Anchor BanCorp Wisconsin (ABCW) 8-K Anchor BanCorp Wisconsin Inc. Announces Third Quarter Earnings

Exhibit  99.1

Anchor BanCorp Wisconsin Inc. Announces Third Quarter Earnings

          MADISON, Wis., Feb. 6 /PRNewswire-FirstCall/ -- Anchor BanCorp Wisconsin Inc. (Nasdaq: ABCW) announced net income of $10.9 million for the quarter ended December 31, 2005, and net income of $33.2 million for the nine-month period ended December 31, 2005. This compares to $10.7 million for the same quarter in 2004 and $31.5 million for the nine-month period ended December 31, 2004.  Net interest income was $33.8 million for the quarter and $99.4 million for the nine-month period ended December 31, 2005, up 6.9% and 11.1%, respectively, versus the same period a year ago.

          Yield on earning assets increased to 6.15% from 5.51% for the quarter ended December 31, 2005, versus the same period a year ago and increased to 5.95% from 5.36% for the nine-month period ended December 31, 2005, versus the same nine-month period in 2004.

          Deposits grew 10.4% to $3.0 billion for the nine-month period ended December 31, 2005, and total assets grew to $4.2 billion for the same period, up 6.9% both versus the same period a year ago.

          Douglas J. Timmerman, President, noted, “Our focus is on managing our margin, while at the same time growing both assets and deposits. This strategy is the key to our performance. And, our commitment to growth continues with the opening today of our 61st office in the community of De Pere, just south of Green Bay.”

          Timmerman added, “As we continue to grow, we’ve also effectively managed expenses.”

          Non-interest expense to average assets declined to 2.74% for the quarter ended December 31, 2005, from 3.42% versus a year ago and to 2.97% from 3.70% for the nine-month period ended December 31, 2005 versus the same period in the prior year.

          Diluted earnings per share were $.50 for the quarter ended December 31, 2005, as compared to $.46 for the same quarter last year. Diluted earnings per share were $1.50 for the nine-month period ended December 31, 2005, which compares to $1.37 for the nine-month period for the same period last year. Book value per share increased from $13.77 to $14.32 over the same period.

          During the quarter ended December 31, 2005, 319,300 shares were purchased under a previously authorized repurchase program. The repurchases are made from time to time in open-market and/or negotiated transactions as, in the opinion of management, market conditions may warrant.

          Anchor BanCorp’s stock is traded on the over-the-counter market under the NASDAQ symbol ABCW. AnchorBank fsb, the wholly-owned subsidiary, has 59 full service offices and two loan origination only offices. All are located in Wisconsin.

          This news release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Anchor BanCorp.  Forward-looking statements are subject to various factors which could cause actual results to differ materially from these estimates.  These factors include changes in general economic conditions, deposit flows, loan demand, asset quality, competition, legislation or regulation and accounting principles, policies or guidelines affecting reports filed with the Securities and Exchange Commission for financial and business information regarding Anchor BanCorp, including information which could affect Anchor BanCorp’s forward-looking statements.

ANCHOR BANCORP WISCONSIN INC.
FINANCIAL HIGHLIGHTS
(Dollars in thousands - except per share amounts)
(Unaudited)

	Three Months Ended December 31,						Nine Months Ended December 31,
	2005			2004			2005			2004
				(As Restated)						(As Restated)
Operations Data:
Net interest income	$	33,837		$	31,651		$	99,410		$	89,472
Provision for loan losses		700			664			2,450			1,414
Net gain on sale of loans		144			1,001			1,460			880
Real estate investment partnership revenue		6,378			16,104			29,450			54,983
Other non-interest income		7,898			5,758			22,132			19,288
Real estate investment partnership cost of sales		5,527			13,131			24,718			43,909
Other non-interest expense		23,238			20,368			67,405			63,017
Minority interest in income of real estate partnership operations		304			2,023			1,694			4,965
Income before income taxes		18,488			18,328			56,185			51,318
Income taxes		7,595			7,618			22,954			19,784
Net income		10,893			10,710			33,231			31,534
Selected Financial Ratios (1):
Yield on earning assets		6.15	%		5.51	%		5.95	%		5.36	%
Cost of funds		2.88			2.22			2.70			2.20
Interest rate spread		3.27			3.29			3.25			3.16
Net interest margin		3.39			3.40			3.37			3.26
Return on average assets		1.04			1.09			1.07			1.09
Return on average equity		13.91			13.64			14.08			13.68
Average equity to average assets		7.45			8.01			7.62			7.98
Non-interest expense to average assets		2.74			3.42			2.97			3.70
Per Share:
Basic earnings per share	$	0.51		$	0.47		$	1.53		$	1.39
Diluted earnings per share		0.50			0.46			1.50			1.37
Dividends per share		0.16			0.13			0.46			0.36
Book value per share		14.32			13.77			14.32			13.77

	December 31,
	2005		2004		Percent Change
			(As Restated)
Financial Condition:
Total assets	$	4,200,234	$	3,929,881		6.9	%
Loans receivable, net
Held for sale		5,847		11,816		(50.5	)
Held for investment		3,545,436		3,292,339		7.7
Investment securities available for sale, at fair value		36,139		30,685		17.8
Mortgage-related securities available for sale, at fair value		256,358		211,685		21.1
Mortgage-related securities held to maturity, at amortized cost		1,047		1,734		(39.6	)
Deposits		2,987,284		2,705,495		10.4
Borrowings		814,641		826,928		(1.5	)
Stockholders’ equity		312,089	��	316,243		(1.3	)
Allowance for loan losses		15,252		27,526		(44.6	)
Non-performing assets		17,265		21,029		(17.9	)

(1) Annualized when appropriate.

ANCHOR BANCORP WISCONSIN INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	(Unaudited)
	December 31, 2005			March 31, 2005
	(In Thousands)
Assets
Cash and cash equivalents	$	144,056		$	166,436
Investment securities available for sale, at fair value		36,139			52,055
Mortgage-related securities available for sale, at fair value		256,358			202,250
Mortgage-related securities held to maturity, at amortized cost		1,047			1,502
Loans receivable, net
Held for sale		5,847			4,361
Held for investment		3,545,436			3,414,608
Foreclosed properties and repossessed assets, net		2,606			1,458
Real estate held for development and sale		51,051			48,949
Office properties and equipment		29,356			30,495
Other assets		128,338			128,342
Total assets	$	4,200,234		$	4,050,456
Liabilities and Stockholders’ Equity Deposits
Deposits
Non-interest bearing	$	237,180		$	230,045
Interest bearing		2,750,104			2,643,488
Total Deposits		2,987,284			2,873,533
Short-term borrowings		356,458			242,540
Long-term borrowing		458,183			551,069
Other liabilities		79,013			62,834
Total liabilities		3,880,938			3,729,976
Minority interest in real estate partnerships		7,207			9,802
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		70,513			68,627
Retained earnings, substantially restricted		332,788			315,077
Accumulated other comprehensive income (loss)		(1,838	)		(708	)
Treasury stock (3,573,614 shares and 3,043,826 shares, respectively), at cost		(84,155	)		(68,441	)
Unearned deferred compensation		(7,755	)		(6,413	)
Total stockholders’ equity		312,089			310,678
Total liabilities, minority interest and stockholders’ equity	$	4,200,234		$	4,050,456

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2005		2004		2005		2004
			(As Restated)				(As Restated)
	(In Thousands - except per share amounts)
Interest income:
Loans	$	56,443	$	47,347	$	161,192	$	135,588
Mortgage-related securities		2,962		2,141		8,639		6,404
Investment securities		1,004		1,305		2,907		3,984
Interest-bearing deposits		988		565		2,888		1,207
Total interest income		61,397		51,358		175,626		147,183
Interest expense:
Deposits		20,257		12,814		54,845		36,658
Short-term borrowings		2,958		1,579		7,725		5,387
Long-term borrowings		4,345		5,314		13,646		15,666
Total interest expense		27,560		19,707		76,216		57,711
Net interest income		33,837		31,651		99,410		89,472
Provision for loan losses		700		664		2,450		1,414
Net interest income after provision for loan losses		33,137		30,987		96,960		88,058
Non-interest income:
Real estate investment partnership revenue		6,378		16,104		29,450		54,983
Loan servicing income		1,280		1,050		3,681		3,063
Credit enhancement derivative income (includes interest income of $68 and $61, respectively, for the three-month period and $198 and $174, respectively, for the nine-month period)		414		382		1,216		1,140
Service charges on deposits		2,355		2,124		7,084		6,524
Insurance commissions		589		519		1,897		1,764
Net gain on sale of loans		144		1,001		1,460		880
Net gain on sale of investments and mortgage-related securities		120		75		394		1,472
Other revenue from real estate operations		1,470		725		3,384		2,744
Other		1,670		883		4,476		2,581
Total non-interest income		14,420		22,863		53,042		75,151
Non-interest expense:
Compensation		11,862		10,028		34,032		30,765
Real estate investment partnership cost of sales		5,527		13,131		24,718		43,909
Occupancy		1,820		1,659		5,144		4,964
Furniture and equipment		1,423		1,413		4,609		4,398
Data processing		1,425		1,074		4,074		3,519
Marketing		1,108		1,014		3,294		3,030
Other expenses from real estate partnership operations		2,467		1,302		6,721		6,693
Other		3,133		3,878		9,531		9,648
Total non-interest expense		28,765		33,499		92,123		106,926
Minority interest in income of real estate partnership operations		304		2,023		1,694		4,965
Income before income taxes		18,488		18,328		56,185		51,318
Income taxes		7,595		7,618		22,954		19,784
Net income	$	10,893	$	10,710	$	33,231	$	31,534
Earnings per share:
Basic	$	0.51	$	0.47	$	1.53	$	1.39
Diluted		0.50		0.46		1.50		1.37

SOURCE  Anchor BanCorp Wisconsin Inc.
           -0-                                                    02/06/2006
           /CONTACT:  Michael Helser, CFO, +1-608-252-1810, or Douglas J. Timmerman, President, +1-608-252-8782, both of Anchor BanCorp Wisconsin Inc./
           /Web site:  http://www.anchorbank.com /
           (ABCW)