	140	$	6,475	$	426	$	8,441
Associated with all other loans		9,284		1,296		22,241		5,775		38,596
Total	$	10,684	$	1,436	$	28,716	$	6,201	$	47,037
Loans:
Impaired loans individually evaluated	$	14,497	$	113	$	79,160	$	1,515	$	95,285
All other loans		526,714		16,401		604,349		340,356		1,487,820
Total	$	541,211	$	16,514	$	683,509	$	341,871	$	1,583,105
December 31, 2013
Allowance for loan losses:
Associated with impaired loans	$	2,424	$	1,745	$	19,845	$	477	$	24,491
Associated with all other loans		10,635		4,657		22,220		3,179		40,691
Total	$	13,059	$	6,402	$	42,065	$	3,656	$	65,182
Loans:
Impaired loans individually evaluated	$	20,502	$	2,315	$	106,657	$	3,284	$	132,758
All other loans		509,275		19,276		595,698		364,547		1,488,796
Total	$	529,777	$	21,591	$	702,355	$	367,831	$	1,621,554

A substantial portion of loans, 98.0%, are collateralized by real estate in Wisconsin and adjacent states. Accordingly, the ultimate collectability of the loan portfolio is susceptible to changes in real estate market conditions in that area.

The following table presents impaired loans segregated by loans with no specific allowance and loans with an allowance by class of loans. The recorded investment amounts represent the gross loan balance less charge-offs. The unpaid principal balance represents the contractual loan balance less any principal payments applied. The interest income recognized column represents all interest income recorded either on a cash or accrual basis after the loan became impaired.

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Carrying Amount (1)		Year-to-Date Interest Income Recognized
	(In thousands)
December 31, 2014
With no specific allowance recorded:
Residential	$	4,992	$	6,406	$	—	$	5,455	$	165
Commercial and industrial		—		268		—		843		26
Land and construction		9,421		19,334		—		12,192		208
Multi-family		17,614		19,863		—		17,979		780
Retail/office		7,840		15,581		—		8,040		354
Other commercial real estate		13,972		15,318		—		14,617		467
Education (3)		205		205		—		101		—
Other consumer		469		845		—		1,003		89
Subtotal		54,513		77,820		—		60,230		2,089
With an allowance recorded (2):
Residential	$	9,505	$	9,671	$	1,400	$	8,574	$	403
Commercial and industrial		113		236		140		111		1
Land and construction		8,362		12,536		3,657		4,440		180
Multi-family		11,641		11,641		1,308		10,465		485
Retail/office		9,387		9,566		1,391		8,207		356
Other commercial real estate		923		936		119		854		17
Education (3)		—		—		—		—		—
Other consumer		841		841		426		617		48
Subtotal		40,772		45,427		8,441		33,268		1,490
Total
Residential	$	14,497	$	16,077	$	1,400	$	14,029	$	568
Commercial and industrial		113		504		140		954		27
Land and construction		17,783		31,870		3,657		16,632		388
Multi-family		29,255		31,504		1,308		28,444		1,265
Retail/office		17,227		25,147		1,391		16,247		710
Other commercial real estate		14,895		16,254		119		15,471		484
Education (3)		205		205		—		101		—
Other consumer		1,310		1,686		426		1,620		137
	$	95,285	$	123,247	$	8,441	$	93,498	$	3,579

⁽¹⁾  Calculated on a trailing 12 month basis for December 31, 2014, and a trailing 9 month basis for December 31, 2013.

⁽²⁾  Includes ratio-based allowance for loan losses of $0.5 million and $2.1 million associated with loans totaling $1.9 million and $12.5 million at December 31, 2014 and 2013, respectively, for which individual reviews have not been completed but an allowance established based on the ratio of allowance for loan losses to gross loans individually reviewed, by class of loan.

⁽³⁾  Excludes the guaranteed portion of education loans 90+ days past due with balance of $6.6 million and $8.9 million and average carrying amounts totaling $7.7 million and $13.7 million at December 31, 2014 and 2013, respectively, that are not considered impaired based on a guarantee provided by government agencies.

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Carrying Amount (1)		Nine Months Ended December 31, 2013 Interest Income Recognized
	(In thousands)
December 31, 2013
With no specific allowance recorded:
Residential	$	5,009	$	6,292	$	—	$	5,275	$	94
Commercial and industrial		61		370		—		58		246
Land and construction		4,311		13,299		—		4,692		14
Multi-family		16,102		16,286		—		7,338		74
Retail/office		11,279		12,501		—		11,916		128
Other commercial real estate		19,660		23,597		—		12,523		225
Education (3)		276		276		—		343		—
Other consumer		479		745		—		841		84
Subtotal		57,177		73,366		—		42,986		865
With an allowance recorded (2):
Residential	$	15,493	$	15,623	$	2,424	$	13,572	$	250
Commercial and industrial		2,254		2,278		1,745		934		70
Land and construction		20,417		26,020		7,512		15,281		128
Multi-family		14,311		14,329		3,693		4,118		159
Retail/office		17,878		18,062		8,254		14,072		476
Other commercial real estate		2,699		2,731		386		2,298		87
Education (3)		—		—		—		—		—
Other consumer		2,529		2,529		477		2,190		62
Subtotal		75,581		81,572		24,491		52,465		1,232
Total
Residential	$	20,502	$	21,915	$	2,424	$	18,847	$	344
Commercial and industrial		2,315		2,648		1,745		992		316
Land and construction		24,728		39,319		7,512		19,973		142
Multi-family		30,413		30,615		3,693		11,456		233
Retail/office		29,157		30,563		8,254		25,988		604
Other commercial real estate		22,359		26,328		386		14,821		312
Education (3)		276		276		—		343		—
Other consumer		3,008		3,274		477		3,031		146
	$	132,758	$	154,938	$	24,491	$	95,451	$	2,097

⁽¹⁾  Calculated on a trailing 12 month basis for December 31, 2014, and a trailing 9 month basis for December 31, 2013.

⁽²⁾  Includes ratio-based allowance for loan losses of $0.5 million and $2.1 million associated with loans totaling $1.9 million and $12.5 million at December 31, 2014 and 2013, respectively, for which individual reviews have not been completed but an allowance established based on the ratio of allowance for loan losses to gross loans individually reviewed, by class of loan.

⁽³⁾  Excludes the guaranteed portion of education loans 90+ days past due with balance of $6.6 million and $8.9 million and average carrying amounts totaling $7.7 million and $13.7 million at December 31, 2014 and 2013, respectively, that are not considered impaired based on a guarantee provided by government agencies.

The average recorded investment in impaired loans and interest income recognized on impaired loans follows:

	Year Ended December 31, 2014				Nine Months Ended December 31, 2013				Year Ended March 31, 2013
	Average Carrying Amount (1)		Interest Income Recognized		Average Carrying Amount (1)		Interest Income Recognized		Average Carrying Amount (1)		Interest Income Recognized
	(In thousands)
Residential	$	14,029	$	568	$	18,847	$	344	$	34,649	$	717
Commercial and industrial		954		27		992		316		2,864		443
Land and construction		16,632		388		19,973		142		27,832		183
Multi-family		28,444		1,265		11,456		233		25,833		652
Retail/office		16,247		710		25,988		604		28,745		1,005
Other commercial real estate		15,471		484		14,821		312		33,992		1,316
Education		101		—		343		—		615		—
Other consumer		1,620		137		3,031		146		4,604		355
	$	93,498	$	3,579	$	95,451	$	2,097	$	159,134	$	4,671

⁽¹⁾  The average carry amount was calculated on a trailing 12 month basis for December 31, 2014 and March 31, 2013 and on a trailing 9 month basis for December 31, 2013.

The following is additional information regarding impaired loans:

	December 31,
	2014		2013
	(In thousands)
Carrying amount of impaired loans	$	86,844	$	108,267
Average carrying amount of impaired loans		93,498		95,451
Loans and troubled debt restructurings on non – accrual status		35,115		68,497
Troubled debt restructurings – accrual		60,170		64,261
Troubled debt restructurings – non-accrual (1)		16,483		29,346
Troubled debt restructurings valuation allowance		8,593		15,210
Loans past due ninety days or more and still accruing (2)		6,613		8,930

⁽¹⁾  Troubled debt restructurings – non-accrual are included in the loans and troubled debt restructurings on non-accrual status line item above.

⁽²⁾  Represents the guaranteed portion of education loans that were 90+ days past due which continue to accrue interest due to a guarantee provided by government agencies covering approximately 97% of the outstanding balance.

Although the Company is currently not committed to lend any additional funds on impaired loans in accordance with the original terms of these loans, it is not legally obligated to, and will cautiously disburse additional funds on any loans while in nonaccrual status or if the borrower is in default.

The following table presents the aging of the recorded investment in past due loans by class of loans:

	Days Past Due
	30-59		60-89		90 or More		Current		Total
	(In thousands)
December 31, 2014
Residential	$	1,186	$	802	$	2,995	$	536,228	$	541,211
Commercial and industrial		205		—		196		16,113		16,514
Land and construction		267		29		1,111		105,029		106,436
Multi-family		—		—		3,518		262,217		265,735
Retail/office		—		—		2,172		152,923		155,095
Other commercial real estate		—		—		3,011		153,232		156,243
Education		3,505		2,140		6,818		95,921		108,384
Other consumer		632		126		517		232,212		233,487
	$	5,795	$	3,097	$	20,338	$	1,553,875	$	1,583,105
December 31, 2013
Residential	$	1,287	$	564	$	8,897	$	519,029	$	529,777
Commercial and industrial		1,609		—		1,461		18,521		21,591
Land and construction		105		—		11,307		80,638		92,050
Multi-family		1,612		—		1,079		279,226		281,917
Retail/office		968		83		10,887		142,137		154,075
Other commercial real estate		184		506		3,785		169,838		174,313
Education		5,210		2,914		9,206		112,190		129,520
Other consumer		910		213		2,395		234,793		238,311
	$	11,885	$	4,280	$	49,017	$	1,556,372	$	1,621,554

Total delinquencies (loans past due 30 days or more) at December 31, 2014 were $29.2 million. Non-accrual loans were $35.1 million and $68.5 million as of December 31, 2014 and 2013, respectively. The Company has experienced a significant reduction in delinquencies since December 31, 2013 primarily due to improving credit conditions and $10.4 million of loans moving to OREO. The Company has $6.6 million of education loans past due 90 days or more at December 31, 2014 that are still accruing interest due to the approximate 97% guarantee provided by governmental agencies. Loans less than 90 days delinquent may be placed on non-accrual status when the probability of collection of principal and interest is deemed to be insufficient to warrant further accrual.

Credit Quality Indicators:

The Company classifies commercial and industrial loans and commercial real estate loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. This analysis is updated on a monthly basis. The following definitions are used for risk ratings:

Pass. Loans classified as pass represent assets that are evaluated and are performing under the stated terms.

Watch. Loans classified as watch possess potential weaknesses that require management attention, but do not yet warrant adverse classification. These loans are treated the same as loans classified as “Pass” for reporting purposes.

Special Mention. Loans classified as special mention exhibit material negative financial trends due to company specific or industry conditions which, if not corrected or mitigated, threaten their capacity to meet current or continuing debt obligations.

Substandard. Loans classified as substandard are inadequately protected by the current net worth, paying capacity of the obligor, or by the collateral pledged. Substandard assets must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.

Non-Accrual. Loans classified as non-accrual have the weaknesses of those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

The risk category of loans by class of loans, and based on the most recent analysis performed, is as follows:

	Pass (1)			Special Mention			Substandard			Non-Accrual			Total Gross Loans
	(In thousands)
December 31, 2014
Commercial and industrial	$	14,990		$	—		$	1,491		$	33		$	16,514
Commercial real estate:
Land and construction		85,425			946			2,870			17,195			106,436
Multi-family		261,254			—			915			3,566			265,735
Retail/office		143,260			4,753			3,112			3,970			155,095
Other		145,995			174			6,452			3,622			156,243
	$	650,924		$	5,873		$	14,840		$	28,386		$	700,023
Percent of total gross loans		93.0	%		0.8	%		2.1	%		4.1	%		100.0	%
December 31, 2013
Commercial and industrial	$	16,542		$	—		$	3,540		$	1,509		$	21,591
Commercial real estate:
Land and construction		57,221			75			10,025			24,729			92,050
Multi-family		255,741			465			22,053			3,658			281,917
Retail/office		130,966			2,967			5,777			14,365			154,075
Other		135,045			20,696			11,770			6,802			174,313
	$	595,515		$	24,203		$	53,165		$	51,063		$	723,946
Percent of total gross loans		82.3	%		3.3	%		7.3	%		7.1	%		100.0	%

⁽¹⁾  Includes TDR accruing loans.

Residential and consumer loans are managed on a pool basis due to their homogeneous nature. Loans that are delinquent 90 days or more are considered non-accrual. The following table presents the residential and consumer gross loans based on accrual status:

	December 31, 2014						December 31, 2013
	Accrual (1)		Non-Accrual		Total Gross Loans		Accrual (1)		Non-Accrual		Total Gross Loans
	(In thousands)
Residential	$	535,338	$	5,873	$	541,211	$	515,373	$	14,404	$	529,777
Consumer
Education (2)		108,179		205		108,384		129,244		276		129,520
Other consumer		232,836		651		233,487		235,557		2,754		238,311
	$	876,353	$	6,729	$	883,082	$	880,174	$	17,434	$	897,608

⁽¹⁾  Accrual residential and consumer loans includes substandard rated loans including TDR-accrual.

⁽²⁾  Non-accrual education loans represent the portion of these loans 90+ days past due that are not covered by a guarantee provided by government agencies that is limited to approximately 97% of the outstanding balance.

Troubled Debt Restructurings

Modifications of loan terms in a TDR are generally in the form of an extension of payment terms or lowering of the interest rate, although occasionally the Company has reduced the outstanding principal balance.

Loans modified in a troubled debt restructuring that are currently on non-accrual status will remain on non-accrual status for a period of at least six months, or longer period, sufficient to prove that the borrower demonstrates that they can make the payments under the modified terms. If after this period, the borrower has made payments in accordance with the modified terms, the loan is returned to accrual status but retains its designation as a TDR. Once a TDR loan is returned to accrual, further review of the credit could take place resulting in a further upgrade into the pass category but still remaining as a TDR.

The following table presents information related to loans modified in a troubled debt restructuring by class:

	Year Ended December 31, 2014
Troubled Debt Restructurings (1)	Number of Modifications		Gross Loans (at beginning of period)		Gross Loans (2) (at period end)
	(Dollars in thousands)
Residential	$	13	$	1,632	$	1,620
Commercial and industrial		2		64		97
Land and construction		3		427		410
Multi-family		3		1,283		1,183
Retail/office		—		—		—
Other commercial real estate		2		251		256
Education		—		—		—
Other consumer		11		353		305
	$	34	$	4,010	$	3,871

⁽¹⁾  Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

⁽²⁾  Gross loans is inclusive of all partial paydowns and charge-offs since the modification date.

	Nine Months Ended December 31, 2013
Troubled Debt Restructurings (1)	Number of Modifications		Gross Loans (at beginning of period)		Gross Loans (2) (at period end)
	(Dollars in thousands)
Residential	$	21	$	3,761	$	3,788
Commercial and industrial		19		13,322		12,788
Land and construction		—		—		—
Multi-family		20		25,556		23,531
Retail/office		6		1,673		1,604
Other commercial real estate		8		15,269		15,346
Education		—		—		—
Other consumer		12		401		423
	$	86	$	59,982	$	57,480

⁽¹⁾  Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

⁽²⁾  Gross loans is inclusive of all partial paydowns and charge-offs since the modification date.

The following tables present gross loans modified in a troubled debt restructuring during the year ended December 31, 2014 and the nine months ended December 31, 2013 by class and by type of modification:

Troubled Debt Restructurings (1)(2)	Year Ended December 31, 2014
	Principal and Interest to Interest Only		Interest Rate Reduction				Below Market Rate (4)		Other (5)		Total
			To Below Market Rate		To Interest Only (3)
	(In thousands)
Residential	$	175	$	788	$	—	$	119	$	538	$	1,620
Commercial and industrial		—		—		—		—		97		97
Land and construction		—		63		—		—		347		410
Multi-family		—		—		—		921		262		1,183
Retail/office		—		—		—		—		—		—
Other commercial real estate		—		—		—		214		42		256
Education		—		—		—		—		—		—
Other consumer		—		252		—		—		53		305
	$	175	$	1,103	$	—	$	1,254	$	1,339	$	3,871

Troubled Debt Restructurings (1)(2)	Nine Months Ended December 31, 2013
	Principal and Interest to Interest Only		Interest Rate Reduction				Below Market Rate (4)		Other (5)		Total
			To Below Market Rate		To Interest Only (3)
	(In thousands)
Residential	$	—	$	1,318	$	—	$	—	$	2,470	$	3,788
Commercial and industrial		—		345		—		—		12,443		12,788
Land and construction		—		—		—		—		—		—
Multi-family		—		231		—		—		23,300		23,531
Retail/office		—		45		216		—		1,343		1,604
Other commercial real estate		—		701		—		144		14,501		15,346
Education		—		—		—		—		—		—
Other consumer		—		411		—		—		12		423
	$	—	$	3,051	$	216	$	144	$	54,069	$	57,480

⁽¹⁾  Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

⁽²⁾  Gross loans is inclusive of all partial pay downs and charge-offs since the modification date.

⁽³⁾  Includes modifications of loan repayment terms from principal and interest to interest only, along with a reduction in the contractual interest rate.

⁽⁴⁾  Includes loans modified at below market rates for borrowers with similar risk profiles and having comparable loan terms and conditions. Market rates are determined by reference to internal new loan pricing grids that specify credit spreads based on loan risk rating and term to maturity.

⁽⁵⁾  Other modifications primarily include providing for the deferral of interest currently due to the new maturity date of the loan.

There were no loans modified in a troubled debt restructuring during the year ended December 31, 2014 and the nine months ended December 31, 2013, that subsequently defaulted.

Pledged Loans

At December 31, 2014 and 2013, residential, multi-family, education and other consumer loans with unpaid principal of approximately $726.6 million and $744.1 million, respectively were pledged to secure borrowings and for other purposes as permitted or required by law. Certain real-estate related loans are pledged as collateral for FHLB borrowings. See Note 10-Other Borrowed Funds.

Related Party Loans

In the ordinary course of business, the Bank has granted loans to principal officers and directors and their affiliates with outstanding balances amounting to $49,000 and $83,000 at December 31, 2014 and 2013, respectively. During the year ended December 31, 2014, there were no principal additions and principal payments totaled $34,000.

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Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Note 17 – Income Taxes

The Company and its subsidiaries file a consolidated federal income tax return and combined state income tax returns. The provision for income taxes consists of the following:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Current:
Federal	$	—	$	—	$	(51	)
State		10		9		(130	)
		10		9		(181	)
Deferred:
Federal		—		—		—
State		—		—		—
		—		—		—
Total income tax expense (benefit)	$	10	$	9	$	(181	)

At December 31, 2014 and 2013, the affiliated group had a federal net operating loss and tax credit carryover of $200.6 million and $185.1 million, respectively, and at December 31, 2014 and 2013, certain subsidiaries had state net operating loss carryovers of $320.1 million and $301.8 million, respectively. These carryovers expire in varying amounts in 2015 through 2034.

The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows:

	Year Ended December 31, 2014						Nine Months Ended December 31, 2013						Year Ended March 31, 2013
	Amount			% of Pretax Income			Amount			% of Pretax Income			Amount			% of Pretax Income
	(Dollars in thousands)
Net income (loss) before income taxes	$	14,632			100.0	%	$	111,632			100.0	%	$	(34,353	)		100.0	%
Income tax expense (benefit) at federal statutory rate	$	5,121			35.0	%	$	39,071			35.0	%	$	(12,024	)		35.0	%
State income taxes, net of federal income tax benefits		746			5.1			(1,008	)		(0.9	)		(1,840	)		5.3
Cancellation of indebtedness income exclusion		—			—			(47,080	)		(42.2	)		—			—
Increase (decrease) in valuation allowance		(5,806	)		(39.7	)		7,906			7.1			13,643			(39.7	)
Other		(51	)		(0.3	)		1,120			1.0			40			(0.1	)
Income tax expense (benefit)	$	10			0.1	%	$	9			—	%	$	(181	)		0.5	%

The Company accounts for income taxes based on the asset and liability method. Deferred tax assets and liabilities are recorded based on the difference between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates. Significant net deferred tax assets have been created for net operating loss (NOL) carryforwards and deductible temporary differences, the largest of which relates to our allowance for loan losses. For income tax purposes, only net charge-offs on uncollectible loans are deductible, not the provision for credit losses.

Under generally accepted accounting principles, a valuation allowance is required to be recognized if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon management’s evaluation and judgment of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of the current and future economic and business conditions. The Company considers both positive and negative evidence regarding the ultimate realizability of deferred tax assets. Positive evidence includes the existence of taxes paid in available carry back years as well as the probability that taxable income will be generated in future periods while negative evidence includes significant cumulative losses in the past several years as well as general business and economic trends.

At December 31, 2014 and 2013, the Company determined that a valuation allowance relating to the deferred tax asset was necessary. This determination was based largely on the negative evidence represented by the losses in the prior years caused by the significant loss provisions associated with the loan portfolio. Therefore, a valuation allowance of $113.1 million and $119.8 million at December 31, 2014 and 2013, respectively, was recorded to offset net deferred tax assets.

The significant components of deferred tax assets (liabilities) are as follows:

	December 31, 2014			December 31, 2013
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	18,871		$	27,193
OREO valuation allowance and other loss reserves		10,307			15,026
Federal NOL carryforwards		72,630			66,359
State NOL carryforwards		16,657			15,710
Unrealized securities losses, net		963			2,657
Other		2,964			3,154
Total deferred tax assets		122,392			130,099
Valuation allowance		(113,099	)		(119,780	)
Adjusted deferred tax assets		9,293			10,319
Deferred tax liabilities:
FHLB stock dividends		(833	)		(833	)
Mortgage servicing rights		(7,785	)		(8,944	)
Other		(675	)		(542	)
Total deferred tax liabilities		(9,293	)		(10,319	)
Net deferred tax assets	$	—		$	—

The Company is subject to U.S. federal income tax as well as income tax of various state jurisdictions. The tax years 2011-2014 remain open to examination by the Internal Revenue Service and certain state jurisdictions while the years 2010-2014 remain open to examination by certain other state jurisdictions.

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Offsetting Assets and Liabilities

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Offsetting Assets and Liabilities

Note 13 – Offsetting Assets and Liabilities

ASC 210-20-50 requires entities to provide disclosures of both gross information and net information about instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards, (“IFRS”).

Offsetting, otherwise known as netting, takes place when entities present their rights and obligations to each other as a net amount in their statement of financial condition. The Company has certain assets and liabilities on the Consolidated Balance Sheets which could be subject to the right of setoff and related arrangements associated with financial instruments and derivatives. Derivative instruments reported are used as part of a risk management strategy to address exposure to changes in interest rates inherent in the Company’s origination and sale of certain residential mortgages into the secondary market, as presented in Note 15 – Derivative Financial Instruments. A repurchase agreement is a transaction that involves the “sale” of financial assets by one party to another, subject to an agreement by the “seller” to repurchase the assets at a specified date or in specified circumstances.

The following table reflects the gross and net amounts of such assets and liabilities as of December 31, 2014 and 2013.

	Gross Amounts of Recognized Assets or Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets			Net Amount of Assets Presented in the Consolidated Balance Sheets
	(in thousands)
As of December 31, 2014
Assets
Interest rate commitments	$	154	$	—		$	154
Forward sale contracts		2		—			2
Liabilities
Interest rate commitments		14		—			14
Forward sale contracts		174		—			174
Repurchase Agreements		3,569		—			3,569
As of December 31, 2013
Assets
Interest rate commitments	$	40	$	—		$	40
Forward sale contracts		33		(1	)		32
Liabilities
Interest rate commitments		16		—			16
Forward sale contracts		1		(1	)		—
Repurchase Agreements		2,636		—			2,636

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Mortgage Servicing Rights - Additional Information (Detail) (USD $) In Billions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Transfers and Servicing [Abstract]
Assumed amortization rate of mortgage servicing rights	20.00%
Unpaid principal balance of mortgage loans serviced for others	$ 2.47	$ 2.71

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Deposits

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Deposits

Note 9 – Deposits

Deposits are summarized as follows:

	December 31, 2014					December 31, 2013
	Carrying Amount		Weighted Average Rate			Carrying Amount		Weighted Average Rate
	(Dollars in thousands)
Non-interest-bearing checking	$	291,248		—	%	$	259,926		—	%
Interest-bearing checking		305,004		0.06			301,956		0.07
Total checking accounts		596,252		0.03			561,882		0.04
Money market accounts		455,594		0.20			468,461		0.19
Regular savings		312,544		0.10			293,159		0.10
Advance payments by borrowers for taxes and insurance		2,568		0.07			822		0.10
Certificates of deposit:
0.00% to 0.99%		363,890		0.32			457,407		0.33
1.00% to 1.99%		71,618		1.27			67,762		1.28
2.00% to 2.99%		11,705		2.27			16,116		2.37
3.00% to 3.99%		—		—			7,310		3.59
4.00% and above		—		—			2,374		4.24
Total certificates of deposit		447,213		0.52			550,969		0.57
Total deposits	$	1,814,171		0.21	%	$	1,875,293		0.24	%

Annual maturities of certificates of deposit outstanding at December 31, 2014 are summarized as follows:

	Amount
	(In thousands)
Matures During Year Ending December 31:
2015	$	278,845
2016		103,894
2017		30,126
2018		20,273
2019		14,075
Total	$	447,213

At December 31, 2014 and 2013, certificates of deposit with balances greater than or equal to $100,000 totaled $69.2 million and $88.7 million, respectively.

At December 31, 2014 the scheduled maturities of certificates of deposit of $100,000 or more are as follows:

	December 31, 2014
	(In thousands)
3 months or less	$	15,975
Over 3 months through 6 months		9,459
Over 6 months through 12 months		16,954
Over 12 months		26,838
Total	$	69,226

Certificates of deposit with balances greater than or equal to the FDIC insurance limit of $250,000 totaled $7.9 million and $10.6 million at December 31, 2014 and 2013, respectively.

The Bank has previously entered into agreements with certain brokers that will provide deposits obtained from their customers at specified interest rates for an identified fee, or so called “brokered deposits.” The Bank had no active broker deposit arrangements or outstanding brokered deposits at December 31, 2014 and 2013.

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Loans Held for Investment, net - Gross Balance of Loans by Risk Category (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	$ 1,583,105		$ 1,621,554
Pass
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	1,465,224		1,429,283
Special mention
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	6,243		24,203
Total pass and special mention rated loans
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	1,471,467		1,453,486
Substandard rated loans, excluding TDR accrual
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	16,353	[1]	35,310	[1]
Troubled debt restructurings-accrual
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	60,170	[2]	64,261	[2]
Non-accrual
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	35,115		68,497
Impaired loans
Financing Receivable, Recorded Investment [Line Items]
Total gross loans	$ 95,285		$ 132,758

[1] Includes residential and consumer loans identified as substandard that are not necessarily on non-accrual.

[2] Includes TDR loans performing to contract terms of $55.4 million and $31.2 million at December 31, 2014 and 2013, respectively.

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Fair Value of Financial Instruments - Significant Inputs Used for Assets Measured at Fair Value on a Nonrecurring Basis (Detail)	12 Months Ended
	Dec. 31, 2014
Impaired loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Input	External appraised values- adjustments made to values due to management factors including age of appraisal, age of comparables, known changes in the market and in the collateral and selling and commission cost of 15% to 35%.
Method	Appraised Values
Mortgage Servicing Rights
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Input	Weighted average prepayment speed 10.01%; weighted average discount rate 11.45%.
Method	Discounted Cash Flow
Other Real Estate Owned
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Input	External appraised values less selling and commission cost of 15% to 35%.
Method	Appraised Values

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Premises, Equipment and Lease Commitments

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Premises, Equipment and Lease Commitments

Note 7 – Premises, Equipment and Lease Commitments

Premises and equipment are summarized as follows:

	December 31, 2014			December 31, 2013
	(In thousands)
Land and land improvements	$	6,615		$	7,947
Office buildings		30,930			41,510
Furniture and equipment		26,444			38,483
Leasehold improvements		4,171			4,264
		68,160			92,204
Less accumulated depreciation and amortization		(44,591	)		(67,404	)
	$	23,569		$	24,800

Depreciation expense is summarized as follows:

	Year Ended December 31, 2014		Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Building depreciation expense	$	1,059	$	959	$	1,397
Furniture and fixture depreciation expense		1,345		912		1,682
	$	2,404	$	1,871	$	3,079

The Company leases 21 branch offices and office facilities under non-cancelable operating leases which expire on various dates through 2029. Future minimum payments under non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2014 are as follows:

Year Ending December 31,	Amount of Future Minimum Payments
	(In thousands)
2015	$	2,987
2016		1,959
2017		1,872
2018		1,952
2019		1,755
Thereafter		6,493
Total	$	17,018

For the year ended December 31, 2014, the nine months ended December 31, 2013 and for the year ended March 31, 2013, land and building lease rental expense was $1.8 million, $1.3 million, and $1.9 million, respectively.

In February 2014, the Bank entered into a purchase agreement with an unrelated third party to sell the Bank’s main office building located at 25 West Main Street, Madison, Wisconsin, the adjacent surface parking lot immediately behind the main office building at 115 South Carroll Street and the 261-stall parking ramp located at 126 South Carroll Street. The transaction closed on December 19, 2014 and a $1.4 million gain was recognized on the parcels that were not included in the subsequent lease between the Bank and the buyer. The Bank entered into a nine year lease to rent a portion of the building, to house the branch currently located in the building and additional office space. The future lease payments for this facility have been added to the table above presenting “Amount of Future Minimum Payments.” The gain of $6.4 million related to the leased space sold has been deferred and will be amortized into income over the remaining term of the lease.

On December 31, 2014 the Bank sold the Richland Center branch, which was a leased facility, in rural Wisconsin. The sale consisted of selected loans, furniture and equipment and deposits. The amount of deposits sold were $16.6 million and a gain of $1.0 million was recorded on the sale. The future lease payments for this facility have been removed from the table above presenting “Amount of Future Minimum Payments”.

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Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Mortgage Servicing Rights

Note 8 – Mortgage Servicing Rights

Accounting for mortgage loan servicing rights (MSRs) is based on the amortization method. Under this method, servicing assets are amortized in proportion to and over the period of net servicing income. Income generated as the result of the capitalization of new servicing assets is reported as net gain on sale of loans and the amortization of servicing assets is reported as a reduction to loan servicing income in the consolidated statements of operations. Ancillary income is recorded in other non-interest income.

Information regarding the Company’s mortgage servicing rights is as follows:

	Year Ended December 31,			Nine Months Ended December 31,
	2014			2013
	(In thousands)
Balance at beginning of period	$	23,041		$	24,235
Additions		1,442			2,751
Amortization		(3,798	)		(3,945	)
Balance at end of period – before valuation allowance		20,685			23,041
Valuation allowance		(1,281	)		(747	)
Balance at end of period	$	19,404		$	22,294
Fair value at the end of the period	$	19,590		$	23,553
Key assumptions:
Weighted average discount rate		11.45	%		12.02	%
Weighted average prepayment speed		10.01	%		7.06	%

The projections of amortization expense for mortgage servicing rights set forth below are based on asset balances as of December 31, 2014 and an assumed amortization rate of 20% per year. Future amortization expense may be significantly different depending upon changes in the mortgage servicing portfolio, mortgage interest rates and market conditions.

	MSR Amortization
	(In thousands)
Year ended December 31, 2014	$	3,798
Estimate for the year ended December 31,
2015	$	4,137
2016		3,310
2017		2,648
2018		2,118
2019		1,694
Thereafter		6,778
Total	$	20,685

The unpaid principal balance of mortgage loans serviced for others is not included in the consolidated balance sheets. The unpaid principal of mortgage loans serviced was approximately $2.47 billion and $2.71 billion at December 31, 2014 and 2013, respectively.

Loans intended to be sold are originated in accordance with specific criteria established by the investor agencies-these are known as “conforming loans”. During the sale of these loans, certain representations and warranties are made that the loans conform to these previously established underwriting standards. In the event that any of these representations and warranties or standards are found to be out of compliance, the Company may be responsible for repurchasing the loan at the unpaid principal balance or indemnifying the buyer against loss related to that loan.

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Other Borrowed Funds

12 Months Ended

Dec. 31, 2014

Banking and Thrift [Abstract]

Other Borrowed Funds

Note 10 – Other Borrowed Funds

Other borrowed funds consist of the following:

			December 31,
			2014					2013
	Maturing		Amount		Weighted Average Rate			Amount		Weighted Average Rate
			(Dollars in thousands)
FHLB advances		Dec 19, 2018	$	10,000		2.33	%	$	10,000		2.33	%
Repurchase agreements				3,569		0.10			2,636		0.10
Long term lease obligation				183		2.46			241		2.46
			$	13,752		1.75	%	$	12,877		1.88	%

FHLB Advances

The Bank pledges certain loans that meet underwriting criteria established by the Federal Home Loan Bank of Chicago (“FHLB of Chicago”) as collateral for outstanding advances. The unpaid principal balance of loans pledged to secure FHLB of Chicago borrowings totaled $652.3 million and $659.4 million at December 31, 2014 and 2013, respectively. The FHLB of Chicago borrowings are also collateralized by mortgage-related securities totaling $88.9 million and $122.2 million at December 31, 2014 and 2013, respectively. At December 31, 2014, there were no FHLB of Chicago borrowings with call features that may be exercised by the FHLB of Chicago.

On September 19, 2013, FHLB of Chicago advances totaling $176.0 million were prepaid. The prepaid advances were fixed rate, due to mature in January 2018, with a then-current weighted average rate of 3.18%. The prepayment triggered an early termination penalty of $16.1 million, which was recorded in non-interest expense for the nine months ended December 31, 2013.

Repurchase Agreements (Securities Sold Under Agreements to Repurchase)

The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company’s Consolidated Balance Sheet, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts.

Long term lease obligation

The Company enters into agreements from time to time that give the right to use property in exchange for making a series of payments. The term of the lease obligations typically exceed three years and provide an opportunity to purchase the leased item at the end of the lease term at a price below market rate. These types of lease are considered a capital lease because the Company has in essence accepted the risks and benefits of ownership. As a result a capital lease requires an asset that must be subsequently depreciated and included as property and equipment on the balance sheet.

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Loans Held for Investment, net - Impaired Loans Segregated by Loans with No Specific Allowance and Loans with Allowance by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014		Mar. 31, 2013
Financing Receivable, Impaired [Line Items]
With no specific allowance recorded, Recorded Investment	$ 57,177		$ 54,513
With no specific allowance recorded, Unpaid Principal Balance	73,366		77,820
With no specific allowance recorded, Average Carrying Amount	42,986	[1]	60,230	[1]
With no specific allowance recorded, Date Interest Income Recognized	865		2,089
With an allowance recorded, Recorded Investment	75,581	[2]	40,772	[2]
With an allowance recorded, Unpaid Principal Balance	81,572	[2]	45,427	[2]
With an allowance recorded, Average Carrying Amount	52,465	[1],[2]	33,268	[1],[2]
With an allowance recorded, Date Interest Income Recognized	1,232	[2]	1,490	[2]
Recorded Investment, Total	132,758		95,285
Unpaid Principal Balance, Total	154,938		123,247
Associated Allowance, Total	24,491		8,441
Average Carrying Amount, Total	95,451	[1]	93,498	[1]
Year to Date Interest Income Recognized, Total	2,097		3,579		4,671
Residential
Financing Receivable, Impaired [Line Items]
With no specific allowance recorded, Recorded Investment	5,009		4,992
With no specific allowance recorded, Unpaid Principal Balance	6,292		6,406
With no specific allowance recorded, Average Carrying Amount	5,275	[1]	5,455	[1]
With no specific allowance recorded, Date Interest Income Recognized	94		165
With an allowance recorded, Recorded Investment	15,493	[2]	9,505	[2]
With an allowance recorded, Unpaid Principal Balance	15,623	[2]	9,671	[2]
With an allowance recorded, Average Carrying Amount	13,572	[1],[2]	8,574	[1],[2]
With an allowance recorded, Date Interest Income Recognized	250	[2]	403	[2]
Recorded Investment, Total	20,502		14,497
Unpaid Principal Balance, Total	21,915		16,077
Associated Allowance, Total	2,424		1,400
Average Carrying Amount, Total	18,847	[1]	14,029	[1]
Year to Date Interest Income Recognized, Total	344		568		717
Commercial and industrial
Financing Receivable, Impaired [Line Items]
With no specific allowance recorded, Recorded Investment	61
With no specific allowance recorded, Unpaid Principal Balance	370		268
With no specific allowance recorded, Average Carrying Amount	58	[1]	843	[1]
With no specific allowance recorded, Date Interest Income Recognized	246		26
With an allowance recorded, Recorded Investment	2,254	[2]	113	[2]
With an allowance recorded, Unpaid Principal Balance	2,278	[2]	236	[2]
With an allowance recorded, Average Carrying Amount	934	[1],[2]	111	[1],[2]
With an allowance recorded, Date Interest Income Recognized	70	[2]	1	[2]
Recorded Investment, Total	2,315		113
Unpaid Principal Balance, Total	2,648		504
Associated Allowance, Total	1,745		140
Average Carrying Amount, Total	992	[1]	954	[1]
Year to Date Interest Income Recognized, Total	316		27		443
Land and construction
Financing Receivable, Impaired [Line Items]
With no specific allowance recorded, Recorded Investment	4,311		9,421
With no specific allowance recorded, Unpaid Principal Balance	13,299		19,334
With no specific allowance recorded, Average Carrying Amount	4,692	[1]	12,192	[1]
With no specific allowance recorded, Date Interest Income Recognized	14		208
With an allowance recorded, Recorded Investment	20,417	[2]	8,362	[2]
With an allowance recorded, Unpaid Principal Balance	26,020	[2]	12,536	[2]
With an allowance recorded, Average Carrying Amount	15,281	[1],[2]	4,440	[1],[2]
With an allowance recorded, Date Interest Income Recognized	128	[2]	180	[2]
Recorded Investment, Total	24,728		17,783
Unpaid Principal Balance, Total	39,319		31,870
Associated Allowance, Total	7,512		3,657
Average Carrying Amount, Total	19,973	[1]	16,632	[1]
Year to Date Interest Income Recognized, Total	142		388		183
Multi-family
Financing Receivable, Impaired [Line Items]
With no specific allowance recorded, Recorded Investment	16,102		17,614
With no specific allowance recorded, Unpaid Principal Balance	16,286		19,863
With no specific allowance recorded, Average Carrying Amount	7,338	[1]	17,979	[1]
With no specific allowance recorded, Date Interest Income Recognized	74		780
With an allowance recorded, Recorded Investment	14,311	[2]	11,641	[2]
With an allowance recorded, Unpaid Principal Balance	14,329	[2]	11,641	[2]
With an allowance recorded, Average Carrying Amount	4,118	[1],[2]	10,465	[1],[2]
With an allowance recorded, Date Interest Income Recognized	159	[2]	485	[2]
Recorded Investment, Total	30,413		29,255
Unpaid Principal Balance, Total	30,615		31,504
Associated Allowance, Total	3,693		1,308
Average Carrying Amount, Total	11,456	[1]	28,444	[1]
Year to Date Interest Income Recognized, Total	233		1,265		652
Retail/office
Financing Receivable, Impaired [Line Items]
With no specific allowance recorded, Recorded Investment	11,279		7,840
With no specific allowance recorded, Unpaid Principal Balance	12,501		15,581
With no specific allowance recorded, Average Carrying Amount	11,916	[1]	8,040	[1]
With no specific allowance recorded, Date Interest Income Recognized	128		354
With an allowance recorded, Recorded Investment	17,878	[2]	9,387	[2]
With an allowance recorded, Unpaid Principal Balance	18,062	[2]	9,566	[2]
With an allowance recorded, Average Carrying Amount	14,072	[1],[2]	8,207	[1],[2]
With an allowance recorded, Date Interest Income Recognized	476	[2]	356	[2]
Recorded Investment, Total	29,157		17,227
Unpaid Principal Balance, Total	30,563		25,147
Associated Allowance, Total	8,254		1,391
Average Carrying Amount, Total	25,988	[1]	16,247	[1]
Year to Date Interest Income Recognized, Total	604		710		1,005
Other commercial real estate
Financing Receivable, Impaired [Line Items]
With no specific allowance recorded, Recorded Investment	19,660		13,972
With no specific allowance recorded, Unpaid Principal Balance	23,597		15,318
With no specific allowance recorded, Average Carrying Amount	12,523	[1]	14,617	[1]
With no specific allowance recorded, Date Interest Income Recognized	225		467
With an allowance recorded, Recorded Investment	2,699	[2]	923	[2]
With an allowance recorded, Unpaid Principal Balance	2,731	[2]	936	[2]
With an allowance recorded, Average Carrying Amount	2,298	[1],[2]	854	[1],[2]
With an allowance recorded, Date Interest Income Recognized	87	[2]	17	[2]
Recorded Investment, Total	22,359		14,895
Unpaid Principal Balance, Total	26,328		16,254
Associated Allowance, Total	386		119
Average Carrying Amount, Total	14,821	[1]	15,471	[1]
Year to Date Interest Income Recognized, Total	312		484		1,316
Education
Financing Receivable, Impaired [Line Items]
With no specific allowance recorded, Recorded Investment	276	[3]	205	[3]
With no specific allowance recorded, Unpaid Principal Balance	276	[3]	205	[3]
With no specific allowance recorded, Average Carrying Amount	343	[1],[3]	101	[1],[3]
Recorded Investment, Total	276	[3]	205	[3]
Unpaid Principal Balance, Total	276	[3]	205	[3]
Average Carrying Amount, Total	343	[1],[3]	101	[1],[3]
Other consumer
Financing Receivable, Impaired [Line Items]
With no specific allowance recorded, Recorded Investment	479		469
With no specific allowance recorded, Unpaid Principal Balance	745		845
With no specific allowance recorded, Average Carrying Amount	841	[1]	1,003	[1]
With no specific allowance recorded, Date Interest Income Recognized	84		89
With an allowance recorded, Recorded Investment	2,529	[2]	841	[2]
With an allowance recorded, Unpaid Principal Balance	2,529	[2]	841	[2]
With an allowance recorded, Average Carrying Amount	2,190	[1],[2]	617	[1],[2]
With an allowance recorded, Date Interest Income Recognized	62	[2]	48	[2]
Recorded Investment, Total	3,008		1,310
Unpaid Principal Balance, Total	3,274		1,686
Associated Allowance, Total	477		426
Average Carrying Amount, Total	3,031	[1]	1,620	[1]
Year to Date Interest Income Recognized, Total	$ 146		$ 137		$ 355

[1] Calculated on a trailing 12 month basis for December 31, 2014, and a trailing 9 month basis for December 31, 2013.

[2] Includes ratio-based allowance for loan losses of $0.5 million and $2.1 million associated with loans totaling $1.9 million and $12.5 million at December 31, 2014 and 2013, respectively, for which individual reviews have not been completed but an allowance established based on the ratio of allowance for loan losses to gross loans individually reviewed, by class of loan.

[3] Excludes the guaranteed portion of education loans 90+ days past due with balance of $6.6 million and $8.9 million and average carrying amounts totaling $7.7 million and $13.7 million at December 31, 2014 and 2013, respectively, that are not considered impaired based on a guarantee provided by government agencies.

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Condensed Parent Only Financial Information - Condensed Statements of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended							9 Months Ended			12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2013		Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Condensed Income Statements, Captions [Line Items]
Interest income								$ 62,223		$ 77,166	$ 75,580	$ 84,939	$ 99,882
Interest expense								14,117		29,503	4,344	22,013	37,399
Net interest income (expense)	17,501	17,558	17,862	18,315	18,877	15,812	13,417	48,106		47,663	71,236	62,926	62,483
Non-interest income	8,962	8,015	7,610	5,932	8,002	142,679	8,852	159,533		38,398	30,519	167,036	45,901
Extinguishment of debt								134,514
Reorganization costs								1,929			(64)
Non-interest expense	24,621	21,915	22,855	22,317	23,125	45,232	27,375	95,732		99,336	91,708	131,400	135,004
Income (loss) before income taxes	5,123	4,962	2,617	1,930	3,754	113,259	(5,381)	111,632		(20,333)	14,632	97,612	(34,353)
Income tax expense (benefit)			10			9		9		(181)	10	9	(181)
Net income (loss)	(5,123)	(4,962)	(2,607)	(1,930)	(3,754)	(113,250)	5,381	(111,623)		20,152	(14,622)	(97,603)	34,172
Preferred stock dividends in arrears						103,163	(1,701)	(2,538)		(4,898)		(4,200)	(6,560)
Preferred stock discount accretion						4,304	1,863	6,167		5,569		8,010	7,412
Retirement of preferred shares								104,000				104,000
Net income (loss) available to common equity	5,123	4,962	2,607	1,930	3,754	212,109	(8,945)	206,918	[1]	(30,619)	14,622	189,393	(48,144)	[1]
Parent Company
Condensed Income Statements, Captions [Line Items]
Interest income								4			8		5
Interest expense								7,053					19,119
Net interest income (expense)								(7,049)			8		(19,114)
Equity in net income (loss) from subsidiaries								18,787			15,502		(14,781)
Non-interest income											100		4
Extinguishment of debt								134,514
Income (loss) from operations								146,252			15,610		(33,891)
Reorganization costs								1,929			(64)
Non-interest expense								1,031			1,052		687
Income (loss) before income taxes								143,292			14,622		(34,578)
Income tax expense (benefit)								31,669					(406)
Net income (loss)								111,623			14,622		(34,172)
Preferred stock dividends in arrears								(2,538)					(6,560)
Preferred stock discount accretion								(6,167)					(7,412)
Retirement of preferred shares								104,000
Net income (loss) available to common equity								$ 206,918			$ 14,622		$ (48,144)

[1] The calculation of weighted average shares included 21,247,000 shares of Legacy Common Stock outstanding through September 26, 2013 and 9,050,000 shares of common stock outstanding from September 27 through December 31, 2013.

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Mortgage Servicing Rights - Summary of Projections of Amortization Expense for Mortgage Servicing Rights (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014
Transfers and Servicing [Abstract]
Year ended December 31, 2014	$ 3,945	$ 3,798
Estimate for the year ended December 31, 2015		4,137
2016		3,310
2017		2,648
2018		2,118
2019		1,694
Thereafter		6,778
Total		$ 20,685

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Loans Held for Investment, net - Schedule of Average Recorded Investment in Impaired Loans and Interest Income Recognized on Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014		Mar. 31, 2013
Financing Receivable, Impaired [Line Items]
Average Carrying Amount	$ 95,451	[1]	$ 93,498	[1]	$ 159,134	[1]
Interest Income Recognized	2,097		3,579		4,671
Residential
Financing Receivable, Impaired [Line Items]
Average Carrying Amount	18,847	[1]	14,029	[1]	34,649	[1]
Interest Income Recognized	344		568		717
Commercial and industrial
Financing Receivable, Impaired [Line Items]
Average Carrying Amount	992	[1]	954	[1]	2,864	[1]
Interest Income Recognized	316		27		443
Land and construction
Financing Receivable, Impaired [Line Items]
Average Carrying Amount	19,973	[1]	16,632	[1]	27,832	[1]
Interest Income Recognized	142		388		183
Multi-family
Financing Receivable, Impaired [Line Items]
Average Carrying Amount	11,456	[1]	28,444	[1]	25,833	[1]
Interest Income Recognized	233		1,265		652
Retail/office
Financing Receivable, Impaired [Line Items]
Average Carrying Amount	25,988	[1]	16,247	[1]	28,745	[1]
Interest Income Recognized	604		710		1,005
Other commercial real estate
Financing Receivable, Impaired [Line Items]
Average Carrying Amount	14,821	[1]	15,471	[1]	33,992	[1]
Interest Income Recognized	312		484		1,316
Education
Financing Receivable, Impaired [Line Items]
Average Carrying Amount	343	[1]	101	[1]	615	[1]
Other consumer
Financing Receivable, Impaired [Line Items]
Average Carrying Amount	3,031	[1]	1,620	[1]	4,604	[1]
Interest Income Recognized	$ 146		$ 137		$ 355

[1] The average carry amount was calculated on a trailing 12 month basis for December 31, 2014 and March 31, 2013 and on a trailing 9 month basis for December 31, 2013.

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Derivative Financial Instruments - Summary of Derivative Financial Instruments (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest rate lock commitments	$ 1.5	$ 7.9

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Loans Held for Investment, net - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Allowance for loan losses:
Associated with impaired loans	$ 8,441	$ 24,491
Associated with all other loans	38,596	40,691
Total	47,037	65,182
Loans:
Impaired loans individually evaluated	95,285	132,758
All other loans	1,487,820	1,488,796
Total	1,583,105	1,621,554
Commercial Real Estate
Allowance for loan losses:
Associated with impaired loans	6,475	19,845
Associated with all other loans	22,241	22,220
Total	28,716	42,065
Loans:
Impaired loans individually evaluated	79,160	106,657
All other loans	604,349	595,698
Total	683,509	702,355
Consumer Loans
Allowance for loan losses:
Associated with impaired loans	426	477
Associated with all other loans	5,775	3,179
Total	6,201	3,656
Loans:
Impaired loans individually evaluated	1,515	3,284
All other loans	340,356	364,547
Total	341,871	367,831
Residential
Allowance for loan losses:
Associated with impaired loans	1,400	2,424
Associated with all other loans	9,284	10,635
Total	10,684	13,059
Loans:
Impaired loans individually evaluated	14,497	20,502
All other loans	526,714	509,275
Total	541,211	529,777
Commercial and industrial
Allowance for loan losses:
Associated with impaired loans	140	1,745
Associated with all other loans	1,296	4,657
Total	1,436	6,402
Loans:
Impaired loans individually evaluated	113	2,315
All other loans	16,401	19,276
Total	$ 16,514	$ 21,591

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Regulatory Capital - Additional Information (Detail)	Dec. 31, 2014		Dec. 31, 2013
Banking and Thrift [Abstract]
Ratio of total risk-based capital for adequately capitalized	8.00%	[1]	8.00%	[1]
Tier one leverage ratio as percentage of total assets	4.00%
Capital conservation buffer	2.50%

[1] Total risk-based capital divided by total risk-weighted assets.

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Mortgage Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2014

Text Block [Abstract]

Schedule of Servicing Asset at Amortized Cost

Information regarding the Company’s mortgage servicing rights is as follows:

	Year Ended December 31,			Nine Months Ended December 31,
	2014			2013
	(In thousands)
Balance at beginning of period	$	23,041		$	24,235
Additions		1,442			2,751
Amortization		(3,798	)		(3,945	)
Balance at end of period – before valuation allowance		20,685			23,041
Valuation allowance		(1,281	)		(747	)
Balance at end of period	$	19,404		$	22,294
Fair value at the end of the period	$	19,590		$	23,553
Key assumptions:
Weighted average discount rate		11.45	%		12.02	%
Weighted average prepayment speed		10.01	%		7.06	%

Schedule of Servicing Assets at Fair Value

Information regarding the Company’s mortgage servicing rights is as follows:

	Year Ended December 31,			Nine Months Ended December 31,
	2014			2013
	(In thousands)
Balance at beginning of period	$	23,041		$	24,235
Additions		1,442			2,751
Amortization		(3,798	)		(3,945	)
Balance at end of period – before valuation allowance		20,685			23,041
Valuation allowance		(1,281	)		(747	)
Balance at end of period	$	19,404		$	22,294
Fair value at the end of the period	$	19,590		$	23,553
Key assumptions:
Weighted average discount rate		11.45	%		12.02	%
Weighted average prepayment speed		10.01	%		7.06	%

Summary of Projections of Amortization Expense For Mortgage Servicing Rights

Future amortization expense may be significantly different depending upon changes in the mortgage servicing portfolio, mortgage interest rates and market conditions.

	MSR Amortization
	(In thousands)
Year ended December 31, 2014	$	3,798
Estimate for the year ended December 31,
2015	$	4,137
2016		3,310
2017		2,648
2018		2,118
2019		1,694
Thereafter		6,778
Total	$	20,685

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Investment Securities - Amortized Cost and Fair Value of Investment Securities (Detail) (USD $)	Dec. 31, 2014		Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 297,001,000		$ 284,494,000
Gross Unrealized Gains	840,000		1,509,000
Gross Unrealized (Losses)	(3,242,000)		(8,131,000)
Fair Value	294,599,000		277,872,000
Government sponsored agency mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	120,627,000	[1]	50,721,000	[1]
Gross Unrealized Gains	411,000	[1]	160,000	[1]
Gross Unrealized (Losses)	(417,000)	[1]	(723,000)	[1]
Fair Value	120,621,000	[1]	50,158,000	[1]
U.S. government sponsored and federal agency obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,245,000		3,359,000
Gross Unrealized Gains	16,000		17,000
Fair Value	3,261,000		3,376,000
Corporate stock and bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,000		88,000
Gross Unrealized Gains	2,000		267,000
Fair Value	3,000		355,000
Non-agency CMOs
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	59,000	[1]	6,452,000	[1]
Gross Unrealized Gains			9,000	[1]
Gross Unrealized (Losses)	(32,000)	[1]	(253,000)	[1]
Fair Value	27,000	[1]	6,208,000	[1]
GNMA mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	173,069,000	[1]	223,874,000	[1]
Gross Unrealized Gains	411,000	[1]	1,056,000	[1]
Gross Unrealized (Losses)	(2,793,000)	[1]	(7,155,000)	[1]
Fair Value	$ 170,687,000	[1]	$ 217,775,000	[1]

[1] CMOs (collateralized mortgage obligations), government sponsored agencies and GNMA (Ginnie Mae) mortgage-backed securities are primarily collateralized by residential mortgages.

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Derivative Financial Instruments

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 15 – Derivative Financial Instruments

The Company enters into contracts that meet the definition of derivative financial instruments in accordance with ASC 815 – Derivative and Hedging. Derivatives are used as part of a risk management strategy to address exposure to changes in interest rates inherent in the Company’s origination and sale of certain residential mortgages into the secondary market. These derivative contracts used for risk management purposes include: (1) interest rate lock commitments provided to customers to fund mortgage loans intended to be sold; and (2) forward sale contracts for the future delivery of funded residential mortgages.

Forward sale contracts are entered into when interest rate lock commitments are granted to customers in an effort to economically hedge the effect of future changes in interest rates on the commitments to fund mortgage loans intended to be sold (the “pipeline”), as well as on the portfolio of funded mortgages not yet sold (the “warehouse”). For accounting purposes, these derivatives are not designated as being in a hedging relationship. The contracts are carried at fair value on the Consolidated Balance Sheets, with changes in fair value recorded in the Consolidated Statements of Operations.

Derivative financial instruments are summarized as follows:

		December 31,
		2014				2013
	Balance Sheet Location	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value
		(In thousands)
Derivative assets:
Interest rate lock commitments (1)	Other assets	$	14,633	$	154	$	3,863	$	37
Unused commitments (2)	Other assets		—		—		369		3
Forward contracts to sell mortgage loans (3)	Other assets		4,000		2		8,000		33
Derivative liabilities:
Interest rate lock commitments (1)	Other liabilities		2,108		14		2,172		12
Unused commitments (2)	Other liabilities		—		—		288		4
Forward contracts to sell mortgage loans (3)	Other assets		16,000		174		1,000		1

⁽¹⁾  Interest rate lock commitments include $7.9 million and $1.5 million of commitments not yet approved in the credit underwriting process at December 31, 2014 and 2013, respectively, yet represent potential interest rate risk exposure to the extent of those mortgage loan applications eventually approved for funding.

⁽²⁾  The Company recognizes fair value of unused commitments held for trading which consists of closed residential real estate loans in rescission at period end.

⁽³⁾  The Company has elected to offset the fair value of individual forward sale contracts and present a net amount on the Consolidated Balance Sheets in accordance with ASC 815-45, Derivatives and Hedging.

Net gains (losses) included in the consolidated statements of operations related to derivative financial instruments, recognized in net gain on sale of loans, are summarized as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Interest rate lock commitments	$	141		$	(688	)	$	(184	)
Unused commitments		(26	)		26			—
Forward contracts to sell mortgage loans		(848	)		2,463			(6,836	)
Total	$	(733	)	$	1,801		$	(7,020	)

The Company has developed a program to enter into interest rate swap arrangements to manage the interest rate risk exposure associated with specific commercial loan relationships at the time such loans are originated. These interest rate swaps, as well as the embedded derivatives associated with certain of its commercial loan relationships, are derivative financial instruments under GAAP. None of these derivative financial instruments would be designated by the Company as accounting hedges as specified in GAAP. As such, the fair market value of the interest rate swaps and embedded derivatives will be carried on the Company’s balance sheet as derivative assets or liabilities, as the case may be, and periodic changes in fair market value of such financial instruments will be recorded through periodic earnings in other non-interest income. At December 31, 2014 there were no outstanding commercial loan related interest rate swap transactions.

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Income Taxes - Computation of Federal Statutory Corporate Tax Rate (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended							9 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Income Tax Disclosure [Abstract]
Net income (loss) before income taxes								100.00%		100.00%		100.00%
Income tax expense (benefit) at federal statutory rate								35.00%		35.00%		35.00%
State income taxes, net of federal income tax benefits								(0.90%)		5.10%		5.30%
Cancellation of indebtedness income exclusion								(42.20%)
Increase (decrease) in valuation allowance								7.10%		(39.70%)		(39.70%)
Other								1.00%		(0.30%)		(0.10%)
Income tax expense (benefit)										0.10%		0.50%
Net income (loss) before income taxes	$ 5,123	$ 4,962	$ 2,617	$ 1,930	$ 3,754	$ 113,259	$ (5,381)	$ 111,632	$ (20,333)	$ 14,632	$ 97,612	$ (34,353)
Income tax expense (benefit) at federal statutory rate								39,071		5,121		(12,024)
State income taxes, net of federal income tax benefits								(1,008)		746		(1,840)
Cancellation of indebtedness income exclusion								(47,080)
Increase (decrease) in valuation allowance								7,906		(5,806)		13,643
Other								1,120		(51)		40
Income tax expense (benefit)			$ 10			$ 9		$ 9	$ (181)	$ 10	$ 9	$ (181)

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Subsequent Events

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

Note 20 – Subsequent Events

On January 27, 2015 the Bank announced the sale of its Viroqua branch to another bank located in Wisconsin. The purchasing bank will assume approximately $12.0 million in deposits along with loans and other assets. The transaction is subject to regulatory approval and customary closing conditions and is targeted to close by the end of May, 2015.

On January 28, 2015 the Bank completed the purchase of a new building located on the east side of Madison, Wisconsin at a purchase price of $4.0 million. This facility will house a number of support departments involving several hundred employees. Management believes this move should improve workgroup efficiencies.

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Employee Benefit Plans - Additional Information (Detail) (USD $)	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014 OptionPlan	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Granted		200,200
Stock-based compensation expense		$ 996,000
Shares vested		12,500
Incentive stock plan, shares available for issuance		408,200
Unrecognized compensation expense related to nonvested restricted stock awards		3,100,000
Weighted average term of nonvested restricted stock awards		1 year 3 months 18 days
2004 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares authorized		921,990
2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares authorized		600,000
Restricted stock expense		1,000,000
Incentive stock plan, shares available for issuance		408,200
2014 Omnibus Incentive Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting period		1 year
2014 Omnibus Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting period		3 years
Defined Contribution Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contribution plan eligibility period		60 days
Employees contribution to defined contribution plan		100.00%
Description of defined contribution pension and other postretirement plans		The Company previously matched the first 2% contributed with a dollar-for-dollar match and the next 2% of employee contributions at a rate of $.50 for each dollar. These amounts were increased beginning in January 2014 to the first 2% contributed with a dollar-for-dollar match, the next 2% matched at a rate of $0.50 for each dollar and the next 4% matched at $0.25 for each dollar.
Defined contribution plan number of investment options		20
Defined contribution plan employer discretionary contribution amount	579,000	992,000	213,000
Management Recognition Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of common stock acquired and reserved for issuance under Management Recognition Plan ("MRP")		4.00%
Contribution towards Management Recognition Plan ("MRP")		2,000,000
Number of Shares acquired under Management Recognition Plan ("MRP") Contribution		1,000,000
Share Granted			0
Stock-based compensation expense			0
Shares vested			0
Restricted Stock Units | 2004 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares authorized		300,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Granted			0
Restricted stock expense			55,000
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting period		3 years
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting period		5 years
Deferred Compensation Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage Of Shares Vested		100.00%
Remaining Shares after first distribution		166,480
Contributions made to participant's account	0		0
Deferred compensation obligation component of stockholders deficit			$ 901,000

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Significant Transactions - Additional Information (Detail) (USD $)	0 Months Ended	9 Months Ended	12 Months Ended	0 Months Ended	1 Months Ended
	Aug. 12, 2013	Dec. 31, 2013	Dec. 31, 2014	Jan. 30, 2009	Oct. 31, 2014	Sep. 25, 2013	Oct. 02, 2013	Sep. 19, 2013
Unusual Risk or Uncertainty [Line Items]
Common shares, outstanding		9,050,000	9,547,587
Payment for stock issue expenses			$ 2,324,000
Other borrowings		12,877,000	13,752,000
Common stock, shares authorized		11,900,000	11,900,000			2,000,000,000
Common stock, par value		$ 0.01	$ 0.01			$ 0.01
Preferred stock, shares authorized		100,000	100,000			1,000,000
Preferred stock, par value		$ 0.01	$ 0.01			$ 0.01
Number of Common stock under purchase agreement		9,050,000	9,552,094
Treasury shares issued and sold		0	4,507
Payment under senior debt settlement agreement	49,000,000
Gain on extinguishment of debt		134,514,000
Obligations under senior debt settlement agreement	183,500,000
Reorganization costs		1,929,000	(64,000)
Common Stock
Unusual Risk or Uncertainty [Line Items]
Shares authorized in relation with reverse stock split							11,900,000
Reverse stock split, Par value							$ 0.01
Preferred stock exchanged for common stock		(3,000)
Preferred Stock
Unusual Risk or Uncertainty [Line Items]
Shares authorized in relation with reverse stock split							100,000
Reverse stock split, Par value							$ 0.01
Preferred stock exchanged for common stock		110,000,000
Retained Earnings (Deficit)
Unusual Risk or Uncertainty [Line Items]
Preferred stock exchanged for common stock		(104,000,000)
Troubled Assets Relief Program
Unusual Risk or Uncertainty [Line Items]
Proceeds from issuance of senior preferred shares			110,000,000
Common stock, par value				$ 0.10				$ 0.10
Number of shares issued , reverse stock split				300,000
Preferred stock liquidation preference value				110,000,000
Warrants to purchase company common stock				7,399,103
Stock redeemed or called during period issued to US Treasury value per share exercise price				$ 2.23
Number of preferred stock shares exchanged for common stock shares				60,000,000
Income (loss) available to common stockholders basic and diluted				104,000,000
Proceeds from sale of treasury stock			6,000,000
Troubled Assets Relief Program | Retained Earnings (Deficit)
Unusual Risk or Uncertainty [Line Items]
Preferred stock exchanged for common stock				104,000,000
Troubled Assets Relief Program | Series B Cumulative Preferred Stock
Unusual Risk or Uncertainty [Line Items]
Treasury shares issued and sold				110,000
IPO [Member]
Unusual Risk or Uncertainty [Line Items]
Common stock, shares issued					250,000
Common stock, issued price per share					$ 26.00
IPO [Member] | Underwriting Discounts and Commissions [Member]
Unusual Risk or Uncertainty [Line Items]
Payment for stock issue expenses					517,000
IPO [Member] | Other Offering Expenses [Member]
Unusual Risk or Uncertainty [Line Items]
Payment for stock issue expenses					1,800,000
Over-Allotment Option [Member]
Unusual Risk or Uncertainty [Line Items]
Common stock, shares issued					55,794
Underwriters over-allotments option exercise period					30 days
Common shares, outstanding					9,547,587
Net proceeds from IPO including proceeds from over allotment					5,600,000
Private Placement
Unusual Risk or Uncertainty [Line Items]
Common stock, par value			$ 0.10
Number of shares issued , reverse stock split			8,750,000
Number of Common stock under purchase agreement			1,750,000,000
Transaction costs incurred			14,400,000
Proceeds from private placements			175,000,000
Purchase price per share			$ 20.00
Line of Credit
Unusual Risk or Uncertainty [Line Items]
Other borrowings			183,500,000
Credit agreement
Unusual Risk or Uncertainty [Line Items]
Reorganization costs			2,200,000,000
Liabilities subject to compromise			188,300,000
Outstanding Credit Agreement included in liabilities subject to compromise			116,300,000
Interest due under the Credit Agreement			67,200,000
Expense recognized in other liabilities			$ 4,800,000

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Fair Value of Financial Instruments - Summary of Price Ginnie Mae Mortgage-Backed Securities (Detail) (Recurring Basis, Level 2)	12 Months Ended
	Dec. 31, 2014 Prepayment	Dec. 31, 2013 Prepayment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Coupon rate	2.50%	2.40%
Duration (in years)	3 years 6 months	3 years 7 months 6 days
PSA prepayment speed	259	346
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Coupon rate	2.00%	1.60%
Duration (in years)	6 months	1 year 1 month 6 days
PSA prepayment speed	142	128
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Coupon rate	4.60%	4.60%
Duration (in years)	5 years 4 months 24 days	5 years 8 months 12 days
PSA prepayment speed	399	458

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Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Financial Instruments

Derivative financial instruments are summarized as follows:

		December 31,
		2014				2013
	Balance Sheet Location	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value
		(In thousands)
Derivative assets:
Interest rate lock commitments (1)	Other assets	$	14,633	$	154	$	3,863	$	37
Unused commitments (2)	Other assets		—		—		369		3
Forward contracts to sell mortgage loans (3)	Other assets		4,000		2		8,000		33
Derivative liabilities:
Interest rate lock commitments (1)	Other liabilities		2,108		14		2,172		12
Unused commitments (2)	Other liabilities		—		—		288		4
Forward contracts to sell mortgage loans (3)	Other assets		16,000		174		1,000		1

⁽¹⁾  Interest rate lock commitments include $7.9 million and $1.5 million of commitments not yet approved in the credit underwriting process at December 31, 2014 and 2013, respectively, yet represent potential interest rate risk exposure to the extent of those mortgage loan applications eventually approved for funding.

⁽²⁾  The Company recognizes fair value of unused commitments held for trading which consists of closed residential real estate loans in rescission at period end.

⁽³⁾  The Company has elected to offset the fair value of individual forward sale contracts and present a net amount on the Consolidated Balance Sheets in accordance with ASC 815-45, Derivatives and Hedging.

Net Gains (Losses) Related to Derivative Financial Instruments

Net gains (losses) included in the consolidated statements of operations related to derivative financial instruments, recognized in net gain on sale of loans, are summarized as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Interest rate lock commitments	$	141		$	(688	)	$	(184	)
Unused commitments		(26	)		26			—
Forward contracts to sell mortgage loans		(848	)		2,463			(6,836	)
Total	$	(733	)	$	1,801		$	(7,020	)

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Fair Value of Financial Instruments - Schedule of Observable and Unobservable Inputs (Detail) (Recurring Basis, Level 3)	12 Months Ended
	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
30 to 59 day delinquency rate	4.00%
60 to 89 day delinquency rate	1.90%
90 plus day delinquency rate	6.50%
Loss severity	57.10%
Coupon rate	5.50%
Month 1 to month 24 constant default rate	8.20%
Discount rate	6.60%
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
30 to 59 day delinquency rate	1.60%
60 to 89 day delinquency rate	0.80%
90 plus day delinquency rate	4.60%
Loss severity	52.00%
Coupon rate	5.00%
Month 1 to month 24 constant default rate	5.30%
Discount rate	4.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
30 to 59 day delinquency rate	5.80%
60 to 89 day delinquency rate	2.50%
90 plus day delinquency rate	9.90%
Loss severity	68.50%
Coupon rate	6.00%
Current credit support	4.30%
Month 1 to month 24 constant default rate	11.60%
Discount rate	7.00%

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Consolidated Statements of Changes in Stockholders' Equity (Deficit) (USD $)	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings (Deficit)	Treasury Stock	Deferred Compensation Obligation	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Mar. 31, 2012	$ (29,550,000)	$ 96,421,000	$ 2,536,000	$ 110,402,000	$ (147,513,000)	$ 132,000	$ (90,259,000)	$ (1,269,000)
Net income (loss)	(34,172,000)				(34,172,000)
Other comprehensive income (loss), net of tax	3,447,000					3,447,000
Vesting of restricted stock	411,000						411,000
Change in stock-based deferred compensation obligation				(368,000)				368,000
Accretion of preferred stock discount		7,412,000			(7,412,000)
Ending Balance at Mar. 31, 2013	(59,864,000)	103,833,000	2,536,000	110,034,000	(189,097,000)	3,579,000	(89,848,000)	(901,000)
Net income (loss)	111,623,000				111,623,000
Other comprehensive income (loss), net of tax	(10,201,000)					(10,201,000)
Recapitalization transaction fees	(14,360,000)			(14,360,000)
Cancellation of common stock			(2,536,000)	(88,213,000)			89,848,000	901,000
Issuance of common stock	175,000,000		88,000	174,912,000
Preferred stock exchanged for common stock		(110,000,000)	3,000	5,997,000	104,000,000
Accretion of preferred stock discount		6,167,000			(6,167,000)
Ending Balance at Dec. 31, 2013	202,198,000		91,000	188,370,000	20,359,000	(6,622,000)
Net income (loss)	14,622,000				14,622,000
Other comprehensive income (loss), net of tax	4,220,000					4,220,000
Stock issuance cost	(2,324,000)			(2,324,000)
Issuance of common stock	7,951,000		3,000	7,948,000
Issuance of shares of restricted stock			1,000	(83,000)			82,000
Forfeiture of shares of restricted stock				176,000			(176,000)
Stock-based compensation expense	996,000			996,000
Ending Balance at Dec. 31, 2014	$ 227,663,000		$ 95,000	$ 195,083,000	$ 34,981,000	$ (2,402,000)	$ (94,000)

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Deposits - Additional Information (Detail) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Banking and Thrift [Abstract]
Certificates of deposit with balance greater than or equal to $100,000	$ 69,226,000	$ 88,700,000
Certificates of deposit with balance greater than or equal to the FDIC insurance limit of $250,000	7,900,000	10,600,000
Brokered deposits	$ 0	$ 0

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Investment Securities

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 4 – Investment Securities

The amortized cost and fair value of investment securities are as follows:

	Amortized Cost		Gross Unrealized					Fair Value
			Gains		Losses
	(In thousands)
December 31, 2014
Available for sale:
U.S. government sponsored and federal agency obligations	$	3,245	$	16	$	—		$	3,261
Corporate stock and bonds		1		2		—			3
Non-agency CMOs (1)		59		—		(32	)		27
Government sponsored agency mortgage-backed securities (1)		120,627		411		(417	)		120,621
GNMA mortgage-backed securities (1)		173,069		411		(2,793	)		170,687
	$	297,001	$	840	$	(3,242	)	$	294,599
December 31, 2013
Available for sale:
U.S. government sponsored and federal agency obligations	$	3,359	$	17	$	—		$	3,376
Corporate stock and bonds		88		267		—			355
Non-agency CMOs (1)		6,452		9		(253	)		6,208
Government sponsored agency mortgage-backed securities (1)		50,721		160		(723	)		50,158
GNMA mortgage-backed securities (1)		223,874		1,056		(7,155	)		217,775
	$	284,494	$	1,509	$	(8,131	)	$	277,872

⁽¹⁾  CMOs (collateralized mortgage obligations), government sponsored agencies and GNMA (Ginnie Mae) mortgage-backed securities are primarily collateralized by residential mortgages.

Independent pricing services are used to value all investment securities. One pricing service is used to value all securities except the non-agency CMOs. A specialized pricing service was used for valuation of the non-agency CMO portfolio.

The table below presents the fair value and gross unrealized losses of securities in a loss position, aggregated by investment category and length of time that individual holdings have been in a continuous unrealized loss position at December 31, 2014 and 2013.

	Unrealized Loss Position
	Less than 12 months					12 months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
December 31, 2014
Non-agency CMOs	$	2	$	(1	)	$	25	$	(31	)	$	27	$	(32	)
Government sponsored agency mortgage-backed securities (1)		54,020		(228	)		8,178		(189	)		62,198		(417	)
GNMA mortgage-backed securities		27,113		(110	)		98,230		(2,683	)		125,343		(2,793	)
	$	81,135	$	(339	)	$	106,433	$	(2,903	)	$	187,568	$	(3,242	)
December 31, 2013
Non-agency CMOs	$	1,219	$	(7	)	$	4,776	$	(246	)	$	5,995	$	(253	)
Government sponsored agency mortgage-backed securities (1)		47,480		(723	)		—		—			47,480		(723	)
GNMA mortgage-backed securities		140,824		(5,143	)		25,449		(2,012	)		166,273		(7,155	)
	$	189,523	$	(5,873	)	$	30,225	$	(2,258	)	$	219,748	$	(8,131	)

⁽¹⁾  Includes mortgage-backed securities and CMOs.

Management evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. In estimating other-than-temporary impairment losses on investment securities, management considers many factors which include: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value.

At December 31, 2014, there were no securities classified as other-than-temporarily impaired. At December 31, 2013, six non-agency CMOs with a fair value of $6.2 million and an adjusted cost basis of $6.4 million were other-than-temporarily impaired. Unrealized other-than-temporary impairment due to credit losses of $64,000 and $23,000 was included in earnings for the year ended December 31, 2014 and the nine months ended December 31, 2013, respectively. For the year ended December 31, 2014 and the nine months ended December 31, 2013, realized losses of $221,000 and $224,000, respectively, related to credit issues (i.e. – principal reduced without a receipt of cash) were incurred that were previously recognized in earnings as unrealized other-than-temporary impairment. During 2014, these other-than-temporarily impaired securities were sold at a loss of $37,000.

Unrealized losses on U.S. government sponsored and federal agency obligations, corporate stocks and bonds and Ginnie Mae mortgage-backed securities as of December 31, 2014 and 2013 due to changes in interest rates and other non-credit related factors totaled $3.2 million and $7.9 million, respectively. The number of individual securities in the tables above total 34 at December 31, 2014 and 35 at December 31, 2013. The Company has analyzed these securities for evidence of other-than-temporary impairment and concluded that no OTTI exists and that the unrealized losses are properly classified in accumulated other comprehensive income (loss).

The following table is a roll forward of the amount of other-than-temporary impairment related to credit losses that have been recognized in earnings for which a portion of impairment was deemed temporary and recognized in other comprehensive income (loss) for the periods presented:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013			Year Ended March 31, 2013
	(In thousands)
Beginning balance of unrealized OTTI related to credit losses	$	801		$	1,002		$	2,391
Additional unrealized OTTI related to credit losses for which OTTI was previously recognized		64			23			412
Additional debit related OTTI previously recognized for OTTI recovery during the period		4			5			—
Credit related OTTI previously recognized for securities sold during the period		(644	)		—			(1,075	)
Credit related OTTI previously recognized for securities paid-off during the period		—			—			(4	)
Decrease for realized amount of credit losses for which unrealized credit related OTTI was previously recognized		(225	)		(229	)		(722	)
Ending balance of unrealized OTTI related to credit losses	$	—		$	801		$	1,002

The cost of investment securities sold is determined using the specific identification method. Sales of investment securities available for sale are summarized below:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Proceeds from sales	$	17,557		$	356	$	12,780
Gross gains	$	825		$	292	$	91
Gross losses		(79	)		—		(338	)
Net gain/(loss) on sales	$	746		$	292	$	(247	)

At December 31, 2014 and 2013, investment securities with a fair value of approximately $121.5 million and $162.8 million, respectively, were pledged to secure deposits, borrowings and for other purposes as permitted or required by law.

The fair values of investment securities by contractual maturity at December 31, 2014 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties.

	Within 1 Year		After 1 Year through 5 Years		After 5 Years through 10 Years		Over Ten Years		Total
	(In thousands)
U.S. government sponsored and federal agency obligations	$	—	$	3,261	$	—	$	—	$	3,261
Corporate stock and bonds		—		—		—		3		3
Non-agency CMOs		—		—		2		25		27
Government sponsored agency mortgage-backed securities (1)		—		96		11,998		108,527		120,621
GNMA mortgage-backed securities		—		188		—		170,499		170,687
Total	$	—	$	3,545	$	12,000	$	279,054	$	294,599

⁽¹⁾  Includes mortgage-backed securities and CMOs.

In 2008, the Company received proceeds in connection with shares redeemed as part of the Visa, Inc. initial public offering. The Bank was a member of the former Visa, Inc. payments organization and was issued shares when Visa, Inc. was organized. Approximately 39% of those shares were redeemed in connection with the public offering. The remaining shares are restricted because of unsettled litigation pending against Visa, Inc. At its discretion, Visa, Inc. may redeem additional shares in order to resolve pending litigation. The restriction expires upon resolution of the pending litigation. Accordingly, the Company has recorded these shares at zero in the consolidated balance sheets. Upon expiration of the restriction, the Company expects to record the fair value of the remaining shares.

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Loans Held for Investment, net - Additional Information (Detail) (USD $)	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014		Mar. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate of loans, minimum			2.00%
Interest rate of loans, maximum			6.00%
Percentage of portion of loans collateralized by real estate			98.00%
Period of delinquent loans			30 days
Total delinquencies			$ 29,200,000
Non-accrual loans	1,621,554,000		1,583,105,000
Transfer of loans to OREO	19,352,000		10,381,000		75,169,000
Loans past due ninety days or more and still accruing	8,930,000	[1]	6,613,000	[1]
Guarantee provided by government agencies against outstanding balances of education loans			97.00%
Loans modified in TDR	0		0
Unpaid principal of various loans receivable	744,100,000		726,600,000
Loans granted to officers, directors and affiliates	83,000		49,000
Principal additions to granted loan			0
Principal loan amount, net			34,000
Non-accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	68,497,000		35,115,000
Education
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans past due ninety days or more and still accruing			6,600,000
Residential Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans , amount			541,200,000
Gross loans, percentage			34.20%
Residential Loans | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of dwellings			1
Residential Loans | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of dwellings			4
Adjustable Rate Residential Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans , amount			313,500,000
Gross loans, percentage			57.90%
Term of loans			30 years
Fixed-rate residential loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans , amount			227,700,000
Gross loans, percentage			42.10%
Fixed-rate residential loans | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term of loans			10 years
Fixed-rate residential loans | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term of loans			30 years
Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans , amount			16,500,000
Gross loans, percentage			1.00%
Commercial Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans , amount			683,500,000
Gross loans, percentage			43.30%
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans , amount			341,900,000
Gross loans, percentage			21.50%
Corporation's share of interest income			11.00%
Corporation's share of interchanging income			25.00%
Outstanding credit card balances			6,600,000
Gains (loss) on sales of credit card			0
Non-accrual loans	367,831,000		341,871,000
Consumer Loans | Education
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	129,520,000		108,384,000
Education Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans , amount			108,400,000
Gross loans, percentage			6.80%
Sale of loans	$ 0		$ 0
Education Loans | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Guarantee given for principal amount and interest rate of loans, percentage			97.00%

[1] Represents the guaranteed portion of education loans that were 90+ days past due which continue to accrue interest due to a guarantee provided by government agencies covering approximately 97% of the outstanding balance.

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Premises, Equipment and Lease Commitments - Summary of Future Minimum Payments Under Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
2015	$ 2,987
2016	1,959
2017	1,872
2018	1,952
2019	1,755
Thereafter	6,493
Total	$ 17,018

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Fair Value of Financial Instruments - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount		$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount		0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount		0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount		0
Fair Value, Assets, Level 3 to Level 2 Transfers, Amount	27,000
Non-agency CMOs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Financial assets sold by independent pricing service	98.90%
Fair Value, Assets, Level 3 to Level 2 Transfers, Amount	$ 27,000
Mortgage Servicing Rights
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	11.45%
Mortgage Servicing Rights | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	11.00%
Total portfolio lifetime weighted average prepayment speeds	4.10%
Mortgage Servicing Rights | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount rate	24.50%
Total portfolio lifetime weighted average prepayment speeds	54.00%

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Loans Held for Investment, net - Aging of Recorded Investment in Past Due Loans by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
30-59	$ 5,795	$ 11,885
60-89	3,097	4,280
90 or More	20,338	49,017
Current	1,553,875	1,556,372
Residential
Financing Receivable, Recorded Investment [Line Items]
30-59	1,186	1,287
60-89	802	564
90 or More	2,995	8,897
Current	536,228	519,029
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
30-59	205	1,609
90 or More	196	1,461
Current	16,113	18,521
Land and construction
Financing Receivable, Recorded Investment [Line Items]
30-59	267	105
60-89	29
90 or More	1,111	11,307
Current	105,029	80,638
Multi-family
Financing Receivable, Recorded Investment [Line Items]
30-59		1,612
90 or More	3,518	1,079
Current	262,217	279,226
Retail/office
Financing Receivable, Recorded Investment [Line Items]
30-59		968
60-89		83
90 or More	2,172	10,887
Current	152,923	142,137
Other commercial real estate
Financing Receivable, Recorded Investment [Line Items]
30-59		184
60-89		506
90 or More	3,011	3,785
Current	153,232	169,838
Education
Financing Receivable, Recorded Investment [Line Items]
30-59	3,505	5,210
60-89	2,140	2,914
90 or More	6,818	9,206
Current	95,921	112,190
Other consumer
Financing Receivable, Recorded Investment [Line Items]
30-59	632	910
60-89	126	213
90 or More	517	2,395
Current	$ 232,212	$ 234,793

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Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (unaudited)

Note 21 – Quarterly Financial Data (unaudited)

Unaudited condensed financial data by quarter for year ended December 31, 2014 and the nine months ended December 31, 2013 is as follows:

	Three Months Ended
	12/31/2014			9/30/2014			6/30/2014		3/31/2014		12/31/2013		9/30/2013			6/30/2013
	(Dollars in thousands – except per share amounts)
Operations Data:
Net interest income	$	17,501		$	17,558		$	17,862	$	18,315	$	18,877	$	15,812		$	13,417
Provision for loan losses		(3,281	)		(1,304	)		—		—		—		—			275
Non-interest income		8,962			8,015			7,610		5,932		8,002		142,679			8,852
Non-interest expense		24,621			21,915			22,855		22,317		23,125		45,232			27,375
Income (loss) before income tax expense		5,123			4,962			2,617		1,930		3,754		113,259			(5,381	)
Income tax expense		—			—			10		—		—		9			—
Net income (loss)		5,123			4,962			2,607		1,930		3,754		113,250			(5,381	)
Preferred stock dividends in arrears (1)		—			—			—		—		—		103,163			(1,701	)
Preferred stock discount accretion		—			—			—		—		—		(4,304	)		(1,863	)
Net income (loss) available to common equity		5,123			4,962			2,607		1,930		3,754		212,109			(8,945	)
Per Share:
Basic income (loss) per common share	$	0.56		$	0.55		$	0.29	$	0.21	$	0.41	$	10.24		$	(0.42	)
Diluted income (loss) per common share		0.55			0.55			0.29		0.21		0.41		10.24			(0.42	)
Dividends per common share		—			—			—		—		—		—			—
Book value per common share		23.85			23.22			23.37		22.84		22.34		22.21			(8.33	)

⁽¹⁾  Including compounding, and $104,000 in quarter ended 9/30/2013 for retirement of preferred shares.

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Earnings Per Share - Computation of Basic and Diluted Loss Per Common Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended							9 Months Ended			12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2013		Dec. 31, 2012	Dec. 31, 2014		Dec. 31, 2013	Mar. 31, 2013
Numerator:
Numerator for basic and diluted earnings per share - net income (loss) available to common equity	$ 5,123	$ 4,962	$ 2,607	$ 1,930	$ 3,754	$ 212,109	$ (8,945)	$ 206,918	[1]	$ (30,619)	$ 14,622		$ 189,393	$ (48,144)	[1]
Denominator:
Denominator for basic earnings per share - weighted average shares								16,989	[1]		9,107			21,247	[1]
Effect of dilutive securities:
Restricted stock											44	[2]
Denominator for diluted earnings per share - weighted average shares								16,989	[1]		9,151			21,247	[1]
Basic income (loss) per common share	$ 0.56	$ 0.55	$ 0.29	$ 0.21	$ 0.41	$ 10.24	$ (0.42)	$ 12.18	[1]		$ 1.61			$ (2.27)	[1]
Diluted income (loss) per common share	$ 0.55	$ 0.55	$ 0.29	$ 0.21	$ 0.41	$ 10.24	$ (0.42)	$ 12.18	[1]		$ 1.60			$ (2.27)	[1]

[1] The calculation of weighted average shares included 21,247,000 shares of Legacy Common Stock outstanding through September 26, 2013 and 9,050,000 shares of common stock outstanding from September 27 through December 31, 2013.

[2] Computed based on the treasury stock method using the average market price per period. The value used prior to the issuance of shares pursuant to the recapitalization transaction on September 27, 2013 was approximately 90% of book value. Since the time of the transaction, the position of the Company has remained relatively the same, therefore the issuance of the August 15, 2014 grant of restricted stock shares at 90% of book value as of the most recent month end was a reasonable approximation of fair value.

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Loans Held for Investment, net - Gross Loans Modified in TDR by Class and by Type of Modification (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2014		Dec. 31, 2013		Mar. 31, 2013
Financing Receivable, Impaired [Line Items]
Principal and Interest to Interest Only			$ 175	[1],[2]
Interest Rate Reduction, To Below Market Rate	3,051	[1],[2]	1,103	[1],[2]
Interest Rate Reduction, To Interest Only	216	[1],[2],[3]
Below Market Rate	144	[1],[2],[4]	1,254	[1],[2],[4]
Other	54,069	[1],[2],[5]	1,339	[1],[2],[5]
Total	57,480	[1],[2]	3,871	[1],[2]	4,010	[1]	59,982	[1]
Residential
Financing Receivable, Impaired [Line Items]
Principal and Interest to Interest Only			175	[1],[2]
Interest Rate Reduction, To Below Market Rate	1,318	[1],[2]	788	[1],[2]
Below Market Rate			119	[1],[2],[4]
Other	2,470	[1],[2],[5]	538	[1],[2],[5]
Total	3,788	[1],[2]	1,620	[1],[2]	1,632	[1]	3,761	[1]
Commercial and industrial
Financing Receivable, Impaired [Line Items]
Interest Rate Reduction, To Below Market Rate	345	[1],[2]
Other	12,443	[1],[2],[5]	97	[1],[2],[5]
Total	12,788	[1],[2]	97	[1],[2]	64	[1]	13,322	[1]
Land and construction
Financing Receivable, Impaired [Line Items]
Interest Rate Reduction, To Below Market Rate			63	[1],[2]
Other			347	[1],[2],[5]
Total			410	[1],[2]	427	[1]
Multi-family
Financing Receivable, Impaired [Line Items]
Interest Rate Reduction, To Below Market Rate	231	[1],[2]
Below Market Rate			921	[1],[2],[4]
Other	23,300	[1],[2],[5]	262	[1],[2],[5]
Total	23,531	[1],[2]	1,183	[1],[2]	1,283	[1]	25,556	[1]
Retail/office
Financing Receivable, Impaired [Line Items]
Interest Rate Reduction, To Below Market Rate	45	[1],[2]
Interest Rate Reduction, To Interest Only	216	[1],[2],[3]
Other	1,343	[1],[2],[5]
Total	1,604	[1],[2]					1,673	[1]
Other commercial real estate
Financing Receivable, Impaired [Line Items]
Interest Rate Reduction, To Below Market Rate	701	[1],[2]
Below Market Rate	144	[1],[2],[4]	214	[1],[2],[4]
Other	14,501	[1],[2],[5]	42	[1],[2],[5]
Total	15,346	[1],[2]	256	[1],[2]	251	[1]	15,269	[1]
Other consumer
Financing Receivable, Impaired [Line Items]
Interest Rate Reduction, To Below Market Rate	411	[1],[2]	252	[1],[2]
Other	12	[1],[2],[5]	53	[1],[2],[5]
Total	$ 423	[1],[2]	$ 305	[1],[2]	$ 353	[1]	$ 401	[1]

[1] Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported in this table.

[2] Gross loans is inclusive of all partial pay downs and charge-offs since the modification date.

[3] Includes modifications of loan repayment terms from principal and interest to interest only, along with a reduction in the contractual interest rate.

[4] Includes loans modified at below market rates for borrowers with similar risk profiles and having comparable loan terms and conditions. Market rates are determined by reference to internal new loan pricing grids that specify credit spreads based on loan risk rating and term to maturity.

[5] Other modifications primarily include providing for the deferral of interest currently due to the new maturity date of the loan.

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

Postemployment Benefits [Abstract]

Schedule of Restricted Stock Awards Including Restricted Stock Units

The restricted stock activity is summarized as follows:

	Year Ended December 31, 2014
	Shares			Weighted Average Grant Date     Fair Value
Balance at beginning of year		—		$	—
Granted		200,200			21.17
Vested		(12,500	)		20.95
Forfeited		(8,400	)		20.95
Balance outstanding at end of period		179,300		$	21.20
Available to grant		408,200

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Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Note 14 – Commitments and Contingent Liabilities

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and financial guarantees which involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. The contract amounts of those instruments reflect the extent of involvement and exposure to credit loss the Company has in particular classes of financial instruments. The same credit policies are used in making commitments and conditional obligations as for on-balance-sheet instruments.

Financial instruments whose contract amounts represent credit risk are as follows:

	December 31,
	2014		2013
	(In thousands)
Commitments to extend credit	$	39,251	$	26,054
Unused commitments		—		657
Unused lines of credit:
Home equity		111,365		109,414
Credit cards		23,249		22,751
Commercial		144,333		54,840
Letters of credit		8,564		17,131
Credit enhancement under the Federal Home Loan Bank of Chicago Mortgage Partnership Finance Program		7,644		15,877

Commitments to extend credit are in the form of a loan in the near future. Unused lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract and may be drawn upon at the borrowers’ discretion. Letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. Commitments and letters of credit primarily have fixed expiration dates or other termination clauses and may require payment of a fee. As some such commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. With the exception of credit card lines of credit, the Company primarily extends credit on a secured basis. Collateral obtained consists primarily of single-family residences andincome-producing commercial properties.

The Bank previously participated in the MPF Program of the FHLB of Chicago. Pursuant to the credit enhancement feature of the MPF Program, the Bank retained a secondary credit loss exposure in the amount of $7.6 million at December 31, 2014 related to approximately $165.9 million of residential mortgage loans that the Bank has originated and are still outstanding. The Bank acts as a servicing agent for the FHLB of Chicago. Under the credit enhancement, the FHLB of Chicago is liable for losses on loans up to one percent of the original delivered loan balances in each pool up to the point the credit enhancement is reset. After the credit enhancement resets, the FHLB of Chicago and the Bank’s loss contingency could be reduced depending upon losses experienced and loan balances remaining. The Bank is liable for losses over and above the FHLB of Chicago first loss position up to a contractually agreed-upon maximum amount in each pool that was delivered to the MPF Program. The Bank receives a monthly fee for this credit enhancement obligation based on the outstanding loan balances. The monthly fee received is net of losses under the MPF Program. The Bank discontinued funding loans through the MPF Program in 2008.

Other loans sold to investors must meet specific criteria as determined by the investor at the time of sale. If it is determined at a later date, that a loan did not meet these requirements or was a fraudulent transaction, the investor may require the Bank to either repurchase the loan or make the investor whole in the event of a loss. As the Company expects relatively few such loans to become delinquent, the total amount of loans sold with recourse does not necessarily represent future cash requirements. Collateral obtained on such loans consists primarily of single-family residences. The unpaid principal balance of loans repurchased from investors totaled $1.1 million, $1.8 million and $1.6 million for the year ended December 31, 2014, the nine months ended December 31, 2013 and for the year ended March 31, 2013, respectively. Alternatively, investors make requests to be made whole on a loan whereby the property has been disposed of at a loss. The related amounts for requests by the investor to be made whole was $754,000, $687,000 and $1.9 million for the year ended December 31, 2014, the nine months ended December 31, 2013 and for the year ended March 31, 2013, respectively. All losses incurred are recorded against the reserve for repurchased loans on the Consolidated Balance Sheets.

Unfunded Commitments and Repurchase Loan Reserve

In addition to the allowance for loan losses reflected on the Consolidated Balance Sheets, a reserve is also provided for unfunded loan commitments and for the repurchase of previously sold loans. The reserve for unfunded loan commitments includes unfunded commitments to lend and commercial letters of credit. These reserves are classified in other liabilities on the Consolidated Balance Sheets. The balances of these reserves for the periods presented is as follows:

	Year Ended December 31, 2014			Nine Months Ended December 31, 2013		Year Ended March 31, 2013
	(In thousands)
Reserve for unfunded commitment losses beginning balance	$	4,664		$	1,956	$	564
Provision for unfunded commitments		(2,107	)		2,708		1,392
Ending reserve for unfunded commitment losses	$	2,557		$	4,664	$	1,956
Reserve for repurchased loans beginning balance	$	2,600		$	2,600	$	—
Charge off		(1,176	)		—		—
Recovery		27			—		—
Provision for repurchased loans		(113	)		—		2,600
Ending reserve for repurchased loans	$	1,338		$	2,600	$	2,600

The amount of the allowance for unfunded loan commitments is determined using the average reserve rate by risk rating that applies to the associated funded loan category multiplied by the unfunded commitment amount. The reserve also covers potential loss on letters of credit outstanding for which the Bank may be unable to recover the amount outstanding. At December 31, 2014, a liability of $2.6 million was required as compared to a liability of $4.7 million at December 31, 2013 and reflects a decrease primarily due to a release of a $2.7 million specific reserve related to the letter of credit litigation that was resolved during the third quarter of 2014. The increase during the nine months ended December 31, 2013 included an increase for the specific reserve of this outstanding credit.

Loans intended to be sold are originated in accordance with specific criteria established by the investor agencies – these are known as “conforming loans”. During the sale of these loans, certain representations and warranties are made that the loans conform to these previously established underwriting standards. In the event that any of these representations and warranties or standards are found to be out of compliance, the Company may be responsible for repurchasing the loan at the unpaid principal balance or indemnifying the buyer against loss related to that loan.

The amount of the reserve for repurchased loans is determined using the serviced portfolio balances multiplied by historical and expected loss rates to provide for the probable losses related to sold mortgage loans. The reserve declined $1.3 million during the twelve months ended December 31, 2014 compared to remaining unchanged during the nine months ended December 31, 2013. Total expense incurred for investor loss reimbursements, including any provision recorded or reserve released, was $50,000 and $687,000 for the twelve months ended December 31, 2014 and the nine months ended December 31, 2013, respectively. Losses may result from the repurchase of loans or indemnification of losses incurred upon foreclosure and disposition of related collateral. The analysis of the reserve at December 31, 2014 required a liability of $1.3 million.

In the ordinary course of business, there are legal proceedings against the Company and its subsidiaries. Management considers that the aggregate liabilities, if any, resulting from such actions would not have a material, adverse effect on the consolidated financial position of the Company.

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Derivative Financial Instruments - Summary of Derivative Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Derivative Liabilities | Interest Rate Lock Commitments | Other Liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Notional Amount	$ 2,108	[1]	$ 2,172	[1]
Estimated Fair Value	14	[1]	12	[1]
Derivative Liabilities | Unused Commitments | Other Liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Notional Amount			288	[2]
Estimated Fair Value			4	[2]
Derivative Liabilities | Forward Contracts to Sell Mortgage Loans | Other Liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Notional Amount	16,000	[3]	1,000	[3]
Estimated Fair Value	174	[3]	1	[3]
Derivative Assets | Interest Rate Lock Commitments | Other Assets
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Notional Amount	14,633	[1]	3,863	[1]
Estimated Fair Value	154	[1]	37	[1]
Derivative Assets | Unused Commitments | Other Assets
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Notional Amount			369	[2]
Estimated Fair Value			3	[2]
Derivative Assets | Forward Contracts to Sell Mortgage Loans | Other Assets
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Notional Amount	4,000	[3]	8,000	[3]
Estimated Fair Value	$ 2	[3]	$ 33	[3]

[1] Interest rate lock commitments include $7.9 million and $1.5 million of commitments not yet approved in the credit underwriting process at December 31, 2014 and 2013, respectively, yet represent potential interest rate risk exposure to the extent of those mortgage loan applications eventually approved for funding.

[2] The Company recognizes fair value of unused commitments held for trading which consists of closed residential real estate loans in rescission at period end.

[3] The Company has elected to offset the fair value of individual forward sale contracts and present a net amount on the Consolidated Balance Sheets in accordance with ASC 815-45, Derivatives and Hedging.