Filed by MAF Bancorp, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: St. Francis Capital Corporation
(Commission File No: 0-21298)
ON JULY 23, 2003, MAF BANCORP, INC. ISSUED THE FOLLOWING NEWS RELEASE:
FOR IMMEDIATE RELEASE
- ---------------------
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 SECOND QUARTER EARNINGS OF $.82 PER DILUTED SHARE
Clarendon Hills, Illinois, July 23, 2003 - MAF Bancorp, Inc. (MAFB) announced
today that earnings per share for the second quarter ended June 30, 2003 totaled
$.82 per diluted share, up 18.8% from the $.69 per diluted share reported for
the second quarter of 2002.
The second quarter earnings per share improvement compared to last year resulted
primarily from higher net interest income, substantially higher gains from the
sale of loans and an increase in income from real estate development operations.
These increases were partially offset by higher amortization expense of mortgage
servicing rights along with a related impairment reserve, and higher
non-interest expenses. Weather-related delays caused a postponement in the
closings of 67 lots, in the Company's real estate development operation, which
also impacted the current quarter's results. These lot sales are expected to
generate pre-tax income of $2.0 million when they close.
SECOND QUARTER HIGHLIGHTS
o Diluted EPS of $.82, up 18.8% from last year's second quarter;
o Net income of $19.5 million, up 19.2% from a year ago;
o Return on average equity of 14.97% for the quarter;
o Return on average assets of 1.31% for the current period;
o Strong loan origination volume of $1.4 billion, a quarterly record;
o Loan sale volume of $401 million, generating gains of $8.3 million;
o Opening of two new branch offices;
o Agreement to acquire St. Francis Capital Corporation, a Milwaukee,
WI-based banking organization with assets of $2.3 billion;
NET INTEREST INCOME AND NET INTEREST MARGIN
Net interest income for the current quarter totaled $40.6 million compared to
$38.1 million for last year's second quarter, an increase of 6.4%. The net
interest margin was 2.89% in the current period, five basis points lower than
the 2.94% reported for the quarter ended March 31, 2003, and comparable with
last year's second quarter net interest margin of 2.88%. The slight compression
in the margin during the past three months was principally due to a drop in
average funding costs resulting from the lower interest rate environment, which
nearly matched the decline in the Company's average yield on interest-earning
assets.
The average yield on interest-earning assets fell to 5.27% for the quarter ended
June 30, 2003 compared to 5.53% reported for the quarter ended March 31, 2003.
Low mortgage interest rates continued to stimulate loan refinancing activity,
with the Company's yield on loans receivable declining to 5.67%, compared to
5.95% three months ago. Lower returns on mortgage-backed securities, a function
of the general interest rate environment, also contributed to lower overall
asset yields.
The average cost of interest-bearing liabilities declined by 24 basis points to
2.64% in the current quarter, compared to 2.88% for the quarter ended March 31,
2003. The decline in the cost of interest-bearing liabilities during the past
three months was largely the result of continued lower deposit liability costs.
The cost of deposits declined to 1.66% for the quarter compared to 1.95% in the
first quarter of 2003. The cost of deposits declined as a result of both an
increase in the amount of lower-cost core deposits as a percentage of total
deposits, as well as a reduction in the average rate offered on both passbook
and money market accounts. Additionally, maturing certificates were renewed at
lower rates due to the general decline in interest rates.
Average interest-earning assets remained relatively unchanged during the past
three months, totaling $5.61 billion for the current quarter, compared to $5.59
billion reported for the quarter ended March 31, 2003. Average loans receivable
balances increased by $28.8 million during the quarter while the aggregate
average balances of mortgage-backed and investment securities decreased by $49.8
million. Average liquid investments, represented by interest-bearing deposits
and federal funds sold, increased by $47.9 million during the past three months.
LENDING PRODUCTION
Loan origination volume totaled a record $1.39 billion in the current quarter,
more than 91% ahead of the $726.2 million reported for the quarter ended June
30, 2002 and 32% ahead of the $1.06 billion in loan volume reported for the
quarter ended March 31, 2003. Historically low mortgage interest rates continued
to generate large refinancing volumes and long-term fixed-rate loans remained
attractive to consumers. Loan sale activity in the quarter was strong, as the
Company generally sells fixed-rate loans into the secondary market. The Company
continued to have success in marketing its home equity loan products, with
balances increasing to $491 million at June 30, 2003 compared to $447 million at
March 31, 2003 and $360 million at June 30, 2002.
NON-INTEREST INCOME
Non-interest income increased to $17.0 million in the current quarter, compared
to $11.6 million reported for the quarter ended June 30, 2002. Substantially
higher gains on sales of loans, along with higher income from real estate
development operations, were partially offset by higher amortization expense and
impairment of mortgage servicing rights. Higher deposit account service fees
also contributed to the overall improvement.
LOAN SALES AND LOAN SERVICING. Although the heavy loan refinancing activity in
the current quarter reduced asset yields, it also contributed to a large
increase in loan sales with corresponding strong loan sale profits. Loan sale
volume in the current quarter increased to $401.4 million compared to $212.1
million in last year's second quarter and $477.6 million for the quarter ended
March 31, 2003. With this increased sales volume, along with higher margins,
gains on sales of mortgage loans more than tripled compared to the quarter ended
June 30, 2002, totaling $8.3 million in the current quarter compared to
$2.7 million a year ago.
Higher than expected prepayment rates in the Bank's loans serviced for others
portfolio due to strong loan refinancings reduced the value of mortgage
servicing rights as of June 30, 2003, resulting in the establishment of an
additional $940,000 impairment reserve on existing mortgage servicing rights. In
addition to this charge, heavy loan prepayments led to increased amortization of
mortgage servicing rights resulting in $2.0 million of loan servicing fee
expense, net of servicing fees, compared to $137,000 of net revenue last year.
DEPOSIT ACCOUNT SERVICE FEES. Deposit account service fees totaled $6.0 million
for the current quarter, up 7.8% from the $5.5 million reported in the second
quarter of 2002. While the rate of growth in service fee income has slowed
recently, this revenue source continues to be a strong contributor to overall
non-interest income. Checking accounts totaled 161,300 at June 30, 2003, 8.9%
higher than a year ago.
REAL ESTATE DEVELOPMENT OPERATIONS. The Company's real estate development
operations contributed $1.7 million to non-interest income in the current
quarter compared to $160,000 in last year's second quarter. The real estate
income for the current quarter resulted primarily from the closings of 16 lots
in the TallGrass of Naperville subdivision, generating income of $1.3 million. A
total of 32 lots remain from the original 952 lots available in this
development. There were also 15 lot closings in the 326-lot Shenandoah
subdivision in Plainfield, IL during the quarter, generating income of $414,000.
The Company had expected to close an additional 67 lots in this development
during the quarter but due to construction delays caused by bad weather, these
transactions are now expected to close in the third quarter of 2003. In last
year's second quarter, a delay in the closings of 36 real estate lot sales also
impacted that quarter's results. At June 30, 2003, 68 lots and 4 lots were under
contract in the Shenandoah and TallGrass developments, respectively.
NON-INTEREST EXPENSE
The ratio of total non-interest expense to average assets was 1.79% for the
current quarter, compared to 1.72% in the second quarter of 2002 and 1.80% for
the quarter ended March 31, 2003. The Company's efficiency ratio, a measure of
the amount of expense needed to generate each dollar of revenue, was 46.7% for
the current quarter, compared to 49.4% in last year's second quarter and 46.5%
for the quarter ended March 31, 2003.
Non-interest expense totaled $26.7 million in the current quarter, compared to
$24.3 million reported for the quarter ended June 30, 2002. Compensation and
benefits expense totaled $15.7 million in the current quarter, compared to $14.7
million a year ago. This increase was primarily due to normal salary increases,
higher payroll taxes and medical costs, and increased staffing related to new
branches and higher loan volumes. Occupancy expenses increased by $652,000 in
the current quarter compared to the comparable period a year ago, primarily due
to higher depreciation and rent expenses and general maintenance costs,
increases that are largely attributable to the addition of four new branch
offices compared to a year ago. Advertising expense increased by $415,000
compared to last year's second quarter due to increased radio advertising and
market research expenses. Other non-interest expense increased by $362,000 in
the current quarter compared to last year's second quarter. The largest
components of this increase were higher postage, telephone and loan-related
expenses.
Income tax expense totaled $11.3 million in the current quarter, an effective
income tax rate of 36.5%, compared to $9.1 million or an effective tax rate of
35.6% for the quarter ended June 30, 2002.
ASSET QUALITY
Non-performing assets decreased during the past three months to $32.8 million,
or .55% of total assets, compared to $36.9 million or .62% of total assets at
March 31, 2003. The decrease in non-performing assets over the past three months
is primarily due to a decline in one-to four-family non-performing loans.
Non-performing loans as a percentage of total loans was .49% at June 30, 2003
compared to .57% at June 30, 2002. A total of $9.1 million in investment
securities were included in non-performing assets at June 30, 2003.
The Company recorded $92,000 of net charge-offs of loans during the quarter and
did not record a provision for loan losses. In last year's second quarter, the
Company recorded net charge-offs totaling $179,000 and also had no provision for
loan losses. The Bank's allowance for loan losses was $19.4 million at June 30,
2003, equal to 86% of total non-performing loans and .42% of total loans
receivable. A year ago, the allowance for loan losses was at the same level and
was equal to 78% of total non-performing loans and .44% of total loans
receivable. At June 30, 2003, 87% of the Company's loan portfolio consisted of
loans secured by one-to-four family residential properties, including 11%
relating to home equity loans and equity lines of credit. A total of 93% of
non-performing loans consisted of loans secured by one-to four-family
residential properties.
BALANCE SHEET & CAPITAL
Total assets at June 30, 2003, were $5.97 billion, approximately $14 million
lower than the level reported at March 31, 2003. Loan balances, which totaled
$4.61 billion at June 30, 2003, were $219 million higher than the $4.40 billion
balance three months ago. Loan balance increases were funded by existing
liquidity, resulting in a $234 million decrease in cash and cash equivalent
balances. Total deposits increased to $3.84 billion, $22 million higher than the
$3.81 billion reported at March 31, 2003. The Bank continues to be successful in
its efforts to grow its core deposits. At June 30, 2003, core deposits,
comprised of checking, savings and money market accounts, accounted for 59.0% of
total deposits, up from 57.5% at March 31, 2003.
Borrowed funds totaled $1.47 billion at June 30, 2003, down modestly from $1.50
billion reported three months earlier as loan growth was funded with available
cash balances. Stockholders' equity totaled $525.8 million at June 30, 2003,
$8.8 million higher than the $517.0 million reported at March 31, 2003. The book
value per share at June 30, 2003 was $22.66, up from $22.18 reported three
months ago. The Bank's tangible, core and risk-based capital percentages of
6.96%, 6.96% and 11.73%, respectively, at June 30, 2003 exceeded all minimum
regulatory capital requirements.
The Company previously announced that it was expanding its share repurchase plan
to cover a total of 1.6 million shares. During the current quarter, 150,000
shares of common stock were repurchased at an average cost of $36.19 per share.
RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2003
Diluted earnings per share expanded by 17.3% in the current six-month period
compared to last year, totaling $1.63 compared to $1.39 last year. For the six
months ended June 30, 2003, net income totaled $38.8 million compared to $33.0
million in last year's comparable period, an increase of 17.6%. Net interest
income improved by $7.5 million year-over-year, or approximately 10.1%,
principally due to the expansion of the net interest margin to 2.91% compared to
2.80% for the first six months of 2002. Return on equity for the six months
ended June 30, 2003 was 15.03% compared to 14.66% for the six months ended June
30, 2002.
Overall non-interest income improved by 30.6% in the current six-month period
compared to last year, totaling $33.0 million. Gains on sales of loans totaled
$15.8 million in the current six-month period, $10.8 million ahead of the
results from the six months ended June 30, 2002. The current six-month period
also included gains on sales of mortgage-backed securities of $5.4 million that
were recorded during the first quarter of this year and writedowns on investment
securities totaling $8.1 million, which were also recorded during the quarter
ended March 31, 2003. Deposit account service fees totaled $11.4 million for the
six months ended June 30, 2003, 10.1% ahead of the results from last year's
comparable period. Income from real estate development operations also advanced
by 8.7%, totaling $3.3 million for the six months ended June 30, 2003.
Non-interest expense totaled $53.4 million in the current six-month period, up
11.6% from the $47.9 million reported for the six months ended June 30, 2002.
Compensation expense totaled $31.3 million in the current period compared to
$28.9 million last year. The balance of the increase in non-interest expenses
totaled $3.2 million and was due generally to increased costs associated with
higher loan volume as well as market expansion.
OUTLOOK FOR 2003
The Company is reiterating its previous outlook for calendar 2003, and currently
expects earnings to be in the range of $3.30-$3.35 per diluted share.
The Company's projections for 2003 assume modest balance sheet growth over 2002,
and a relatively unchanged yield curve from the current level. The Company
currently expects loan origination activity to remain steady in the second half
of 2003 as strong loan refinancing activity is expected to continue through the
third quarter. Loan sale volume for 2003 is expected to be 15-20% ahead of 2002
levels. Assuming the economy remains sluggish and the Federal Reserve does not
begin tightening monetary policy until sometime in 2004, management expects some
net interest margin compression for the remainder of 2003, with the net interest
margin for the full year 2003 estimated to be in a range of 2.82%-2.90%. The
Company expects to report continued growth in fee income in 2003 and is
currently projecting income from real estate development operations in the range
of $12-$13 million for 2003, based on an expectation that the results for the
second half of 2003 will substantially exceed the $3.3 million in real estate
income reported in the first half. The projections also assume continued strong
housing and mortgage activity in the Bank's markets and no significant
deterioration in credit quality.
RECENT DEVELOPMENTS
On May 21, 2003, the Company announced it had reached an agreement to acquire
St. Francis Capital Corporation in an all-stock transaction valued at
approximately $264 million on the date of announcement. As previously disclosed,
the Company expects this transaction to close in the fourth quarter of 2003. At
March 31, 2003, St. Francis had assets of $2.3 billion, deposits of $1.4 billion
and 22 branch offices in the Milwaukee area.
On July 22, 2003, the Company announced that it had completed its acquisition of
Fidelity Bancorp in a transaction previously announced in December 2002. At
March 31, 2003, Fidelity had assets of $723 million and deposits of $458
million. The acquisition added five new offices to the Bank's branch network,
three in the city of Chicago and two in the suburban markets of Schaumburg and
Franklin Park.
The Bank also opened two new branch offices in the Chicago area during the
quarter, both in the suburban Plainfield area, one at 13470 S. Route 59 and the
other at 2402 Route 59. In July, a new office was also opened at 5033 W.
Dempster in Skokie, IL. The Bank expects to open another office later this week,
at 9000 N. Milwaukee Avenue in Niles, IL.
MAF Bancorp is the parent company of Mid America Bank, a federally chartered
stock savings bank. The Bank currently operates a network of 43 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
---------------------------
Statements contained in this news release that are not historical facts
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. These
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 operations and could
affect management's outlook or future prospects of the Company and its
subsidiaries include, but are not limited to, higher than expected costs or
unanticipated difficulties associated with the integration of Fidelity Bancorp
into MAF, difficulties or delays in completing the acquisition of St. Francis,
higher than expected costs related to the St. Francis transaction, unanticipated
changes in interest rates or flattening of the yield curve, deteriorating
economic conditions which could result in increased delinquencies in MAF's or
St. Francis' loan portfolio, changes in purchase accounting adjustments and/or
amortization periods relating to the St. Francis acquisition, legislative or
regulatory developments, 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 MAF's or St. Francis' loan or investment portfolios,
or further deterioration in the value of investment securities, demand for loan
products, secondary mortgage market conditions, deposit flows, competition,
demand for financial services and residential real estate in MAF's and St.
Francis' market area, unanticipated slowdowns in real estate lot sales or
problems in closing pending real estate contracts, delays in real estate
development projects, the possible short-term dilutive effect of other potential
acquisitions, if any, 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.
NOTE: The following notice is included to meet certain legal requirements.
--------------------------------------------------------------------------
MAF will be filing a registration statement containing a joint proxy
statement/prospectus and other documents regarding its proposed acquisition of
St. Francis with the Securities and Exchange Commission. MAF and St. Francis
shareholders are urged to read the proxy statement/prospectus when it becomes
available, because it will contain important information about MAF and St.
Francis, and the proposed transaction. When available, copies of this joint
proxy statement/prospectus will be mailed to MAF and St. Francis shareholders,
and it and other documents filed by MAF or St. Francis with the SEC may be
obtained free of charge at the SEC's web site at http://www.sec.gov, or by
directing a request to MAF at 55th Street & Holmes Avenue, Clarendon Hills, IL
60514 or St. Francis at 13400 Bishops Lane, Suite 350, Brookfield, Wisconsin
53005-6203.
MAF and St. Francis and their respective directors, executive officers and
certain other members of management and employees may be deemed to be
participants in the solicitation of proxies from the shareholders of MAF and St.
Francis in favor of the proposed merger. Information regarding such persons can
be found in MAF's and St. Francis' respective proxy statements, annual reports
on Form 10-K and quarterly reports on Form 10-Q filed with the SEC. Additional
information regarding the interests of such persons will also be set forth in
the joint proxy statement/prospectus when it is filed with the SEC.
MAF BANCORP, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
---- ---- ---- ----
(UNAUDITED) (UNAUDITED)
Interest income $73,925 81,882 $150,951 163,438
Interest expense 33,362 43,745 69,333 89,337
------- ------- -------- --------
Net interest income 40,563 38,137 81,618 74,101
Provision for loan losses - - - -
------- ------- -------- --------
Net interest income after provision for loan losses 40,563 38,137 81,618 74,101
Non-interest income:
Gain (loss) on sale and writedown of:
Loans receivable held for sale 8,254 2,662 15,802 5,002
Mortgage-backed securities - 39 5,352 39
Investment securities 285 517 (5,427) 982
Foreclosed real estate 302 124 233 151
Income from real estate operations 1,687 160 3,322 3,057
Deposit account service charges 5,960 5,527 11,399 10,351
Loan servicing fee income (expense) (2,040) 137 (3,416) 97
Impairment of mortgage servicing rights (940) (490) (940) (490)
Brokerage commissions 648 642 1,379 1,245
Other 2,817 2,276 5,284 4,834
------- ------- -------- --------
Total non-interest income 16,973 11,594 32,988 25,268
Non-interest expense:
Compensation and benefits 15,654 14,719 31,292 28,945
Office occupancy and equipment 3,453 2,801 6,984 5,668
Advertising and promotion 1,777 1,362 3,098 2,549
Data processing 992 847 1,965 1,846
Federal deposit insurance premiums 161 173 322 347
Other 4,337 3,975 9,009 7,679
Amortization of core deposit intangibles 370 409 749 833
------- ------- -------- --------
Total non-interest expense 26,744 24,286 53,419 47,867
------- ------- -------- --------
Income before income taxes 30,792 25,445 61,187 51,502
Income taxes 11,253 9,059 22,360 18,474
------- ------- -------- --------
Net income $19,539 16,386 38,827 33,028
======= ======= ======== ========
Basic earnings per share $ .84 .71 1.67 1.43
======= ======= ======== ========
Diluted earnings per share .82 .69 1.63 1.39
======= ======= ======== ========
MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
(Unaudited)
JUNE 30, DECEMBER 31,
2003 2002
---- ----
ASSETS
- ------
Cash and due from banks $ 98,469 $ 134,265
Interest-bearing deposits 87,372 28,210
Federal funds sold 73,616 100,205
---------- ----------
Total cash and cash equivalents 259,457 262,680
Investment securities available for sale, at fair value 267,811 308,235
Stock in Federal Home Loan Bank of Chicago, at cost 207,491 169,708
Mortgage-backed securities available for sale, at fair value 315,393 365,638
Loans receivable held for sale 92,830 167,780
Loans receivable, net of allowance for losses of $19,379 and $19,483 4,521,927 4,363,152
Accrued interest receivable 22,794 27,513
Foreclosed real estate 1,345 2,366
Real estate held for development or sale 23,280 14,938
Premises and equipment, net 78,393 72,492
Other assets 64,871 67,753
Goodwill 95,375 94,796
Intangibles 20,328 20,130
---------- ----------
$5,971,295 $5,937,181
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Deposits 3,836,466 3,751,237
Borrowed funds 1,471,000 1,556,500
Advances by borrowers for taxes and insurance 37,331 37,700
Accrued expenses and other liabilities 100,662 90,286
---------- ----------
Total liabilities 5,445,459 5,435,723
---------- ----------
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;
23,201,179 and 22,252,815 shares outstanding 254 254
Additional paid-in capital 205,169 204,710
Retained earnings, substantially restricted 372,983 342,790
Accumulated other comprehensive income, net of tax 1,807 4,819
Stock in Gain Deferral Plan; 238,683 and 236,401 shares 929 851
Treasury stock, at cost; 2,219,471 and 2,167,835 shares (55,306) (51,966)
---------- ----------
Total stockholders' equity 525,836 501,458
---------- ----------
$5,971,295 $5,937,181
========== ==========
MAF BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except share data)
JUNE 30, DECEMBER 31, JUNE 30,
2003 2002 2002
---- ---- ----
Book value per share $ 22.66 $ 21.57 $ 20.13
Stockholders' equity to total assets 8.81% 8.45% 8.10%
Tangible capital ratio (Bank only) 6.96 6.78 6.55
Core capital ratio (Bank only) 6.96 6.78 6.55
Risk-based capital ratio (Bank only) 11.73 11.85 11.95
Common shares outstanding:
Actual 23,201,179 23,252,815 23,223,726
Basic (weighted average) 23,274,342 23,249,619 23,154,581
Diluted (weighted average) 23,857,888 23,768,963 23,846,132
Non-performing loans $ 22,391 $ 25,394 $ 24,990
Non-performing assets 32,802 27,760 25,799
Allowance for loan losses 19,379 19,483 19,375
Non-performing loans to total loans .49% .58% .57%
Non-performing assets to total assets .55 .47 .45
Allowance for loan losses to total loans .42 .44 .44
Mortgage loans serviced for others $ 2,237,178 $ 2,021,512 $ 1,764,209
Capitalized mortgage servicing rights, net 13,820 12,960 13,420
Core deposit intangibles 6,506 7,170 7,987
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
---- ---- ---- ----
Average balance data:
Total assets $ 5,966,598 $ 5,637,749 $ 5,946,390 $ 5,612,330
Loans receivable 4,533,706 4,319,198 4,519,388 4,336,207
Interest-earning assets 5,613,261 5,304,994 5,599,867 5,286,904
Deposits 3,586,104 3,425,212 3,560,172 3,388,914
Interest-bearing liabilities 5,066,824 4,819,228 5,062,385 4,806,012
Stockholders' equity 522,170 458,383 516,654 450,503
Performance ratios (annualized):
Return on average assets 1.31% 1.16% 1.31% 1.18%
Return on average equity 14.97 14.30 15.03 14.66
Average yield on interest-earning assets 5.27 6.18 5.40 6.19
Average cost of interest-bearing liabilities 2.64 3.64 2.76 3.75
Interest rate spread 2.63 2.54 2.64 2.44
Net interest margin 2.89 2.88 2.91 2.80
Average interest-earning assets to average
interest-bearing liabilities 110.78% 110.08% 110.62 110.01%
Non-interest expense to average assets 1.79 1.72 1.80 1.71
Non-interest expense to average assets
and loans serviced for others 1.31 1.33 1.32 1.33
Efficiency ratio (1) 46.71 49.39 46.58 48.67
Loan originations $ 1,392,319 $ 726,176 $ 2,448,220 $ 1,404,217
Loans sold 401,358 212,083 878,976 576,604
Cash dividends declared per share .18 .15 .36 .30
<FN>
(1) The efficiency ratio is calculated by dividing non-interest expense by the
sum of net interest income and non-interest income, excluding net gain/(loss) on
sale and writedown of mortgage-backed and investment securities.
</FN>