ANNUAL REPORT S.B.C.P. BANCORP, INC.

ANNUAL REPORT S.B.C.P. BANCORP, INC.

DEAR SHAREHOLDERS, INVESTORS AND FRIENDS Jim L. Tubbs President and Chief Executive Officer State Bank of Cross Plains The year of 2015 proved to be another year of real progress. Here are some highlights the year provided: Net Income for the bank ended over $5.7M and grew by over 17% from prior year. This was accomplished by increases in both Interest and Non-Interest Income, as well as a decrease in Interest Expense. Loan balances in 2015 exceeded $550M, which is a 6% increase over the prior year. We are very proud as a community bank to have this substantial amount invested in the greater Dane County area. Return on Average Assets continues to move in the right direction. This ratio grew from 0.66% in 2014 to 0.76% in 2015, which reflects over a 15% increase. Troubled loan issues continue to decline. In fact, presently the past due loan percentage is the lowest it has been in over four years. Certainly, the improved economy has assisted with this but so has the added discipline that has been instilled in our credit culture. Dividends to our shareholders were reinstated. The yearto-date accumulation per share equaled $0.50. This is also a great reflection of the progress we have made. The Trust / Wealth Management continues to show great progress and growth. Total Assets Under Management now exceeds $400M. Last but certainly not least, our Prime Time area had another fabulous year. This exciting group traveled to many destinations, which included Italy and the Pacific Northwest just to name a few. In addition, there were many enjoyed day trips and educational opportunities. I am very pleased to share with you that 2,223 people attended our Prime Time events in 2015. With this constant improvement in your Bank, our book value per share continues to improve. As you can see from the chart below, the book value per share has increased by over 20% since the end of 2012 or a three-year period: $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Even with this nice increase, we understand our work is never done. 2015 turned out to be a good year for us, but that is now behind us and we have set our sights on 2016 and beyond. Thank you again for your loyalty and your support. Sincerely, $53.09 $53.58 Book Value Per Share 2012 2013 2014 2015 Year End Jim L. Tubbs President and Chief Executive Officer State Bank of Cross Plains $59.52 $64.04

SBCP MISSION STATEMENT The State Bank of Cross Plains shall ethically provide high quality financial and related services in order to fulfill COMMUNITY and CUSTOMER needs, while producing superior long-term financial results for SHAREHOLDERS and rewarding employment for ASSOCIATES.

With nine offices in eight municipalities throughout Dane County, we will remain an INDEPENDENT COMMUNITY BANK.

WEALTH MANAGEMENT & FINANCIAL ADVISORY DIVISIONS As was true last year, our Wealth Management and Financial Advisory Divisions produced record results on several fronts. Equity and fixedincome markets as a whole performed poorly in 2015; nevertheless, record asset gathering in our Wealth Management Division increased our combined market value to more than $400 million for the first time. achieved all desired strategic benefits, including enhanced operational efficiencies, improved teamwork, and a highly favorable response from our customer base. Greater Madison estate planning attorneys are pleased as well, and this is clearly evidenced by their growing support of our Wealth Management Division. On a year-over-year basis, revenue in both divisions also attained record levels. Consolidated revenue was $2.085 million, representing an increase of 9.5 percent from 2014. In addition, profitability remained very strong. Many factors drive our success. Most important, however, are all of the dedicated and talented individuals who comprise our Wealth Management and Financial Advisory teams. We continue to invest many thousands of dollars annually across a broad range of formal educational and training programs that enable us to better fulfill our fiduciary responsibilities. Due to strong growth, we increased staffing in both divisions. Our Wealth Management Division welcomed a new Trust Officer, and we added a new Financial Advisor to The Deutmeyer Group within our Financial Advisory Division. These additions help ensure our ability to deliver service excellence as well as increase our rate of growth going forward. 2015 was the first full calendar year for Wealth Management being headquartered in our Madison Office. We are delighted to report that we During the fourth quarter, we converted to our new trust software system. Benefits include an improved online experience, better reporting capabilities, and greater operational efficiencies for our portfolio management team. Finally, we are increasingly leveraging our considerable financial planning capabilities. Baby Boomers and others are facing a growing array of financial challenges, thus our planning expertise enables us to better serve existing clients and acquire new ones. In summary, 2015 was an outstanding year for our Wealth Management and Financial Advisory Divisions. We look forward to the challenges and many opportunities facing us in 2016. As a shareholder, we invite you to take advantage of our investment management, trustee, planning, and other capabilities.

DEAR SHAREHOLDERS, CUSTOMERS AND FRIENDS Charles L. Saeman Chairman of the Board, State Bank of Cross Plains; President of S.B.C.P. Bancorp, Inc. Our Annual Report for 2015 communicates a positive story about the progress your Bank has made year over year. Bank Management and your Board of Directors are keenly focused on a path of continuous improvement for both the near and long term. For those of us as Bank Directors representing the interests of the shareholders, a substantial part of that focus has to do with those things that enhance the value of the shareholders investment. Among specific items in focus are: to create greater share value through improving earnings; greater immediate returns for shareholders through increasing dividends; and greater liquidity through recognition by potential investors of the total return opportunities of owning our stock. This annual report and recently announced actions are reflective of the positive trends of all three of these elements. As we turn the page to the new calendar and fiscal year for the Bank, we note the outstanding service given to the Bank by Mike Schutz and Troy Schwenn. Mike, former co-owner of Feiner Furniture, has served on your Bank Board for over 25 years bringing to us his experience as an independent business owner and entrepreneur together with an extraordinary level of community service. Troy, owner of Automation Components, Inc., while serving since 2013, quickly made an impact with his insights from a fast growing and highly successful manufacturing company. We have gained much from the participation of these two directors who have now retired from our Board. In a process of Board succession planning, we reviewed the skill sets and the variety of backgrounds of current Board members. Our expressed goal was to seek candidates who complement rather than replicate those attributes already present. As previously communicated to shareholders we are pleased to bring Cathy Durham and Steve Grundahl to the Board. Cathy is a Principal and owner of Capital Valuation. She has been a presenter for the Bank at seminars for our Commercial clients. Her skill sets, based on experience and education, serve your Bank by providing a perspective of analysis relative to the value propositions of the clients we work with. Steve and his family have long term ties to the Bank as customers and shareholders. In 2001, after graduating from the Milwaukee School of Engineering, Steve founded Midwest Prototyping - a high tech company specializing in design and development of a wide array of products with applications for the aerospace, consumer products and fashion industry among others. His utilization of 3-D printing processes reflect his leadership in the field of this specialized industry. Cathy and Steve provide unique and valuable educational and background experience, as well as residential location, age and gender diversity. In closing, I want to send a Thank You! to you our shareholders, customers and friends. We pledge to continue to do our very best at representing your interests in the State Bank of Cross Plains. Sincerely, Charles L. Saeman Chairman of the Board State Bank of Cross Plains RETIRED / RESIGNED BOARD OF DIRECTORS INCOMING Michael W. Schutz Troy A. Schwenn Vernon W. Wendt William H. Saeman Dan F. Kuehn Daniel N. Rashke Vern J. Jesse Jim L. Tubbs Charles L. Saeman Chairman Catherine J. Durham Stephen B. Grundahl

S.B.C.P. BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets December 31, 2015 and 2014 (in thousands) 2015 2014 2015 2014 Assets Cash and due from banks...$ 48,408... $ 35,013 Federal Funds sold...17,266...8,274 Total cash and cash equivalents... 65,674... 43,287 Investment securities...141,216... 140,305 Loans, net of allowance for loan losses... 544,265... 515,103 Premises and equipment, net of depreciation... 16,112... 16,654 Intangible assets...6,045...6,064 Other assets...35,526... 36,619 Total assets...$ 808,838... $ 758,032 Liabilities and Stockholder s Equity Noninterest bearing...$ 117,909... $ 113,238 Interest bearing...561,105... 524,685 Total deposits... 679,014... 637,923 Securities sold under repurchase agreements...2,916...2,636 Other borrowings...24,750... 18,000 Subordinated debentures...31,720... 31,720 Other liabilities...8,743... 10,410 Total liabilities... 747,143... 700,689 Stockholder s equity: Common stock, $2 par value, 1,150,000 shares authorized, 963,365 shares outstanding... 1,948...1,948 Paid in capital...14,283... 14,283 Retained earnings...46,828... 42,520 Accumulated other comprehensive income... (516)...(560) Treasury Stock, at cost: -10,492 shares... (848)...(848) Total stockholder s equity...61,695... 57,343 Total liabilities and stockholder s equity.................. $ 808,838... $ 758,032 Certain reclassifications and adjustments may have been made to prior period results as appropriate.

S.B.C.P. BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income For the Years Ended December 31, 2015 and 2014 (in thousands) 2015 2014 Interest Income: Loans, including origination fees... $ 23,279...$ 21,572 Investment securities...3,533... 4,307 Federal funds sold...150...132 Total interest income...26,962...26,011 Interest Expense: Deposits...1,840... 1,736 Other borrowings...239...340 Subordinated debentures...1,567... 1,642 Total interest expense...3,646... 3,718 Net interest income...23,316...22,293 Provision for loan losses...... 1,105 Net interest income after provision for loan losses... $ 23,316...$ 21,188 2015 2014 Noninterest Income: Customer service charges...$ 984...$ 1,012 Mortgage banking income...1,560... 1,016 Wealth management fees...2,062... 1,883 Other income...2,423... 3,085 Total noninterest income...7,029... 6,996 Noninterest Expense: Salaries and benefits...12,736...12,139 Office occupancy and equipment...2,803... 2,950 Data processing and office operations...2,042... 1,765 Other expenses............................................5,440... 4,981 Total noninterest expense...23,021...21,835 Income before income taxes...7,324... 6,349 Provision for income taxes...2,535... 2,452 Net income...$ 4,789...$ 3,897 Certain reclassifications and adjustments may have been made to prior period results as appropriate.

FINANCIAL HIGHLIGHTS S.B.C.P. BANCORP, INC. (IN THOUSANDS) 2015 2014 CHANGE % CHG Average Loans...$533,484...$505,037...$28,447...5.63% Average Deposits...$676,720...$664,164...$12,556...1.89% Average Assets...$783,435...$757,527...$25,908...3.42% Year End Assets...$808,838...$758,032...$50,806...6.70% Off-Balance Sheet Assets Under Management or Serviced...$717,899...$715,051...$2,848...0.40% Total Assets Supported... $1,526,737...$1,473,083................$53,654...3.64% Net Income...$4,789...$3,897...$892...22.89% Return on Average Equity... 8.05%... 7.15%...0.90%...12.59% Return on Average Assets (Bank-only)... 0.76%... 0.66%...0.10%...15.15% Stockholders Equity...$61,695...$57,343...$4,352...7.59% Tier One Capital to Average Assets... 9.60%... 8.80%...0.80%...9.09% Total Capital to Risk-Weighted Assets...15.60%... 15.30%...0.30%...1.96% Book Value per Share...$64.04...$59.52...$4.52...7.59% Earnings per Share...$4.97...$4.05...$0.92...22.72% Analysis of Loan Loss Reserve Balance January 1...$9,152...$9,750...($598)...-6.13% Recoveries... $371... $403...($32)...-7.94% Charge-offs...($816)... ($2,106)...$1,290...-61.25% Provision for Loan Losses... $0...$1,105...($1,105)...-100.00% Balance December 31...$8,707... $9,152.................($445)...-4.86% Analysis of Retained Earnings Balance January 1...$42,520...$38,623...$3,897...10.09% Net Income...$4,789...$3,897...$892...22.89% Dividends Paid to Shareholders...($481)...$0...($481)...100.00% Balance December 31...$46,828... $42,520.................$4,308...10.13% Certain reclassifications and adjustments may have been made to prior period results as appropriate.

www.crossplainsbank.com BLACK EARTH 1030 Mills Street (608) 767-2553 CROSS PLAINS MOTOR 2535 Main Street (608) 798-1213 MIDDLETON 8301 University Avenue (608) 828-2285 OREGON 744 N. Main Street (608) 835-2750 WAUNAKEE 610 W. Main Street (608) 849-2700 CROSS PLAINS MAIN 1205 Main Street (608) 798-3961 MADISON 455 S. Junction Road, Ste. 100 (608) 826-3500 MOUNT HOREB 1740 Springdale Street (608) 437-8968 VERONA 108 N. Main Street (608) 845-6486 TOLL FREE 855-CLOSE2U (855) 256-7328