Filed by MAF Bancorp, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
(Commission File No: 333-108742)
Subject Company: St. Francis Capital Corporation
ON OCTOBER 20, 2003, MAF BANCORP, INC. ISSUED THE FOLLOWING NEWS RELEASE:
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 THIRD QUARTER EARNINGS OF $.79 PER DILUTED SHARE
Clarendon Hills, Illinois, October 20, 2003 - MAF Bancorp, Inc. (MAFB) announced
today that earnings per share for the third quarter ended September 30, 2003
totaled $.79 per diluted share, compared to $.87 per diluted share reported for
the third quarter of 2002. Net income in the current quarter compared to a year
ago was comparable, totaling $20.5 million in the current quarter compared to
$20.7 million in last year's third quarter. The current quarter results were
negatively impacted by a $1.9 million writedown on an investment security. The
prior period results were benefited by $2.0 million of net securities gains. The
current quarter's per share results were also impacted by a greater number of
outstanding shares due to the completion of the Fidelity Bancorp merger on July
21, 2003.
NET INTEREST INCOME AND NET INTEREST MARGIN
Net interest income for the current quarter totaled $44.9 million compared to
$40.9 million for last year's third quarter, an increase of 9.7%. The net
interest margin was 2.92% in the current period, three basis points higher than
the 2.89% reported for the quarter ended June 30, 2003, and eight basis points
lower than last year's third quarter net interest margin of 3.00%. The slight
improvement in the margin during the past three months was principally due to a
decline in the cost of deposits and borrowed funds.
The average yield on interest-earning assets fell to 5.08% for the quarter ended
September 30, 2003 compared to 5.27% reported for the quarter ended June 30,
2003 and 6.07% in last year's third quarter. The yield on loans receivable
declined to 5.38%, compared to 5.67% three months ago, the result of heavy loan
refinancing activity and a 25 basis point reduction in the prime rate. The yield
on loans receivable was 6.46% for the quarter ended September 30, 2002. Lower
returns on mortgage-backed securities, a function of the heavy prepayment
activity resulting in higher premium amortization, also contributed to lower
overall asset yields compared to the quarter ended June 30, 2003 and the third
quarter of last year.
The average cost of interest-bearing liabilities declined to 2.41% in the
current quarter, compared to 2.68% for the quarter ended June 30, 2003 and 3.38%
for the third quarter of last year. One of the contributing factors to the 27
basis point decline in funding costs over the past three months was the decline
in the cost of borrowed funds, principally FHLB of Chicago advances. The average
cost of borrowed funds in the current three-month period was 4.58% compared to
5.01% for the second quarter, a decrease of 43 basis points. The maturity of
higher cost fixed-rate borrowings, $100 million of new LIBOR-based floating rate
advances and the recording of Fidelity's borrowings at fair market value as of
the merger date, led to the overall decline in borrowing costs. The cost of
deposits declined to 1.50% for
the quarter compared to 1.70% in the second quarter of 2003. The cost of
deposits declined as a result of a reduction in rates paid on passbook, money
market and checking accounts during the current quarter. Additionally, maturing
certificates were renewed at lower rates due to the general decline in interest
rates.
Average interest-earning assets totaled $6.14 billion for the current quarter,
compared to $5.61 billion reported for the quarter ended June 30, 2003. The
closing of the Fidelity merger in July 2003 was the primary reason for the
increase in most average asset and liability categories. Average loans
receivable balances increased by $515.5 million during the quarter while the
combined average balances of mortgage-backed and investment securities increased
by $178.2 million. Average liquid investments, represented by interest-bearing
deposits and federal funds sold, decreased by $165.1 million during the past
three months.
LENDING PRODUCTION
Loan origination volume totaled a record $1.51 billion in the current quarter,
more than 37% ahead of the $1.09 billion reported for the quarter ended
September 30, 2002 and 8% ahead of the $1.39 billion in loan volume reported for
the quarter ended June 30, 2003. As interest rates rose during the quarter,
refinancing activity began to slow but loan closings from the Company's pipeline
accelerated. This activity, coupled with a continued strong home purchase
market, led to the excellent loan origination results during the current
quarter. Loan sale activity in the quarter was also 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 $534 million at September 30, 2003 compared to $491
million at June 30, 2003 and $397 million at September 30, 2002.
NON-INTEREST INCOME
Non-interest income increased to $17.0 million in the current quarter, compared
to $16.7 million reported for the quarter ended September 30, 2002. The Company
reported substantially higher gain on sales of loans in the current period
compared to last year but this was offset by an aggregate net loss on the sale
and writedown of mortgage-backed and investment securities of $871,000 this year
compared to a $2.0 million gain on the sale of investment securities last year.
Although real estate development profits were significant in the current
quarter, they were down from the amount reported in last year's third quarter
when profits included lot closings delayed from the second quarter of 2002. Loan
servicing amortization expense was higher in the current quarter compared to
last year due to heavy refinancing activity and prepayments. Other non-interest
income increased $915,000 or 38.7% over the prior year period due primarily to
increases in title agency fees, loan fee income and mortgage reinsurance
revenues.
LOAN SALES AND LOAN SERVICING. Loan sale volume in the current quarter increased
to $475.0 million compared to $261.7 million in last year's third quarter and
$401.4 million for the quarter ended June 30, 2003. With this increased sales
volume, gains on sales of mortgage loans increased by 83.1% compared to the
quarter ended September 30, 2002, totaling $7.1 million in the current quarter
compared to $3.9 million a year ago.
Heavy loan prepayments led to increased amortization of mortgage servicing
rights, resulting in $2.6 million of loan servicing fee expense, net of
servicing fees, compared to $836,000 of net expense last year. Last year's third
quarter results also included a $1.2 million impairment expense on mortgage
servicing rights.
DEPOSIT ACCOUNT SERVICE FEES. Deposit account service fees totaled $6.1 million
for the current quarter, up 3.2% from the $5.9 million reported in the third
quarter of 2002. Service fees for the quarter ended June 30, 2003 were $6.0
million. The growth in fee income has slowed recently due to the negative
impact of a recent VISA lawsuit settlement that has reduced debit card
interchange revenue for all banks, higher average account balances in checking
accounts and increased competition for checking accounts. While the rate of
growth in service fee income has slowed, this revenue source continues to be a
strong contributor to overall non-interest income. Checking accounts totaled
171,400 at September 30, 2003, 12.8% higher than a year ago.
MORTGAGE-BACKED AND INVESTMENT SECURITIES SALES. Gain (loss) on writedown and
sale of MBS and investment securities totaled a net loss of $871,000 in the
current quarter compared to a net gain of $2.0 million in the year ago quarter.
The current quarter includes a $1.9 million other than temporary impairment
writedown of one of the bank's aircraft-related asset-backed securities. The
writedown was partially offset by gains on the sale of equity securities as well
as from the sale of primarily fixed-rate mortgage-backed securities and other
fixed-rate debt securities that improved the Bank's interest rate risk position.
In the prior year quarter, the Company recognized $2.0 million in gains on the
sale of corporate debt and equity securities.
REAL ESTATE DEVELOPMENT OPERATIONS. The Company's real estate development
operations contributed $3.0 million to non-interest income in the current
quarter compared to $3.8 million in last year's third quarter. The real estate
income for the current quarter resulted from closings in both the TallGrass of
Naperville subdivision and the Shenandoah subdivision in Plainfield, IL. In
TallGrass of Naperville, 14 lots were closed during the third quarter,
generating income of $944,000. A total of 18 lots remain from the original 952
lots available in this development. There were 61 lot sales in the Shenandoah
subdivision in the third quarter, yielding profits of $2.1 million. At September
30, 2003, 56 lots and 1 lot were under contract in the Shenandoah and TallGrass
developments, respectively. At September 30, 2003, two commercial parcels and
one multi-family parcel are under contract and expected to close in the fourth
quarter. The estimated pre-tax profit on these three parcels is $3.2 million.
One of these, an 8-acre commercial parcel with an expected profit of $700,000,
had been expected to close in the third quarter. The timing of real estate
closings is often subject to change due to factors outside of the Company's
control.
NON-INTEREST EXPENSE
The ratio of total non-interest expense to average assets was 1.79% for the
current quarter, compared to 1.76% in the third quarter of 2002 and 1.79% for
the quarter ended June 30, 2003. The Company's efficiency ratio, a measure of
the amount of expense needed to generate each dollar of revenue, was 46.8% for
the current quarter, compared to 45.8% in last year's third quarter and 46.7%
for the quarter ended June 30, 2003.
Non-interest expense totaled $29.4 million in the current quarter, compared to
$25.4 million reported for the quarter ended September 30, 2002. Compensation
and benefits expense totaled $17.1 million in the current quarter, compared to
$14.7 million a year ago. This increase was primarily due to staffing costs at
the five branches added from the Fidelity merger and the addition of five other
new branch offices
opened during the past year. In addition, normal salary increases, higher
payroll taxes and medical costs, and higher loan volumes also led to the
increased compensation. Occupancy expenses increased by $777,000 in the current
quarter compared to the comparable period a year ago, primarily due to the
addition of ten new branch offices and two new loan processing offices compared
to a year ago, which resulted in higher depreciation, rent and real estate tax
expenses and general maintenance costs. Advertising expense increased by
$527,000 compared to last year's third quarter due to increased radio
advertising, marketing promotion costs at new branches and higher market
research expenses.
Income tax expense totaled $12.0 million in the current quarter, an effective
income tax rate of 36.9%, compared to $11.5 million or an effective income tax
rate of 35.8% for the quarter ended September 30, 2002.
ASSET QUALITY
Although the level of non-performing assets increased during the past three
months, the ratio of non-performing assets to total assets remained stable.
Non-performing assets were equal to .55% of total assets at September 30, 2003
and June 30, 2003, and were equal to .50% of total assets at September 30, 2002.
A total of $8.5 million and $9.1 million of investment securities were included
in non-performing assets at September 30, 2003 and June 30, 2003, respectively.
There were no investment securities included in non-performing assets at
September 30, 2002.
The Company recorded $18,000 of net charge-offs of loans during the quarter and
did not record a provision for loan losses. In last year's third quarter, the
Company recorded net recoveries of $83,000 and no provision for loan losses. The
Bank's allowance for loan losses was $21.4 million at September 30, 2003, equal
to 77% of total non-performing loans and .43% of total loans receivable. A year
ago, the allowance for loan losses stood at $19.5 million, equal to 67% of total
non-performing loans and .42% of total loans receivable. At September 30, 2003,
85% of the Company's loan portfolio consisted of loans secured by one-to-four
family residential properties, including 10% relating to home equity loans and
equity lines of credit. A total of 94% of non-performing loans consisted of
loans secured by one-to four-family residential properties.
BALANCE SHEET & CAPITAL
Total assets at September 30, 2003 were $6.72 billion, approximately $744
million, or 12.5%, higher than the level reported at June 30, 2003. The July
2003 closing of the merger with Fidelity Bancorp, which had assets of $612
million, was the primary reason for this increase. Loan balances, which totaled
$5.18 billion at September 30, 2003, were $567 million higher than the $4.61
billion balance three months ago. The Fidelity merger and an increase in loans
held for sale accounted for the majority of the increase. The closing of the
Fidelity merger resulted in an increase in goodwill and other intangibles of
$46.5 million. Goodwill and other intangibles totaled $161.8 million at
September 30, 2003 compared to $115.7 million at June 30, 2003.
Total deposits increased to $4.26 billion at September 30, 2003, $427 million
higher than the $3.84 billion reported at June 30, 2003, the result of the
closing of the Fidelity merger during the quarter. The Bank continues to be
successful in its efforts to grow its core deposits. At September 30, 2003, core
deposits, comprised of checking, savings and money market accounts, accounted
for 58.7% of total deposits, relatively unchanged from June 30, 2003.
Borrowed funds totaled $1.70 billion at September 30, 2003, up from $1.47
billion reported three months earlier, reflecting the addition of Fidelity's
borrowings from the FHLB of Chicago and $125.0 million of net new FHLB advances.
Stockholders' equity totaled $616.2 million at September 30, 2003, $90.3 million
higher than the $525.8 million reported at June 30, 2003. In connection with the
Fidelity merger, the Company issued approximately 2.8 million shares of common
stock, resulting in an increase in stockholders' equity of approximately $97.1
million. During the current quarter, 650,000 shares of common stock were
repurchased at an average cost of $38.96 per share. Through September 30, 2003,
a total of 800,000 shares have been repurchased under the Company's 1.6 million
repurchase program at an average price of $38.44 per share. The book value per
share at September 30, 2003 was $24.18, up from $22.66 reported three months
ago. The Bank's tangible, core and risk-based capital percentages of 7.07%,
7.07% and 11.74%, respectively, at September 30, 2003 exceeded all minimum
regulatory capital requirements.
RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
Diluted earnings per share expanded by 7.1% in the current nine-month period
compared to last year, totaling $2.42 compared to $2.26 last year. For the nine
months ended September 30, 2003, net income totaled $59.3 million compared to
$53.7 million in last year's comparable period, an increase of 10.5%. Net
interest income increased to $126.5 million in the current period compared to
$115.0 million in last year's comparable period, an improvement of $11.5
million, or 10.0%. Net interest margin increased to 2.92% in the current
nine-month period compared to 2.87% for the first nine months of 2002. Return on
equity for the nine months ended September 30, 2003 was 14.55% compared to
15.61% for the nine months ended September 30, 2002.
Overall non-interest income improved by 19.3% in the current nine-month period
compared to last year, totaling $50.0 million. Gains on sales of loans totaled
$22.9 million in the current nine-month period, $14.0 million ahead of the
results from the nine months ended September 30, 2002. The current nine-month
period also included gains on sales of mortgage-backed securities of $6.0
million and net losses on sales and writedowns of investment securities totaling
$6.9 million. Deposit account service fees totaled $17.5 million for the nine
months ended September 30, 2003, 7.6% ahead of the results from last year's
comparable period. Income from real estate development operations declined from
the prior year period, totaling $6.3 million this year compared to $6.8 million
for the nine months ended September 30, 2002. Loan servicing impairment reserves
and amortization expense totaled $7.0 million for the nine months ended
September 30, 2003 compared to $2.4 million for the nine months ended September
30, 2002.
Non-interest expense totaled $82.8 million in the current nine-month period, up
13.0% from the $73.3 million reported for the nine months ended September 30,
2002. Compensation expense totaled $48.4 million in the current period compared
to $43.7 million last year due to increased cost related to higher loan volume,
the Fidelity merger and the opening of five new branches in the past year. The
balance of the increase in non-interest expenses totaled $4.7 million and was
due generally to higher occupancy, marketing and other costs related to the
higher loan volume as well as market expansion.
OUTLOOK FOR 2003
The Company is updating its previous outlook for calendar 2003, and currently
expects earnings per diluted share to be in the range of $.86-.90 for the fourth
quarter, resulting in full year 2003 results of $3.28-$3.32 per diluted share.
The Company's projections for the balance of 2003 assume modest balance sheet
growth (exclusive of the St. Francis merger), and a relatively unchanged yield
curve from the current level. The Company currently expects loan origination
activity to decline significantly in the fourth quarter compared to the third
quarter's results as strong loan refinancing activity subsides. Loan sale volume
for the fourth quarter is expected to be substantially less, and at lower
margins, than the third quarter levels with a corresponding decline in loan sale
profits. The expected large drop-off in loan refinancing activity is expected to
slow the loan servicing amortization expense for the fourth quarter. The Company
expects the net interest margin to decline modestly in the fourth quarter.
Income from real estate development operations is expected to be in the range of
$5.5-$6.0 million for the fourth quarter of 2003, assuming that the pending
sales of two commercial parcels and one multifamily parcel in the TallGrass
subdivision close as expected. The projections also assume 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. The Company has
scheduled a November 25, 2003 shareholders meeting to approve this transaction
and St. Francis has scheduled its shareholders meeting for November 26, 2003.
The Office of Thrift Supervision has deemed the Company's application for
approval to be "informationally sufficient" and the Company currently expects to
receive OTS approval and close the transaction in the fourth quarter. At June
30, 2003, St. Francis had assets of $2.3 billion, deposits of $1.4 billion,
stockholders' equity of $194 million and 23 branch offices in the Milwaukee
area.
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, 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.
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MAF has filed 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, because it
contains important information about MAF and St. Francis, and the proposed
transaction. Copies of this joint proxy statement/prospectus have been 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 is set forth in the joint
proxy statement/prospectus that has been filed with the SEC.
MAF BANCORP, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2003 2002 2003 2002
---- ---- ---- ----
(UNAUDITED) (UNAUDITED)
Interest income $ 78,160 82,966 $ 229,111 246,404
Interest expense 33,252 42,026 102,585 131,363
----------- ------ ----------- -------
Net interest income 44,908 40,940 126,526 115,041
Provision for loan losses - - - -
----------- ------ ----------- -------
Net interest income after provision for loan losses 44,908 40,940 126,526 115,041
Non-interest income:
Gain (loss) on sale and writedown of:
Loans receivable held for sale 7,138 3,899 22,940 8,901
Mortgage-backed securities 645 - 5,997 39
Investment securities (1,516) 2,049 (6,943) 3,031
Foreclosed real estate 78 5 311 156
Income from real estate operations 3,009 3,791 6,332 6,848
Deposit account service charges 6,051 5,865 17,450 16,216
Loan servicing fee expense (2,640) (836) (6,056) (739)
Impairment of mortgage servicing rights - (1,160) (940) (1,650)
Brokerage commissions 982 678 2,361 1,923
Other 3,276 2,363 8,559 7,197
----------- ------ ----------- -------
Total non-interest income 17,023 16,654 50,011 41,922
Non-interest expense:
Compensation and benefits 17,134 14,708 48,426 43,653
Office occupancy and equipment 3,717 2,940 10,701 8,608
Advertising and promotion 1,700 1,173 4,798 3,722
Data processing 1,036 926 3,001 2,772
Federal deposit insurance premiums 180 161 502 508
Other 5,221 5,125 14,230 12,804
Amortization of core deposit intangibles 421 408 1,170 1,241
----------- ------ ----------- -------
Total non-interest expense 29,409 25,441 82,828 73,308
----------- ------ ----------- -------
Income before income taxes 32,522 32,153 93,709 83,655
Income taxes 12,016 11,503 34,376 29,977
----------- ------ ----------- -------
Net income $ 20,506 20,650 59,333 53,678
=========== ====== =========== =======
Basic earnings per share $ .82 .89 2.48 2.32
=========== ====== =========== =======
Diluted earnings per share .79 .87 2.42 2.26
=========== ====== =========== =======
MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
(Unaudited)
SEPTEMBER 30, DECEMBER 31,
2003 2002
---- ----
ASSETS
- ------
Cash and due from banks $ 115,308 $ 134,265
Interest-bearing deposits 73,030 28,210
Federal funds sold 77,508 100,205
------------- --------------
Total cash and cash equivalents 265,846 262,680
Investment securities available for sale, at fair value 277,934 308,235
Stock in Federal Home Loan Bank of Chicago, at cost 265,297 169,708
Mortgage-backed securities available for sale, at fair value 350,844 365,638
Loans receivable held for sale 277,792 167,780
Loans receivable, net of allowance for losses of $21,372 and $19,483 4,903,573 4,363,152
Accrued interest receivable 24,774 27,513
Foreclosed real estate 520 2,366
Real estate held for development or sale 27,475 14,938
Premises and equipment, net 88,321 72,492
Other assets 71,186 67,753
Goodwill 140,260 94,796
Intangibles 21,499 20,130
------------- --------------
$ 6,715,321 $ 5,937,181
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Deposits 4,263,696 3,751,237
Borrowed funds 1,702,323 1,556,500
Advances by borrowers for taxes and insurance 21,433 37,700
Accrued expenses and other liabilities 111,697 90,286
------------- --------------
Total liabilities 6,099,149 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; 26,039,393 shares issued;
25,483,307 and 23,252,815 shares outstanding 260 254
Additional paid-in capital 248,091 204,710
Retained earnings, substantially restricted 386,367 342,790
Accumulated other comprehensive income, net of tax 2,109 4,819
Stock in Gain Deferral Plan; 238,683 and 236,401 shares 972 851
Treasury stock, at cost; 556,086 and 2,167,835 shares (21,627) (51,966)
------------- --------------
Total stockholders' equity 616,172 501,458
------------- --------------
$ 6,715,321 $ 5,937,181
============= ==============
MAF BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except share data)
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
2003 2002 2002
---- ---- ----
Book value per share $ 24.18 $ 21.57 $ 20.74
Stockholders' equity to total assets 9.18% 8.45% 8.17%
Tangible capital ratio (Bank only) 7.07 6.78 6.48
Core capital ratio (Bank only) 7.07 6.78 6.48
Risk-based capital ratio (Bank only) 11.74 11.85 11.32
Common shares outstanding:
Actual 25,483,307 23,252,815 23,244,936
Basic (weighted average) 25,154,529 23,249,619 23,230,667
Diluted (weighted average) 25,824,670 23,768,963 23,802,527
Non-performing loans $ 27,618 $ 25,394 $ 29,094
Non-performing assets 36,682 27,760 29,568
Allowance for loan losses 21,372 19,483 19,458
Non-performing loans to total loans .56% .58% .65%
Non-performing assets to total assets .55 .47 .50
Allowance for loan losses to total loans .43 .44 .42
Mortgage loans serviced for others $ 2,227,003 $ 2,021,512 $ 1,817,836
Capitalized mortgage servicing rights, net 13,840 12,960 12,613
Core deposit intangibles 7,659 7,170 7,578
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- -------------------
2003 2002 2003 2002
---- ---- ---- ----
Average balance data:
Total assets $ 6,554,049 $ 5,793,572 $ 6,151,169 $ 5,673,409
Loans receivable 5,049,184 4,490,578 4,697,927 4,388,229
Interest-earning assets 6,141,847 5,462,502 5,782,512 5,346,079
Deposits 3,846,976 3,440,077 3,613,130 3,405,682
Interest-bearing liabilities 5,470,455 4,936,936 5,156,209 4,849,659
Stockholders' equity 596,895 474,318 543,695 458,529
Performance ratios (annualized):
Return on average assets 1.25% 1.43% 1.29% 1.26%
Return on average equity 13.74 17.41 14.55 15.61
Average yield on interest-earning assets 5.08 6.07 5.29 6.15
Average cost of interest-bearing liabilities 2.41 3.38 2.66 3.62
Interest rate spread 2.67 2.69 2.63 2.53
Net interest margin 2.92 3.00 2.92 2.87
Average interest-earning assets to average
interest-bearing liabilities 112.27% 110.65% 112.15% 110.24%
Non-interest expense to average assets 1.79 1.76 1.80 1.72
Non-interest expense to average assets
and loans serviced for others 1.34 1.34 1.33 1.33
Efficiency ratio (1) 46.83 45.80 46.67 47.64
Loan originations $ 1,507,605 $ 1,094,370 $ 3,955,825 $ 2,498,586
Loans sold 475,032 261,685 1,354,008 838,289
Cash dividends declared per share .18 .15 .54 .45
<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>