EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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For: MAF Bancorp, Inc. Contacts: Jerry A. Weberling, Chief
55th Street & Holmes Avenue Financial Officer
Clarendon Hills, IL 60514 Michael J. Janssen, Senior
Vice President
www.mafbancorp.com (630) 325-7300
MAF BANCORP REPORTS FOURTH QUARTER RESULTS OF $.57 PER DILUTED SHARE
AND CALENDAR 2000 RECORD EARNINGS OF $2.40 PER DILUTED SHARE
Clarendon Hills, Illinois, January 25, 2001 - MAF Bancorp, Inc. (MAFB) announced
today that earnings per share for the fourth quarter ended December 31, 2000
totaled $.57 per diluted share, compared to $.56 per diluted share reported in
last year's fourth quarter. For the year ended December 31, 2000, the Company
earned $2.40 per diluted share, a 16% improvement over the $2.07 per diluted
share reported for 1999. The current year results included a gain on the sale of
mortgage servicing rights, recorded in the third quarter of this year, equal to
$.11 per diluted share on an after-tax basis. Exclusive of this gain, earnings
for 2000 were a record $2.29 per diluted share, an 11% improvement over the
prior year.
Net income for the current quarter totaled $13.3 million compared to $13.8
million in the year earlier period. Return on average equity and return on
average assets were 13.95% and 1.03%, respectively, in the current quarter
compared to 15.71% and 1.21% in last year's comparable period. Cash earnings per
share (diluted), which excludes amortization of goodwill and deposit base
intangibles, totaled $.61 in the current quarter compared to $.59 in last year's
fourth quarter.
Net interest income increased by 5.2% from a year ago, totaling $31.5 million
for the quarter ended December 31, 2000 compared to $29.9 million for last
year's fourth quarter. The net interest margin declined to 2.59% compared to
2.67% for the quarter ended September 30, 2000. In last year's fourth quarter,
the net interest margin was 2.77%. The yield on average interest-earning assets
increased three basis points to 7.41% over the past three months while the cost
of interest-bearing liabilities increased by 10 basis points to 5.17%. The
inverted treasury yield curve experienced during much of 2000 led to continued
compression in the net interest spread and a corresponding reduction in the net
interest margin.
Recent and anticipated future declines in the targeted federal funds rate is
expected to result in a more favorable interest rate environment during 2001.
Although management still expects moderate pressure on the net interest margin
during the first half of 2001, it anticipates a higher trending net interest
margin beginning in the second half of 2001 as a result of current Federal
Reserve Board monetary policy. Based on this interest rate outlook and with the
expected continued strong contribution from the Company's retail banking
business and real estate development operations, the Company is currently
projecting results for 2001 in the range of $2.40-$2.45 per diluted share, which
is consistent with the current consensus analysts' estimate of $2.41 per diluted
share. This compares to calendar 2000 operating earnings per share results of
$2.29 per diluted share.
Average interest-earning assets in the current quarter grew to $4.86 billion
from $4.33 billion reported for last year's fourth quarter and up from $4.78
billion reported for the quarter ended September 30, 2000. The growth in
interest-earning assets was primarily attributable to increases in loans
receivable balances. Recent decreases in mortgage interest rates have led to
increases in loan refinancings, accompanied by a shift in consumers' preferences
to fixed rate mortgage loans. This is expected to result in more moderate
balance sheet loan growth in 2001 compared to 2000 as the Bank generally prefers
to sell conforming fixed-rate loans in the secondary market.
Marketing initiatives in 2000 resulted in a 41% increase in consumer loans,
primarily home equity loans, during the year, with balances totaling $215.3
million at December 31, 2000, compared to $152.3 million at December 31, 1999.
Overall loan origination volume totaled $361.9 million in the current quarter,
down from the $399.3 million reported for the quarter ended December 31, 1999
and the $386.1 million reported for the quarter ended September 30, 2000. The
lower loan volume compared to a year ago was due in part to the Company's
decision earlier in 2000 to significantly reduce wholesale lending.
Non-interest income decreased to $8.7 million in the current quarter, compared
to $9.1 million reported in the fourth quarter of last year. Higher fee income
from deposit account products and increased gains on sales of loans were more
than offset by reduced gains on sales of investment securities, lower loan
servicing fee income and lower income from real estate development operations.
The Company's real estate development operations contributed $1.7 million to
non-interest income in the current quarter. A total of 51 residential lots were
sold compared to 104 lots in last year's final quarter. Demand in the Company's
Tallgrass of Naperville development continues to be strong, with margins
expanding. There were a total of 103 lots under contract at December 31, 2000.
Based on these trends in Tallgrass and the expected results from a new project
in Sugar Grove, IL that will start later in 2001, management currently expects
that pre-tax income from real estate development in 2001 should be in the range
of $8.0-$9.5 million. Approximately 30% of this income is expected to be
generated in the first quarter of 2001.
Deposit account service fees totaled $3.6 million for the current quarter, up
30% from the $2.8 million reported for the quarter ended December 31, 1999.
Deposit account fee income continues to be one of the Company's strongest
revenue growth areas. The recent increase in the year-over-year growth rate for
deposit account service fees reflects the success of efforts aimed at growing
the Bank's transaction account base. Total checking accounts exceeded 115,400 at
December 31, 2000, increasing at a rate of 12.5% during 2000.
The switch in consumers' preferences toward fixed-rate mortgage loans led to
improved mortgage banking profits resulting from loan sales. Gains on sales of
mortgage loans totaled $632,000 in the current quarter compared to $245,000 a
year ago, representing the best quarterly performance in more than a year and a
half. Loan sales in the current quarter totaled $127.6 million compared to $50.6
million for the quarter ended December 31, 1999. The Company believes that if
the recent trend toward lower mortgage interest rates continues and fixed-rate
loan products continue to be popular with customers, 2001 mortgage banking
profits from loan sales should substantially exceed the results from 2000. Loan
servicing fee income declined to $292,000 in the current period compared to
$880,000 in last year's fourth quarter. This decline was largely attributable to
the sale of servicing rights relating to approximately $600 million in mortgage
loans in the third quarter of 2000. The Company recorded a pre-tax gain of $4.4
million on the sale.
Non-interest expense totaled $18.9 million in the current quarter, compared to
$17.8 million reported for the quarter ended December 31, 1999 and $18.4 million
for the quarter ended September 30, 2000. Compensation and benefits expense
totaled $10.5 million in the current quarter, compared to $9.6 million a year
ago. This change was primarily due to normal compensation increases and
compensation associated with two additional branch locations purchased in 2000.
Office occupancy expense rose $298,000 due primarily to operational expenses at
the two additional branches.
The ratio of total non-interest expense to average assets improved to 1.47% for
the current quarter, compared to 1.56% in last year's fourth quarter and 1.47%
in the third quarter of 2000. The Company's efficiency ratio, a measure of the
amount of expense needed to generate each dollar of revenue, was 47.1%. This
measure continues to be considerably better than peer group averages. Income tax
expense totaled $7.6 million in the current quarter, equal to an effective
income tax rate of 36.5%, compared to $7.3 million and an effective tax rate of
34.6% for the quarter ended December 31, 1999.
Asset quality remained excellent during the quarter. Non-performing assets at
December 31, 2000 were $18.5 million, or .36% of total assets, compared to $17.3
million or .34% of total assets at September 30, 2000. At December 31, 1999,
non-performing assets totaled $23.1 million, or .50% of total assets. The
Company recorded a provision for loan losses of $400,000 in the current quarter,
with net charge-offs totaling $309,000. The Bank's allowance for loan losses was
$18.3 million at December 31, 2000, equal to 109% of total non-performing loans,
99% of total non-performing assets and .42% of total loans receivable. At
December 31, 2000, 88% of the Company's loan portfolio consisted of one-to-four
family residential mortgage loans.
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For the year ended December 31, 2000, net income totaled $56.6 million, or $2.40
per diluted share, compared to $51.5 million, or $2.07 per diluted share for the
year ended December 31, 1999. This represented a year-over-year increase in net
income and earnings per share of 10% and 16%, respectively. Return on average
equity was 15.57% for calendar 2000 and the return on average assets was 1.14%.
Cash earnings per share for the current year totaled $2.56, compared to $2.20 in
1999.
Net interest income for the year totaled $125.9 million, up 8% from the $116.7
million reported for calendar 1999. The net interest margin declined to 2.68% in
the current year compared to 2.88% last year, while average interest-earning
assets expanded by 16% to $4.71 billion from $4.06 billion last year.
Non-interest income increased to $37.4 million for the year ended December 31,
2000 compared to $34.8 million last year. Declines in gains on sales of loans
and securities and lower servicing fee income were offset by the gain on the
sale of loan servicing rights, while fees from deposit accounts improved by $2.5
million over last year, a 25% improvement. Income from real estate operations
remained steady at $9.5 million compared to $9.6 million last year. Non-interest
expenses increased by $5.3 million, or 7.9%, due in part to the Company's
internal growth and branch acquisitions, new data processing equipment and
initiatives, as well as increased marketing costs relating to the Company's
radio-based branding campaign. This initiative, along with heavier print
advertising for deposit products, has been instrumental in expanding total
deposits and increasing new retail checking account openings.
Total assets increased to $5.20 billion at December 31, 2000, up $122 million
from the $5.07 billion reported at September 30, 2000. The growth in assets
during the three-month period was primarily driven by an increase in loans
receivable of $39.3 million and increases in cash and cash equivalent balances
of $79.2 million. The balance of loans receivable at December 31, 2000 stood at
$4.33 billion. Deposit balances grew by $68.0 million in the quarter, totaling
$2.97 billion at December 31, 2000. For the year, deposit balances grew by $275
million, or 10%, with approximately $91 million of this increase coming from
branch deposit purchases. Exclusive of growth through mergers or branch
acquisitions, the year-over-year deposit balance increase was the best
performance in more than ten years.
Borrowed funds increased by $41.8 million to $1.73 billion at December 31, 2000,
compared to $1.69 billion at September 30, 2000. Total stockholders' equity was
$387.7 million at December 31, 2000, resulting in a stated book value per share
of $16.78 and a tangible book value per share of $13.80. The Bank's tangible,
core and risk-based capital percentages of 6.32%, 6.32% and 11.98%,
respectively, at December 31, 2000 exceeded all minimum regulatory requirements
by a significant margin.
MAF Bancorp is the parent company of Mid America Bank, a federally chartered
stock savings bank. The Bank operates a network of 27 retail banking offices
primarily in Chicago and its western suburbs. The Company's common stock trades
on the Nasdaq Stock Market under the symbol MAFB.
Forward-Looking Information
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Statements contained in this news release that are not historical facts may
constitute forward-looking statements (within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended), which involve significant risks
and uncertainties. The Company intends such forward-looking statements to be
covered by the safe harbor provisions for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995, and is including this
statement for purposes of invoking these safe harbor provisions. Forward-looking
statements, which are based on certain assumptions and describe future plans,
strategies and expectations of the Company, are generally identifiable by use of
the words "believe," "expect," "intend," "anticipate," estimate," "project,"
"plan," or similar expressions. The Company's ability to predict results or the
actual effect of future plans or strategies is inherently uncertain and actual
results may differ from those predicted. The Company undertakes no obligation to
update these forward-looking statements in the future. Factors which could have
a material adverse effect on the operations and could affect the outlook or
future prospects of the Company and its subsidiaries include, but are not
limited to, unanticipated changes in interest rates, general economic
conditions, legislative/regulatory changes, monetary and fiscal policies of the
U.S. Government, including policies of the U.S. Treasury and the Federal Reserve
Board, the quality or composition of the Company's loan or investment
portfolios, demand for loan products, secondary mortgage market conditions,
deposit flows, competition, demand for financial services and residential real
estate in the Company's market area, unanticipated problems in closing pending
real estate contracts, delays in real estate development projects, the possible
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short-term dilutive effect of potential acquisitions, and changes in accounting
principles, policies and guidelines. These risks and uncertainties should be
considered in evaluating forward-looking statements and undue reliance should
not be placed on such statements.
4
MAF BANCORP, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
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2000 1999 2000 1999
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(UNAUDITED) (UNAUDITED)
Interest income ................................................ $ 90,071 $ 76,640 $ 343,103 $ 285,092
Interest expense ............................................... 58,580 46,716 217,173 168,401
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Net interest income ........................................... 31,491 29,924 125,930 116,691
Provision for loan losses ...................................... 400 300 1,500 1,100
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Net interest income after provision for loan losses ........... 31,091 29,624 124,430 115,591
Non-interest income:
Gain (loss) on sale of:
Loans receivable ........................................... 632 245 1,108 2,583
Mortgage-backed securities ................................. -- -- (700) --
Investment securities ...................................... 119 744 256 1,776
Foreclosed real estate ..................................... 81 64 258 (57)
Mortgage loan servicing rights ............................. 105 -- 4,442 --
Income from real estate operations ............................ 1,735 2,614 9,536 9,630
Deposit account service charges ............................... 3,606 2,775 12,715 10,200
Loan servicing fee income ..................................... 292 880 1,686 2,661
Brokerage commissions ......................................... 582 628 2,322 2,566
Other ......................................................... 1,528 1,198 5,820 5,485
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Total non-interest income .................................. 8,680 9,148 37,443 34,844
Non-interest expense:
Compensation and benefits ..................................... 10,532 9,556 41,197 37,845
Office occupancy and equipment ................................ 2,148 1,850 8,124 7,274
Federal deposit insurance premiums ............................ 155 398 604 1,585
Data processing ............................................... 798 755 3,034 2,611
Advertising and promotion ..................................... 849 745 3,569 3,149
Amortization of goodwill ...................................... 811 686 3,118 2,648
Amortization of core deposit intangibles ...................... 353 293 1,357 1,236
Other ......................................................... 3,236 3,476 12,000 11,332
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Total non-interest expense ................................. 18,882 17,759 73,003 67,680
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Income before income taxes ................................. 20,889 21,013 88,870 82,755
Income taxes ................................................... 7,623 7,262 32,311 31,210
Net income .................................................... $ 13,266 $ 13,751 56,559 51,545
========= ========= ========= =========
Basic earnings per share ....................................... $ .57 $ .57 $ 2.43 $ 2.13
========= ========= ========= =========
Diluted earnings per share ..................................... $ .57 $ .56 $ 2.40 $ 2.07
========= ========= ========= =========
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MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
DECEMBER 31, DECEMBER 31,
2000 1999
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(UNAUDITED)
ASSETS
Cash and due from banks ......................................................... $ 77,860 $ 71,721
Interest-bearing deposits ....................................................... 53,392 51,306
Federal funds sold .............................................................. 139,268 35,013
Investment securities, at cost (fair value of $13,290 and $12,321) .............. 12,633 11,999
Investment securities available for sale, at fair value ......................... 174,494 194,105
Stock in Federal Home Loan Bank of Chicago, at cost ............................. 84,775 75,025
Mortgage-backed securities, at amortized cost
(fair value of $79,137 and $92,095) ............................................ 80,301 94,251
Mortgage-backed securities available for sale, at fair value .................... 24,084 39,703
Loans receivable held for sale .................................................. 41,074 12,601
Loans receivable, net of allowance for losses of $18,258 and $17,276 ............ 4,287,040 3,871,968
Accrued interest receivable ..................................................... 27,888 23,740
Foreclosed real estate .......................................................... 1,808 7,415
Real estate held for development or sale ........................................ 12,643 15,889
Premises and equipment, net ..................................................... 48,904 42,489
Other assets .................................................................... 60,560 49,640
Intangible assets, net of accumulated amortization of $15,030 and $10,555 ....... 68,864 61,200
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$ 5,195,588 $ 4,658,065
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits ....................................................................... $ 2,974,213 $ 2,699,242
Borrowed funds ................................................................. 1,728,900 1,526,363
Advances by borrowers for taxes and insurance .................................. 38,354 34,767
Accrued expenses and other liabilities ......................................... 66,392 44,772
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Total liabilities ........................................................... 4,807,859 4,305,144
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Stockholders' equity:
Preferred stock, $.01 par value; authorized
5,000,000 shares; none outstanding .......................................... -- --
Common stock, $.01 par value;
80,000,000 shares authorized; 25,420,650 shares issued;
23,110,022 and 23,911,508 shares outstanding ................................ 254 254
Additional paid-in capital ..................................................... 198,068 194,874
Retained earnings, substantially restricted .................................... 237,867 198,156
Stock in Gain Deferral Plan; 223,453 shares .................................... 511 511
Accumulated other comprehensive income (loss), net of tax ...................... 1,435 (3,675)
Treasury stock, at cost; 2,534,081 and 1,732,595 shares ........................ (50,406) (37,199)
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Total stockholders' equity ............................................... 387,729 352,921
Commitments and contingencies.................................................... ----------- -----------
$ 5,195,588 $ 4,658,065
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MAF BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except share data)
DECEMBER 31, DECEMBER 31,
2000 1999
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Book value per share .......................................................... $ 16.78 $ 14.76
Tangible book value per share ................................................. 13.80 12.20
Stockholders' equity to total assets .......................................... 7.46% 7.58%
Tangible capital ratio (Bank only) ............................................ 6.32 6.32
Core capital ratio (Bank only) ................................................ 6.32 6.32
Risk-based capital ratio (Bank only) .......................................... 11.98 12.32
Common shares outstanding:
Actual ....................................................................... 23,110,022 23,911,508
Basic (weighted average) ..................................................... 23,311,135 24,253,946
Diluted (weighted average) ................................................... 23,586,592 24,930,613
Non-performing loans .......................................................... $ 16,709 $ 15,650
Non-performing assets ......................................................... 18,517 23,065
Allowance for loan losses ..................................................... 18,258 17,276
Non-performing loans to total loans ........................................... .39% .40%
Non-performing assets to total assets ......................................... .36 .50
Allowance for loan losses to total loans ...................................... .42 .44
Mortgage loans serviced for others ............................................ $ 785,350 $ 1,226,874
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
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2000 1999 2000 1999
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Average balance data:
Total assets.................................. $5,142,672 $4,556,491 $4,948,232 $4,283,691
Loans receivable.............................. 4,329,683 3,806,252 4,164,443 3,565,375
Interest-earning assets....................... 4,861,819 4,325,463 4,705,733 4,061,334
Deposits...................................... 2,772,342 2,657,337 2,701,476 2,553,732
Interest-bearing liabilities.................. 4,494,361 3,993,290 4,353,328 3,740,994
Stockholders' equity.......................... 380,450 350,200 363,211 344,106
Performance ratios (annualized):
Return on average assets...................... 1.03% 1.21% 1.14% 1.20%
Return on average equity...................... 13.95 15.71 15.57 14.98
Average yield on interest-earning assets...... 7.41 7.08 7.29 7.02
Average cost of interest-bearing
liabilities................................ 5.17 4.64 4.99 4.50
Interest rate spread.......................... 2.24 2.44 2.30 2.52
Net interest margin........................... 2.59 2.77 2.68 2.88
Average interest-earning assets to
average interest-bearing liabilities....... 108.18 108.32 108.10 108.56
Non-interest expense to average assets........ 1.47 1.56 1.48 1.58
Non-interest expense to average assets
and loans serviced for others.............. 1.25 1.23 1.20 1.25
Efficiency ratio.............................. 47.14 46.33 44.56 45.19
Loan originations and purchases................ $361,893 $399,332 $1,484,220 $1,711,337
Loans and mortgage-backed securities
sold ......................................... 127,617 50,640 335,665 402,891
Cash dividends declared per share.............. .10 .09 .39 .34
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