<PAGE>

                      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, 1996

                                        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, 1996:  4,625,824

<PAGE>

                         ANCHOR BANCORP WISCONSIN INC.
                                INDEX - FORM 10-Q

PART I - FINANCIAL INFORMATION                                          PAGE #
                                                                        ------

           Item 1  Financial Statements (Unaudited)

                      Consolidated Balance Sheets as of September 30, 1996
                      and March 31, 1996                                     2

                      Consolidated Statements of Income for the Three and Six
                      Months Ended September 30, 1996 and 1995               3

                      Consolidated Statements of Cash Flows for the
                      Six Months Ended September 30, 1996 and 1995           4

                      Notes to Unaudited Consolidated Financial
                      Statements                                             6

           Item 2  Management's Discussion and Analysis

                      Results of Operations                                  9

                      Financial Condition                                   12

                      Asset Quality                                         14

                      Liquidity & Capital Resources                         17

                      Asset/Liability Management                            18

PART II - OTHER INFORMATION

           Item 1  Legal Proceedings                                        21
           Item 2  Changes in Securities                                    21
           Item 3  Defaults Upon Senior Securities                          21
           Item 4  Submission of Matters to Vote of Security Holders        21
           Item 5  Other Information                                        22
           Item 6  Exhibits and Reports on Form 8-K                         22

SIGNATURES                                                                  23

                                       1

<PAGE>

               ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                                 (UNAUDITED)

<TABLE>
<CAPTION>
                                                                              SEPTEMBER 30,       MARCH 31,
                                                                                   1996              1996
                                                                              -------------       ---------
                                                                                       (IN THOUSANDS)
<S>                                                                           <C>                <C>

ASSETS
Cash                                                                         $   32,691          $   35,454
Federal funds sold                                                               14,912               7,525
Interest-bearing deposits                                                            --                 710
                                                                             ----------          ----------
  Cash and cash equivalents                                                      47,603              43,689
Securities available for sale:
 Investment securities                                                           56,875              30,241
 Mortgage-related securities                                                     96,372             110,268
Securities held to maturity:
 Investment securities (fair value of $7.0 million and $2.6 million,
  respectively)                                                                   7,051               2,596
 Mortgage-related securities (fair value of $159.3 million
  and $109.9 million, respectively)                                             162,943             110,730
Loans receivable, net:
  Held for sale                                                                   5,447              13,968
  Held for investment                                                         1,428,446           1,361,080
 Foreclosed properties and repossessed assets, net                                6,494               6,077
 Real estate held for development and sale                                       10,076              13,640
 Office properties and equipment                                                 18,639              18,906
 Federal Home Loan Bank stock--at cost                                           18,881              16,019
 Accrued interest on investments and loans                                       13,069              11,549
 Prepaid expenses and other assets                                               19,688              15,793
                                                                             ----------          ----------
  Total assets                                                               $1,891,584          $1,754,556
                                                                             ----------          ----------
                                                                             ----------          ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits                                                                     $1,292,509          $1,240,958
Notes payable to Federal Home Loan Bank                                         370,119             316,869
Reverse repurchase agreements                                                    66,629              47,582
Other loans payable                                                               5,301               7,031
Advance payments by borrowers for taxes and insurance                            22,522               7,938
Other liabilities                                                                23,982              15,776
                                                                             ----------          ----------
  Total liabilities                                                           1,781,062           1,636,154
                                                                             ----------          ----------
Preferred stock, $.10 par value, 5,000,000 shares
 authorized, none outstanding                                                        --                  --
Common stock, $.10 par value, 20,000,000 shares
authorized, 6,249,662 shares issued                                                 625                 625
Additional paid-in capital                                                       50,409              50,086
Retained earnings                                                               103,134             100,191
Less: Treasury stock (1,621,088 shares and 1,315,312 shares, respectively)      (39,915)            (29,298)
      Deferred compensation due employees                                          (928)               (928)
      Common stock purchased by recognition plans                                (1,310)             (1,546)
      Unrealized losses on securities available for sale, net of tax             (1,493)               (728)
                                                                             ----------          ----------
   Total stockholders' equity                                                   110,522             118,402
                                                                             ----------          ----------
   Total liabilities and stockholders' equity                                $1,891,584          $1,754,556
                                                                             ----------          ----------
                                                                             ----------          ----------
</TABLE>

     See accompanying Notes to Unaudited Consolidated Financial Statements.
                                       2
<PAGE>

                ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME
                                 (UNAUDITED)

<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED     SIX MONTHS ENDED
                                                                       SEPTEMBER 30,        SEPTEMBER 30,
                                                                   ------------------     ----------------
                                                                     1996       1995        1996          1995
                                                                     ----       ----        ----          ----
                                                                        (IN THOUSANDS, EXCEPT PER SHARE DATA)
<S>                                                                <C>        <C>          <C>           <C>
Interest income:
  Loans                                                            $29,615     $26,731     $59,340       $51,958
  Mortgage-related securities                                        4,117       3,966       7,600         6,728
  Investment securities                                              1,163         974       2,072         1,722
  Interest-bearing deposits                                            142         117         316           170
                                                                   -------     -------     -------       -------
     Total interest income                                          35,037      31,788      69,328        60,578

Interest expense:
  Deposits                                                          14,991      13,853      29,458        26,150
  Notes payable and other borrowings                                 6,193       4,967      12,007         9,196
  Other                                                                180         175         289           281
                                                                   -------     -------     -------       -------
     Total interest expense                                         21,364      18,995      41,754        35,627
                                                                   -------     -------     -------       -------
     Net interest income                                            13,673      12,793      27,574        24,951
Provision for loan losses                                               --         150          --           325
                                                                   -------     -------     -------       -------
     Net interest income after provision for loan losses            13,673      12,643      27,574        24,626
Non-interest income:
   Loan servicing income                                               752         711       1,456         1,337
   Service charges on deposits                                         939         832       1,821         1,496
   Insurance commissions                                               418         217         737           431
   Net gain on sale of loans                                           251         242         408           401
   Other                                                             2,954         312       4,861           638
                                                                   -------     -------     -------       -------
     Total non-interest income                                       5,314       2,314       9,283         4,303
Non-interest expenses:
   Compensation                                                      5,193       4,866      10,725         9,231
   Occupancy                                                           720         709       1,474         1,340
   Federal insurance premiums                                          714         671       1,419         1,283
   Federal insurance special assessment                              7,663          --       7,663            --
   Furniture and equipment                                             705         632       1,425         1,162
   Data processing                                                     526         527       1,027         1,002
   Marketing                                                           533         432       1,051           877
   Net cost (income) of operations of foreclosure properties           178         (26)        206           (15)
   Other                                                             3,075       1,587       5,048         2,900
                                                                   -------     -------     -------       -------
     Total non-interest expenses                                    19,307       9,398      30,038        17,780
                                                                   -------     -------     -------       -------
     Income (loss) before income taxes                                (320)      5,559       6,819        11,149
Income taxes (benefit)                                                (390)      1,968       2,214         3,949
                                                                   -------     -------     -------       -------
     Net income                                                    $    70     $ 3,591     $ 4,605       $ 7,200
                                                                   -------     -------     -------       -------
                                                                   -------     -------     -------       -------
Earnings per share:
     Primary                                                       $  0.01     $  0.65     $  0.93       $  1.34
     Fully Diluted                                                    0.01        0.65        0.93          1.34
</TABLE>
    See accompanying Notes to Unaudited Consolidated Financial Statements.
                                       3
<PAGE>
                ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)
<TABLE>
<CAPTION>
                                                                        SIX MONTHS ENDED
                                                                          SEPTEMBER 30,
                                                                        ----------------
                                                                        1996          1995
                                                                        ----          ----
                                                                          (IN THOUSANDS)
<S>                                                                  <C>           <C>
OPERATING ACTIVITIES
Net income                                                           $   4,605     $  7,200
Adjustments to reconcile net income to net
 cash provided by operating activities:
  Provision for losses on loans and real estate                             --          450
  Provision for depreciation and amortization                            1,036          891
  Loans originated for sale                                            (66,827)     (92,887)
  Proceeds from sales of loans held for sale                            75,756       87,796
  Net gain on sales of loans and securities                               (408)        (236)
  Increase in accrued interest receivables                               (1,520)     (1,165)
  Increase in accrued interest payable                                    2,007         975
  Increase in accounts payable                                            6,636       1,907
  Other                                                                  (4,549)         41
                                                                     ----------    --------
  Net cash provided by operating activities                              16,736       4,972

INVESTING ACTIVITIES
Proceeds from sales of investment securities available for sale              --       5,772
Purchase of investment securities available for sale                    (26,882)    (27,541)
Purchase of investment securities held to maturity                       (4,453)         --
Proceeds from maturities of investment securities                            --       1,275
Purchase of mortgage-related securities available for sale                   --        (596)
Purchase of mortgage-related securities held to maturity                (12,974)     (2,055)
Principal collected on mortgage-related securities                       28,502      19,284
Net increase in loans receivable                                       (123,089)    (55,928)
Purchase of office properties and equipment                                (785)     (1,529)
Sales of office properties and equipment                                     35          74
Sales of real estate                                                      9,933       2,117
Purchase of real estate held for sale                                    (6,011)     (1,731)
Increase in capitalized expense on real estate                              (10)        (48)
                                                                      ---------    --------
Net cash used by investing activities                                  (135,734)    (60,906)
</TABLE>
                                       4
<PAGE>
                ANCHOR BANCORP WISCONSIN INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                SIX MONTHS ENDED
                                                                                  SEPTEMBER 30,
                                                                                ----------------
                                                                              1996           1995
                                                                              ----           ----
                                                                                 (IN THOUSANDS)
<S>                                                                        <C>           <C>
FINANCING ACTIVITIES
Increase in deposits                                                       $  50,040     $  40,438
Increase in advance payments by
 borrowers for taxes and insurance                                            14,584        13,628
Proceeds of notes payable to Federal Home Loan Bank                          340,300       235,600
Repayment of notes payable to Federal Home Loan Bank                        (287,050)     (241,200)
Increase in securities sold under agreements to repurchase                    19,047        31,616
Decrease in other loans payable                                               (1,730)           --
Treasury stock purchased                                                     (11,379)       (8,229)
Sale of treasury stock for American purchase                                      --         3,486
Reissuance of treasury stock for options                                         190           171
Payments of cash dividends to stockholders                                    (1,090)         (832)
                                                                           ---------     ---------
Net cash provided by financing activities                                    122,912        74,678
                                                                           ---------     ---------
Increase in cash and cash equivalents                                          3,914        18,744
Cash and cash equivalents at beginning of period                              43,689        28,865
                                                                           ---------     ---------
Cash and cash equivalents at end of period                                 $  47,603     $  47,609
                                                                           ---------     ---------
                                                                           ---------     ---------

Supplementary cash flow information:
 Cash paid or credited to accounts:
  Interest on deposits and borrowings                                      $  39,747     $  34,652
  Income taxes                                                                5,441          4,537

Non-cash transactions:
 Mortgage loans transferred to loans held for sale                               --          2,573
 Loans transferred to foreclosed properties                                     785            615
 Mortgage loans held for investment converted into
  mortgage-backed securities held to maturity                                 54,938        96,772
Securities available for sale market value adjustment                         (1,276)          945
American Equity BanCorp purchase:                                             
 Investment securities available for sale                                         --        (2,390)
 Mortgage-related securities available for sale                                   --          (954)
 Loans held for sale                                                              --        (5,969)
 Loans receivable                                                                 --       (85,244)
 Office properties and equipment                                                  --        (1,314)
 Federal Home Loan Bank stock                                                     --        (1,346)
 Other assets                                                                     --        (4,022)
 Deposits                                                                         --        64,803
 Notes payable to Federal Home Loan Bank                                          --        26,314
 Other liabilities                                                                --          1,038
 Treasury stock issued                                                            --          7,698
 Other stockholders' equity                                                       --          1,273
</TABLE>
     See accompanying Notes to Unaudited Consolidated Financial Statements.
                                       5
<PAGE>
                        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") and 
Investment Directions, Inc. ("IDI").  The Bank's statements include its 
wholly-owned subsidiaries, Anchor Insurance Services, Inc. ("AIS"), ADPC 
Corporation ("ADPC"), Anchor Investment Corporation ("AIC"), Anchor Financial 
Corp. ("AFC") and ADPC II LLC ("ADPC II").  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 on the equity method.  Partnerships over 50% ownership 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 
generally accepted accounting principles, 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 three and six month periods ended September 30, 1996 are not 
necessarily indicative of results that may be expected for any other interim 
period or the entire year ending March 31, 1997.  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, 1996.

NOTE 3 - STOCKHOLDERS' EQUITY

On July 15, 1996, 29,500 shares of the management recognition plan were 
earned by the recipients.  During the quarter ended September 30, 1996, 
14,690 shares of stock options were exercised at a weighted price of $8.86 
per share. Treasury shares were issued in exchange for the options using the 
last-in-first-out method.  The net loss of $386,500 was

                                       6
<PAGE>

accounted for as an adjustment to retained earnings.  During the quarter 
ended September 30, 1996, the Corporation repurchased 225,501 shares of 
common stock on the open market for an average price of $35.19.  On August 
15, 1996, the Corporation paid out a cash dividend of $.125 per share, 
amounting to $598,548.

NOTE 4 - EARNINGS PER SHARE

Earnings per share for the three and six months ended September 30, 1996 and 
1995 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.  Stock options are regarded as common stock 
equivalents and are therefore considered in both primary and fully diluted 
earnings per share calculations.  Common stock equivalents are computed using 
the treasury stock method.  The weighted average number of shares of common 
stock and common stock equivalents outstanding for September  30, 1995 have 
been adjusted to reflect the five-for-four stock split distributed on 
October, 1995.

<TABLE>
<CAPTION>
                                                  THREE MONTHS ENDED SEPTEMBER 30,
                                        ----------------------------------------------------
                                                  1996                         1995
                                         ----------------------      -----------------------
                                         PRIMARY  FULLY DILUTED      PRIMARY   FULLY DILUTED
                                         -------  -------------      -------   -------------
<S>                                    <C>        <C>              <C>          <C>
Net income                             $   69,997   $   69,997     $3,590,793    $3,590,793
                                       ----------   ----------     ----------    ----------
                                       ----------   ----------     ----------    ----------
Weighted average common shares
 outstanding                            4,646,480    4,646,480      5,299,355     5,299,355
Common stock equivalents based on the
 treasury stock method                    232,079        225,222      220,923       238,231
                                       ----------   ------------   ----------    ----------
Total weighted average common shares
 and equivalents outstanding            4,878,559    4,871,702      5,520,278     5,537,586
                                       ----------   ------------   ----------    ----------
                                       ----------   ------------   ----------    ----------
Earnings per share                     $     0.01   $     0.01      $    0.65    $     0.65
                                       ----------   ----------     ----------    ----------
                                       ----------   ----------     ----------    ----------


<CAPTION>
                                                  SIX MONTHS ENDED SEPTEMBER 30,
                                         --------------------------------------------------

                                                  1996                         1995
                                         ----------------------      -----------------------

                                         PRIMARY  FULLY DILUTED      PRIMARY   FULLY DILUTED
                                         -------  -------------      -------   -------------
<S>                                    <C>        <C>              <C>          <C>
Net income                             $4,605,274   $4,605,274      $7,199,949   $7,199,949
                                       ----------   ------------   ----------    ----------
                                       ----------   ------------   ----------    ----------

Weighted average common shares
 outstanding                            4,741,172    4,741,172       5,140,315    5,140,315
Common stock equivalents based on the
 treasury stock method                    230,819      232,973         201,891      242,754
                                       ----------   ------------   ----------    ----------
Total weighted average common shares
 and equivalents outstanding            4,971,991    4,974,145      5,342,206     5,383,069
                                       ----------   ------------   ----------    ----------
                                       ----------   ------------   ----------    ----------
Earnings per share                     $     0.93   $     0.93     $     1.34    $     1.34
                                       ----------   ----------     ----------    ----------
                                       ----------   ----------     ----------    ----------


</TABLE>
                                       7
<PAGE>
NOTE 5 - CONTINGENT LIABILITIES

The Bank had previously entered into agreements whereby, for an annual fee, 
certain mortgage-backed securities were pledged as collateral for industrial 
revenue bonds for unrelated third party borrowers.  As of September 30, 1996, 
the industrial revenue bonds were paid off.  The Bank does not anticipate 
entering into any more of these agreements.

NOTE 6 - SUBSEQUENT EVENTS

On October 18, 1996, the Corporation announced that its Board of Directors 
declared an $.125 per share cash dividend to be paid on November 15, 1996 to 
stockholders of record on November 1, 1996.

NOTE 7 - REGULATORY ISSUES

On September 30, 1996, the Omnibus Appropriations Act of 1997 was signed into 
law.  Among other things, this law provided for the recapitalization of the 
Savings Association Insurance Fund ("SAIF") of the Federal Deposit Insurance 
Corporation and resulted in a one-time charge to all institutions with 
SAIF-insured deposits of 0.657% of SAIF-insured deposits held as of March 31, 
1995.  The effect on the Bank of the charge on second quarter fiscal 1997 
results was $7.7 million before tax and $4.6 million net of tax, or $0.94 per 
share.  The law also resulted in a reduction of the Bank's annual SAIF 
assessment rate from 0.23% to 0.064% of applicable deposits effective
January 1, 1997.

                                       8
<PAGE>
                        ANCHOR BANCORP WISCONSIN INC.
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS

RESULTS OF OPERATIONS

GENERAL.  Net income for the three and six months ended September 30, 1996 
decreased to $70,000 and $4.6 million, respectively, as compared to $3.6 
million and $7.2 million, respectively, for the same periods in the prior 
year.  The decrease in net income for the periods was due to the one-time 
charge of $7.7 million, net of $3.1 million in income taxes, associated with 
the recapitalization of the SAIF.  Additional changes included (i) an 
increase in net interest income of $880,000 and $2.6 million, respectively, 
for the three and six months ended September 30, 1996 compared to the same 
periods last year and (ii) an increase in non-interest income of $3.0 million 
and $5.0 million, respectively, which were partially offset by an increase in 
non-interest expenses of $2.2 million and $4.6 million, respectively, 
exclusive of the SAIF one-time charge.

Exclusive of the one-time charge to recapitalize the SAIF, the Corporation's 
net income would have been $4.7 million or $0.95 per share for the three 
months ended September 30, 1996, as compared to $3.6 million or $0.65 per 
share for the comparable period in 1995, and the Corporation's net income 
would have been $9.2 million or $1.85 per share for the six months ended 
September 30, 1996, as compared to $7.2 million or $1.34 per share for the 
same period in the prior year.

NET INTEREST INCOME.  Net interest income increased $880,000 and $2.6 
million, respectively, for the three and six months ended September 30, 1996 
compared to the same periods in 1995.  The net interest margin decreased to 
3.07% from 3.17% and to 3.15% from 3.22%, respectively for the periods.  The 
interest rate spread decreased to 2.87% from 2.89% and to 2.94% from 2.95%, 
respectively for the periods.  

Interest income on loans increased $2.9 million and $7.4 million, 
respectively, for the three and six month periods ended September 30, 1996 as 
compared to the same periods in the prior year.  This was primarily a result 
of the increase of $139.9 million and $154.9 million, respectively, in the 
average balance of loans for the periods due to the increased origination of 
portfolio loans.  Interest income on mortgage-related securities increased 
$151,000 and $872,000, respectively, for the same periods due to the increase 
of $8.6 million and $27.6 million, respectively, in the average balance of 
mortgage-related securities.

Interest expense on deposits increased $1.1 million and $3.3 million, 
respectively, for the three and six month periods ended September 30, 1996 as 
compared to the same periods in 1995.  The increase was due primarily to the 
increase in the average balance of deposits of $91.3 million and $116.9 
million, respectively, as a result of various demand deposit and certificate 
promotions. The average rate on deposits increased from 4.71% and 4.61%, 
respectively, to 4.73% and 4.70%, respectively, during the three and six 
months ended September 30, 1996 and 1995, respectively, primarily as a result 
of the above-described 

                                       9
<PAGE>

deposit promotions.  Interest expense on notes payable 
and other borrowings increased $1.2 million and $2.8 million, respectively, 
during the same periods. This was a result of an increase of $94.1 million 
and $99.9 million, respectively, in the average balance of borrowings during 
the same periods.

The following tables show the Corporation's average balances, interest, 
average rates 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.

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED SEPTEMBER 30,
                                             ---------------------------------------------------------------------
                                                           1996                                 1995
                                             ---------------------------------    --------------------------------
                                                                     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                               $1,136,388    $22,386    7.88%     $1,042,790     $20,627     7.91%
Consumer loans                                  275,802      6,571    9.53         233,438       5,476     9.38
Commercial business loans                        27,213        658    9.67          23,301         628    10.78
                                             ----------    -------              ----------     -------
  Total loans receivable                      1,439,403     29,615    8.23       1,299,529      26,731     8.23
Mortgage-related securities                     255,639      4,117    6.44         247,077       3,966     6.42
Investment securities                            59,022        850    5.76          44,008         675     6.14
Interest-bearing deposits                        10,961        142    5.18           7,674         117     6.10
Federal Home Loan Bank stock                     18,395        313    6.81          17,599         299     6.80
                                            -----------    -------              ----------     -------
  Total interest-earning assets              1,783,420      35,037    7.86       1,615,887       31,788    7.87
Non-interest-earning assets                     62,372                             51,070
                                             ----------                         ----------
  Total assets                               $1,845,792                         $1,666,957
                                             ----------                         ----------
                                             ----------                         ----------

INTEREST-BEARING LIABILITIES
Demand deposits                              $  291,429      1,904    2.61       $210,065          951    1.81
Regular passbook savings                        103,984        600    2.31        112,161          659    2.35
Certificates of deposit                         871,265     12,487    5.73        853,154       12,243    5.74
                                             ----------    -------              ----------     -------
  Total deposits                              1,266,678     14,991    4.73       1,175,380      13,853    4.71
Notes payable and other borrowings              426,151      6,193    5.81         332,013       4,967    5.98
Other                                            19,160        180    3.76          18,202         175    3.85
                                             ----------    -------              ----------     -------
  Total interest-bearing liabilities          1,711,989     21,364    4.99       1,525,595      18,995    4.98
                                                          --------   -----                     -------    ----
Non-interest-bearing liabilities                 17,865                             18,389
                                             ----------                         ----------
  Total liabilities                           1,729,854                          1,543,984
Stockholders' equity                            115,938                            122,973
                                             ----------                         ----------
 Total liabilities and stockholders' equity  $1,845,792                         $1,666,957
                                             ----------                         ----------
                                             ----------                         ----------
 Net interest income/interest rate spread                  $13,673    2.87%                    $12,793    2.89%
                                                           -------    ----                     -------    ----
                                                           -------    ----                     -------    ----
 Net interest-earning assets                 $   71,431                         $   90,292
                                             ----------                         ----------
                                             ----------                         ----------
 Net interest margin                                                  3.07%                               3.17%
                                                                      ----                                ----
                                                                      ----                                ----
 Ratio of average interest-earning assets
 to average interest-bearing liabilities            1.04                               1.06
                                                    ----                               ----
                                                    ----                               ----
</TABLE>

---------------
(1)  Annualized
                                       10
<PAGE>
<TABLE>
<CAPTION>
                                                            SIX MONTHS ENDED SEPTEMBER 30,
                                             ---------------------------------------------------------------------
                                                           1996                                 1995
                                             --------------------------------     --------------------------------
                                                                     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                               $1,136,966    $44,947    7.91%     $1,034,530     $40,545     7.84%
Consumer loans                                  267,098     12,980    9.72         221,060      10,204     9.23
Commercial business loans                        28,521      1,413    9.91         22,071        1,209    10.96
                                             ----------    -------              ----------     -------
  Total loans receivable                      1,432,585     59,340    8.28       1,277,661      51,958     8.13
Mortgage-related securities                     237,923      7,600    6.39         210,280       6,728     6.40
Investment securities                            51,199      1,474    5.76          37,810       1,159     6.13
Interest-bearing deposits                        11,171        316    5.66           5,631         170     6.04
Federal Home Loan Bank stock                     17,666        598    6.77          16,920         563     6.65
                                             ----------    -------              ----------     -------
  Total interest-earning assets               1,750,544     69,328    7.92       1,548,302      60,578     7.83
Non-interest-earning assets                      63,573                             50,070
                                             ----------                         ----------
  Total assets                               $1,814,117                         $1,598,372
                                             ----------                         ----------
                                             ----------                         ----------

INTEREST-BEARING LIABILITIES

Demand deposits                              $  285,039      3,686    2.59      $    193,674     1,637     1.69
Regular passbook savings                        105,175      1,209    2.30           109,160     1,262     2.31
Certificates of deposit                         862,154     24,563    5.70           832,672    23,251     5.58
                                             ----------    -------              ----------     -------
  Total deposits                              1,252,368     29,458    4.70       1,135,506      26,150     4.61
Notes payable and other borrowings              409,973     12,007    5.86         310,078       9,196     5.93
Other                                            15,688        289    3.68          15,360         281     3.66
                                             ----------    -------              ----------     -------
  Total interest-bearing liabilities          1,678,029     41,754    4.98       1,460,944      35,627     4.88
                                                           -------    ----                     -------     ----
Non-interest-bearing liabilities                 18,026                             18,714
                                             ----------                         ----------
  Total liabilities                           1,696,055                          1,479,658
Stockholders' equity                            118,062                            118,714
                                             ----------                         ----------
  Total liabilities and stockholders' equity $1,814,117                         $1,598,372
                                             ----------                         ----------
                                             ----------                         ----------
  Net interest income/interest rate spread                 $27,574    2.94%                    $24,951     2.95%
                                                           -------    ----                     -------    ----
                                                           -------    ----                     -------    ----
  Net interest-earning assets                $   72,515                         $   87,358
                                             ----------                         ----------
                                             ----------                         ----------
  Net interest margin                                                 3.15%                                3.22%
                                                                      ----                                ----
                                                                      ----                                ----
  Ratio of average interest-earning assets
  to average interest-bearing liabilities          1.04                              1.06
                                                    ----                               ----
                                                    ----                               ----
</TABLE>
---------------
(1)  Annualized 

                                       11
<PAGE>

PROVISION FOR LOAN LOSSES.  Provision for loan losses decreased $150,000 and 
$325,000, respectively, during the three and six months ended September 30, 
1996 as compared to the same periods in 1995.  See "Asset Quality" for 
further discussion.

NON-INTEREST INCOME.  Non-interest income increased $3.0 million and $5.0 
million, respectively, during the three and six months ended September 30, 
1996 as compared to the same periods in the prior year primarily as a result 
of increased partnership income from partnerships of the Corporation and IDI 
totalling $2.7 million and $4.3 million, respectively.

NON-INTEREST EXPENSE.  Non-interest expense increased $9.9 million and $12.3 
million, respectively, during the three and six month periods ended September 
30, 1996 as compared to the same periods in 1995 as a result of several 
factors. The majority of these increases was due to the one-time charge 
during the current quarter of $7.7 million associated with the 
recapitalization of the SAIF.  (Exclusive of this one-time charge, 
non-interest expenses increased by $2.2 million and $4.6 million, 
respectively, during the three and six month periods ended September 30, 
1996, as compared to the same periods in 1995.) Compensation expense 
increased $327,000 and $1.5 million, respectively, due primarily to increases 
in staff, salaries and benefits as a result of additional offices, as well as 
additional incentives for lending staff.  Furniture and occupancy expenses 
increased $84,000 and $397,000, respectively, primarily due to increased 
depreciation and other costs from additional offices.  Other expenses 
increased $1.5 million and $2.1 million, respectively, during the periods due 
to increases in the minority interest in net income of consolidated 
partnerships ($1.4 million and $1.8 million, respectively, during the three 
and six months ended September 30, 1996), goodwill amortization and legal 
fees.

INCOME TAXES.  Income tax expense decreased $2.4 million and $1.7 million, 
respectively, during the three and six months ended September 30, 1996 as 
compared to the same periods in 1995. These decreases were attributable to 
the tax effect of the one-time charge associated with the SAIF 
recapitalization which was  $3.1 million.  The effective tax rates were 
121.88% and 32.47% as compared to 35.40% and 35.42%, respectively, for the 
same periods.  Exclusive of the one-time charge to recapitalize the SAIF and 
related tax effect, the effective tax rates were 36.58% and 36.53%, 
respectively, during the three and six months ended September 30, 1996, as 
compared to 35.40% and 35.42% during the same periods in 1995.

FINANCIAL CONDITION

During the six months ended September 30, 1996, the Corporation increased its 
assets $137.0 million to $1.89 billion.  The majority of this increase was 
attributable to increases in loans and securities.

                                       12
<PAGE>

Investment securities (both available for sale and held to maturity) 
increased $31.1 million as a result of purchases of $31.3 million of U.S. 
Government and agency securities, which was partially offset by market value 
and other adjustments of $246,000.

Mortgage-related securities (both available for sale and held to maturity) 
increased $38.3 million as a result of (i) exchanges of $54.9 million of 
loans held for investment for securities guaranteed by the Federal National 
Mortgage Association and backed by such loans and (ii) purchases of $13.0 
million.  These increases were partially offset by principal repayments and 
market value adjustments of $29.6 million.  Mortgage-related securities 
consisted of $227.3 million mortgage-backed securities and $32.0 million of 
mortgage-derivative securities at September 30, 1996.

The Corporation's investments in mortgage-derivative securities are limited 
to federal agency issued REMICs 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 $58.8 million during 
the six months ended September 30, 1996.  Activity for the period included 
(i) originations and purchases of $409.2 million, (ii) sales of $130.3 
million, which included exchanges of $54.9 million for mortgage-backed 
securities, and (iii) principal repayments and other adjustments of $220.1 
million.

Deposits increased $51.6 million during the six months ended September 30, 
1996. The increase was due to various certificate promotions, an increase in 
brokered deposit accounts and a new market yield demand deposit account.  
Brokered deposits have been used in the last six months and may be used in 
the future as the need for funds requires it.  Brokered deposits totalled 
$44.7 million at September 30, 1996 and generally mature in one year.  FHLB 
advances increased $53.3 million.  Reverse repurchase agreements and other 
borrowings increased $19.3 million during the six months ended September 30, 
1996.  Advance payments by borrowers for taxes and insurance increased $14.6 
million.

Stockholders' equity decreased $7.9 million during the six months ended 
September 30, 1996 as a net result of (i) net income of $4.6 million, (ii) 
stock options exercised of $190,000, (iii) the increase in net unrealized 
losses of available-for-sale securities of $765,000, (iv) treasury stock 
repurchased of $11.4 million, (v) cash dividends of $1.1 million and (vi) 
management recognition plan shares earned and related tax adjustments 
totalling $559,000.

                                       13
<PAGE>

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 (consisting of non-accrual loans, certain real estate 
held for development and sale, foreclosed properties and repossessed assets) 
increased to $13.9 million at September 30, 1996 from $10.3 million at March 
31, 1996 and increased as a percentage of total assets to 0.74% from 0.59% at 
such dates, respectively.  Non-performing assets are summarized as follows at 
the dates indicated:

<TABLE>
<CAPTION>
                                                                                     AT MARCH 31,
                                                      AT SEPTEMBER 30,        ----------------------------
                                                            1996              1996         1995       1994
                                                      ----------------        ----          ---       ----
                                                                        (DOLLARS IN THOUSANDS)
<S>                                                   <C>                    <C>         <C>         <C>
Non-accrual loans:
 Single-family residential                                 $ 2,218           $   629     $   833     $   565
 Multi-family residential                                      333                --          --          37
 Commercial real estate                                        740               470          624        617
 Construction and land                                          --                81           81         81
 Consumer                                                      356               202          219        333
 Commercial business                                         1,023               508          736        831
                                                           -------           -------      -------     -------
  Total non-accrual loans                                    4,670             1,890        2,493      2,464
Real estate held for development and sale                    2,763             2,319          857      2,767
Foreclosed properties and repossessed assets, net            6,494             6,077        7,116      5,294
                                                           -------           -------      -------     -------
  Total non-performing assets                              $13,927           $10,286      $10,466     $10,525
                                                           -------           -------      -------     -------
                                                           -------           -------      -------     -------
Performing troubled debt restructurings                    $   331           $   332      $   335     $ 4,687
                                                           -------           -------      -------     -------
                                                           -------           -------      -------     -------
Total non-accrual loans to total loans                        0.31%             0.13%        0.19%       0.22%
Total non-performing assets to total assets                   0.74              0.59         0.69        0.76
Allowance for loan losses to total loans                      1.51              1.59         1.75        1.98
Allowance for loan losses to total
 non-accrual loans                                          481.37          1,206.72        899.68     897.69
Allowance for loan and foreclosure losses
 to total non-performing assets                             166.39            228.70        221.82     213.42
</TABLE>

Non-accrual loans increased $2.8 million during the six months ended 
September 30, 1996.  The increase included two loans, one loan secured by a 
single-family property in Lake Geneva, Wisconsin totalling $340,000 and the 
other loan secured by a condominium unit in Vero Beach, Florida totalling 
$450,000, which reverted back to the Bank as part of a lawsuit with the Bank. 
 See Item 1 in Part II, Other Information, below.  Non-performing real estate 
held for development and sale increased $444,000 for the same period due to 
increased development costs in ADPC II.  Foreclosed properties and 
repossessed assets increased $417,000 during the six months ended 
September 30, 1996.

                                       14

<PAGE>

At September 30, 1996, there were no non-accrual loans with a carrying value 
of greater than $1.0 million.

Foreclosed properties and repossessed assets included two properties with a 
carrying value of greater than $1.0 million.  The first is a hotel and office 
building in Garden Grove, California.  The Corporation's share of the net 
carrying value of this property amounted to $3.4 million at September 30, 
1996. 

The second property is an apartment complex in Elm Grove, Wisconsin, which 
formerly secured a $2.2 million loan.  Phase I studies of the environmental 
impact indicated a need for a Phase II study based on the history of the 
property, which the Bank is pursuing.  The Bank believes any cleanup which 
may be necessary will be partially reimbursed by the Petroleum Environmental 
Cleanup Fund, although there can be no assurance in this regard.  The Bank 
also believes that in the event of any remaining environmental cleanup 
liability that it will pursue reimbursement from the adjoining land owner, 
which is believed to have caused the contamination.  As a result, the Bank 
does not anticipate incurring any material loss in connection with this 
property at this time.

At September 30, 1996, the Bank's assets which have been classified by it 
pursuant to Federal regulations consisted of $14.3 million of loans and 
foreclosed properties classified as "substandard," net of reserves.  As of 
March 31, 1996, the substandard assets amounted to $12.6 million.  In each 
case, these amounts included the above discussed non-performing assets.

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

<TABLE>
<CAPTION>

                                               AT MARCH 31,
                   AT SEPTEMBER 30,      -------------------------
                        1996             1996      1995       1994
                   ----------------      ----      ----       ----
                                       (IN THOUSANDS)
<S>                <C>                  <C>        <C>        <C>
30 to 59 days           $4,259          $5,776     $2,696     $8,258
60 to 89 days            2,206             789      1,099        884
                        ------          ------     ------     ------
    Total               $6,465          $6,565     $3,795     $9,142
                        ------          ------     ------     ------
                        ------          ------     ------     ------
</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 allowances 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

                                       15
<PAGE>

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.

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,
                                  ------------------      -----------------
                                  1996          1995      1996        1995
                                  ----          ----      ----        ----
                                            (DOLLARS IN THOUSANDS)
<S>                               <C>          <C>        <C>        <C>

Allowance at beginning of 
 period                         $22,839     $23,212    $22,807    $22,429
Charge-offs:
  Mortgage                           (89)        (26)      (129)       (27)
  Consumer                          (109)        (28)      (125)       (44)
  Commercial business               (180)        (42)      (181)       (42)
                                 --------    --------   --------   --------
     Total charge-offs              (378)        (96)      (435)      (113)
Recoveries:
  Mortgage                              9        106         18        168
  Consumer                              1          4          3          8
  Commercial business                   9         17         87         26
                                 --------    --------   --------   --------
     Total recoveries                  19        127        108        202
                                 --------    --------   --------   --------
     Net recoveries 
       (charge-offs)                 (359)        31       (327)        89
Provision                              --        150         --        325
Acquired bank allowance                --         --         --        550
                                 --------    --------   --------   --------
  Allowance at end of period     $ 22,480    $23,393   $ 22,480    $23,393
                                 --------    --------   --------   --------
                                 --------    --------   --------   --------
Net recoveries (charge-offs)
  to average loans                 (0.10)%     0.01%     (0.05)%     0.01%

</TABLE>


Although management believes that the September 30, 1996 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. 

                                       16
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

On an unconsolidated basis, the Corporation's sources of funds include 
dividends from its subsidiaries, including the Bank, payments on its loans, 
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, 1996, the Corporation had outstanding commitments to 
originate loans of $42.8 million, commitments to extend funds to, or on 
behalf of customers, pursuant to lines and letters of credit of $62.2 million 
and loans sold with recourse to the Corporation in the event of default by 
the borrower of $3.5 million.  Scheduled maturities of certificates of 
deposit during the twelve months following September 30, 1996 amounted to 
$664.5 million and scheduled maturities of FHLB advances during the same 
period totalled $281.5 million.  At September 30, 1996, the Corporation also 
had $66.6 million of reverse repurchase agreements, all of which are 
scheduled to mature during the twelve months following September 30, 1996.  
Management believes adequate capital and borrowings are available from 
various sources to fund all commitments to the extent required.

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 5.0%.  During the quarter 
ended September 30, 1996, the Bank's average liquidity ratio was 11.92%.

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.  As a state-chartered savings institution, the Bank is also 
subject to the minimum regulatory capital requirements of the State of 
Wisconsin.

                                       -17-


<PAGE>

The following summarizes the Bank's capital levels and ratios and 
the levels and ratios required by the OTS and the State of Wisconsin at 
September 30, 1996:

<TABLE>
<CAPTION>
                                                                   STATE OF
                                TANGIBLE    CORE     RISK-BASED    WISCONSIN
                                CAPITAL    CAPITAL     CAPITAL      CAPITAL
                                --------   -------   ----------    ---------
            <S>                    <C>       <C>        <C>            <C>

Bank's stockholder's equity     $104,129  $104,129     $104,129     $104,129
Adjustment for: 
 SFAS No.115 capital component     1,542     1,542        1,542           --
 Allowable unallocated general
  loss allowance                      --        --       13,815       21,402
 Goodwill and other               (2,503)   (2,503)      (2,759)          --
                                 --------  -------     --------     --------
  Total regulatory capital       103,168   103,168      116,727      125,531
Required amount                   28,212    56,425       87,817      112,907
                                 --------  -------     --------     --------
  Excess                         $74,956   $46,743      $28,910      $12,624
                                 --------  -------     --------     --------
                                 --------  -------     --------     --------
Regulatory capital ratio           5.49%     5.49%       10.63%       6.67%
Required ratio                     1.50      3.00         8.00        6.00
                                 --------  -------     --------     --------
  Excess                           3.99%     2.49%        2.63%       0.67%
                                 --------  -------     --------     --------
                                 --------  -------     --------     --------

</TABLE>

The OTS has proposed to increase the core capital ratio from the current 
3.00% to a range of 4.00% to 5.00% for all but the most healthy financial 
institutions.  The OTS has added an interest rate risk calculation such that 
an institution with a measured interest rate risk exposure, as defined, 
greater than specified levels must deduct an interest rate risk component 
when calculating the OTS risk-based capital.  Final implementation of this 
rule was pending at September 30, 1996.  Management does not believe these 
rules will significantly impact the Bank's ability to meet the capital 
requirements.

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.

                                       -18-

<PAGE>


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, invests in 
adjustable-rate or medium-term, fixed-rate, single-family residential 
mortgage loans, invests in medium-term mortgage-related securities and 
invests in consumer loans which generally have shorter terms to maturity and 
higher and/or adjustable interest rates.

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 Corporation's cumulative net gap position at September 30, 1996 for one 
year or less was a positive 1.23% of total assets.  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.


                                       -19-


<PAGE>

The following table summarizes the Corporation's 
interest rate sensitivity gap position as of September 30, 1996.

<TABLE>
<CAPTION>
                                                  MORE THAN      MORE THAN
                                       WITHIN      ONE TO         THREE TO       MORE THAN
                                      ONE YEAR   THREE YEARS     FIVE YEARS      FIVE YEARS     TOTAL
                                      --------   -----------     ----------      ----------     -----
                                                  (DOLLARS IN THOUSANDS)
           <S>                            <C>         <C>            <C> 

Interest-earning  assets:
  Mortgage loans(1)(2):
   Fixed                             $   84,194     $ 62,930    $ 20,736          $ 13,604    $  181,464
   Variable                             698,304      250,949       8,457                --       957,710
  Consumer loans (1)                    192,109       70,167      24,796                --       287,072
  Commercial business loans (1)          21,691        3,766          --                --        25,457
  Mortgage-related securities (3)       118,761       96,977      28,378            15,199       259,315
  Investment securities and other
   interest-earning assets (3)           70,026        8,438      19,255                --        97,719
                                     ----------     --------      ------          --------    ----------
    Total                            $1,185,085     $493,227    $101,622           $28,803    $1,808,737
                                     ----------     --------      ------          --------    ----------
                                     ----------     --------      ------          --------    ----------

Interest-bearing liabilities:

 Deposits (4)                        $  810,407     $289,730    $ 67,708           $39,761    $1,207,606
 Borrowings                             351,384       90,616          49                --       442,049
                                     ----------     --------      ------          --------    ----------
    Total                            $1,161,791     $380,346     $67,757           $39,761    $1,649,655
                                     ----------     --------      ------          --------    ----------
                                     ----------     --------      ------          --------    ----------

Interest sensitivity gap             $   23,294     $112,881     $33,865          $(10,958)     $159,082
                                     ----------     --------    --------          --------    ----------
                                     ----------     --------    --------          --------    ----------

Cumulative interest sensitivity gap  $   23,294     $136,175    $170,040          $159,082
                                     ----------     --------    --------          --------
                                     ----------     --------    --------          --------

Cumulative interest sensitivity gap
 as a percent of total assets              1.23%        7.20%      8 .99%             8.41%
                                     ----------     --------    --------          --------
                                     ----------     --------    --------          --------

</TABLE>

----------------
(1)  Balances have been reduced for (i) undisbursed loan proceeds, which 
     aggregated $35.8 million, and (ii) non-accrual loans, which amounted to 
     $4.7 million.
(2)  Includes $5.4 million of loans held for sale spread throughout the 
     periods.
(3)  Includes $153.2 million of securities available for sale spread 
     throughout the periods.
(4)  Does not include $77.3 million of demand accounts because they are 
     non-interest-bearing. Also does not include accrued interest payable,   
     which amounted to $7.6 million. Projected decay rates for demand 
     deposits and passbook savings were provided by the OTS.



                                       -20-

<PAGE>


                          PART II - OTHER INFORMATION

ITEM 1    LEGAL PROCEEDINGS.

          The Bank is involved in litigation relating to alleged structural 
          deficiencies of a property located in Vero Beach, Florida.  The 
          Bank contracted for the completion of this property after it was 
          acquired by foreclosure and converted it into a condominium 
          complex.  In January, 1993, the Bank and the Homeowners 
          Association which represents the condominium owners entered into a 
          settlement agreement which covers various repairs totalling 
          $500,000 which the Corporation accrued in September, 1992 and paid 
          in January 1993, as well as repairs which are related to   the 
          post-tension cable system, an estimated amount of which was 
          accrued by the Corporation in September, 1993 but has not yet been 
          paid.  Three lawsuits have been filed against the Bank in 
          connection with the foregoing by various owners of condominiums in 
          the complex and the Homeowners Association.  During fiscal 1996, 
          one trial involving an individual homeowner was finished, of which 
          the result relieved the Bank of any claim for punitive and/or 
          general damages, but provided the owner with recision (return of 
          the unit to the Bank).  The Bank is currently considering the 
          alternatives of appeal and/or negotiated settlement. Based on the 
          outcome of the above described case and the evaluation of the 
          accruals by the Corporation to date, management does not believe 
          that the remaining litigation will have a material adverse effect 
          on the financial condition or operations of the Corporation.


ITEM 2    CHANGES IN SECURITIES.

          Not applicable

ITEM 3    DEFAULTS UPON SENIOR SECURITIES.

          Not applicable

ITEM 4    SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS.

          Not applicable


                                       -21-

<PAGE>

ITEM 5    OTHER INFORMATION.

          Not applicable

ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K.

          (a) Exhibits:

              None

          (b) Reports of Form 8-K:

              None

                                       -22-

<PAGE>


                              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, 1996        By:  /s/ Douglas J. Timmerman
      ----------------             --------------------------------------------
                                   Douglas J. Timmerman, Chairman of the
                                   Board, President and Chief Executive Officer

Date: October 31, 1996        By:  /s/ Michael W. Helser
      ----------------             --------------------------------------------
                                   Michael W. Helser, Treasurer and 
                                   Chief Financial Officer






                                       -23-