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 (630) 887-5999
www.mafbancorp.com Michael J. Janssen, SVP
(630) 986-7544
MAF BANCORP REPORTS THIRD QUARTER EARNINGS OF
$.83 PER SHARE
Clarendon Hills, Illinois, October 20, 2005 - MAF Bancorp, Inc. (MAFB) reported
net income for the third quarter ended September 30, 2005 of $27.0 million, or
$.83 per diluted share, compared to $25.6 million, or $.77 per diluted share
reported in last year's third quarter. The 7.8% increase in earnings per share
compared to a year ago was primarily attributable to an increase in net interest
income and a reduction in non-interest expense, as well as a 2.1% decrease in
average diluted shares outstanding in the current period. The earnings
improvement was achieved without the benefit of any real estate development
profits, which are expected to add to earnings in the fourth quarter.
NET INTEREST INCOME AND NET INTEREST MARGIN
QE 9/30/05 QE 6/30/05 QE 9/30/04
---------------- ---------------- ---------------
Net interest margin............................... 2.84% 2.96% 3.00%
Interest rate spread.............................. 2.61% 2.74% 2.80%
Net interest income (000's)....................... $ 66,124 $ 67,078 $ 64,559
AVERAGE ASSETS:
Yield on interest-earning assets.................. 5.23% 5.16% 4.90%
Yield on loans receivable...................... 5.48% 5.37% 5.06%
Yield on mortgage-backed securities............ 4.24% 4.22% 3.99%
Average interest-earning assets (000's)........... $ 9,301,466 $ 9,060,715 $ 8,593,867
AVERAGE LIABILITIES:
Cost of interest-bearing liabilities.............. 2.62% 2.42% 2.10%
Cost of deposits............................... 2.01% 1.83% 1.44%
Cost of borrowed funds......................... 3.81% 3.66% 3.44%
Average interest-bearing liabilities (000's)...... $ 8,468,997 $ 8,246,251 $ 7,760,660
NET INTEREST MARGIN: 3RD QUARTER 2005 v. 2ND QUARTER 2005. As expected in the
flat yield curve environment, the net interest margin declined 12 basis points
during the quarter resulting in slightly lower net interest income despite an
increase in average interest-earning assets. The 18 basis point rise in the cost
of deposits is largely due to higher rates on money market accounts and
certificates of deposit driven by higher short-term interest rates and more
aggressive deposit pricing in the Company's markets. Higher interest rates also
resulted in increased asset yields but these advances were not as significant as
the increased cost of interest-bearing liabilities. The yield on loans
receivable increased by 11 basis points driven by higher rates on new 1-4 family
mortgage loans and the increased yield on the equity line of credit and business
banking portfolios, which in a rising rate environment, reprice more quickly
than
other components of the loan portfolio. A flat curve, coupled with the strong
competition for deposits in the Company's markets, is likely to continue to
pressure the Company's interest rate spread and the net interest margin.
Average interest-earning assets grew $240.8 million or 2.7% during the past
three months. The growth was generated from a $151.7 million (2%) increase in
the average loans receivable balance and a $127.9 million (9%) increase in the
average balance of mortgage-backed securities. Compared to the second quarter of
2005, the average balance of interest-bearing liabilities rose by $222.7
million, or 2.70%, due to increases in borrowed funds.
NET INTEREST MARGIN: 3RD QUARTER 2005 v. 3RD QUARTER 2004. On a year-over-year
basis, the net interest margin declined by 16 basis points. Compared to the
prior year quarter, the Company's average interest earning asset yields in the
current quarter were 33 basis points higher, while the average cost of
interest-bearing liabilities increased by 52 basis points, both reflective of
rising interest rates and a flattening yield curve over the past year. Average
interest-earning assets and average interest-bearing liabilities grew by 8.2%
and 9.1%, respectively, over the past year, due both to the 2004 acquisition of
Chesterfield Financial Corp. and organic balance sheet growth.
LOAN PORTFOLIO COMPOSITION
9/30/05 6/30/05 12/31/04
----------------------- ---------------------- -----------------------
(Dollars in thousands)
One- to four-family................... $ 4,194,928 59.1% $ 4,129,019 59.2% $ 4,036,826 58.7%
Home equity loans and lines of credit. 1,360,520 19.1 1,344,028 19.2 1,336,090 19.4
Multi-family.......................... 676,976 9.5 654,206 9.4 646,269 9.4
Commercial real estate................ 458,409 6.5 473,418 6.8 476,796 6.9
Commercial business................... 154,249 2.2 142,334 2.0 147,345 2.1
Construction.......................... 128,265 1.8 130,127 1.9 134,759 2.1
Land.................................. 121,945 1.7 101,040 1.4 92,779 1.3
Consumer loans........................ 6,117 0.1 6,155 0.1 7,650 0.1
----------- ----- ------------ ----- ----------- -----
Total loans receivable, net... $ 7,101,409 100.0% $ 6,980,327 100.0% $ 6,878,514 100.0%
=========== ===== ============ ===== =========== =====
The composition of the Company's loan portfolio by category remained consistent
during the past three months and through the first nine months of 2005.
Annualized growth in the overall loan portfolio totaled 6.9% over the past three
months, primarily due to growth in 1-4 family, multi-family and land loan
balances. Loan prepayments have been significantly ahead of expectations thus
far in 2005 leading to lower than expected growth in loan balances. Rate
competition for business lending remains strong in both the Chicago and
Milwaukee markets. The Company has chosen not to relax its credit standards to
achieve growth in business loan balances.
NON-INTEREST INCOME
QE 9/30/05 QE 6/30/05 QE 9/30/04
------------ ------------ ------------
Total non-interest income (000's).................. $19,790 $17,952 $19,516
Non-interest income / total revenue(1)............. 23.0% 21.1% 23.2%
(1) Total revenue equals net interest income plus non-interest income.
2
The Company reported an overall increase in non-interest income compared to the
second quarter of 2005 despite reporting no income from real estate development
operations. Additional income on bank owned life insurance investments in the
current period, including income of $648,000 relating to tax-free death
benefits, and an increase in deposit account service fees led to the positive
results for the quarter.
RESIDENTIAL MORTGAGE ORIGINATIONS, SALES AND SERVICING
QE 9/30/05 QE 6/30/05 QE 9/30/04
------------ ------------ ------------
(Dollars in thousands)
1-4 FAMILY ORIGINATIONS AND PURCHASES
- -------------------------------------
Fixed-rate.................................................. $ 213,713 $ 167,556 $ 159,603
Adjustable rate............................................. 358,729 370,936 324,895
---------- ---------- ----------
Total..................................................... $ 572,442 $ 538,492 $ 484,498
========== ========== ==========
Fixed-rate %................................................ 37% 31% 33%
Adjustable rate %........................................... 63% 69% 67%
Refinance %................................................. 31% 27% 25%
LOAN SALES
- ----------
Fixed-rate.................................................. $ 205,102 $ 144,236 $ 158,562
Adjustable rate............................................. 2,622 13,852 154,467
---------- ---------- ----------
Total..................................................... 207,724 158,088 313,029
Equity lines of credit........................................ 23,570 27,159 -
---------- ---------- ----------
Total loans sold.............................................. $ 231,294 $ 185,247 $ 313,029
========== ========== ==========
Gain on sale of 1-4 family mortgages.......................... $ 2,159 $ 1,419 $ 2,978
Gain on sale of equity lines of credit........................ 495 885 -
---------- ---------- ----------
Total loan sale gains..................................... $ 2,654 $ 2,304 $ 2,978
========== ========== ==========
Margin on 1-4 family loan sales............................... 1.04% .90% .95%
LOAN SERVICING
- --------------
Loan servicing fee income..................................... $ 479 $ 658 $ 584
Capitalized mortgage servicing rights as a percentage of loans
serviced for others....................................... .69% .69% .74%
Residential loan volume activity rebounded in the current quarter for the second
consecutive quarter. Total 1-4 family mortgage loan volume was up 6.3% during
the past three months with increased refinance activity and a continued strong
home purchase market. The Company expects to complete a sale of servicing rights
on approximately $760 million of 1-4 family mortgage loans during the fourth
quarter.
DEPOSIT ACCOUNT SERVICE FEES
QE 9/30/05 QE 6/30/05 QE 9/30/04
------------ ------------ ------------
Deposit service charges (000's)............................... $ 9,342 $ 8,769 $ 8,848
Deposit service fees / total revenue.......................... 10.9% 10.3% 10.5%
Number of checking accounts (period end)...................... 252,900 251,900 241,000
The Company reported a 6.5% advance in deposit account service charges on a
consecutive quarter basis, primarily reflecting increases in consumer overdraft
activity and debit card usage during the quarter as
3
well as higher fees implemented during the quarter. Checking account growth
remains challenging as intense competition in the Company's markets continued.
REAL ESTATE DEVELOPMENT OPERATIONS
QE 9/30/05 QE 6/30/05 QE 9/30/04
------------ ------------ ------------
Real estate development income - total (000's)................ $ - $ 166 $ 1,650
Residential lot sales......................................... - 4 28
Pending lot sales at quarter end.............................. 186 182 11
Investment in real estate held for development or sale (000's) $ 50,332 $ 46,336 $ 37,179
The Company had no real estate development income during the current quarter as
delays in receiving final engineering approvals for the first two units of the
Springbank development in Plainfield, IL pushed back lot sale closings to the
fourth quarter and into 2006. These approvals have now been received and the
final plat has been recorded. Because of the delays, along with higher than
expected development costs, overall profits for the year from real estate
development are expected to be significantly lower than what had been expected
at the beginning of the year.
NON-INTEREST EXPENSE
QE 9/30/05 QE 6/30/05 QE 9/30/04
------------ ------------ ------------
Total non-interest expense (000's)............................ $ 44,929 $ 46,596 $ 45,463
Non-interest expense to average assets........................ 1.78% 1.89% 1.95%
Efficiency ratio(1)........................................... 52.28% 54.97% 54.08%
(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.
3RD QUARTER 2005 v. 2ND QUARTER 2005. Total non-interest expense declined by
$1.7 million compared to the second quarter of 2005 as compensation and benefits
expense fell by $804,000 primarily due to lower incentive compensation.
Advertising expense decreased $946,000 over the past three months. Advertising
expenses were higher in the second quarter due to special promotions. Other
non-interest expense categories remained relatively stable. The positive results
from various back-office process improvement projects was reflected in the
current quarter's results through reduced headcount, improved staffing
efficiencies and a reduction in overall costs in the Company's retail operation.
3RD QUARTER 2005 v. 3RD QUARTER 2004. Compared to a year ago, total non-interest
expenses decreased by $534,000, or 1.2%. While compensation and benefits
increased by $733,000, or 3.2% on a year-over-year basis (due in part to new
branch openings and the acquisition of Chesterfield), other non-interest expense
declined by $1.3 million due to costs in last year's third quarter relating to
the correction of accumulated errors in the recording of ATM network processing
expenses.
INCOME TAX EXPENSE
Income tax expense totaled $13.5 million in the current quarter, equal to an
effective income tax rate of 33.4%, lower than the 34.8% reported in the second
quarter of 2005 and slightly higher than the 33.1% effective rate reported for
the quarter ended September 30, 2004. The effective tax rate was lower in the
4
current quarter compared to the second quarter of 2005 primarily because of
increased earnings from bank-owned life insurance investments.
ASSET QUALITY
QE 9/30/05 QE 6/30/05 QE 9/30/04
---------- ---------- ----------
(Dollars in thousands)
Non-performing loans (NPL).................................... $35,377 $30,548 $30,557
Non-performing assets (NPA)................................... $36,166 $30,935 $31,692
NPL / total loans............................................. .50% .44% .45%
NPA / total assets............................................ .35% .31% .34%
Allowance for loan losses (ALL)............................... $36,335 $36,134 $34,936
ALL / total loans............................................. .51% .52% .52%
ALL / NPL..................................................... 102.7% 118.3% 114.3%
Provision for loan losses..................................... $ 480 $ - $ 350
Net charge-offs............................................... $ 279 $ 115 $ 135
While the level of non-performing loans increased by $4.8 million over the past
three months, primarily due to higher delinquencies in the equity line of credit
and equity loan portfolio, the Company has not identified significant negative
trends in its overall asset quality position. A large amount of the increase in
non-performing loans relates to two equity lines of credit to one individual
borrower that the Company believes are adequately secured. Net charge-offs were
modestly higher on a consecutive-quarter and year-over-year basis. The provision
for loan losses of $480,000 for the quarter reflects increases in net
charge-offs and the level of non-performing loans. At September 30, 2005, 93% of
non-performing loans consisted of loans secured by one-to-four family
residential properties, compared to 94% reported at June 30, 2005.
BALANCE SHEET & CAPITAL
9/30/05 6/30/05 9/30/04
------------- ------------ ------------
(Dollars in thousands)
ASSETS:
Total assets.................................................. $10,259,035 $10,059,203 $9,320,814
Loans receivable.............................................. 7,143,669 7,015,022 6,770,270
Mortgage-backed securities.................................... 1,519,526 1,444,765 1,019,260
LIABILITIES AND EQUITY:
Total liabilities............................................. $ 9,293,068 $ 9,108,946 $8,386,869
Deposits...................................................... 6,132,037 6,110,080 5,640,231
Borrowed funds................................................ 2,898,399 2,771,244 2,559,229
Junior subordinated debentures................................ 67,011 30,928 -
Stockholders' equity.......................................... 965,967 950,257 933,945
OTHER:
Core deposits / total deposits................................ 55.1% 57.7% 60.6%
Book value per share.......................................... $ 30.14 $ 29.72 $ 28.60
Stockholders' equity / total assets........................... 9.4% 9.4% 10.0%
5
DEPOSIT COMPOSITION
9/30/05 6/30/05 12/31/04
--------------------- ----------------------- ----------------------
WEIGHTED WEIGHTED WEIGHTED
AVERAGE AVERAGE AVERAGE
AMOUNT RATE AMOUNT RATE AMOUNT RATE
---------- ---------- ---------- ---------- ---------- ---------
(Dollars in thousands)
Commercial checking........... $ 282,431 - $ 268,280 - $ 239,249 -
Non-interest bearing checking. 267,322 - 263,618 - 250,569 -
Interest-bearing checking..... 814,261 0.97% 846,806 0.89% 972,009 0.94%
Commercial money market....... 78,678 2.96% 74,168 2.43% 64,810 1.47%
Money market.................. 622,032 2.08% 718,112 1.97% 611,507 0.97%
Passbook...................... 1,312,553 0.58% 1,356,210 0.58% 1,399,099 0.57%
---------- ---- ---------- ---- ---------- ----
Core deposits................. 3,377,277 0.91% 3,527,194 0.89% 3,537,243 0.68%
---------- ---- ---------- ---- ---------- ----
Certificates of deposit....... 2,753,634 3.34% 2,581,170 3.06% 2,395,605 2.66%
---- ---- ----
Unamortized premium........... 1,126 - 1,716 - 2,860 -
---------- ---- ---------- ---- ---------- ----
Total deposits............ $6,132,037 2.00% $6,110,080 1.81% $5,935,708 1.48%
========== ==== ========== ==== ========== ====
Deposits increased by $22.0 million in the quarter, equal to an annualized
growth rate of 1.4%. Competition in the Company's markets has challenged deposit
growth. The rising rate environment along with heavy competition for deposits,
has led to higher rates on certain core deposit accounts and a significant shift
toward higher-costing certificates of deposit.
TRUST PREFERRED SECURITIES
During the current quarter, the Company formed a special purpose finance
subsidiary, and the subsidiary issued $35 million in trust preferred securities.
The trust preferred securities mature in 30 years and are callable at par in
five years at the Company's option. The Company will pay interest on the
indebtedness at 3-month LIBOR plus 1.40%, resetting quarterly. The proceeds were
used to repay amounts drawn on the Company's existing $55 million line of
credit, which remains available for general corporate purposes. During 2005, the
Company has issued a total of $65 million in trust preferred securities.
STOCKHOLDERS' EQUITY
Stockholders' equity increased by $15.7 million in the past three months
primarily from net income of $27.0 million partially offset by cash dividends of
$7.4 million and a $5.9 million decrease in the fair value of the Company's
available for sale securities portfolio. The Company did not repurchase any
shares of Company stock during the quarter under the Company's repurchase
program. At September 30, 2005, 1,500 shares remained authorized for repurchase
under the Company's 1.2 million share repurchase program announced in January
2005. The Bank's tangible, core and risk-based capital percentages of 7.20%,
7.20% and 11.42%, respectively, at September 30, 2005, exceeded minimum and
well-capitalized regulatory capital requirements. The Company had an equity to
total assets ratio of 9.42% at September 30, 2005 and return on equity for the
quarter ended September 30, 2005 was 11.25%.
6
RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005
Diluted earnings per share totaled $2.30 in the current nine-month period
compared to $2.27 last year. For the nine months ended September 30, 2005, net
income totaled $76.2 million compared to $76.4 million in last year's comparable
period. Net interest income totaled $200.7 million compared to $193.8 million
last year, due to an increase in net interest earning assets. The net interest
margin contracted to 2.94% for the nine months ended September 30, 2005,
compared to 3.05% for the first nine months of 2004. Non-interest income totaled
$55.6 million for the nine months ended September 30, 2005, equal to 21.7% of
total revenue compared to $59.0 million, or 23.3% of total revenue for the nine
months ended September 30, 2004. Higher loan sale gains and income from
bank-owned life insurance investments in the current nine-month period were
offset by lower investment security gains and significantly lower income from
real estate operations. As previously discussed, the Company expects the first
closings of lots sales in the Springbank development to occur in the fourth
quarter of 2005.
Non-interest expense totaled $139.7 million in the current nine-month period,
compared to $137.5 million reported for the nine months ended September 30,
2004, an increase of only 1.6%. Compensation and benefits expense increased by
3.2% for the current nine-month period compared to the prior year period while
occupancy and equipment costs increased by 4.7% over this same period. These
increases were due in part to a greater number of branch office facilities
compared to a year ago due to the Chesterfield acquisition and the opening of
three de novo branches over the past 12 months.
EFC ACQUISITION
On June 30, 2005, the Company announced it had reached an agreement to acquire
Elgin, IL-based EFC Bancorp Inc. in a cash and stock transaction valued at
approximately $177.5 million on the date of announcement. The Company currently
expects the transaction to close in the first quarter of 2006. At June 30, 2005,
EFC had assets of $1.0 billion, deposits of $713 million with offices in Kane,
McHenry and Cook Counties, Illinois. Based on currently available market share
data, the acquisition is expected to move MAF to #7 in deposit market share in
the Chicago MSA and from #15 to #3 in Kane County, where population growth is
expected to exceed 17% over the next five years.
COMPANY PROFILE
MAF Bancorp is the parent company of Mid America Bank, a federally chartered
stock savings bank. The Bank currently operates a network of 73 retail banking
offices throughout Chicago and Milwaukee and their surrounding areas. Offices in
Wisconsin 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
7
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 overhead,
infrastructure and compliance costs, unanticipated changes in interest rates or
further flattening of the yield curve, less than anticipated balance sheet
growth, demand for loan products, unanticipated changes in secondary mortgage
market conditions, deposit flows, competition, adverse federal or state
legislative or regulatory developments, monetary and fiscal policies of the U.S.
Government, including policies of the U.S. Treasury and Federal Reserve Board,
deteriorating economic conditions which could result in increased delinquencies
in the Company's loan portfolio, the quality or composition of the Company's
loan or investment portfolios, demand for financial services and residential
real estate in the Company's market area, delays in real estate development
projects, difficulties or delays related to the pending acquisition of EFC
Bancorp, the possible short-term dilutive effect of the EFC acquisition or 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 has filed a registration statement with the Securities and Exchange
Commission containing a preliminary proxy statement/prospectus and other
documents regarding its proposed transaction with EFC Bancorp. EFC BANCORP
SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS BECAUSE IT
CONTAINS IMPORTANT INFORMATION ABOUT MAF AND EFC, AND THE PROPOSED TRANSACTION.
When available, copies of this proxy statement/prospectus will be mailed to EFC
shareholders, and it and other documents filed by MAF or EFC 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 EFC at 1695 Larkin Avenue, Elgin, IL 60123.
EFC and its directors, executive officers and certain other members of
management and employees may be soliciting proxies from their stockholders in
favor of the proposed merger. Information regarding such persons who may, under
the rules of the SEC, be considered to be participants in the solicitation of
EFC's stockholders in connection with the proposed merger is set forth in EFC's
proxy statement filed with the SEC on March 17, 2005 relating to its annual
meeting of stockholders held on April 19, 2005. Additional information is set
forth in the preliminary proxy statement/prospectus on file with the SEC.
8
MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------- -----------------------
2005 2004 2005 2004
-------- -------- -------- --------
(UNAUDITED)
Interest income........................................... $122,044 $105,639 $350,332 $311,024
Interest expense.......................................... 55,920 41,080 149,591 117,266
-------- -------- -------- --------
Net interest income................................... 66,124 64,559 200,741 193,758
Provision for loan losses................................. 480 350 480 930
-------- -------- -------- --------
Net interest income after provision for loan losses... 65,644 64,209 200,261 192,828
Non-interest income:
Net gain (loss) on sale and writedown of:
Loans receivable held for sale.................... 2,654 2,978 8,834 6,434
Mortgage-backed securities........................ - - - 489
Investment securities............................. (33) 3 727 2,805
Foreclosed real estate............................ (12) 227 196 423
Income from real estate operations.................... - 1,650 166 5,261
Deposit account service charges....................... 9,342 8,848 25,757 25,425
Other loan fees....................................... 1,757 1,531 4,386 4,503
Loan servicing fee income, net........................ 479 584 1,818 710
Valuation recovery on mortgage servicing rights....... - - 125 1,755
Brokerage commissions................................. 1,080 1,044 3,180 3,142
Other................................................. 4,523 2,651 10,388 8,046
-------- -------- -------- --------
Total non-interest income......................... 19,790 19,516 55,577 58,993
Non-interest expense:
Compensation and benefits............................. 23,816 23,083 75,066 72,723
Office occupancy and equipment........................ 7,407 7,420 21,607 20,645
Advertising and promotion............................. 2,101 2,452 7,170 7,453
Data processing....................................... 2,009 1,598 6,044 6,005
Other................................................. 8,880 10,180 27,608 28,510
Amortization of core deposit intangibles.............. 716 730 2,185 2,201
-------- -------- -------- --------
Total non-interest expense............................ 44,929 45,463 139,680 137,537
-------- -------- -------- --------
Income before income taxes........................ 40,505 38,262 116,158 114,284
Income taxes.............................................. 13,520 12,676 39,937 37,934
-------- -------- -------- --------
Net income............................................ $ 26,985 $ 25,586 $ 76,221 $ 76,350
======== ======== ======== ========
Basic earnings per share.................................. $ 0.84 $ 0.78 $ 2.35 $ 2.33
======== ======== ======== ========
Diluted earnings per share................................ $ 0.83 $ 0.77 $ 2.30 $ 2.27
======== ======== ======== ========
9
MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
SEPTEMBER 30, DECEMBER 31,
2005 2004
-------------- --------------
(UNAUDITED)
ASSETS
Cash and due from banks........................................................ $ 127,373 $ 148,055
Interest-bearing deposits...................................................... 34,993 56,089
Federal funds sold............................................................. 47,555 42,854
----------- ----------
Total cash and cash equivalents............................................ 209,921 246,998
Investment securities available for sale, at fair value........................ 466,304 388,959
Stock in Federal Home Loan Bank of Chicago, at cost............................ 163,916 278,916
Mortgage-backed securities available for sale, at fair value................... 1,266,458 948,168
Mortgage-backed securities held to maturity (fair value $249,214 and $244,615). 253,068 245,021
Loans receivable held for sale................................................. 78,595 39,521
Loans receivable, net.......................................................... 7,101,409 6,878,514
Allowance for loan losses...................................................... (36,335) (36,255)
----------- ----------
Loans receivable, net of allowance for loan losses.......................... 7,065,074 6,842,259
----------- ----------
Accrued interest receivable.................................................... 41,251 34,888
Foreclosed real estate......................................................... 789 1,487
Real estate held for development or sale....................................... 50,332 35,091
Premises and equipment, net.................................................... 145,553 140,898
Other assets................................................................... 177,490 135,249
Goodwill....................................................................... 304,412 305,166
Intangibles, net............................................................... 35,872 38,763
----------- ----------
10,259,035 9,681,384
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits................................................................... 6,132,037 5,935,708
Borrowed funds............................................................. 2,898,399 2,600,667
Junior subordinated debentures............................................. 67,011 -
Advances by borrowers for taxes and insurance.............................. 57,530 43,285
Accrued expenses and other liabilities..................................... 138,091 127,338
----------- ----------
Total liabilities 9,293,068 8,706,998
----------- ----------
Stockholders' equity:
Preferred stock, $.01 par value; authorized 5,000,000 shares; none
outstanding............................................................ - -
Common stock, $.01 par value; 80,000,000 shares authorized; 33,634,642
shares issued; 32,054,453 and 33,273,235 shares outstanding............ 336 336
Additional paid-in capital..................................................... 527,061 522,047
Retained earnings, substantially restricted.................................... 517,573 468,408
Accumulated other comprehensive loss, net of tax............................... (11,442) (1,676)
Stock in Gain Deferral Plan; 245,467 shares at December 31, 2004.............. - 1,211
Treasury stock, at cost 1,580,189 and 361,407 shares........................... (67,561) (15,940)
----------- ----------
Total stockholders' equity................................................. 965,967 974,386
----------- ----------
$10,259,035 $9,681,384
=========== ==========
10
MAF BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except share data)
(Unaudited)
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
2005 2004 2004
--------------- -------------- ---------------
Book value per share...................................... $ 30.14 $ 29.28 $ 28.60
Tangible book value per share............................. 20.30 19.72 20.21
Stockholders' equity to total assets...................... 9.42% 10.06% 10.02%
Tangible stockholders' equity to tangible assets.......... 6.54 7.01 7.29
Tangible capital ratio (Bank only)........................ 7.20 7.14 7.05
Core capital ratio (Bank only)............................ 7.20 7.14 7.05
Risk-based capital ratio (Bank only)...................... 11.42 11.30 10.78
Common shares outstanding:
Actual................................................ 32,054,453 33,273,235 32,649,961
Basic (weighted average for quarter).................. 32,015,695 33,165,321 32,618,611
Diluted (weighted average for quarter)................ 32,680,863 33,961,253 33,369,209
Non-performing loans...................................... $ 35,377 $ 31,473 $ 30,557
Non-performing assets..................................... 36,166 32,960 31,692
Allowance for loan losses................................. 36,335 36,255 34,936
Non-performing loans to total loans....................... 0.50% .46% .45%
Non-performing assets to total assets..................... 0.35 .34 .34
Allowance for loan losses to total loans.................. 0.51 .53 .52
Mortgage loans serviced for others........................ $ 3,642,815 $ 3,641,445 $ 3,462,655
Capitalized mortgage servicing rights, net................ 24,992 25,697 25,486
Core deposit intangibles, net............................. 10,880 13,066 11,859
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------------- ----------------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Average balance data:
Total assets..................................... $10,121,996 $9,310,751 $9,878,240 $9,162,628
Loans receivable................................. 7,099,738 6,798,504 6,986,748 6,641,028
Interest-earning assets.......................... 9,301,466 8,593,867 9,088,716 8,466,420
Interest-bearing deposits........................ 5,587,905 5,202,504 5,554,165 5,186,117
Interest-bearing liabilities..................... 8,468,997 7,760,660 8,255,189 7,646,400
Stockholders' equity............................. 959,084 910,788 957,070 910,981
Performance ratios (annualized):
Return on average assets......................... 1.07% 1.10% 1.03% 1.11%
Return on average equity......................... 11.25 11.24 10.62 11.17
Average yield on interest-earning assets......... 5.23 4.90 5.15 4.90
Average cost of interest-bearing liabilities..... 2.62 2.10 2.42 2.04
Interest rate spread............................. 2.61 2.80 2.73 2.85
Net interest margin.............................. 2.84 3.00 2.94 3.05
Average interest-earning assets to average
interest-bearing liabilities................. 109.83 110.74 110.10 110.72
Non-interest expense to average assets........... 1.78 1.95 1.89 2.00
Non-interest expense to average assets and loans
serviced for others.......................... 1.31 1.44 1.38 1.47
Efficiency ratio(1).............................. 52.28 54.08 54.65 55.13
Loans sold........................................... 231,294 313,029 647,273 704,002
Cash dividends declared per share.................... .23 .21 .69 .63
<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>
11