8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 29, 2015

ANCHOR BANCORP WISCONSIN INC.

(Exact name of registrant as specified in its charter)

Delaware	001-34955	39-1726871
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

25 West Main Street, Madison, Wisconsin	53703
(Address of principal executive offices)	(Zip Code)

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

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On October 29, 2015, Anchor BanCorp Wisconsin Inc. (ABCW or the Company) issued a press release announcing its financial results for the fiscal quarter ended September 30, 2015. A copy of the press release is attached hereto as Exhibit 99.1.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Exchange Act.

Item 7.01 Regulation FD Disclosure.

ABCW is furnishing the Third Quarter 2015 Earnings Presentation, included as Exhibit 99.2 to this Report on Form 8-K, which will be used, in whole or in part, from time to time by executives of the Company in one or more meetings with investors and analysts.

The information furnished pursuant to this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

The following exhibits shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended.

(d)	Exhibit:
99.1		Anchor BanCorp Wisconsin Inc. Press Release dated October 29, 2015.
99.2		Third Quarter 2015 Earnings Presentation.

EXHIBIT #	DESCRIPTION
99.1	Press Release of Anchor BanCorp Wisconsin Inc. dated October 29, 2015.
99.2	Third Quarter 2015 Earnings Presentation.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Anchor BanCorp Wisconsin Inc.
	(Registrant)
October 29, 2015	/s/ MARK D. TIMMERMAN
(Date)	Mark D. Timmerman
	Executive Vice President, Secretary and General Counsel

Exhibit Index

99.1	Press release dated October 29, 2015.
99.2	Third Quarter 2015 Earnings Presentation.

EX-99.1

Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE

Contact: Jennifer Ranville, 608-252-8862

Anchor BanCorp Wisconsin Inc. Reports Third Quarter Earnings

of $15.5 Million or $1.62 per Diluted Share

MADISON, Wisc., October 29, 2015 - Anchor BanCorp Wisconsin Inc. (the “Company”) (NASDAQ:ABCW), and its wholly-owned subsidiary, AnchorBank, fsb (the “Bank”), today announced financial results for the quarter ended September 30, 2015. The Company recorded a profitable quarter with net income of $15.5 million, or $1.62 per diluted common share. Pre-tax net income for the quarter ended September 30, 2015 of $25.9 million, or $2.71 per diluted share, included a negative provision for loan losses of $22.4 million, or $2.34 per diluted share, which was partially offset by $1.5 million in expense related to early lease termination expenses associated with several previously announced operational efficiency initiatives. Management anticipates these operational efficiency initiatives will result in annual net cost savings of approximately $5.4 million related to reduced compensation, occupancy and other operating costs.

“Following last quarter's excellent results, we are posting another quarter of strong financial performance. Our continued focus on loan quality improvement has warranted the reduction of our allowance for loan loss this quarter. While the reduction is significant, our loan loss reserve levels remain solid. This quarter's performance builds on over two years of profitable results and last quarter's reversal of substantially all of the deferred tax asset valuation allowance,” said Chris Bauer, President and CEO.

Highlights include:

Negative Provision 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 loan portfolio and is based on: the size and current risk characteristics of the 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. Therefore, the allowance for loan losses accounts for elements of imprecision and estimation risk inherent in the calculation.

During the quarter ended September 30, 2015, after a review of the factors listed above, the Company determined such levels of allowance were no longer warranted. While loan quality has improved over a multi-year period, the quarter ended September 30, 2015 was the fourth consecutive quarter of recoveries exceeding charge-offs. Performance trends related to loan losses observed in 2015 include:

• Total non-performing loans decreased $20.4 million to $14.7 million at September 30, 2015, from $35.1 million at December 31, 2014.

• The Company has experienced recoveries in excess of charge-offs of $10.2 million over the past four quarters, including $4.9 million for the quarter ended September 30, 2015.

• Total delinquencies (loans past due 30 days or more) at September 30, 2015 and December 31, 2014, were $18.0 million, or 1.15% of total gross loans, and $29.2 million, or 1.85% of total gross loans, respectively. The Company has experienced a reduction in delinquencies since December 31, 2014, as a result of increased monitoring, loss mitigation and improved economic conditions.

• Total impaired loans decreased $23.7 million to $71.6 million at September 30, 2015, which included $56.9 million of performing TDRs, from $95.3 million at December 31, 2014, which included $60.2 million of performing TDRs.

The impact to the allowance for loan losses at September 30, 2015 was a $22.4 million negative provision for loan losses. As a result, the allowance for loan losses as a percentage of total loans held for investment was 1.91% at September 30, 2015, compared to 2.99% at December 31, 2014. The allowance for loan losses as a percentage of non-performing loans increased to 200.70% at September 30, 2015, from 133.95% at December 31, 2014.

Net Income

• Net income was $15.5 million for the quarter ended September 30, 2015, compared to $107.5 million and $5.0 million for the quarters ended June 30, 2015 and September 30, 2014, respectively. During the quarter ended June 30, 2015, the Company recognized $103.0 million of income tax benefit, net of tax provision, due to the reversal of substantially all of the deferred tax asset valuation allowance.

• Diluted earnings per share was $1.62 for the quarter ended September 30, 2015, compared to $11.37 for the quarter ended June 30, 2015 and $0.55 per diluted share for the quarter ended September 30, 2014.

• Net interest income was $17.3 million for the quarter ended September 30, 2015, compared to $17.4 million and $17.6 million for the quarters ended June 30, 2015 and September 30, 2014, respectively.

• Yield on interest-earning assets of 3.60% for the quarter ended September 30, 2015 decreased 5 basis points from 3.65% for the quarter ended June 30, 2015 and decreased 8 basis points compared to 3.68% for the quarter ended September 30, 2014.

• Negative loan loss provision for the quarter ended September 30, 2015 was $22.4 million, compared to negative loan loss provision of $646,000 and $1.3 million for the quarters ended June 30, 2015 and September 30, 2014, respectively.

• Non-interest income was $8.7 million for the quarter ended September 30, 2015, compared to $9.7 million and $8.0 million for the quarters ended June 30, 2015 and September 30, 2014, respectively. Non-interest income included a gain of $538,000 from the sale of the Winneconne branch operations and a gain of $294,000 on the sale of the Winneconne branch building and equipment during the quarter ended September 30, 2015. Non-interest income included a $1.4 million gain on the sale of the Appleton Fox River Drive branch building and a gain of $448,000 resulting from the sale of the Viroqua branch operations during the quarter ended June 30, 2015.

• Non-interest expense was $22.6 million for the quarter ended September 30, 2015, compared to $23.3 million and $21.9 million for the quarters ended June 30, 2015 and September 30, 2014, respectively. The Bank incurred one-time costs of $1.5 million during the quarter ended September 30, 2015, consisting of early lease termination expense, and $2.3 million during the quarter ended June 30, 2015, primarily consisting of employment severance and asset disposition costs related to operational efficiency initiatives that have been completed.

Loans

• The Bank originated $107.3million and $104.0 million of commercial, consumer and residential loans in the quarters ended September 30, 2015 and June 30, 2015, respectively. In the last twelve months, the Bank originated $447.7million in loans, demonstrating the continued confidence that current and new customers have in the Company.

• Loans held for investment were $1.55 billion at September 30, 2015, a decrease of $22.3 million from December 31, 2014.

• Loans held for sale were $8.4 million at September 30, 2015, an increase of $1.8 million from December 31, 2014.

Asset Quality

• Total non-performing loans decreased $20.4million to $14.7million at September 30, 2015, from $35.1 million at December 31, 2014.

• Total non-performing assets (total non-performing loans and other real estate owned) decreased $31.3million to $39.3million, or 1.76% of total assets, at September 30, 2015, from $70.6 million, or 3.39% of total assets, at December 31, 2014.

• Other real estate owned (OREO) was $24.6 million at September 30, 2015, compared to $35.5 million at December 31, 2014.

Deposits and Borrowings

• Deposits of $1.83 billion at September 30, 2015, increased $15.7 million from December 31, 2014.

• Cost of funds remained constant at 0.24% for the quarters ended September 30, 2015, and June 30, 2015, an increase of 2 basis points from 0.22% for the quarter ended September 30, 2014.

Capital

• Book value per common share was $37.49 at September 30, 2015, compared to $35.68 and $23.22 at June 30, 2015 and September 30, 2014, respectively.

• The Bank’s Tier 1 leverage capital ratio of 12.74% at September 30, 2015 is considered “well capitalized” under the regulatory capital framework.

“Our earnings and ability to execute on our business plan demonstrates support for the confidence our stockholders have in us. We are reviewing capital strategies and believe we are well situated to be opportunistic, yet remain prudent in using our strong capital position for continued profitable growth,” Bauer noted.

About Anchor BanCorp Wisconsin Inc.

Anchor Bancorp Wisconsin Inc, is the parent company for AnchorBank, fsb a community-based financial services company providing commercial, retail, mortgage, consumer finance and investment services to businesses and individuals from 46 banking locations throughout Wisconsin. Anchor Bancorp stock (ABCW) is listed on the NASDAQ Global Market and Russell Global Indexes. Visit AnchorBank online at www.anchorbank.com.

Forward-Looking Statements

This news release contains certain forward-looking statements, as that term is defined in the U.S. federal securities laws. In the normal course of business, we, 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. Generally, these statements relate to business plans or strategies, projections involving anticipated revenues, earnings, liquidity, capital levels, profitability or other aspects of operating results or other future developments in our affairs or the industry in which we conduct business. 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. 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.

Anchor BanCorp Wisconsin Inc.

CONSOLIDATED FINANCIAL SUMMARY

(Unaudited)

	Quarter Ended									Year to Date						Qtr Ended 9/15-9/14
($ in 000’s, except share data)	9/30/2015			6/30/2015			9/30/2014			9/30/2015			9/30/2014			Incr(Decr)
INCOME STATEMENT
Interest income	$	18,418		$	18,541		$	18,612		$	55,043		$	57,030		(1	)%
Interest expense	1,132			1,117			1,054			3,277			3,295			7	%
Net interest income	17,286			17,424			17,558			51,766			53,735			(2	)%
Provision for loan losses	(22,410		)	(646		)	(1,304		)	(24,410		)	(1,304		)	N/M
Non-interest income:
Service charges on deposits	2,633			2,596			2,626			7,597			7,415			—	%
Investment and insurance commissions	976			1,060			1,015			3,123			3,002			(4	)%
Loan fees	596			179			262			1,506			713			127	%
Loan servicing income, net	500			467			705			1,560			2,219			(29	)%
Loan processing fee income	352			360			266			978			605			32	%
Net gain on sale of loans	1,470			1,912			837			4,983			2,127			76	%
Net gain on sale of investments	—			—			482			63			783			(100	)%
Net gain on sale of OREO	719			743			987			2,929			2,188			(27	)%
Net gain (loss) on disposal of premises and equipment	359			1,332			(7		)	1,691			(83		)	N/M
Net gain on sale of branch	538			448			—			986			—			—	%
Other	578			641			842			1,783			2,588			(31	)%
Total non-interest income	8,721			9,738			8,015			27,199			21,557			9	%
Non-interest expense:
Personnel costs	10,843			13,371			10,872			36,001			32,773			—	%
Net occupancy and equipment expense	2,338			2,730			2,443			7,522			7,852			(4	)%
Data processing expense	1,423			1,546			1,340			4,420			4,026			6	%
OREO expense	962			737			2,999			1,935			6,451			(68	)%
Mortgage servicing rights impairment (recovery)	93			(391		)	(53		)	(328		)	42			275	%
Provision for unfunded commitments	258			170			(2,401		)	549			(1,621		)	111	%
Professional fees	549			606			404			1,589			1,162			36	%
Lease termination expense	1,454			—			—			1,454			—			N/M
Other	4,632			4,494			6,311			13,646			16,402			(27	)%
Total non-interest expense	22,552			23,263			21,915			66,788			67,087			3	%
Net income before taxes	25,865			4,545			4,962			36,587			9,509			421	%
Income tax expense (benefit)	10,394			(102,976		)	—			(92,550		)	10			N/M
Net income	$	15,471		$	107,521		$	4,962		$	129,137		$	9,499		212	%
SHARE DATA
Diluted earnings per share	$	1.62		$	11.37		$	0.55		$	13.74		$	1.05		195	%
Cash dividends	$	—		$	—		$	—		$	—		$	—		—	%
Book value	$	37.49		$	35.68		$	23.22		$	37.49		$	23.22		61	%
Average diluted shares outstanding	9,559,000			9,459,000			9,058,000			9,540,000			9,058,000			6	%
KEY RATIOS AND DATA
Yield on interest-earning assets	3.60		%	3.65		%	3.68		%	3.62		%	3.78		%	(0.08	)
Cost of funds	0.24		%	0.24		%	0.22		%	0.24		%	0.23		%	0.02
Net interest margin	3.38		%	3.43		%	3.47		%	3.41		%	3.56		%	(0.09	)
Return on average assets	2.79		%	20.40		%	0.94		%	8.06		%	0.60		%	1.85
Average equity to average assets	15.49		%	11.40		%	9.99		%	12.76		%	9.89		%	5.50
Common Equity Tier 1 ratio (1)	18.63		%	18.26		%	N/A			18.63		%	N/A			N/A
Tier 1 leverage (1)	12.74		%	12.03		%	10.70		%	12.74		%	10.70		%	2.04
Tier 1 risk-based capital (1)	18.63		%	18.26		%	16.68		%	18.63		%	16.68		%	1.95
Total capital ratio (1)	19.93		%	19.58		%	17.96		%	19.93		%	17.96		%	1.97

N/A = not applicable N/M = not meaningful

(1) Capital ratios calculated utilizing Basel III regulatory requirements effective January 1, 2015 for AnchorBank, fsb.

Anchor BanCorp Wisconsin Inc.

(Unaudited)

	Quarter Ended Averages									Ending Balances						Ending Balances 9/15-12/14
(in 000’s)	9/30/2015			12/31/2014			9/30/2014			9/30/2015			12/31/2014			Incr(Decr)
BALANCE SHEET
Assets:
Cash and cash equivalents	$	144,166		$	195,093		$	192,041		$	155,888		$	147,273		6	%
Investment securities	350,711			293,577			294,105			357,007			294,599			21	%
Loans held for sale	13,607			5,608			5,145			8,408			6,594			28	%
Loans held for investment	1,554,780			1,559,421			1,547,865			1,549,183			1,571,476			(1	)%
Allowance for loan losses	(48,689		)	(48,260		)	(49,377		)	(29,525		)	(47,037		)	37	%
Loans held for investment, net	1,506,091			1,511,161			1,498,488			1,519,658			1,524,439			—	%
Other real estate owned, net	26,584			44,511			52,017			24,612			35,491			(31	)%
Other assets	180,206			77,081			79,148			171,272			73,983			132	%
Total assets	$	2,221,365		$	2,127,031		$	2,120,944		$	2,236,845		$	2,082,379		7	%
Liabilities and Stockholders’ Equity:
Non interest bearing deposits	$	291,519		$	285,960		$	276,888		$	295,367		$	291,248		1	%
Interest bearing deposits	1,543,212			1,582,144			1,595,474			1,534,549			1,522,923			1	%
Total deposits	1,834,731			1,868,104			1,872,362			1,829,916			1,814,171			1	%
Other borrowed funds	13,860			14,982			14,520			12,581			13,752			(9	)%
Other liabilities	28,744			21,500			22,186			34,477			26,793			29	%
Total liabilities	1,877,335			1,904,586			1,909,068			1,876,974			1,854,716			1	%
Total stockholders’ equity	344,030			222,445			211,876			359,871			227,663			58	%
Total liabilities & stockholders’ equity	$	2,221,365		$	2,127,031		$	2,120,944		$	2,236,845		$	2,082,379		7	%
	Quarter Ended									Year-to-Date						Qtr Ended 9/15-9/14
	9/30/2015			12/31/2014			9/30/2014			9/30/2015			12/31/2014			Incr(Decr)
KEY METRICS
Provision for loan losses	$	(22,410	)	$	(3,281	)	$	(1,304	)	$	(24,410	)	$	(4,585	)	N/M
Net charge-offs (recoveries)	(4,898		)	(3,281		)	834			(6,897		)	13,560			N/M
Allowance for loan losses	29,525			47,037			47,037			29,525			47,037			(37	)%
Loans 30 to 89 days past due	7,735			8,892			9,979			7,735			8,892			(22	)%
Non-performing loans (NPL)	14,711			35,115			38,352			14,711			35,115			(62	)%
Other real estate owned	24,612			35,491			46,725			24,612			35,491			(47	)%
Non-performing assets	39,323			70,606			85,077			39,323			70,606			(54	)%
Non-performing assets to total assets	1.76		%	3.39		%	4.04		%	1.76		%	3.39		%	(2.28	)
Allowance for loan losses to NPL	200.70		%	133.95		%	122.65		%	200.70		%	133.95		%	78.05
Allowance for loan losses to loans held for investment	1.91		%	2.99		%	3.02		%	1.91		%	2.99		%	(1.11	)
Net charge-off (recoveries) to average assets	(0.22		)%	(0.15		)%	0.04		%	(0.32		)%	0.64		%	(0.26	)

N/M = not meaningful

EX-99.2

Third Quarter 2015 Earnings Presentation

2 This presentation does not constitute an offer to sell, nor a solicitation of an offer to buy, any securities of Anchor BanCorp Wisconsin, Inc. ("Anchor" or the “Company”) by any person in any jurisdiction in which it is unlawful for such person to make such an offering or solicitation. Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of the securities of Anchor or passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof. Market and other statistical data used in this presentation has been obtained from independent industry sources and publications as well as from research reports prepared for other purposes. Industry publications and surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable. Anchor has not independently verified the data obtained from these sources. Forward-looking information obtained from these sources is subject to the same qualifications and the additional uncertainties regarding the other forward-looking statements in this presentation. From time to time, Anchor may make forward-looking statements that reflect the Company’s views with respect to, among other things, future events and financial performance. Words such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, you are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the expected results expressed or implied by such forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made, and unless otherwise required by law, the Company does not undertake any obligation to update or review any forward-looking statements, whether as a result of new information, future developments or otherwise. This presentation includes certain financial measures not in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP. Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Financial Information

3 Executing Our Business Plan Continued Credit Improvement Executed Business Development Strategies Improved Efficiency Utilized the Value of the Deferred Tax Asset Normalize Excess Capital Building Shareholder Value

4 2015 Q3 Financial Highlights Non-Interest Expense Non-Interest Income Net Interest Income Asset Quality Asset Quality • NPLs decreased $2.8 million during Q3 2015 and $20.4 million, or 58%, YTD. • OREO decreased $2.6 million during Q3 2015 and $10.9 million, or 31%, YTD. • Negative provision of $22.4 million in Q3 2015. ALLL coverage remains strong. • Net interest income of $17.3 million during Q3 2015, down $0.1 million, or 0.8%, Q-O-MRQ. • Net interest margin ("NIM") of 3.38% declined by 5 basis points during the quarter. Asset yields declined 5 basis points, while cost of funds remained stable at 0.24%. • Excess cash to deploy into loans and investments will help stabilize NIM. • Non-interest income of $8.7 million decreased $1.0 million, or 10%, Q-O-MRQ. Q3 2015 included $0.8 million for the Winneconne branch sale. Q2 2015 included $1.4 million from the Appleton-Fox building sale and $0.4 million from the Viroqua branch sale. • Non-interest income increased $0.7 million, or 9%, Q-O-Q3 2014. • Gain on sale of loans and loan fees up Q-O-Q3 2014 by $1.0 million, or 88%. • Non-interest expense decreased $0.7 million Q-O-MRQ, due to operational efficiencies that have been completed. Q2 2015 included $2.3 million in one-time costs compared to $1.5 million in Q3 2015. These initiatives are projected to lower expense by $5.4 million annually. • Non-interest expense (exclusive of one-time charges) is lower by $0.8 million, or 4%, Q-O- Q3 2014. Income • Net income of $15.5 million, or $1.62 per diluted share. • Pre-tax net income of $25.9 million, or $2.71 per diluted share, included a negative provision for loan losses of $22.4 million, which was partially offset by expenses of $1.5 million related to previously announced efficiency initiatives.

5 Significant Negative Provision Asset Quality Asset QualityIncome • Negative provision for loan losses of $22.4million taken in Q3 2015 supported by improving loan quality metrics, current economic trends and stabilizing real estate values. • The ALLL to total loans held for investment remains solid at 1.91% at Q3 2015. * September 2015 data not yet available for peer groups ALLL to Total Loans (%) ALLL to NAL (%) NCO's/(Recoveries) to Average Loans (%) NCO's/(Recoveries) to Average Loans is annualized

6 Significantly Improved Asset Quality Non-performing Asset Levels ($ in millions) Credit Quality Overview ($ in thousands) ¹ Non-performing loans and assets exclude troubled debt restructurings that are now accruing. OREO, net ($ in millions)

7 Net Interest Income Yield on Interest-Earning Assets Cost of Funds * All dollars in millions Net Interest Income - Net Interest Margin (%)

8 Non-Interest Income 2 Other non-interest Income includes investment and insurance commissions, gains/losses on sale of investment securities, other than temporary impairment of investment securities, gains/losses on sale of OREO, and other miscellaneous items 1 Includes $0.4 million and $1.4 million for Viroqua branch and Appleton – Fox building sales in Q2 2015 and $0.8 million for the Winneconne branch sale in Q3 2015. * All dollars in millions Total Non-Interest Income

9 Non-Interest Expense 2 Other non-interest expense includes occupancy, FDIC insurance, furniture and equipment, data processing, marketing, MSR impairment/recovery, provision for unfunded commitments, and other miscellaneous items 1 Includes $2.3 million of one-time changes ($2 million of compensation and $0.3 million of occupancy cost) for Q2 2015 and $1.5 million of one-time charges for Q3 2015. * All dollars in millions Total Non-Interest Expense

10 Summary of Recent Initiatives Branch Rationalization Compensation & Benefits Occupancy Universal Banker Branch Staffing Model • 2015 Q3 – sold Winneconne branch • 2015 Q3 - expanded the Appleton Commercial facility for Retail Bank business • 2015 Q2 – sold Viroqua branch • 2015 Q2 – consolidated 6 branches in the Wisconsin communities of Appleton, Menasha, Oshkosh, Janesville, Franklin, and Madison, all with other branches within 5 miles • 2014 Q4 – sold Richland Center Branch • Universal Banker Branch staffing model has been deployed in all 46 branches • Most staffing reassignments complete – expect full completion by December 31, 2015 • 2015 Q3 – all 78 acceptants of the Voluntary Separation Packages have ended employment • Headcount reduction from 2015 Q1 to 2015 Q3 of 106 people. • Headcount reduction from 2014 Q3 to 2015 Q3 of 137 people • 2015 Q3 – $1.5 million charge for early lease termination expenses • 2015 Q2 – sold Appleton Fox facility for $1.4 million gain • 2015 Q1 – purchased new City View Madison Support Center which consolidated various operational teams

11 Loan Portfolio & Yields Gross loan balances are down Q-O-MRQ and Q-O-Q3 2014. Commercial and Industrial loans and Commercial Real Estate loans are up 58% and 5%, respectively, since September 2014. Originated $323 million of portfolio loans in 2015, and $448 million over the last 12 months, demonstrating customer confidence in the Company.

12 Deposit Mix Business Deposits Balances Trending Higher… …Driven by Business Checking Growth Business deposit data - monthly average balances Attractive core deposit base with growing emphasis on relationship based commercial deposits driving low cost of funds. 2015 Q3 Deposit Mix 2015 YTD Deposit Growth of $15.7 million includes the negative impact of branch deposit sales. Adjusting for branch sales, deposits grew $38.8 million or 2.1%.

13 Strong Capital Being strong and well capitalized allows Anchor to seek opportunities to increase earnings and profitably grow our company. Bank Tier 1 Core/Leverage Ratio1 Bank Total Risk Based Capital Ratio1 1 Capital ratios are reported for AnchorBank, fsb and calculated utilizing Basel III regulatory requirements effective January 1, 2015 14.00% 13.00% 12.00% 11.00% 10.00% 9.00% 8.00% 7.00% 6.00% Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 9.06% 9.60% 9.69% 9.75% 10.07% 10.43% 10.85% 12.03% 12.74% 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 16.30% 17.07%17.43%17.40% 17.96%18.25%18.19% 19.58%19.93%

14 Current Trading View *Full Valuation Allowance Prior to 6/30/2015 Current Trading View on Tangible Book Value and Adjusted Tangible Book Value Basis Earnings and ability to execute on our business plan demonstrates support for the confidence of our stockholders.

15 Highlights q Delivered improved operating results ü Positive pre-tax net income every quarter since the recapitalization • First quarter 2015 pre-tax net income of $6.2 million, 220% increase over Q1 2014 • Second quarter pre-tax net income of $4.5 million, a 74% increase over Q2 2014 • Third quarter pre-tax net income of $25.9 million, a 421% increase over Q3 2014 ü Maintained attractive core deposits and low cost of funds ü Rationalized cost structure – lowering annual expense by an estimated $5.4 million q Business plan execution and growth in loans ü Emphasis on growing C&I business by hiring strong, experienced talent – 58% loan growth in last 12 months ü CRE lending remained strong and high quality ü Mortgage business transformation resulted in significant increase in production and gain on sale year-over-year ü Retail Bank branch rationalization and Universal Banker model allow for leveraging sales and service culture and digital business delivery q Credit quality improved ü NPAs decreased $31.3 million, or 44%, in 2015 ü OREO decreased $10.9 million, or 31%, in 2015 ü NPA/Total Assets improved from 3.39% to 1.76% during 2015

16 Questions?

17 Appendix: Reconciliation of Non-GAAP Measures Non-GAAP Financial Measures¹ 1 Tangible common equity to tangible assets (the “tangible common equity ratio”) is a non-GAAP financial measure. The Company calculates the tangible common equity ratio by excluding the balance of preferred equity, goodwill and other intangible assets from common shareholders’ equity and assets. The Company considers this information important to shareholders as tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk-based ratios. This disclosure should not be viewed as a substitute for results determined to be in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures presented by other companies. ($000s) As of, 12/31/2013 3/31/2014 06/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 Total GAAP Equity $202,198 $206,708 $211,507 $214,709 $227,663 $236,856 $342,620 $359,871 Less: Preferred Equity — — — — — — — — Less: Goodwill and Other Intangibles — — — — — — — — Tangible Common Equity $202,198 $206,708 $211,507 $214,709 $227,663 $236,856 $342,620 $359,871 Total GAAP Assets $2,112,474 $2,109,824 $2,121,249 $2,106,521 $2,082,379 $2,094,161 $2,205,595 $2,236,845 Less: Goodwill and Other Intangibles — — — — — — — — Tangible Assets $2,112,474 $2,109,824 $2,121,249 $2,106,521 $2,082,379 $2,094,161 $2,205,595 $2,236,845 Tangible Common Equity / Tangible Assets 9.57% 9.79% 9.97% 10.19% 10.93% 11.31% 15.53% 16.09%