EXHIBIT 99.1
------------
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 FIRST QUARTER EARNINGS OF
$.73 PER DILUTED SHARE
Clarendon Hills, Illinois, April 22, 2004 - MAF Bancorp, Inc. (MAFB) announced
today that net income for the first quarter ended March 31, 2004 totaled $24.8
million compared to $19.3 million in last year's first quarter. Earnings per
diluted share for the current quarter totaled $.73 per diluted share, compared
to $.81 per diluted share reported for the first quarter of 2003. While net
income in the current quarter increased, earnings per share was impacted by the
larger number of average shares outstanding as a result of the completion of the
St. Francis Capital Corporation merger in December 2003 and the Fidelity Bancorp
merger in July 2003.
The quarter-over-quarter decline in earnings per share was anticipated since, as
previously reported, most of the expected cost savings from the St. Francis
merger will not begin until the completion of the data processing conversion,
scheduled for the end of May 2004. In addition, the Company currently expects
most of its real estate development profits to be earned in later quarters of
2004. As discussed later, the Company currently estimates calendar 2004 results
of $3.45-$3.55 per diluted share, an increase of 6%-9% over 2003 results.
NET INTEREST INCOME AND NET INTEREST MARGIN
QE 3/31/04 QE 12/31/03 QE 3/31/03
---------- ----------- ----------
Net interest margin 3.10% 3.07% 2.94%
Net interest income (000's) $64,029 $52,952 $41,055
AVERAGE ASSETS:
Yield on interest-earning assets 4.94% 5.05% 5.52%
Yield on loans receivable 5.14% 5.27% 5.95%
Yield on mortgage-backed securities 3.74% 3.74% 4.33%
Yield on investment securities 5.11% 4.70% 4.25%
Average interest-earning assets (000's) $8,264,886 $6,906,311 $5,586,324
AVERAGE LIABILITIES:
Cost of interest-bearing liabilities 2.04% 2.20% 2.92%
Cost of deposits 1.34% 1.34% 1.98%
Cost of borrowed funds 3.58% 4.17% 5.06%
Average interest-bearing liabilities (000's) $7,472,967 $6,206,339 $4,997,307
NET INTEREST MARGIN: MARCH 2004 V. DECEMBER 2003. The modest increase in the net
interest margin during the past three months was the result of a slight
improvement in the interest rate spread. The spread improvement resulted from a
16 basis point decline in the cost of interest-bearing liabilities that offset
an 11 basis point decline in the yield on interest-earning assets.
The decline in the average yield on interest-earning assets was largely due to
the 13 basis point decrease in the yield on loans receivable. The pace of
decline in the loan portfolio yield has continued to slow, however, as
refinancing activity has abated during the past two quarters.
The decline in the average cost of interest-bearing liabilities during the
current quarter was attributable to a 59 basis point reduction in the cost of
borrowed funds, which declined because of downward repricing of maturing
borrowings, the addition of floating-rate borrowings and the impact of having a
full three months of lower borrowing costs on liabilities added in connection
with the St. Francis merger. The cost of deposits, which had been a primary
driver of net interest margin improvements in recent quarters, remained the same
during the past quarter.
The St. Francis merger was the primary reason for the substantial increase in
the balance of most average interest-earning asset and interest-bearing
liability categories, as the December 2003 quarter reflected the results of St.
Francis for only one month. Compared to the fourth quarter of 2003, average
loans receivable balances increased by $888 million (16%) to $6.46 billion,
average mortgage-backed securities advanced by $404 million (72%) to $963
million and average investment securities were higher by $138 million (23%),
totaling $747 million.
Similar to the growth in average interest-earning assets, the expansion of
average interest-bearing liabilities was largely due to the full quarter effect
from St. Francis. For the quarter, average deposits increased by $823 million
(19%) to $5.15 billion while average borrowed funds advanced by $444 million
(24%) to $2.32 billion.
NET INTEREST MARGIN: MARCH 2004 V. MARCH 2003. Continuing low interest rates
during the past 12 months fueled heavy loan prepayments, loan refinancing
activity and lower funding costs. The combination of these factors, along with
the lower borrowing costs on liabilities of St. Francis assumed in the merger,
translated into the Company's funding costs declining at a faster pace than
decreases in assets yields, and led to the 16 basis point increase in the net
interest margin.
LENDING PRODUCTION
QE 3/31/04 QE 12/31/03 QE 3/31/03
---------- ----------- ----------
Loan originations (000's) $900,883 $959,948 $1,055,901
Loan originations - fixed-rate % * 29% 30% 51%
Loan originations - refinancing % 32% 30% 57%
<FN>
* exclusive of commercial business loans
</FN>
While interest rates remained attractive and at historically low levels,
refinancing activity slowed during the past two quarters, leading to the lower
residential mortgage loan volume compared to a year ago. Home purchase activity
in the Bank's markets remains strong. Also, the Company continued to have
success in marketing its home equity loan products. Home equity loan balances
increased to $1.04 billion at March 31, 2004 compared to $966 million at
December 31, 2003 and $447 million at March 31, 2003. Home equity loan balances
currently represent approximately 16% of the Company's total loan portfolio.
NON-INTEREST INCOME
OVERVIEW. Non-interest income increased to $20.4 million in the current quarter,
compared to $16.0 million reported for the quarter ended March 31, 2003. Last
year's results were highlighted by significant loan sale gains, higher loan
servicing fee expense, some mortgage-backed security gains resulting from
balance sheet restructuring and two investment security writedowns. In the
current quarter, loan sale gains were much lower, mortgage servicing-related
income was higher and investment securities gains were realized on the sale of
three securities previously written down.
LOAN SALES AND LOAN SERVICING
QE 3/31/04 QE 12/31/03 QE 3/31/03
---------- ----------- ----------
Loans sold (000's) $129,494 $411,257 $477,618
Loan sale gains (000's) $1,780 $3,008 $7,548
Margin on loan sales 137 bp 73 bp 158 bp
Loan servicing fee income (expense) (000's) $241 $117 ($1,376)
Valuation recovery on mtg. servicing rights (000's) $555 $2,070 -
A decline in loan refinancing activity and a consumer shift toward
adjustable-rate mortgage loans led to considerably lower loan sale gains in the
current quarter compared to the fourth quarter of 2003 and to last year's first
quarter. Positive pricing trends due to rates trending down during most of the
current quarter led to higher loan sale margins compared to three months ago.
Although slower loan prepayments led to reduced loan sale gains, it also
resulted in a decrease in amortization of mortgage servicing rights leading to
loan servicing fee income of $241,000 for the quarter. Slower expected
prepayments also led to a $555,000 recovery of valuation reserves on servicing
rights.
DEPOSIT ACCOUNT SERVICE FEES
QE 3/31/04 QE 12/31/03 QE 3/31/03
---------- ----------- ----------
Service charges (000's) $7,856 $7,102 $5,439
Growth rate (year over year) 44.4% 17.9% 12.7%
Checking accounts 235,600 230,600 157,700
Deposit account service fees advanced considerably compared to the first quarter
of 2003, due to the impact of the St. Francis and Fidelity mergers. Considerable
competition for checking accounts, particularly in the Chicago markets, along
with a tendency for consumers to carry higher average balances in their checking
accounts, has significantly slowed the growth rate of this revenue source. In
addition, debit card fee income has been negatively impacted by the 2003 VISA
lawsuit settlement that reduced debit card interchange revenue for all banks.
REAL ESTATE DEVELOPMENT OPERATIONS
QE 3/31/04 QE 12/31/03 QE 3/31/03
---------- ----------- ----------
RE development income - total (000's) $1,102 $4,993 $1,635
RE development income - residential (000's) $1,102 $2,409 $1,635
RE development income - commercial (000's) - $2,584 -
Residential lot sales 25 68 55
Pending lot sales at quarter end 58 15 72
Investment in real estate (000's) $32,557 $32,093 $20,451
A total of 21 of the 25 residential lot sales during the quarter were in the
Shenandoah subdivision. Most of the residential lot sales in the fourth quarter
of 2003, as well as the first quarter of 2003, were also in this 326-lot
development, where 109 lots remain as of March 31, 2004. The increase in the
investment in real estate compared to a year ago relates primarily to the land
purchases for the new Springbank joint venture development in Plainfield,
Illinois. Development is expected to begin this year on this project where 1,600
residential lots, 300 multi-family lots and other commercial parcels are
planned. Lot sales closings are expected to begin in this development in late
2004.
SECURITIES SALES/WRITEDOWNS
QE 3/31/04 QE 12/31/03 QE 3/31/03
---------- ----------- ----------
INVESTMENT SECURITIES:
Net gains on sale/writedowns - total (000's) $2,834 - ($5,712)
Writedowns (only) - (000's) - - ($8,132)
Net gains on sale (only) (000's) $2,834 - $2,420
MORTGAGE-BACKED SECURITIES:
Net gains on sale - total (000's) $489 $9 $5,352
During the quarter, the Company sold three investment securities on which it had
previously taken other-than-temporary-impairment writedowns in 2002 and 2003
(including $8.1 million in writedowns taken in the first quarter of 2003). The
net gain from the sale of these three securities was $2.7 million. Two of these
securities were collateralized by leased aircraft and the other security was a
collateralized bond obligation secured by various less than investment grade
high yield securities. The market values of these securities had for some time
been negatively impacted by weak economic conditions and in the case of the
airline-related securities, the well-documented difficulties in this industry. A
recovery in the pricing on these securities during the current quarter led to
the Company's decision to sell them.
NON-INTEREST EXPENSE
QE 3/31/04 QE 12/31/03 QE 3/31/03
---------- ----------- ----------
Total non-interest expense (000's) $46,890 $37,369 $26,675
Non-interest expense to average assets 2.10% 2.02% 1.80%
Efficiency ratio (1) 57.82% 50.12% 46.45%
<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>
Non-interest expenses expanded considerably in the current quarter compared to
the most recent quarter and compared to the first quarter of 2003, the result of
the mergers with St. Francis and Fidelity. Most of the back office cost savings
from the St. Francis merger have not yet been achieved as the Company will be
running separate data processing systems until May 31 2004, when the conversion
is scheduled. The Company expects significant improvement in the non-interest
expense to average assets ratio and the efficiency ratio in the second half of
2004.
All major categories of non-interest expense showed large increases due to
significant growth of the Company during the past year, including expansion into
new markets. The addition of management personnel and infrastructure added to
accommodate this growth, also contributed to higher expenses. Compensation and
benefits expense totaled $25.6 million in the current period compared to $22.1
million in the quarter ended December 31, 2003 and $15.6 million in the first
quarter of last year. The increase compared to a year ago was primarily due to
the 2003 mergers, although normal salary increases, higher payroll taxes,
increased medical costs and staffing at five other new branch offices opened
during the past year also contributed to increased compensation costs.
Office occupancy and equipment costs totaled $6.5 million in the current period
compared to $4.7 million in the fourth quarter of 2003 and $3.5 million a year
ago. This increase from a year ago is due to the operation of 67 branch offices,
nearly double the 34 offices operated at March 31, 2003, and consolidation of
four loan operations centers into one location that will result in additional
rent expense for most of 2004, but which will improve efficiencies over the long
term.
Income tax expense totaled $12.4 million in the current quarter, an effective
income tax rate of 33.4%, compared to $11.1 million or an effective income tax
rate of 36.5% for the quarter ended March 31, 2003. The decline in the effective
income tax rate is primarily due to the tax benefits generated from St. Francis'
low income and senior housing projects.
ASSET QUALITY
QE 3/31/04 QE 12/31/03 QE 3/31/03
---------- ----------- ----------
Non-performing loans (NPL) (000's) $30,259 $32,787 $25,243
Non-performing assets (NPA) (000's) $32,480 $43,985 $36,941
NPL / total loans .46% .51% .58%
NPA / total assets .36% .49% .62%
Allowance for loan losses (ALL) (000's) $34,437 $34,555 $19,471
ALL / total loans .53% .54% .45%
ALL / NPL 115.6% 105.4% 77.1%
Provision for loan losses (000's) $300 - -
Net charge-offs (000's) $418 $177 $12
The Company's asset quality remains good. The sale of two investment securities
during the quarter that had been classified as non-performing, resulted in a
$7.7 million decline in non-performing assets during the current quarter. A
total of 90% of non-performing loans consisted of loans secured by one-to
four-family residential properties. The Company recorded a provision for loan
losses of $300,000 in the current quarter as loan balances grew and net
charge-offs of $418,000 were recorded.
BALANCE SHEET & CAPITAL
QE 3/31/04 QE 12/31/03 QE 3/31/03
---------- ----------- ----------
ASSETS:
Total assets (000's) $9,077,753 $8,933,585 $5,984,930
Loans receivable (000's) $6,454,210 $6,369,107 $4,395,574
LIABILITIES AND EQUITY:
Total liabilities (000's) $8,162,889 $8,031,981 $5,467,912
Deposits (000's) $5,618,127 $5,580,455 $3,814,744
Borrowed funds (000's) $2,381,838 $2,299,427 $1,501,500
Stockholders' equity (000's) $914,864 $901,604 $517,018
OTHER:
1-4 family residential loans / total loans 60.5% 61.3% 77.3%
Core deposits / total deposits 59.9% 58.2% 57.5%
Book value per share $27.79 $27.27 $22.18
Stockholders equity / total assets 10.1% 10.1% 8.6%
The increase in total assets over the past three months totaled $144.2 million
(6.5% annualized) and was due primarily to higher loans receivable and
mortgage-backed securities balances. With consumers shifting toward
adjustable-rate mortgage loans, the Company expects to see increased growth in
loans receivable balances as these loans are generally held in portfolio. Loans
receivable increased by $85 million during the quarter, which represented
annualized growth in loan balances of 5.3%, but this does not take into account
$105 million of 15-year loans that were swapped into mortgage-backed securities
that the Company continues to hold in portfolio. The percentage of 1-4 family
residential loans remained steady during the past three months after changing
considerably in the fourth quarter of 2003 as a result of the St. Francis
merger. Core deposits grew $115.7 million during the quarter due in part to the
successful introduction of a new high-rate checking account product.
During the current quarter, 265,500 shares of common stock were repurchased at
an average cost of $42.93 per share. Through March 31, 2004, a total of
1,070,500 shares have been repurchased under the Company's 1.6 million
repurchase program at an average price of $39.55 per share. The Bank's tangible,
core and risk-based capital percentages of 7.12%, 7.12% and 11.31%,
respectively, at March 31, 2004 exceeded all minimum regulatory capital
requirements.
OUTLOOK FOR 2004
The Company indicated that it currently expects earnings for 2004 to be in the
range of $3.45 to $3.55 per diluted share, or an increase of 6-9% over 2003. The
Company's projections for 2004 assume balance sheet growth in the 9-11% range
with more growth coming in lower yielding adjustable-rate mortgage loans and
equity lines of credit than previously expected. In addition, the Company
expects less deposit growth than previously expected. This will result in more
of the earning asset growth being funded with higher cost wholesale borrowings.
Mortgage loan originations are expected to be significantly lower during the
year because of reduced refinancing activity. Due to the market shifting toward
adjustable rate loans, the Company expects lower loan sale volumes and reduced
margins compared to 2003. Assuming modest Federal Reserve tightening in the
second half of 2004 and in light of expected changes in loan and funding mix,
management expects the net interest margin to be in a range of 3.00%-3.10%. The
Company is experiencing slower growth in deposit account service fee revenues
than previously expected and is currently estimating income from real estate
operations in the range of $9.0-$10.5 million for 2004, with the income heavily
weighted in the second half of the year. The projections also assume a strong
housing purchase market, continued good credit quality, completion of the
Company's previously authorized stock buyback program, and successful conversion
and integration of St. Francis' systems in late May 2004. The majority of
expected cost savings related to the St. Francis merger will not begin to be
realized until the second half of 2004. Based on these timing expectations and
projection of loan originations, loan sales and income from real estate
development, management expects that earnings will be stronger in the second
half of 2004. Due to the timing of the St. Francis data processing conversion,
and expenses relating to management personnel and infrastructure added to
accommodate the Company's growth, it is expected that the Company's efficiency
ratio will be near 51% for 2004 before trending back down in 2005.
MAF Bancorp is the parent company of Mid America Bank, a federally chartered
stock savings bank. The Bank currently operates a network of 67 retail banking
offices throughout Chicago and Milwaukee and their surrounding areas. Offices in
the Milwaukee area operate under the name "St. Francis Bank, a division of Mid
America Bank." 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 related
to the St. Francis transaction, delays in the St. Francis data processing and
systems conversions, difficulties implementing the Company's business model in
the Milwaukee area markets, unanticipated changes in interest rates or
flattening of the yield curve, deteriorating economic conditions which could
result in increased delinquencies in MAF's loan portfolio, higher than expected
overhead, infrastructure and
compliance costs needed to support growth in the Company's operations,
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 loan or investment portfolios, demand
for loan products, secondary mortgage market conditions, deposit flows,
competition, demand for financial services and residential real estate in MAF's
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.
MAF BANCORP, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
THREE MONTHS ENDED
MARCH 31,
2004 2003
-------- --------
(UNAUDITED)
Interest income $ 102,007 77,026
Interest expense 37,978 35,971
--------- ---------
Net interest income 64,029 41,055
Provision for loan losses 300 -
--------- ---------
Net interest income after provision for loan losses 63,729 41,055
Non-interest income:
Gain (loss) on sale and writedown of:
Loans receivable held for sale 1,780 7,548
Mortgage-backed securities 489 5,352
Investment securities 2,834 (5,712)
Foreclosed real estate 146 (69)
Income from real estate operations 1,102 1,635
Deposit account service charges 7,856 5,439
Loan servicing fee income (expense) 241 (1,376)
Valuation recovery on mortgage servicing rights 555 -
Brokerage commissions 1,096 731
Other 4,296 2,467
--------- ---------
Total non-interest income 20,395 16,015
Non-interest expense:
Compensation and benefits 25,634 15,638
Office occupancy and equipment 6,503 3,531
Advertising and promotion 2,407 1,321
Data processing 2,118 973
Other 9,488 4,833
Amortization of core deposit intangibles 740 379
--------- ---------
Total non-interest expense 46,890 26,675
--------- ---------
Income before income taxes 37,234 30,395
Income taxes 12,440 11,107
--------- ---------
Net income $ 24,794 19,288
========= =========
Basic earnings per share $ .75 .83
========= =========
Diluted earnings per share .73 .81
========= =========
MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
(UNAUDITED)
MARCH 31, DECEMBER 31,
2004 2003
---- ----
ASSETS
- ------
Cash and due from banks $ 134,608 144,290
Interest-bearing deposits 58,353 57,988
Federal funds sold 15,502 19,684
----------- -----------
Total cash and cash equivalents 208,463 221,962
Investment securities available for sale, at fair value 362,694 365,334
Stock in Federal Home Loan Bank of Chicago, at cost 390,893 384,643
Mortgage-backed securities available for sale, at fair value 940,003 971,969
Mortgage-backed securities held to maturity (fair value $105,856) 105,139 -
Loans receivable held for sale 36,696 44,511
Loans receivable, net of allowance for losses of $34,437 and $34,555 6,417,514 6,324,596
Accrued interest receivable 31,354 31,168
Foreclosed real estate 1,920 3,200
Real estate held for development or sale 32,557 32,093
Premises and equipment, net 129,895 122,817
Other assets 121,279 130,615
Goodwill 262,217 262,488
Intangibles 37,129 38,189
----------- -----------
$ 9,077,753 8,933,585
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Deposits 5,618,127 5,580,455
Borrowed funds 2,381,838 2,299,427
Advances by borrowers for taxes and insurance 44,404 41,149
Accrued expenses and other liabilities 118,520 110,950
----------- -----------
Total liabilities 8,162,889 8,031,981
----------- -----------
Stockholders' equity:
Preferred stock, $.01 par value; authorized
5,000,000 shares; none outstanding - -
Common stock, $.01 par value;
80,000,000 shares authorized; 33,121,465 shares issued;
32,915,327 and 33,063,853 shares outstanding 331 331
Additional paid-in capital 497,375 495,747
Retained earnings, substantially restricted 418,435 402,402
Accumulated other comprehensive income, net of tax 6,510 2,109
Stock in Gain Deferral Plan; 241,900 and 240,879 shares 1,059 1,015
Treasury stock, at cost; 206,138 at March 31, 2004 (8,846) -
----------- -----------
Total stockholders' equity 914,864 901,604
----------- -----------
$ 9,077,753 8,933,585
=========== ===========
MAF BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except share data)
(Unaudited)
MARCH 31, DECEMBER 31, MARCH 31,
2004 2003 2003
---- ---- ----
Book value per share $ 27.79 $ 27.27 $ 22.18
Stockholders' equity to total assets 10.06% 10.09% 8.64%
Tangible capital ratio (Bank only) 7.12 7.16 6.87
Core capital ratio (Bank only) 7.12 7.16 6.87
Risk-based capital ratio (Bank only) 11.31 11.45 12.13
Common shares outstanding:
Actual 32,915,327 33,063,853 23,310,396
Basic (weighted average) 33,063,842 27,951,055 23,300,671
Diluted (weighted average) 33,931,769 28,836,235 23,852,184
Non-performing loans $ 30,259 $ 32,787 $ 25,243
Non-performing assets 32,480 43,985 36,941
Allowance for loan losses 34,437 34,555 19,471
Non-performing loans to total loans .46% .51% .58%
Non-performing assets to total assets .36 .49 .62
Allowance for loan losses to total loans .53 .54 .45
Mortgage loans serviced for others $ 3,368,439 $ 3,330,039 $ 2,261,784
Capitalized mortgage servicing rights, net 23,808 24,128 14,881
Core deposit intangibles 13,321 14,061 6,875
THREE MONTHS ENDED
MARCH 31,
-------------------------
2004 2003
---------- ----------
Average balance data:
Total assets $ 8,941,881 $ 5,925,958
Loans receivable 6,457,794 4,504,911
Interest-earning assets 8,264,886 5,586,324
Deposits 5,154,067 3,473,363
Interest-bearing liabilities 7,472,967 4,997,307
Stockholders' equity 915,680 511,077
Performance ratios (annualized):
Return on average assets 1.11% 1.30%
Return on average equity 10.83 15.10
Average yield on interest-earning assets 4.94 5.52
Average cost of interest-bearing liabilities 2.04 2.92
Interest rate spread 2.90 2.60
Net interest margin 3.10 2.94
Average interest-earning assets to average
interest-bearing liabilities 110.60% 111.79%
Non-interest expense to average assets 2.10 1.80
Non-interest expense to average assets
and loans serviced for others 1.60 1.33
Efficiency ratio (1) 57.82 46.45
Loan originations $ 900,883 $ 1,055,901
Loans sold 129,494 477,618
Cash dividends declared per share .21 .18
<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>