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 FOURTH QUARTER EARNINGS OF
$.74 PER SHARE AND CALENDAR 2004 RESULTS OF $3.01 PER SHARE
Clarendon Hills, Illinois, January 28, 2005 - MAF Bancorp, Inc. (MAFB) reported
net income for the fourth quarter ended December 31, 2004 of $25.2 million, or
$.74 per diluted share, compared to $24.1 million, or $.84 per diluted share, in
last year's fourth quarter. Net income in the fourth quarter of 2004 included a
non-cash, pre-tax charge of $2.0 million, or $.04 per diluted share, related to
an other-than-temporary impairment writedown of certain Freddie Mac
floating-rate preferred stock investments.
For the year ended December 31, 2004, diluted earnings per share totaled $3.01
compared to $3.26 reported in 2003. The decline in earnings per share for the
year was largely attributable to a significant decline in residential loan
volume, which impacted loan sale activity and earning asset growth during the
year. Gains on sale of loans and mortgage-backed securities totaled $9.8 million
in 2004 compared to $32.0 million in 2003. The Company is targeting annual
earnings per share growth of 8% to 10% in 2005.
On October 31, 2004, the Company completed its acquisition of Chesterfield
Financial Corp. in a $128.4 million cash and stock transaction that gave the
Company locations in the Beverly neighborhood of Chicago and in suburban Palos
Hills and Frankfort, Illinois. At the time of acquisition, Chesterfield had
total assets of approximately $353 million and deposits of approximately $277
million.
NET INTEREST INCOME AND NET INTEREST MARGIN
QE 12/31/04 QE 9/30/04 QE 12/31/03
----------- ----------- -----------
Net interest margin............................... 3.07% 3.00% 3.07%
Interest rate spread.............................. 2.86% 2.80% 2.85%
Net interest income (000's)....................... $67,530 $64,559 $52,952
AVERAGE ASSETS:
Yield on interest-earning assets.................. 5.00% 4.90% 5.05%
Yield on loans receivable...................... 5.16% 5.06% 5.27%
Yield on mortgage-backed securities............ 3.88% 3.99% 3.74%
Yield on investment securities................. 5.26% 5.09% 4.70%
Average interest-earning assets (000's)........... $8,792,647 $8,593,867 $6,906,311
AVERAGE LIABILITIES:
Cost of interest-bearing liabilities.............. 2.14% 2.10% 2.20%
Cost of deposits............................... 1.51% 1.44% 1.34%
Cost of borrowed funds......................... 3.44% 3.44% 4.17%
Average interest-bearing liabilities (000's)...... $7,915,439 $7,760,660 $6,206,339
NET INTEREST MARGIN: 4TH QUARTER 2004 V. 3RD QUARTER 2004. The net interest
margin increased by seven basis points during the quarter, as overall asset
yields expanded at a faster pace than funding costs. Rising short-term interest
rates on the Bank's equity line of credit portfolio contributed to a 10 basis
point increase in the loan portfolio yield. The Chesterfield acquisition also
had a positive impact on the net interest margin as its short-term liquid
investments were redeployed in higher-yielding assets. The Company expects that
the flatter yield curve will pressure net interest margin in 2005.
The increases in average interest-earning assets and liabilities during the
quarter were primarily the result of the acquisition of Chesterfield. Average
interest-earning assets grew $199 million or 2.3% during the quarter, with most
of the growth in the loan category. Compared to the third quarter of 2004,
average loans receivable increased by 2.4%, or $163 million, to $6.96 billion.
In addition to loans added in the Chesterfield acquisition, continued growth in
home equity loans contributed to the increase.
The growth in average assets during the quarter was largely funded by increases
in deposits. The average balance of deposits rose by 2.8%, or $143 million, to
$5.35 billion during the quarter, all of which was due to the Chesterfield
acquisition, while the average balance of borrowed funds increased by $11
million to $2.57 billion.
NET INTEREST MARGIN: 4TH QUARTER 2004 V. 4TH QUARTER 2003. Compared to the prior
year quarter, the Company's average asset yields in the current quarter were
five basis points lower, which nearly matched the six basis point decline in
average funding costs over this same one-year period. The net interest margin in
both periods was 3.07%.
LENDING PRODUCTION
QE 12/31/04 QE 9/30/04 QE 12/31/03
--------------------- ---------------------- -----------------------
AMOUNT % AMOUNT % AMOUNT %
----------- ----- ----------- ----- ----------- -----
ORIGINATIONS BY LOAN CATEGORY (000'S)
- ------------------------------------
1-4 family............................ $ 505,117 48% $484,498 50% $651,479 68%
Multi-family.......................... 33,728 3 23,638 2 48,981 5
Equity lines of credit................ 320,797 30 317,127 33 186,697 19
All other............................. 197,843 19 147,624 15 72,791 8
---------- --- -------- --- -------- ---
Total loan originations............... $1,057,485 100% $972,887 100% $959,948 100%
========== === ======== === ======== ===
1-4 FAMILY ORIGINATIONS
- -----------------------
Fixed rate %.......................... 33% 33% 41%
Adjustable rate %..................... 67 67 59
Refinance %........................... 36 25 44
Total 1-4 family residential mortgage loan volume advanced by 4.3% during the
past three months, although it was 22.5% lower than levels reported for the
fourth quarter of 2003, consistent with the overall slowdown in the mortgage
industry. The decline in 1-4 family lending activity has been offset in part by
continued success in the Bank's equity line of credit and business banking areas
where loan originations advanced during the quarter and as compared to a year
ago. Home equity loan balances increased to $1.33 billion at December 31, 2004
compared to $1.23 billion at September 30, 2004 and $966 million at December 31,
2003. Home equity loan balances are primarily floating-rate assets and represent
approximately 19% of the Company's total loan portfolio at December 31, 2004,
compared to 15% at December 31, 2003. During 2005, the Company plans to continue
to increase the amount of home equity and business banking loans in its loan
portfolio.
2
NON-INTEREST INCOME
QE 12/31/04 QE 9/30/04 QE 12/31/03
----------- ----------- -----------
Total non-interest income (000's).................. $17,293 $19,516 $21,622
Non-interest income / total revenue*............... 20.4% 23.2% 29.0%
<FN>
* total revenue = net interest income plus non-interest income
</FN>
OVERVIEW. The $4.3 million decline in non-interest income for the current
quarter compared to the fourth quarter of 2003 primarily reflects a $3.6 million
decrease in income from real estate development operations related to previously
announced delays in the Springbank project, and a $2.0 million
other-than-temporary impairment writedown of certain Freddie Mac floating-rate
preferred stock investments, offset by a $1.6 million increase in deposit
account service charges.
LOAN SALES AND LOAN SERVICING
QE 12/31/04 QE 9/30/04 QE 12/31/03
----------- ----------- -----------
LOAN SALES
- ----------
Fixed-rate loans sold (000's)................................. $241,913 $158,562 $348,597
Adjustable rate loans sold (000's)............................ 55,590 154,467 64,349
-------- -------- --------
Total loans sold (000's)...................................... $297,503 $313,029 $412,946
======== ======== ========
Loan sale gains (000's)....................................... $ 2,860 $ 2,978 $ 3,008
Margin on loan sales (basis points)........................... 96 95 73
LOAN SERVICING
- --------------
Loan servicing fee income (000's)............................. $ 521 $ 584 $ 117
Valuation recovery on mortgage servicing rights (000's)....... 317 - 2,070
Capitalized mortgage servicing rights as a percentage of
loans serviced for others (basis points).................. 71 74 72
During the quarter, overall loan sale volume totaled $297.5 million compared to
$313.0 million in the third quarter of 2004 and $412.9 million in the fourth
quarter of 2003. As interest rates fell during the third quarter of 2004, the
Bank elected to sell a significant portion of its adjustable rate loan
production as well as the majority of its fixed rate loans, but elected to
retain a greater portion of adjustable rate production in the fourth quarter.
The Bank plans to sell a smaller portion of its loan production in the first
quarter of 2005.
DEPOSIT ACCOUNT SERVICE FEES
QE 12/31/04 QE 9/30/04 QE 12/31/03
----------- ----------- -----------
Deposit service charges (000's)............................... $ 8,687 $ 8,848 $ 7,102
Growth rate (year over year).................................. 22.3% 46.2% 17.9%
Deposit service fees / total revenue.......................... 10.2% 10.5% 9.5%
Number of checking accounts (period end)...................... 245,000 240,400 231,000
Deposit account service fees were up considerably in the fourth quarter of 2004
compared to the fourth quarter of 2003, primarily due to growth in the number of
accounts year over year, including accounts added in the St. Francis merger,
which closed late in last year's fourth quarter.
3
REAL ESTATE DEVELOPMENT OPERATIONS
QE 12/31/04 QE 9/30/04 QE 12/31/03
----------- ----------- -----------
Real estate development income - total (000's)................ $ 1,396 $ 1,650 $ 4,993
Residential lot sales......................................... 22 28 68
Pending lot sales at quarter end.............................. -- 11 15
Investment in real estate held for development or sale (000's) $35,091 $37,179 $32,093
All of the lot sales during the current quarter were in the Shenandoah
subdivision in Plainfield, Illinois and TallGrass subdivision in Naperville,
Illinois. Both of these subdivisions are nearly complete. The Company also
closed on the sale of a multi-family parcel during the quarter, adding $460,000
to real estate development income. The increase in the investment in real estate
compared to a year ago relates primarily to land purchases for the Springbank
joint venture development in Plainfield, Illinois, which was approved in early
October 2004. Development began late in the fourth quarter of 2004. Lot sale
closings from this development are not expected to begin until the third quarter
of 2005. The Company expects little, if any, income from real estate operations
in the first half of 2005.
SECURITIES SALES AND WRITEDOWNS
QE 12/31/04 QE 9/30/04 QE 12/31/03
----------- ----------- -----------
INVESTMENT SECURITIES:
Net gains (losses) on sale and writedowns (000's)............. $ (1,983) $ 3 $ --
MORTGAGE-BACKED SECURITIES:
Net gains on sale (000's)..................................... 11 -- $ 9
There was minimal securities sale activity during the current quarter. The loss
for the quarter was attributable to the $2.0 million other-than-temporary
impairment writedown on the carrying value of $8.8 million of floating-rate
Freddie Mac preferred stock investments. The Company recorded the writedown, in
accordance with GAAP, because the current yield on these investments is below
market interest rates, the fair value has been below cost for an extended
period, and a recovery in fair value is not assured within a reasonably short
period of time.
NON-INTEREST EXPENSE
QE 12/31/04 QE 9/30/04 QE 12/31/03
----------- ----------- -----------
Total non-interest expense (000's)............................ $46,511 $45,463 $37,369
Non-interest expense to average assets........................ 1.95% 1.95% 2.02%
Efficiency ratio(1)........................................... 53.59% 54.10% 50.12%
<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>
4TH QUARTER 2004 V. 3RD QUARTER 2004. Total non-interest expense, including the
operation of Chesterfield for two months of the quarter, increased by $1.0
million compared to the third quarter of 2004. The Company completed the data
processing conversion of the Chesterfield systems in early November 2004.
Compensation and benefits expense increased by $696,000 during the fourth
quarter, primarily due to the addition of Chesterfield personnel as well as
higher retirement plan expenses. Other non-interest expense increased by
$779,000 as a result of higher professional expenses related to the ongoing
Sarbanes/Oxley compliance efforts, consulting fees related to various efficiency
improvement projects, and higher return check and debit card write-offs. These
increases were offset in part by an $826,000 decline in advertising
4
expenses. In addition, the third quarter of 2004 included a $1.2 million
correction of accumulated errors in ATM network processing expenses.
4TH QUARTER 2004 V. 4TH QUARTER 2003. Compared to a year ago, all major
categories of non-interest expense, except advertising, showed increases due to
significant growth of the Company during the past year due to acquisitions. The
added cost of management personnel and infrastructure needed to facilitate this
growth along with the increased compliance burden under new regulations also
contributed to higher expenses year over year. Compensation and benefits expense
totaled $23.8 million in the current period compared to $22.1 million in the
fourth quarter of last year. The impact of growth in personnel, higher medical
costs and normal salary increases compared to the prior year quarter was offset
in part by a $1.2 million reduction in incentive compensation expense.
Office occupancy and equipment costs totaled $7.3 million in the current period
compared to $4.7 million a year ago. This increase from a year ago is due
primarily to the operation of a much larger branch network during 2004.
Income tax expense totaled $12.9 million in the current quarter, equal to an
effective income tax rate of 33.8%, slightly higher than the 33.1% effective
rate reported in the third quarter of 2004. In last year's fourth quarter,
income tax expense equaled $13.1 million or an effective income tax rate of
35.2%. The decline in the effective income tax rate compared to a year ago is
primarily due to the tax benefits generated in the current period from St.
Francis' low income and senior housing projects and the resolution of certain
prior years' income tax matters.
ASSET QUALITY
QE 12/31/04 QE 9/30/04 QE 12/31/03
----------- ----------- -----------
Non-performing loans (NPL) (000's)............................ $31,473 $30,557 $32,787
Non-performing assets (NPA) (000's)........................... $32,960 $31,692 $43,684
NPL / total loans............................................. .46% .45% .51%
NPA / total assets............................................ .34% .34% .49%
Allowance for loan losses (ALL) (000's)....................... $36,255 $34,936 $34,555
ALL / total loans............................................. .53% .52% .54%
ALL / NPL..................................................... 115.2% 114.3% 105.4%
Provision for loan losses (000's)............................. $ 285 $ 350 --
Net charge-offs (000's)....................................... $ 263 $ 135 $ 177
The Company continues to maintain strong asset quality. Asset quality ratios
were basically unchanged compared to the quarter ended September 30, 2004. At
December 31, 2004, 89% of non-performing loans consisted of loans secured by
one- to four-family residential properties, consistent with the level at
September 30, 2004. The Company's allowance for loan losses increased $1.3
million due to the Chesterfield acquisition during the fourth quarter. The
Company recorded a provision for loan losses of $285,000 in the current quarter.
Net charge-offs for the quarter were $263,000.
5
BALANCE SHEET & CAPITAL
QE 12/31/04 QE 9/30/04 QE 12/31/03
----------- ----------- -----------
ASSETS:
Total assets (000's).......................................... $9,681,384 $9,320,814 $8,933,585
Loans receivable (000's)...................................... 6,881,780 6,770,270 6,369,107
Mortgage-backed securities (000's)............................ 1,193,189 1,019,260 971,969
LIABILITIES AND EQUITY:
Total liabilities (000's)..................................... $8,706,998 $8,386,609 $8,031,981
Deposits (000's).............................................. 5,935,708 5,640,231 5,580,455
Borrowed funds (000's)........................................ 2,600,667 2,559,229 2,299,427
Stockholders' equity (000's).................................. 974,386 933,945 901,604
OTHER:
1-4 family residential loans / total loans.................... 58.6% 59.5% 61.6%
Core deposits / total deposits................................ 59.6% 60.6% 58.2%
Book value per share.......................................... $ 29.28 $ 28.60 $ 27.27
Stockholders' equity / total assets........................... 10.1% 10.0% 10.1%
Total assets increased by $360.6 million over the past three months due
primarily to the Chesterfield acquisition. The largest asset category increases
were in mortgage-backed securities ($173.9 million) and loans receivable ($111.5
million) and were funded primarily from deposit increases ($295.5 million).
Goodwill also increased by $42.8 million during the quarter as a result of the
Chesterfield acquisition. The percentage of 1-4 family residential loans to
total loans continued to trend downward, equaling 58.6% at December 31, 2004
compared to 59.5% at September 30, 2004 and 61.6% a year ago. During the
quarter, the Company swapped $148 million of 15-year, fixed-rate loans into
mortgage-backed securities, which it continues to hold in the Company's
held-to-maturity portfolio.
Stockholders' equity increased by $40 million during the quarter as the issuance
of shares to Chesterfield shareholders raised $43 million in equity while net
income added $25 million to the equity base. These increases were offset by
dividends of $7.0 million and stock repurchase expenditures totaling $20.1
million. The Company repurchased 457,400 shares during the quarter at an average
price of $44.00 per share, including 356,000 shares repurchased under the
Company's 500,000 share repurchase program announced during the fourth quarter
of 2004. The Bank's tangible, core and risk-based capital percentages of 7.14%,
7.14% and 11.30%, respectively, at December 31, 2004, exceeded minimum
regulatory capital requirements.
RESULTS FOR THE YEAR ENDED DECEMBER 31, 2004
Diluted earnings per share totaled $3.01 in the current year compared to $3.26
last year. The decline in earnings per share for 2004 was largely attributable
to a significant reduction in residential loan volume, both at MAF and the
industry as a whole. With lower than expected lending-related revenues and
increases in expenses attributable to the substantial growth in the Company,
earnings per share results for the year were negatively impacted. The 2003
results do not reflect the operations of St. Francis prior to the December 1,
2003 merger date and only reflect the operations of Fidelity Bancorp (acquired
in July 2003) for about half of the year. The results for 2004 include two
months of operations for Chesterfield Financial, which was acquired on October
31, 2004.
For the year ended December 31, 2004, net income totaled $101.5 million compared
to $83.4 million in last year's comparable period. Net interest income totaled
$261.3 million compared to $179.5 million last year. The net interest margin
expanded to 3.06% for the year ended December 31, 2004, compared to 2.96% for
2003.
6
Non-interest income totaled $76.3 million for the year ended December 31, 2004,
equal to 22.6% of total revenue. For the year ended December 31, 2003,
non-interest income was $71.6 million, or 28.5% of total revenue. The relative
decline in non-interest income resulted primarily from lower mortgage banking
revenues. In 2003, there was considerable loan refinancing activity resulting in
gains on sale of loans and mortgage-backed securities totaling $32.0 million
compared to $9.8 million in 2004. Slower loan refinancing activity did lead to
higher loan servicing fee income in 2004, which increased by $7.2 million for
the year. Deposit account service charges grew by $9.6 million in 2004,
reflecting the higher number of accounts following the St. Francis acquisition,
while real estate development income declined by $4.7 million. As previously
announced, municipal delays in approving the Springbank development postponed
activity in this project.
Non-interest expense totaled $184.0 million in 2004, compared to $120.2 million
reported for the year ended December 31, 2003. All major categories of
non-interest expense showed increases due generally to increased costs
associated with the Company's considerable market expansion and growth over the
past year. The effective income tax rate for 2004 was 33.3% compared to 36.3% in
2003 due to income tax benefits described above. The expected absence of certain
of these benefits in 2005 is currently expected to result in a modestly higher
effective tax rate for 2005.
MAF Bancorp is the parent company of Mid America Bank, a federally chartered
stock savings bank. The Bank currently operates a network of 72 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 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 MAF's loan portfolio, the quality or composition of MAF's loan or investment
portfolios, demand for financial services and residential real estate in MAF's
market area, 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.
7
MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------------------- ------------------------
2004 2003 2004 2003
---------- ---------- ----------- -----------
(UNAUDITED) (UNAUDITED)
Interest income.............................................. $110,149 87,319 $421,173 316,430
Interest expense............................................. 42,619 34,367 159,885 136,952
-------- ------- -------- --------
Net interest income...................................... 67,530 52,952 261,288 179,478
Provision for loan losses.................................... 285 -- 1,215 --
-------- ------- -------- --------
Net interest income after provision for loan losses...... 67,245 52,952 260,073 179,478
Non-interest income:
Net gain (loss) on sale and writedown of:
Loans receivable held for sale....................... 2,860 3,008 9,294 25,948
Mortgage-backed securities........................... 11 9 500 6,006
Investment securities................................ (1,983) -- 822 (6,943)
Foreclosed real estate............................... 83 54 506 365
Income from real estate operations....................... 1,396 4,993 6,657 11,325
Deposit account service charges.......................... 8,687 7,102 34,112 24,552
Other loan fees.......................................... 1,272 1,339 5,775 4,767
Loan servicing fee income (expense)...................... 521 117 1,231 (5,939)
Valuation recovery on mortgage servicing rights.......... 317 2,070 2,072 1,130
Brokerage commissions.................................... 952 1,226 4,094 3,587
Other.................................................... 3,177 1,704 11,223 6,835
-------- ------- -------- --------
Total non-interest income............................ 17,293 21,622 76,286 71,633
Non-interest expense:
Compensation and benefits................................ 23,779 22,147 96,502 70,573
Office occupancy and equipment........................... 7,339 4,709 27,984 15,410
Advertising and promotion................................ 1,626 1,668 9,079 6,466
Data processing.......................................... 2,007 1,254 8,012 4,255
Other.................................................... 10,959 7,029 39,469 21,761
Amortization of core deposit intangibles................. 801 562 3,002 1,732
-------- ------- -------- --------
Total non-interest expense............................... 46,511 37,369 184,048 120,197
-------- ------- -------- --------
Income before income taxes........................... 38,027 37,205 152,311 130,914
Income taxes................................................. 12,855 13,105 50,789 47,481
-------- ------- -------- --------
Net income............................................... $ 25,172 24,100 101,522 83,433
======== ======= ======== ========
Basic earnings per share..................................... $ .76 .86 3.09 3.35
======== ======= ======== ========
Diluted earnings per share................................... .74 .84 3.01 3.26
======== ======= ======== ========
8
MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
DECEMBER 31, DECEMBER 31,
2004 2003
------------ ------------
(UNAUDITED)
ASSETS
Cash and due from banks........................................................ $ 166,446 144,290
Interest-bearing deposits...................................................... 37,698 57,988
Federal funds sold............................................................. 42,854 19,684
---------- ----------
Total cash and cash equivalents............................................ 246,998 221,962
Investment securities available for sale, at fair value........................ 388,959 365,334
Stock in Federal Home Loan Bank of Chicago, at cost............................ 278,916 384,643
Mortgage-backed securities available for sale, at fair value................... 948,168 971,969
Mortgage-backed securities held to maturity (fair value $244,615).............. 245,021 --
Loans receivable held for sale................................................. 39,521 44,511
Loans receivable, net of allowance for losses of $36,255 and $34,555........... 6,842,259 6,324,596
Accrued interest receivable.................................................... 34,888 31,168
Foreclosed real estate......................................................... 1,487 3,200
Real estate held for development or sale....................................... 35,091 32,093
Premises and equipment, net.................................................... 140,898 122,817
Other assets................................................................... 135,249 130,615
Goodwill....................................................................... 305,166 262,488
Intangibles.................................................................... 38,763 38,189
---------- ----------
$9,681,384 8,933,585
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits................................................................... 5,935,708 5,580,455
Borrowed funds............................................................. 2,600,667 2,299,427
Advances by borrowers for taxes and insurance.............................. 43,285 41,149
Accrued expenses and other liabilities..................................... 127,338 110,950
---------- ----------
Total liabilities 8,706,998 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; 33,634,642 and
33,063,853 shares issued; 33,273,235 and 33,063,853 shares outstanding. 336 331
Additional paid-in capital..................................................... 522,047 495,747
Retained earnings, substantially restricted.................................... 468,408 402,402
Accumulated other comprehensive income (loss), net of tax...................... (1,676) 2,109
Stock in Gain Deferral Plan; 245,467 and 240,879 shares........................ 1,211 1,015
Treasury stock, at cost; 361,407 shares at December 31, 2004................... (15,940) --
---------- ----------
Total stockholders' equity................................................. 974,386 901,604
---------- ----------
$9,681,384 8,933,585
========== ==========
9
MAF BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except share data)
(Unaudited)
DECEMBER 31, 2004 DECEMBER 31, 2003
----------------- -----------------
Book value per share............................... $ 29.28 $ 27.27
Stockholders' equity to total assets............... 10.06% 10.09%
Tangible capital ratio (Bank only)................. 7.14 7.16
Core capital ratio (Bank only)..................... 7.14 7.16
Risk-based capital ratio (Bank only)............... 11.30 11.45
Common shares outstanding:
Actual......................................... 33,273,235 33,063,853
Basic (weighted average)....................... 32,897,164 24,920,150
Diluted (weighted average)..................... 33,706,569 25,592,745
Non-performing loans............................... $ 31,473 $ 32,787
Non-performing assets.............................. 32,960 43,684
Allowance for loan losses.......................... 36,255 34,555
Non-performing loans to total loans................ .46% .51%
Non-performing assets to total assets.............. .34 .49
Allowance for loan losses to total loans........... .53 .54
Mortgage loans serviced for others................. $ 3,641,445 $ 3,330,039
Capitalized mortgage servicing rights, net......... 25,697 24,128
Core deposit intangibles........................... 13,065 14,061
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
-------------------------- --------------------------
2004 2003 2004 2003
---------- ---------- ----------- ----------
Average balance data:
Total assets................................... $9,547,131 $7,414,894 $9,259,279 $6,469,698
Loans receivable............................... 6,961,222 5,569,700 6,721,514 4,917,662
Interest-earning assets........................ 8,792,647 6,906,311 8,548,423 6,065,772
Deposits....................................... 5,345,977 4,331,523 5,226,301 3,794,205
Interest-bearing liabilities................... 7,915,439 6,206,339 7,714,028 5,420,900
Stockholders' equity........................... 964,612 720,514 924,462 588,263
Performance ratios (annualized):
Return on average assets....................... 1.05% 1.30% 1.10% 1.29%
Return on average equity....................... 10.44 13.38 10.98 14.18
Average yield on interest-earning assets....... 5.00 5.05 4.92 5.22
Average cost of interest-bearing liabilities... 2.14 2.20 2.07 2.53
Interest rate spread........................... 2.86 2.85 2.85 2.69
Net interest margin............................ 3.07 3.07 3.06 2.96
Average interest-earning assets to average
interest-bearing liabilities............... 111.08 111.28 110.82 111.90
Non-interest expense to average assets......... 1.95 2.02 1.99 1.86
Non-interest expense to average assets and
loans serviced for others.................. 1.43 1.35 1.46 1.46
Efficiency ratio(1)............................ 53.59 50.12 54.74 47.69
Loan originations.................................. $1,057,485 $959,948 $4,228,462 $4,993,675
Loans sold......................................... 297,503 412,946 914,082 1,766,954
Cash dividends declared per share.................. .21 .18 .84 .72
<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>
10