<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

/X/  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     For the quarterly period ended September 30, 2000

                                       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 0-20006


                          ANCHOR BANCORP WISCONSIN INC.
                          -----------------------------
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

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

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


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

                                 Not Applicable
                               ------------------
     (Former name, former address, and former fiscal year, if changed since last
     report)

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 the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

                      Class: Common stock -- $.10 Par Value


         Number of shares outstanding as of October 31, 2000: 23,039,078




<PAGE>   2



                          ANCHOR BANCORP WISCONSIN INC.
                                INDEX - FORM 10-Q


<TABLE>
<CAPTION>


PART I - FINANCIAL INFORMATION                                                           PAGE #
                                                                                         ------
<S>                                                                                      <C>
         Item 1       Financial Statements (Unaudited)

                      Consolidated Balance Sheets as of September 30, 2000
                      and March 31, 2000                                                    2

                      Consolidated Statements of Income for the Three and Six
                      Months Ended September 30, 2000 and 1999                              3

                      Consolidated Statements of Cash Flows for the Six Months
                      Ended September 30, 2000 and 1999                                     4

                      Notes to Unaudited Consolidated Financial Statements                  6

         Item 2       Management's Discussion and Analysis of Financial
                         Condition and Results of Operations

                              Results of Operations                                        10

                              Financial Condition                                          15

                              Asset Quality                                                16

                              Liquidity & Capital Resources                                18

                              Asset/Liability Management                                   20

         Item 3       Quantitative and Qualitative Disclosures About Market Risk           24


PART II - OTHER INFORMATION

          Item 1     Legal Proceedings                                                     24
          Item 2     Changes in Securities                                                 24
          Item 3     Defaults upon Senior Securities                                       24
          Item 4     Submission of Matters to Vote of Security Holders                     24
          Item 5     Other Information                                                     24
          Item 6     Exhibits and Reports on Form 8-K                                      24

SIGNATURES                                                                                 25

</TABLE>











                                       1




<PAGE>   3




                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                                              SEPTEMBER 30,       MARCH 31,
                                                                                  2000             2000
                                                                            ---------------------------------
                                                                                       (In Thousands)

<S>                                                                         <C>                  <C>
ASSETS

Cash                                                                        $      66,544        $    46,560
Interest-bearing deposits                                                          22,277             37,148
                                                                            -------------        -----------
  Cash and cash equivalents                                                        88,821             83,708
Investment securities available for sale                                           62,234             34,936
Investment securities held to maturity (fair value of $49,935 and
  $49,971, respectively)                                                           50,777             51,270
Mortgage-related securities available for sale                                     54,564             57,276
Mortgage-related securities held to maturity (fair value of$213,781
  and $234,505, respectively)                                                     219,456            243,243
Loans receivable, net:
  Held for sale                                                                     4,742              1,764
  Held for investment                                                           2,462,112          2,302,721
Foreclosed properties and repossessed assets, net                                     310                272
Real estate held for development and sale                                          48,556             34,063
Office properties and equipment                                                    25,464             25,712
Federal Home Loan Bank stock--at cost                                              36,547             34,597
Accrued interest on investments and loans                                          20,365             19,364
Prepaid expenses and other assets                                                  24,323             22,226
                                                                            -------------        -----------
     Total assets                                                           $   3,098,271        $ 2,911,152
                                                                            =============        ===========


LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits                                                                    $   1,991,161        $ 1,897,369
Federal Home Loan Bank and other borrowings                                       737,161            664,446
Reverse repurchase agreements                                                     100,919             92,413
Advance payments by borrowers for taxes and insurance                              23,771              8,213
Other liabilities                                                                  35,253             31,496
                                                                            -------------        -----------
     Total liabilities                                                          2,888,265          2,693,937
                                                                            =============        ===========

Preferred stock, $.10 par value, 5,000,000 shares
 authorized, none outstanding                                                           -                  -

Common stock, $.10 par value, 100,000,000 shares
 authorized, 25,363,339 shares issued                                               2,536              2,536
Additional paid-in capital                                                         56,574             56,496
Retained earnings                                                                 188,471            179,211

Less:  Treasury stock (2,367,151 shares and 1,275,192 shares,
        respectively), at cost                                                    (35,746)           (18,438)
           Common stock purchased by benefit plans                                   (709)              (923)
           Accumulated other comprehensive loss                                    (1,120)            (1,667)
                                                                            -------------        -----------
     Total stockholders' equity                                                   210,006            217,215
                                                                            -------------        -----------
     Total liabilities and stockholders' equity                             $   3,098,271        $ 2,911,152
                                                                            =============        ===========

</TABLE>


See accompanying Notes to Unaudited Consolidated Financial Statements.



                                       2









<PAGE>   4


                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                                         THREE MONTHS ENDED                SIX MONTHS ENDED
                                                                            SEPTEMBER 30,                     SEPTEMBER 30,
                                                                 ----------------------------       ---------------------------
                                                                          2000       1999                  2000        1999
                                                                 ----------------------------       ---------------------------
                                                                               (In Thousands, Except Per Share Data)


<S>                                                              <C>               <C>               <C>            <C>
INTEREST INCOME:
Loans                                                            $    49,893       $   43,793        $   97,205     $    86,112
Mortgage-related securities                                            4,571            3,968             9,317           8,018
Investment securities                                                  2,190            2,148             4,127           4,018
Interest-bearing deposits                                                316              115               695             329
                                                                 -----------       ----------        ----------     -----------
  Total interest income                                               56,970           50,024           111,344          98,477

INTEREST EXPENSE:
Deposits                                                              23,448           20,153            45,306          40,029
Notes payable and other borrowings                                    13,508            8,676            25,344          16,472
Other                                                                    171              194               278             308
                                                                 -----------       ----------        ----------     -----------
  Total interest expense                                              37,127           29,023            70,928          56,809
                                                                 -----------       ----------        ----------     -----------
  Net interest income                                                 19,843           21,001            40,416          41,668
Provision for possible loan losses                                       160              150               345           1,006
                                                                 -----------       ----------        ----------     -----------
  Net interest income after provision for possible loan losses        19,683           20,851            40,071          40,662

NON-INTEREST INCOME:

Loan servicing income                                                    625              513             1,237           1,069
Service charges on deposit accounts                                    1,438            1,243             2,838           2,549
Insurance commissions                                                    483              282             1,008             500
Gain on sale of loans                                                  1,208              366             1,568           1,395
Net gain on sale of investments and securities                            82                3                82               5
Net income (loss) from operations of real estate investment             (679)             328              (614)            452
Other                                                                    400              259               816             684
                                                                 -----------       ----------        ----------     -----------
  Total non-interest income                                            3,557            2,994             6,935           6,654

NON-INTEREST EXPENSE:

Compensation                                                           6,921            6,722            14,115          13,682
Occupancy                                                              1,106            1,107             2,087           2,021
Federal insurance premiums                                                97              265               192             532
Data processing                                                          995              859             1,860           1,819
Marketing                                                                609              615             1,218           1,285
Merger-related                                                             -                -                 -           8,500
Goodwill                                                                   -                -                 -           1,761
Other                                                                  2,100            1,568             4,104           3,398
                                                                 -----------      -----------       -----------     -----------
  Total non-interest expense                                          12,837           12,047            25,532          34,798
                                                                 -----------      -----------       -----------     -----------
  Income before income taxes                                         10,403            11,798            21,474          12,518
Income taxes                                                          3,822             4,676             7,908           6,999
                                                                 -----------      -----------        ----------     -----------
                                                                 $    6,581       $     7,122        $   13,566     $     5,519
                                                                 ==========       ===========        ==========     ===========
  Net income


Earnings per share:

  Basic                                                          $     0.29       $      0.29        $     0.59     $      0.22
  Diluted                                                              0.28              0.28              0.58            0.22
Dividends declared per share                                           0.08              0.07              0.15            0.12

</TABLE>


See accompanying Notes to Unaudited Consolidated Financial Statements.

                                       3



<PAGE>   5


                      CONSOLIDATED STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>

                                                                                SIX MONTHS ENDED SEPTEMBER 30,
                                                                              ---------------------------------
                                                                                   2000               1999
                                                                              ---------------------------------
                                                                                        (In Thousands)

<S>                                                                           <C>                 <C>
OPERATING ACTIVITIES
 Net income                                                                   $       13,566      $      5,519

 Adjustments to reconcile net income to net cash provided by operating
 activities:

 Provision for possible losses on loans and real estate                                  345             1,006
 Provision for depreciation and amortization                                             956             1,410
 Net gain on sales of loans                                                           (1,568)           (1,395)
 Increase in accrued interest receivable                                              (1,001)           (1,069)
 Increase in accrued interest payable                                                  2,421             1,413
 Increase (decrease) in accounts payable                                               2,227            (2,846)
 Other                                                                                14,364            (3,921)
                                                                              --------------     -------------

 Net cash provided by operating activities before proceeds
  from loan sales                                                                     31,310               117
 Net proceeds from origination and sale of loans held for sale                        (3,744)            1,925
                                                                              --------------     -------------
  Net cash provided by operating activities                                           27,566             2,042


INVESTING ACTIVITIES
 Proceeds from sales of investment securities available for sale                       3,685            10,228
 Proceeds from maturities of investment securities                                    10,499             8,531
 Purchase of investment securities available for sale                                (43,559)          (53,356)
 Purchase of investment securities held to maturity                                        -           (11,000)


 Proceeds from sale of mortgage-related securities available for sale                      -            (8,851)
 Purchase of mortgage-related securities held to maturity                              4,071                (2)
 Purchase of mortgage-related securities available for sale                           (1,485)           14,133)
 Principal collected on mortgage-related securities                                   24,593            35,006
 Loans originated for investment                                                    (385,710)         (435,646)
 Principal repayments on loans                                                       211,184           292,727
 Net office properties and equipment                                                    (248)           (1,491)
 Sales of real estate                                                                    312             2,112
 Purchase of real estate held for development and sale                               (14,752)           (4,202)
                                                                              --------------     -------------
  Net cash used by investing activities                                             (191,410)         (180,077)

</TABLE>







                                       4

<PAGE>   6




                 CONSOLIDATED STATEMENTS OF CASH FLOWS (Cont'd)


<TABLE>
<CAPTION>

                                                                 SIX MONTHS ENDED SEPTEMBER 30,
                                                               ---------------------------------
                                                                    2000               1999
                                                               ---------------------------------
                                                                         (In Thousands)

<S>                                                            <C>                <C>
FINANCING ACTIVITIES
 Increase in deposit accounts                                   $      93,792     $     27,757
 Increase in advance payments by borrowers
   for taxes and insurance                                             15,558           12,556
 Proceeds from notes payable to Federal Home Loan Bank                594,900          659,650
 Repayment of notes payable to Federal Home Loan Bank                (544,500)        (554,450)

 Increase in securities sold under agreements
   to repurchase                                                        8,506           14,302
 Increase (decrease) in other loans payable                            22,315           (5,300)
 Treasury stock purchased                                             (19,634)          (1,397)
 Reissuance of treasury stock for options                                 497            4,035
 Purchase of stock by retirement plans                                    942              384

 Payments of cash dividends to stockholders                            (3,419)            (904)
                                                                -------------     ------------
   Net cash provided by financing activities                          168,957          156,633
                                                                -------------     ------------
   Net increase (decrease) in cash and cash equivalents                 5,113          (21,402)
 Cash and cash equivalents at beginning of year                        83,708           63,976
                                                                -------------     ------------
   Cash and cash equivalents at end of year                     $      88,821     $     42,574
                                                                =============     ============




SUPPLEMENTARY CASH FLOW INFORMATION:
Cash paid or credited to accounts:
  Interest on deposits and borrowings                           $      73,349     $     43,081
  Income taxes                                                          7,783            4,603


Non-cash transactions:
  Retirement of treasury stock                                              -           28,563


</TABLE>

 See accompanying Notes to Unaudited Consolidated Financial Statements






                                       5



<PAGE>   7




                          ANCHOR BANCORP WISCONSIN INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - PRINCIPLES OF CONSOLIDATION

The unaudited consolidated financial statements include the accounts and results
of operations of Anchor BanCorp Wisconsin Inc. (the "Corporation") and its
wholly-owned subsidiaries, AnchorBank, S.S.B. (the "Bank"), Investment
Directions, Inc. ("IDI") Nevada Investment Directions, Inc. ("NIDI") and
California Investment Directions, Inc. ("CIDI"). The Bank's accounts and results
of operations include its wholly-owned subsidiaries, Anchor Investment Services,
Inc. ("AIS"), ADPC Corporation ("ADPC"), and Anchor Investment Corporation
("AIC"). All significant intercompany balances and transactions have been
eliminated. Investments in joint ventures and other less than 50% owned
partnerships, which are not material, are accounted for by the equity method.
Partnerships with 50% ownership or more are consolidated, with significant
intercompany accounts eliminated.


NOTE 2 - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles ("GAAP") and with
the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly,
they do not include all of the information and footnotes required by GAAP for
complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) necessary for a fair presentation of
the consolidated financial statements have been included.


In preparing the consolidated financial statements in conformity with GAAP,
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. The results of operations and other
data for the six-month period ended September 30, 2000 are not necessarily
indicative of results that may be expected for any other interim period or the
entire fiscal year ending March 31, 2001. The unaudited consolidated financial
statements presented herein should be read in conjunction with the audited
consolidated financial statements and related notes thereto included in the
Corporation's Annual Report for the year ended March 31, 2000.

Unrealized gains or losses on the Corporation's available-for-sale securities
are included in other comprehensive income. During the quarter ended September
30, 2000 and 1999, total comprehensive income amounted to $7.3 million and $6.7
million, respectively. For the six months ended September 30, 2000 and 1999,
comprehensive income was $14.1 million and $4.4 million, respectively.

NEW ACCOUNTING STANDARDS In June 1999, the Financial Accounting Standards Board
("FASB") issued SFAS No. 137 to effectively defer the implementation date of
SFAS No. 133 "Accounting for Derivative Instruments and Hedging Activities" for
one year. SFAS No. 133 was issued in June 1998 and establishes, for the first
time, comprehensive accounting and reporting standards for derivative
instruments and hedging activities. This new standard requires that all
derivative instruments be recorded in the statement of condition at fair value.
The recording of the gain or loss due to changes in fair value could either be
reported in earnings or as other comprehensive income in the statement of
shareholders' equity, depending on the type of instrument and whether or not it
is considered a hedge. With the issuance of SFAS No. 137, SFAS No. 133 is now
effective for all fiscal quarters beginning after June 15, 2000. The adoption of
this new statement is currently not expected to have a material effect on the
Corporation's future financial condition, results of operations, or liquidity.

Certain 1999 accounts have been reclassified to conform to the 2000
presentations.




                                       6






<PAGE>   8




NOTE 3 - STOCKHOLDERS' EQUITY

On July 7, 2000, 3,500 shares granted pursuant to the Corporation's management
recognition plan were earned by the recipients. During the quarter ended
September 30, 2000, options for 29,780 shares of common stock were exercised at
a weighted-average price of $5.89 per share. Treasury shares were issued in
exchange for the options using the last-in-first-out method. The cost of the
treasury shares issued in excess of the option price paid was charged to
retained earnings $(310,000). During the quarter ended September 30, 2000, the
Corporation repurchased 743,000 shares of common stock. During the quarter,
56,453 shares of treasury stock were reissued to the Corporation's retirement
plans. The weighted-average cost of these shares was $14.47 per share or
$817,000 in the aggregate and the excess of the market price over cost of the
treasury shares $(72,000) was charged to retained earnings. On August 15, 2000,
the Corporation paid a cash dividend of $0.075 per share amounting to $1.7
million.


NOTE 4 - EARNINGS PER SHARE

Earnings per share for the three and six months ended September 30, 2000 and
1999 have been determined by dividing net income for the respective periods by
the weighted average number of shares of common stock and common stock
equivalents outstanding. Common stock equivalents are computed using the
treasury stock method.
























                                       7





<PAGE>   9


<TABLE>
<CAPTION>
                                                      THREE MONTHS ENDED SEPTEMBER 30,
                                                  ----------------------------------------
                                                       2000                      1999
                                                  ----------------------------------------
<S>                                               <C>                       <C>
Numerator:
     Net income                                    $   6,581,500             $   7,121,784
                                                  --------------            --------------
     Numerator for basic and diluted earnings
       per share--income available to common
       stockholders                                $   6,581,500             $   7,121,784

Denominator:
     Denominator for basic earnings per
       share--weighted-average shares                 22,627,115                24,713,209
     Effect of dilutive securities:
       Employee stock options                            614,060                   865,942
     Denominator for diluted earnings per
       share--adjusted weighted-average           --------------            --------------
       shares and assumed conversions                 23,241,175                25,579,151
                                                  ==============            ==============
Basic earnings per share                           $        0.29             $        0.29
                                                  ==============            ==============
Diluted earnings per share                                  0.28                      0.28
                                                  ==============            ==============


<CAPTION>

                                                        SIX MONTHS ENDED SEPTEMBER 30,
                                                  ----------------------------------------
                                                        2000                      1999
                                                  ----------------------------------------
<S>                                               <C>                       <C>
Numerator:
     Net income                                    $  13,566,311             $   5,518,599
                                                  --------------            --------------
     Numerator for basic and diluted earnings
       per share--income available to common
       stockholders                                $  13,566,311             $   5,518,599


Denominator:
     Denominator for basic earnings per
       share--weighted-average shares                 22,967,268                24,608,048
     Effect of dilutive securities:
       Employee stock options                            609,203                   924,789
     Denominator for diluted earnings per
       share--adjusted weighted-average
                                                  --------------            --------------
       shares and assumed conversions                 23,576,471                25,532,837
                                                  ==============            ==============
Basic earnings per share                           $        0.59             $        0.22
                                                  ==============            ==============
Diluted earnings per share                         $        0.58             $        0.22
                                                  ==============            ==============
</TABLE>









                                       8



<PAGE>   10



Note 5 - Subsequent Events

On October 19, 2000, the Corporation declared a $0.075 per share cash dividend
on its common stock to be paid on November 15, 2000 to stockholders of record on
November 1, 2000.





































                                       9




<PAGE>   11





                          ANCHOR BANCORP WISCONSIN INC.

 ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                              RESULTS OF OPERATIONS

This report contains certain "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Corporation desires to take
advantage of the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995 and is including this statement for the expressed purpose of
availing itself of the protection of the safe harbor with respect to all of such
forward-looking statements. These forward-looking statements describe future
plans or strategies and include the Corporation's expectations of future
financial results. The Corporation's ability to predict results or the effect of
future plans or strategies is inherently uncertain and the Corporation can give
no assurance that those results or expectations will be attained. Factors that
could affect actual results include but are not limited to i) general market
rates, ii) changes in market interest rates and the shape of the yield curve,
iii) general economic conditions, iv) real estate markets, v)
legislative/regulatory changes, vi) monetary and fiscal policies of the U.S.
Treasury and the Federal Reserve, vii) changes in the quality or composition of
the Corporation's loan and investment portfolios, viii) demand for loan
products, ix) the level of loan and MBS repayments, x) deposit flows, xi)
competition, xii) demand for financial services in the Corporation's markets,
and xiii) changes in accounting principles, policies or guidelines. These
factors should be considered in evaluating the forward-looking statements, and
undue reliance should not be placed on such statements.


The Corporation does not undertake and specifically disclaims any obligation to
update any forward-looking statements to reflect occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.

The following discussion is designed to provide a more thorough discussion of
the Corporation's financial condition and results of operations as well as to
provide additional information on the Corporation's asset/liability management
strategies, sources of liquidity and capital resources. Management's discussion
and analysis should be read in conjunction with the consolidated financial
statements and supplemental data contained elsewhere in this report.

RESULTS OF OPERATIONS

General. Net income for the three and six months ended September 30, 2000
decreased $540,000 to $6.6 million and increased $8.0 million to $13.6 million,
respectively, from the same periods in the prior year. The decrease in net
income for the three-month period compared to the same period last year was
largely due to the increase in interest expense of $8.1 million. In addition,
non-interest expense for the three months ended September 30, 2000 increased
$790,000. These increases were offset by an increase in interest income of $6.9
million, an increase in non-interest income of $560,000 and a decrease in income
tax expense of $850,000 for the three-month period. The increase in net income
for the six-month period compared to the same period last year was largely due
to the decrease in non-interest expense of $9.3 million, primarily due to prior
year merger-related expenses of $8.5 million in connection with the acquisition
of FCB Financial Corp. (FCBF) and the write off of goodwill of $1.8 million from
a previous acquisition that had become impaired. An increase in interest income
of $12.9 million, an increase in non-interest income of $280,000, and a decrease
in provision for possible loan losses of $660,000 also contributed to the
increase in net income for the six-month period. The decrease in loss provision
was due to an adjustment made in the prior six-month period due to the merger
with FCBF. These income increases, for the six months ended September 30, 2000,
were offset by an increase in interest expense of $14.1 million and an increase
in income taxes of $910,000.

Net Interest Income. Net interest income decreased $1.2 million and $1.3 million
for the three and six months ended September 30, 2000 compared to the same
periods in 1999. The net interest margin decreased to 2.77% from 3.14% for the
respective three-month periods and decreased to 2.86% from 3.17% for the
respective six-month periods. The interest rate spread decreased to 2.61% from
2.88% and decreased to 2.68% from 2.93%, respectively, for the same periods.



                                       10



<PAGE>   12



Interest income on loans increased $6.1 million and $11.1 million for the three
and six months ended September 30, 2000 as compared to the same periods in the
prior year. These increases were the result of an increase of $163.8 million and
$166.1 million, respectively, in the average balance of loans for the periods
due to increased loan originations. Interest income on mortgage-related
securities increased $600,000 and $1.3 million for the same periods due
primarily to the increase of $34.3 million and $41.2 million, respectively, in
the average balance of mortgage-related securities. Interest income on
investment securities (including Federal Home Loan Bank stock) increased $40,000
and $110,000 for the three- and six-month periods ended September 30, 2000 as
compared to the same periods in the prior year. Although the average balances of
the investment securities and FHLB stock decreased $16.2 million and $12.7
million, respectively, for the three-and six-month periods, these decreases were
more than offset by an increase in the average yield from 5.35% to 5.87% for the
three-month period, and from 5.33% to 5.81% for the six-month period for
investment securities. The average yield for FHLB stock increased from 6.50% to
7.68% and from 6.50% to 7.45% for the respective three and six months ended
September 30, 2000 as compared to the same periods in the prior year. Interest
income on interest-bearing deposits increased $200,000 and $370,000,
respectively, for the three and six months ended September 30, 2000, due to the
increase of $10.7 million and $8.1 million in the average balance of
interest-bearing deposits.

Interest expense on deposits increased $3.3 million and $5.3 million,
respectively, for the three and six months ended September 30, 2000 as compared
to the same periods in 1999. These increases were due primarily to the increases
in the average balance of deposits of $51.3 million and $42.5 million,
respectively, for the three- and six-month periods, as a result of various
demand deposit and certificate promotions. Interest expense on notes payable and
other borrowings increased $4.8 million and $8.9 million, respectively, during
the same periods due to an increase of $208.0 million and $205.1 million,
respectively, in the average balance of notes payable and other borrowings.
Other interest expense decreased $20,000 and $30,000, respectively, for the
three and six months ended September 30, 2000.

Provision for Possible Loan Losses. Provision for possible loan losses increased
$10,000 to $160,000, and decreased $660,000 to $350,000 for the three- and
six-month periods ended September 30, 2000 compared to the same periods for the
prior year. The six-month period decrease included a $650,000 conforming
adjustment in fiscal 2000 to bring FCBF's allowance in conformity with the
Corporation's allowance policy. Exclusive of this one-time conforming provision,
provision for loan losses for the six-month period would have decreased $10,000
to $360,000. The provision was based on management's ongoing evaluation of asset
quality.

Average Interest-Earning Assets, Average Interest-Bearing Liabilities and
Interest Rate Spread. The following tables show the Corporation's average
balances, interest, average rates, net interest margin and the spread between
the combined average rates earned on interest-earning assets and average cost of
interest-bearing liabilities for the periods indicated. The average balances are
derived from average daily balances.

















                                       11


<PAGE>   13

<TABLE>
<CAPTION>


                                                                THREE MONTHS ENDED SEPTEMBER 30,
                                             ----------------------------------------------------------------------
                                                             2000                            1999
                                              ----------------------------------  ---------------------------------
                                                                       AVERAGE                            AVERAGE
                                                 AVERAGE                YIELD/     AVERAGE                YIELD/
                                                 BALANCE                COST (1)   BALANCE                     (1)
                                                            INTEREST                         INTEREST      COST
                                              ---------------------------------------------------------------------
                                                                      (Dollars In Thousands)

<S>                                           <C>           <C>         <C>       <C>         <C>          <C>
INTEREST-EARNING ASSETS
Mortgage loans                                 $ 1,889,416  $ 37,761    7.99%     $1,787,574  $33,565      7.51%
Consumer loans                                     462,722    10,368    8.96         408,193    8,825      8.65
Commercial business loans                           72,045     1,764    9.79          64,578    1,403      8.69
                                              ------------  --------              ----------  -------
  Total loans receivable                         2,424,183    49,893    8.23        2,260,34   43,793      7.75

Mortgage-related securities                        285,083     4,571    6.41         250,793    3,968      6.33

Investment securities                               02,266     1,501    5.87         125,408    1,677      5.35

Interest-bearing deposits                           20,140       316    6.28           9,445      115      4.87

Federal Home Loan Bank stock                        35,866       689    7.68          28,963      471      6.50
                                              ------------  --------              ----------   ------
  Total interest-earning assets                  2,867,538    56,970    7.95       2,674,954   50,024      7.48
Non-interest-earning assets                        162,788              ----         100,732
                                              ------------                        ----------
  Total assets                                   3,030,326                         2,775,686
                                              ============                        ==========



INTEREST-BEARING LIABILITIES
Demand deposits                                    578,755     4,975    3.44         558,667    3,750      2.68
Regular passbook savings                           139,296       579    1.66         171,403    1,153      2.69
Certificates of deposit                          1,196,169    17,894    5.98        1,132,88   15,250      5.38
                                              ------------   -------              ----------   ------
  Total deposits                                 1,914,220    23,448    4.90        1,862,95   20,153      4.33

Notes payable and other borrowings                 848,174    13,508    6.37         640,206    8,676      5.42
Other                                               20,014       171    3.42          20,137      194      3.85
                                              ------------   -------              ----------   ------
  Total interest-bearing liabilities             2,782,408   37,127     5.34       2,523,298   29,023      4.60
                                                             -------    ----                   ------      ----
Non-interest-bearing liabilities                    38,502                            28,671
                                              ------------                        ----------
  Total liabilities                              2,820,910                         2,551,969
Stockholders' equity                               209,416                           223,717
                                              ------------                        ----------
  Total liabilities and stockholders' equity     3,030,326                         2,775,686
                                              ============                        ==========

  Net interest income/interest rate spread                  $19,843     2.61%                 $21,001      2.88%
                                                            =======     ====                  =======      ====
  Net interest-earning assets                  $    85,130                        $  151,656
                                              ============                        ==========
  Net interest margin                                                   2.77%                              3.14%
                                                                        ====                               ====
  Ratio of average interest-earning assets

   to average interest-bearing
liabilities                                           1.03                              1.06
                                                      ====                              ====

</TABLE>

------------------------------------------
(1) Annualized







                                       12

<PAGE>   14
<TABLE>
<CAPTION>
                                                                       SIX MONTHS ENDED SEPTEMBER 30,
                                                ---------------------------------------------------------------------------
                                                                  2000                                 1999
                                                ----------------------------------     ------------------------------------
                                                                          AVERAGE                                   AVERAGE
                                                  AVERAGE                  YIELD/       AVERAGE                      YIELD/
                                                  BALANCE       INTEREST  COST (1)      BALANCE       INTEREST      COST (1)
                                                ---------------------------------------------------------------------------
                                                                         (Dollars In Thousands)
<S>                                              <C>           <C>          <C>        <C>           <C>             <C>
INTEREST-EARNING ASSETS
Mortgage loans                                   $1,862,181    $   73,623   7.91%      $1,742,344    $   65,499      7.52%
Consumer loans                                      455,570        20,175   8.86          405,298        17,481      8.63
Commercial business loans                            68,650         3,407   9.93           72,706         3,132      8.62
                                                 ----------    ----------              ----------    ----------
  Total loans receivable                          2,386,401        97,205   8.15        2,220,348        86,112      7.76

Mortgage-related securities                         289,806         9,317   6.43          248,624         8,018      6.45
Investment securities                                96,478         2,804   5.81          116,661         3,108      5.33
Interest-bearing deposits                            22,071           695   6.30           13,946           329      4.72
Federal Home Loan Bank stock                         35,515         1,323   7.45           27,982           910      6.50
                                                 ----------    ----------              ----------    ----------
  Total interest-earning assets                   2,830,271       111,344   7.87        2,627,561        98,477      7.50
                                                                            ----                                     ----
Non-interest-earning assets                         152,585                                84,720
                                                 ----------                            ----------
  Total assets                                   $2,982,856                            $2,712,281
                                                 ==========                            ==========

INTEREST-BEARING LIABILITIES

Demand deposits                                  $  571,976         9,465   3.31       $  548,328         7,211      2.63

Regular passbook savings                            139,392         1,139   1.63          243,886         3,317      2.72
Certificates of deposit                           1,186,646        34,702   5.85        1,063,301        29,501      5.55
                                                 ----------    ----------              ----------    ----------
  Total deposits                                  1,898,014        45,306   4.77        1,855,515        40,029      4.31
Notes payable and other borrowings                  818,490        25,344   6.19          613,378        16,472      5.37
Other                                                16,193           278   3.43           16,218           308      3.80
                                                 ----------    ----------              ----------    ----------
  Total interest-bearing liabilities              2,732,697        70,928   5.19        2,485,111        56,809      4.57
                                                               ----------   ----                     ----------      ----
 Non-interest-bearing liabilities                    38,013                                 3,737
                                                 ----------                            ----------
  Total liabilities                               2,770,710                             2,488,848
Stockholders' equity                                212,146                               223,433
                                                 ----------                            ----------
  Total liabilities and stockholders' equity     $2,982,856                            $2,712,281
                                                 ==========                            ==========

  Net interest income/interest rate spread                     $   40,416   2.68%                    $   41,668      2.93%
                                                               ==========   ----                     ==========      ----

  Net interest-earning assets                    $   97,574                            $  142,450
                                                 ==========                            ==========

  Net interest margin                                                       2.86%                                    3.17%
                                                                            ====                                     ====

  Ratio of average interest-earning assets
   to average interest-bearing liabilities             1.04                                  1.06
                                                       ====                                  ====
</TABLE>



----------------------
(1) Annualized





                                       13

<PAGE>   15
Non-Interest Income. Non-interest income increased $560,000 to $3.6 million and
$280,000 to $6.9 million, respectively, for the three and six months ended
September 30, 2000 as compared to the same periods in the prior year as a result
of several factors. The gain on sale of loans increased $840,000 and $170,000
for the three- and six-month periods due to increased gain on student loan sale
and an originated mortgage servicing rights (OMSR) adjustment. Insurance
commissions increased $200,000 and $510,000 for the three and six months ended
September 30, 2000 as compared to the same periods in the prior year due to
increased sales. Service charges on deposit accounts increased $200,000 and
$290,000 for the three- and six-month periods due to a growth in deposits and
increased fees. In addition, loan servicing income increased $110,000 and
$170,000 for the three and six months ended September 30, 2000 as compared to
the same periods in the prior year largely due to an increase in the volume of
serviced loans. Other non-interest income increased $140,000 and $130,000 for
the three- and six-month periods. Net gain on sale of investments and securities
increased $80,000 for both the three and six months ended September 30, 2000 as
compared to the same periods in the prior year. These increases were partially
offset by a decrease in net income from operations of real estate investments of
$1.0 million and $1.1 million for the three and six months ended September 30,
2000 as compared to the same prior, respective periods. These decreases were
largely due to decreased resort and golf net income at the partnerships and
losses on the sale of two condominium units in a development in Bloomington,
Minnesota.

Non-Interest Expense. Non-interest expense increased $790,000 to $12.8 million
and decreased $9.3 million to $25.5 million, respectively, during the three and
six months ended September 30, 2000 as compared to the same periods in 1999 as a
result of several factors. The increase in non-interest expense for the
three-month period ended September 30, 2000 as compared to the same period in
the prior year was largely due to an increase in other expense of $530,000. This
increase was primarily due to the reclassification of some items between other
non-interest expense and other categories. Compensation expense increased
$200,000 due primarily to an increase in incentive compensation resulting from
increased loan production, and data processing expense increased $140,000 for
the three-month period due to increased equipment fees, line charges and support
staff payments. Furniture and equipment expense increased $100,000 largely due
to normal increases in depreciation and other costs for the three months ended
September 30, 2000 as compared to the same period in 1999. These increases were
partially offset by a decrease in federal insurance premiums of $170,000 for the
three-month period due to a reduction in the assessment. The decrease in
non-interest expense for the six-month period ended September 30, 2000 was
attributable to merger-related expense of $8.5 million in the first quarter of
fiscal 2000 due to the merger with FCBF and increased goodwill expense of $1.8
million also in the first quarter of fiscal 2000. Unamortized goodwill from a
previous merger became impaired and was written off in the first quarter of
fiscal 2000. Exclusive of the one-time charges for the merger and goodwill,
non-interest expense increased $1.0 million for the six-month period ended
September 30, 2000 as compared to the same period in the prior year. This
increase was primarily due to an increase in other non-interest expense of
$710,000. This increase was largely due to the reclassification of some items
between other non-interest expense and other categories. Compensation expense
increased $430,000 due primarily to an increase in incentive compensation
resulting from increased loan production. Additionally, furniture and equipment
expense increased $160,000 largely due to normal increases in depreciation and
other costs for the six-month period ended September 30, 2000. Occupancy expense
increased $70,000 and data processing expense increased $40,000 for the same
six-month period as compared to the same period in the prior year. Partially
offsetting these increases was a decrease of $340,000 in federal insurance
premiums due to a reduction in the assessment, and a decrease of $70,000 in
marketing expense as compared to the prior six-month period.

Income Taxes. Income tax expense decreased $850,000 and increased $910,000
during the three and six months ended September 30, 2000 as compared to the same
periods in 1999. The effective tax rate was 36.7% and 36.8%, respectively, for
the current year as compared to 39.6% and 55.9% for the three- and six-month
periods last year. The unusual effective tax rate for the six-month period for
1999 was a result of certain merger-related costs and goodwill amortization that
are not deductible for tax purposes.





                                       14
<PAGE>   16





FINANCIAL CONDITION



During the six months ended September 30, 2000, the Corporation's assets
increased by $187.1 million from $2.91 billion at March 31, 2000, to $3.10
billion. The majority of this increase was attributable to increases in loans
and investment securities and was partially offset by decreases in
mortgage-related securities.

Investment securities (both available for sale and held to maturity) increased
$26.8 million during the six months ended September 30, 2000 as a result of
purchases of $43.6 million of U.S. Government and agency securities which were
offset by sales and maturities of $16.8 million.

Mortgage-related securities (both available for sale and held to maturity)
decreased $26.5 million during the six months ended September 30, 2000 as a
result of principal repayments and market value adjustments of $23.9 million and
sales of $4.1 million. This decrease was partially offset by purchases of $1.5
million. Mortgage-related securities consisted of $242.0 million of
mortgage-backed securities and $32.0 million of Collateralized Mortgage
Obligations ("CMO's") and Real Estate Mortgage Investment Conduits ("REMIC's")
at September 30, 2000.

The Corporation's investments in CMO's and REMIC's are limited to federal agency
issued REMIC's which represent an interest in mortgage-backed securities. These
investments are deemed to have limited credit risk. The investments do have
interest rate risk due to, among other things, actual prepayments being more or
less than those predicted at the time of purchase. The Corporation invests only
in short-term tranches in order to limit the reinvestment risk associated with
greater than anticipated prepayments, as well as changes in value resulting from
changes in interest rates.

Total loans (including loans held for sale) increased $162.4 million during the
six months ended September 30, 2000. Activity for the period included (i)
originations and purchases of $610.8 million, (ii) sales of $221.4 million, and
(iii) principal repayments and other adjustments of $227.0 million.

Total liabilities increased $194.3 million during the six months ended September
30, 2000. Deposits increased $93.8 million during the six months ended September
30, 2000. The increase was due primarily to new demand deposit products and
certificate promotions. Brokered deposits have been used in the past and may be
used in the future as the need for funds requires them. Brokered deposits
totaled $113.6 million at September 30, 2000 and generally mature in one year.
FHLB advances and other borrowings increased $72.7 million during the six months
ended September 30, 2000. Reverse repurchase agreements increased $8.5 million
during the six months ended September 30, 2000. Advance payments by borrowers
for taxes and insurance increased $15.6 million during this same period.

Stockholders' equity decreased $7.2 million during the six months ended
September 30, 2000 as a net result of (i) comprehensive income of $14.1 million
(ii) stock options exercised of $1.3 million (with the excess of the cost of
treasury shares over the option price ($810,000) charged to retained earnings),
(iii) the tax benefit from certain stock options of $80,000, (iv) the purchase
of stock by retirement plans of $940,000, and (v) benefit plan shares earned and
related tax adjustments totaling $210,000. These increases were offset by (i)
purchases of treasury stock of $19.6 million and (ii) cash dividends of $3.4
million.




                                       15
<PAGE>   17



ASSET QUALITY

Loans are placed on non-accrual status when, in the judgment of management, the
probability of collection of interest is deemed to be insufficient to warrant
further accrual. When a loan is placed on non-accrual status, previously accrued
but unpaid interest is deducted from interest income. As a matter of policy, the
Corporation does not accrue interest on loans past due 90 days or more.

Non-performing assets decreased $410,000 to $5.2 million at September 30, 2000
from $5.6 million at March 31, 2000 and decreased as a percentage of total
assets to 0.17 % from 0.19% at such dates, respectively.

Non-performing assets are summarized as follows at the dates indicated:


<TABLE>
<CAPTION>
                                                             AT SEPTEMBER 30,                 AT MARCH 31,
                                                                               ------------------------------------------
                                                                  2000            2000            1999             1998
                                                                 -------       ------------------------------------------
                                                                                  (Dollars In Thousands)
<S>                                                              <C>             <C>             <C>             <C>
Non-accrual loans:
Single-family residential                                        $ 2,280         $ 2,582         $ 2,931         $ 3,256
Multi-family residential                                               2               3              --             898
Commercial real estate                                               443             126             145             288
Construction and land                                                 91              --              --              --
Consumer                                                             423             571             571             765
Commercial business                                                  526             332             359             769
                                                                 -------         -------         -------         -------
Total non-accrual loans                                            3,765           3,614           4,006           5,976
Real estate held for development and sale                          1,090           1,691           1,764           4,431
Foreclosed properties and repossessed assets, net                    310             272             630           3,794
                                                                 -------         -------         -------         -------
Total non-performing assets                                      $ 5,165         $ 5,577         $ 6,400         $14,201
                                                                 =======         =======         =======         =======

Performing troubled debt restructurings                          $   444         $   144         $   293         $   725
                                                                 =======         =======         =======         =======
Total non-accrual loans to total loans                              0.14%           0.15%           0.18%           0.29%
Total non-performing assets to total assets                         0.17            0.19            0.24            0.56
Allowance for loan losses to total loans                            0.93            1.00            1.08            1.23
Allowance for loan losses to total
non-accrual loans                                                 641.17          675.26          599.78          425.03
Allowance for loan and foreclosure losses
to total non-performing assets                                    469.66          439.63          379.97          181.15

</TABLE>



Non-accrual loans increased $150,000 during the six months ended September 30,
2000. At September 30, 2000, there were no non-accrual loans with a carrying
value greater than $1.0 million.

Non-performing real estate held for development and sale decreased $600,000 for
the six months ended September 30, 2000. At September 30, 2000, there were no
properties in non-performing real estate held for development and sale with a
carrying value greater than $1.0 million.

Foreclosed properties and repossessed assets increased $40,000 during the six
months ended September 30, 2000. There were no foreclosed properties and
repossessed assets with a carrying value greater than $1.0 million at September
30, 2000.



                                       16
<PAGE>   18

Performing troubled debt restructurings increased $300,000 during the six months
ended September 30, 2000 due to the addition of an unimproved land mortgage
loan.

At September 30, 2000, assets that the Corporation has classified as
substandard, net of reserves, consisted of $5.6 million of loans and foreclosed
properties. As of March 31, 2000, the substandard assets amounted to $10.7
million. The decrease of $5.1 million in substandard assets was due largely to a
decrease of $4.4 million in substandard mortgage loans and a decrease of
$900,000 in substandard investments. The decrease in substandard mortgage loans
was substantially due to a $4.0 million commercial mortgage loan that paid off
during the six-month period ended September 30, 2000. The decrease in
substandard investments was due to the sale of two units of a condominium
project in Bloomington, Minnesota which were held for development and sale.

The following table sets forth information relating to the Corporation's loans
that were less than 90 days delinquent at the dates indicated.


<TABLE>
<CAPTION>
                               AT SEPTEMBER 30,                          AT MARCH 31,
                                                   -----------------------------------------------------
                                    2000                2000                 1999                  1998
                                   ------          -----------------------------------------------------
                                                          (In Thousands)
<S>                                <C>             <C>                       <C>                  <C>
30 to 59 days                      $6,845               $3,224               $5,535               $7,525
60 to 89 days                         526                  903                  693                1,397
                                   ------               ------               ------               ------
Total                              $7,371               $4,127               $6,228               $8,922
                                   ======               ======               ======               ======
</TABLE>

The Corporation's loan portfolio, foreclosed properties and repossessed assets
are evaluated on a continuing basis to determine the necessity for additions to
the allowance for losses and the related balance in the allowances. These
evaluations consider several factors, including, but not limited to, general
economic conditions, loan portfolio composition, loan delinquencies, prior loss
experience, collateral value, anticipated loss of interest and management's
estimation of future potential losses. The evaluation of the allowance for loan
losses includes a review of known loan problems as well as potential problems
based upon historical trends and ratios. Foreclosed properties are recorded at
the lower of carrying value or fair value with charge-offs, if any, charged to
the allowance for loan losses prior to transfer to foreclosed property. The fair
value is primarily based on appraisals, discounted cash flow analysis (the
majority of which are based on current occupancy and lease rates) and pending
offers.





                                       17
<PAGE>   19



A summary of the activity in the allowance for losses on loans follows:

<TABLE>
<CAPTION>

                                                          THREE MONTHS ENDED                       SIX MONTHS ENDED
                                                             SEPTEMBER 30,                           SEPTEMBER 30,
                                                     ----------------------------            ----------------------------
                                                       2000                1999               2000                 1999
                                                     ----------------------------            ----------------------------
                                                                           (Dollars In Thousands)
<S>                                                  <C>                 <C>                 <C>                 <C>
Allowance at beginning of period                     $ 24,404            $ 24,900            $ 24,404            $ 24,324
Charge-offs:
 Mortgage                                                (502)                 (1)               (513)                 (4)
 Consumer                                                (157)               (189)               (366)               (582)
 Commercial business                                       --                (171)                 (1)               (172)
                                                     --------            --------            --------            --------
  Total charge-offs                                      (659)               (361)               (880)               (758)
Recoveries:
 Mortgage                                                 208                  20                 217                  33
 Consumer                                                  14                  20                  39                 116
 Commercial business                                       13                   3                  15                  11
                                                     --------            --------            --------            --------
  Total recoveries                                        235                  43                 271                 160
                                                     --------            --------            --------            --------
  Net charge-offs                                        (424)               (318)               (609)               (598)
Provision                                                 160                 150                 345               1,006
                                                     --------            --------            --------            --------
 Allowance at end of period                          $ 24,140            $ 24,732            $ 24,140            $ 24,732
                                                     ========            ========            ========            ========

Net charge-offs to average loans                        (0.07)%             (0.06)%             (0.05)%             (0.05)%
                                                     ========            ========            ========            ========
</TABLE>



Although management believes that the September 30, 2000 allowance for loan
losses is adequate, based upon the current evaluation of loan delinquencies,
non-accrual loans, charge-off trends, economic conditions and other factors,
there can be no assurance that future adjustments to the allowance, which could
adversely affect the Corporation's results of operations, will not be necessary.
Management also continues to pursue all practical and legal methods of
collection, repossession and disposal, as well as adhering to high underwriting
standards in the origination process, in order to maintain strong asset quality.

LIQUIDITY AND CAPITAL RESOURCES

On an unconsolidated basis, the Corporation's sources of funds include dividends
from its subsidiaries, including the Bank, interest on its investments and
returns on its real estate held for sale. The Bank's primary sources of funds
are payments on loans and mortgage-related securities, deposits from retail and
wholesale sources, advances and other borrowings.

At September 30, 2000, the Corporation had outstanding commitments to originate
loans of $59.1 million, commitments to extend funds to, or on behalf of,
customers pursuant to lines and letters of credit of $144.7 million and loans
sold with recourse to the Corporation in the event of default by the borrower of
$1.1 million. The Corporation had firm commitments outstanding to deliver loans
through the FHLB Mortgage Partnership Finance Program of $5.6 million at
September 30, 2000. Scheduled maturities of certificates of deposit during the
twelve months following September 30, 2000 amounted to $948.1 million and
scheduled maturities of FHLB advances during the same period totaled $447.9
million. At September 30, 2000, the Corporation also had $100.9 million of
reverse repurchase agreements, all of which are scheduled to mature during the
twelve months following September 30, 2000. Management believes adequate capital
and borrowings are available from various sources to fund all commitments to the
extent required.




                                       18
<PAGE>   20

The Bank is required by the Office of Thrift Supervision ("OTS") to maintain
specified levels of liquid investments in qualifying types of U.S. Government
and agency securities and other investments. This requirement, which may be
varied by the OTS, is based upon a percentage of deposits and short-term
borrowings. The required percentage is currently 4.0%. During the quarter ended
September 30, 2000, the Bank's average liquidity ratio was 11.6%.

Under federal law and regulation, the Bank is required to meet certain tangible,
core and risk-based capital requirements. Tangible capital generally consists of
stockholders' equity minus certain intangible assets. Core capital generally
consists of tangible capital plus qualifying intangible assets. The risk-based
capital requirements presently address credit risk related to both recorded and
off-balance sheet commitments and obligations. The OTS requirement for the core
capital ratio for the Bank is currently 3.00%. The requirement is 4.00% for all
but the most highly-rated financial institutions.

The following summarizes the Bank's capital levels and ratios and the levels and
ratios required by the OTS at September 30, 2000 and March 31, 2000 (dollars
in thousands):


<TABLE>
<CAPTION>
                                                                                                   MINIMUM REQUIRED
                                                                       MINIMUM REQUIRED               TO BE WELL
                                                                          FOR CAPITAL              CAPITALIZED UNDER
                                                  ACTUAL                ADEQUACY PURPOSES           OTS REQUIREMENTS
                                        -----------------------------------------------------------------------------
                                         AMOUNT            RATIO      AMOUNT            RATIO      AMOUNT       RATIO
                                        -----------------------------------------------------------------------------
<S>                                     <C>               <C>        <C>                <C>        <C>          <C>
AS OF SEPTEMBER 30, 2000:

Tier 1 capital

 (to adjusted tangible assets)          $187,190            6.15%     $ 91,262           3.00%     $152,103       5.00%

Risk-based capital

 (to risk-based assets)                  211,072           10.06       167,829           8.00       209,786      10.00

Tangible capital

 (to tangible assets)                    187,190            6.15        45,631           1.50           N/A        N/A

AS OF MARCH 31, 2000:

Tier 1 capital

 (to adjusted tangible assets)           188,606            6.56        86,201           3.00       143,669       5.00

Risk-based capital

 (to risk-based assets)                  212,066           11.07       153,196           8.00       191,495      10.00

Tangible capital

 (to tangible assets)                    188,606            6.56        43,101           1.50           N/A        N/A
</TABLE>



                                       19
<PAGE>   21

The following table reconciles stockholder equity to regulatory capital at
September 30, 2000 and March 31, 2000 (dollars in thousands):

<TABLE>
<CAPTION>

                                                                    SEPTEMBER 30,             MARCH 31,
                                                                   ----------------------------------------
                                                                        2000                     2000
                                                                   ----------------------------------------
<S>                                                                <C>                       <C>
Stockholders' equity of the Corporation                              $ 210,006               $ 217,215

Less: Capitalization of the Corporation and Non-Bank

 subsidiaries                                                          (22,345)                (28,944)
                                                                     ---------               ---------
Stockholders' equity of the Bank                                       187,661                 188,271

Less: Intangible assets and other non-includable assets                   (471)                    335
                                                                     ---------               ---------
Tier 1 and tangible capital                                            187,190                 188,606

Plus: Allowable general valuation allowances                            23,882                  23,460
                                                                     ---------               ---------
Risk based capital                                                   $ 211,072               $ 212,066
                                                                     =========               =========
</TABLE>


ASSET/LIABILITY MANAGEMENT

The primary function of asset and liability management is to provide liquidity
and maintain an appropriate balance between interest-earning assets and
interest-bearing liabilities within specified maturities and/or repricing dates.
Interest rate risk is the imbalance between interest-earning assets and
interest-bearing liabilities at a given maturity or repricing date, and is
commonly referred to as the interest rate gap (the "gap"). A positive gap exists
when there are more assets than liabilities maturing or repricing within the
same time frame. A negative gap occurs when there are more liabilities than
assets maturing or repricing within the same time frame. During a period of
rising interest rates, a negative gap over a particular period would tend to
adversely affect net interest income over such period, while a positive gap over
a particular period would tend to result in an increase in net interest income
over such period.

The Corporation's strategy for asset and liability management is to maintain an
interest rate gap that minimizes the impact of interest rate movements on the
net interest margin. As part of this strategy, the Corporation sells
substantially all new originations of long-term, fixed-rate, single-family
residential mortgage loans in the secondary market, and invests in
adjustable-rate or medium-term, fixed-rate, single-family residential mortgage
loans, medium-term mortgage-related securities and consumer loans, which
generally have shorter terms to maturity and higher interest rates than
single-family mortgage loans.

The Corporation also originates multi-family residential and commercial real
estate loans, which generally have adjustable or floating interest rates and/or
shorter terms to maturity than conventional single-family residential loans.
Long-term, fixed-rate, single-family residential mortgage loans originated for
sale in the secondary market are generally committed for sale at the time the
interest rate is locked with the borrower. As such, these loans involve little
interest rate risk to the Corporation.

The calculation of a gap position requires management to make a number of
assumptions as to when an asset or liability will reprice or mature. Management
believes that its assumptions approximate actual experience and considers them
reasonable, although the actual amortization and repayment of assets and
liabilities may vary substantially. The cumulative net gap position at September
30, 2000 has not changed materially since March 31, 2000.





                                       20
<PAGE>   22



SEGMENT REPORTING

According to the materiality thresholds of SFAS No. 131, the Corporation is
required to report each operating segment based on materiality thresholds of ten
percent or more of certain amounts, such as revenue. Additionally, the
Corporation is required to report separate operating segments until the revenue
attributable to such segments is at least 75 percent of total consolidated
revenue. SFAS No. 131 allows the Corporation to combine operating segments, even
though they may be individually material, if the segments have similar basic
characteristics in the nature of the products, production processes, and type or
class of customer for products or services. Based on the above criteria, the
Corporation has two reportable segments.

COMMUNITY BANKING: This segment is the main basis of operation for the
Corporation and includes the branch network and other deposit support services;
origination, sales and servicing of one-to-four family loans; origination of
multifamily, commercial real estate and business loans; origination of a variety
of consumer loans; and sales of alternative financial investments such as tax
deferred annuities.

REAL ESTATE INVESTMENTS: The Corporation's non-banking subsidiary, IDI, and it's
subsidiary, NIDI, invest in limited partnerships in real estate developments.
Such developments include recreational residential developments and industrial
developments (such as office parks).

The following represents reconciliations of reportable segment revenues, profit
or loss, and assets to the Corporation's consolidated totals for the three and
six months ended September 30, 2000 and 1999, respectively.







                                       21
<PAGE>   23


<TABLE>
<CAPTION>
                                                                                 THREE MONTHS ENDED SEPTEMBER 30, 2000
                                                                        --------------------------------------------------
                                                                                                              CONSOLIDATED
                                                                        REAL ESTATE          COMMUNITY         FINANCIAL
                                                                        INVESTMENTS           BANKING          STATEMENTS
                                                                        -----------        -----------        ------------
<S>                                                                     <C>                <C>                <C>
Interest income                                                         $       164        $    56,970        $     57,134
Interest expense                                                                 35             37,127              37,162
                                                                        -----------        -----------        ------------
 Net interest income                                                            129             19,843              19,972
Provision for possible loan losses                                                0                160                 160
                                                                        -----------        -----------        ------------
 Net interest income after possible provision for loan losses                   129             19,683              19,812
Other income                                                                    267              4,236               4,503
Other expense                                                                 1,075             12,837              13,912
                                                                        -----------        -----------        ------------
 Net operating income (loss)                                                   (679)            11,082              10,403
Gain on sale of real estate partnership investments                               0                  0                   0
                                                                        -----------        -----------        ------------
 Income (loss) before income taxes                                             (679)            11,082              10,403
Income taxes                                                                   (455)             4,277               3,822
                                                                        -----------        -----------        ------------
 Net income (loss)                                                      $      (224)       $     6,805        $      6,581
                                                                        ===========        ===========        ============
Average assets                                                          $    48,619        $ 2,981,707        $  3,030,326


<CAPTION>
                                                                                 THREE MONTHS ENDED SEPTEMBER 30, 1999
                                                                        --------------------------------------------------
                                                                                                              CONSOLIDATED
                                                                        REAL ESTATE          COMMUNITY         FINANCIAL
                                                                        INVESTMENTS           BANKING          STATEMENTS
                                                                        -----------        -----------        ------------
<S>                                                                     <C>                <C>                <C>
Interest income                                                         $       537        $    50,024        $     50,561
Interest expense                                                                  0             29,023              29,023
                                                                        -----------        -----------        ------------
 Net interest income                                                            537             21,001              21,538
Provision for possible loan losses                                                0                150                 150
                                                                        -----------        -----------        ------------
 Net interest income after provision for possible loan losses                   537             20,851              21,388
Other income (loss)                                                            (179)             2,666               2,487
Other expense                                                                    30             12,047              12,077
                                                                        -----------        -----------        ------------
 Net operating income                                                           328             11,470              11,798
Gain on sale of real estate partnership investments                               0                  0                   0
                                                                        -----------        -----------        ------------
 Income before income taxes                                                     328             11,470              11,798
Income taxes                                                                    149              4,527               4,676
                                                                        -----------        -----------        ------------
 Net income                                                             $       179        $     6,943        $      7,122
                                                                        ===========        ===========        ============
Average assets                                                          $   32,143         $ 2,743,543        $  2,775,686


</TABLE>





                                       22
<PAGE>   24

<TABLE>
<CAPTION>
                                                                                 SIX MONTHS ENDED SEPTEMBER 30, 2000
                                                                        --------------------------------------------------
                                                                                                              CONSOLIDATED
                                                                        REAL ESTATE          COMMUNITY         FINANCIAL
                                                                        INVESTMENTS           BANKING          STATEMENTS
                                                                        -----------        -----------        ------------
<S>                                                                     <C>                <C>                <C>
Interest income                                                         $       500        $   111,344        $    111,844
Interest expense                                                                 73             70,928              71,001
                                                                        -----------        -----------        ------------
 Net interest income                                                            427             40,416              40,843
Provision for possible loan losses                                                0                345                 345
                                                                        -----------        -----------        ------------
 Net interest income after provision for possible loan losses                   427             40,071              40,498
Other income                                                                    882              7,549               8,431
Other expense                                                                 1,923             25,532              27,455
                                                                        -----------        -----------        ------------
 Net operating income (loss)                                                   (614)            22,088              21,474
Gain on sale of real estate partnership investments                               0                  0                   0
                                                                        -----------        -----------        ------------
 Income (loss) before income taxes                                             (614)            22,088              21,474
Income taxes                                                                   (699)             8,607               7,908
                                                                        -----------        -----------        ------------
 Net income                                                             $        85        $    13,481        $     13,566
                                                                        ===========        ===========        ============
Average assets                                                          $    45,276        $ 2,937,580        $  2,982,856
                                                                        ===========        ===========        ============


<CAPTION>


                                                                                 SIX MONTHS ENDED SEPTEMBER 30, 1999
                                                                        --------------------------------------------------
                                                                                                              CONSOLIDATED
                                                                        REAL ESTATE          COMMUNITY         FINANCIAL
                                                                        INVESTMENTS           BANKING          STATEMENTS
                                                                        -----------        -----------        ------------
<S>                                                                     <C>                <C>                <C>

Interest income                                                          $    1,060        $    98,477        $     99,537
Interest expense                                                                  0             56,809              56,809
                                                                        -----------        -----------        ------------
 Net interest income                                                          1,060             41,668              42,728
Provision for possible loan losses                                                0              1,006               1,006
                                                                        -----------        -----------        ------------
 Net interest income after provision for possible loan losses                 1,060             40,662              41,722
Other income (loss)                                                            (642)             6,202               5,560
Other expense                                                                   (34)            34,798              34,764
                                                                        -----------        -----------        ------------
 Net operating income                                                           452             12,066              12,518
Gain on sale of real estate partnership investments                               0                  0                   0
                                                                        -----------        -----------        ------------
 Income before income taxes                                                      452             12,066              12,518
Income taxes                                                                    439              6,560               6,999
                                                                        -----------        -----------        ------------
 Net income                                                              $       13        $     5,506         $     5,519
                                                                        ===========        ===========        ============
Average assets                                                           $   31,120        $ 2,681,161         $ 2,712,281

</TABLE>


                                       23
<PAGE>   25

ITEM 3            QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

                  Not applicable.


                           PART II - OTHER INFORMATION

ITEM 1            LEGAL PROCEEDINGS.

The Corporation is involved in routine legal proceedings occurring in the
ordinary course of business which, in the aggregate, are believed by management
of the Corporation to be immaterial to the financial condition and results of
operations of the Corporation.


ITEM 2            CHANGES IN SECURITIES.

                  Not applicable.


ITEM 3            DEFAULTS UPON SENIOR SECURITIES.

                  Not applicable.

ITEM 4            SUBMISSION OF MATTER TO VOTE OF SECURITIES HOLDERS.

                  Not applicable.

ITEM 5            OTHER INFORMATION.

                  None.

ITEM 6            EXHIBITS AND REPORTS.

         (A)      EXHIBIT NO. 27  FINANCIAL DATA SCHEDULES

         (B)      REPORTS ON FORM 8-K.

                  None.




                                       24
<PAGE>   26



                                   SIGNATURES


Pursuant to the requirements 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.



Date:     October 31, 2000         By:  /s/ Douglas J. Timmerman
         -----------------            ------------------------------------------
                                        Douglas J. Timmerman, Chairman of the
                                        Board, President and Chief Executive
                                        Officer




Date:     October 31, 2000         By:  /s/ Michael W. Helser
         -----------------            ------------------------------------------
                                        Michael W. Helser, Treasurer and
                                        Chief Financial Officer













                                       25