MAFB Maf Bancorp (MM)

MAF Bancorp Reports Third Quarter Earnings of $.79 Per Diluted Share CLARENDON HILLS, Ill., Oct. 20 /PRNewswire-FirstCall/ -- MAF Bancorp, Inc. (NASDAQ:MAFB) announced today that net income for the third quarter ended September 30, 2004 totaled $26.3 million compared to $20.5 million in last year's third quarter. Earnings per diluted share for the current quarter totaled $.79, the same as reported for the third quarter of 2003. For the nine months ended September 30, 2004, diluted earnings per share totaled $2.29 compared to $2.42 for the first nine months of 2003. In contrast to 2003 when the Company recorded significant gains on sales of loans due to the heavy mortgage refinancing activity, recent earnings results have been impacted by substantially lower mortgage loan refinancing activity in 2004 that has resulted in lower than anticipated balance sheet growth during the year. As discussed below, the Company currently expects diluted earnings per share for the year ending December 31, 2004 to be in the range of $3.05 to $3.10 per diluted share. Net Interest Income and Net Interest Margin QE 9/30/04 QE 6/30/04 QE 9/30/03 Net interest margin 3.00% 3.05% 2.92% Interest rate spread 2.80% 2.86% 2.67% Net interest income (000's) $64,559 $65,170 $44,908 Average assets: Yield on interest-earning assets 4.90% 4.85% 5.08% Yield on loans receivable 5.06% 5.05% 5.38% Yield on mortgage-backed securities 3.99% 3.78% 2.90% Yield on investment securities 5.09% 4.84% 4.66% Average interest-earning assets (000's) $8,593,867 $8,539,108 $6,141,847 Average liabilities: Cost of interest-bearing liabilities 2.10% 1.99% 2.41% Cost of deposits 1.44% 1.34% 1.50% Cost of borrowed funds 3.44% 3.34% 4.58% Average interest-bearing liabilities (000's) $7,760,660 $7,704,319 $5,470,455 Net Interest Margin: 3rd Quarter 2004 v. 2nd Quarter 2004. The net interest margin contracted by five basis points during the quarter, due largely to the upward repricing of interest-bearing liabilities occurring at a faster pace than the rise in yields on interest-earning assets. The yield on average interest-earning assets increased by 5 basis points for the quarter, primarily due to the impact of rising short-term interest rates on the Bank's equity line of credit portfolio. The declining trend in the average yield on the loan portfolio experienced since September 2002 has begun to stabilize, primarily reflecting upward repricing of floating rate home equity lines of credit that comprise an increased percentage of the loan portfolio. The average cost of interest-bearing liabilities increased by 11 basis points during the current quarter. Competition for deposits remained heavy in the Company's markets, particularly in Chicago. Average deposit balances remained stable compared to the second quarter of 2004. Average interest-earning assets grew $55 million or .64% during the quarter. Compared to the second quarter of 2004, average loans receivable balances increased by 2.0% to $6.80 billion. A consumer shift to adjustable- rate mortgage loans, which the Company generally retains in portfolio, along with continued growth in home equity loan balances, were the primary reasons for the increase. The growth in average assets during the quarter was largely funded by increases in the balances of average borrowings. The average balance of borrowed funds rose by $55 million, or 2.2%, to $2.56 billion. Net Interest Margin: 3rd Quarter 2004 v. 3rd Quarter 2003. Compared to the prior year quarter, the Company's average funding costs, particularly the average cost of borrowings, declined more than the decrease in average asset yields, and led to the 8 basis point increase in the net interest margin. This year over year improvement in net interest margin primarily reflects the lower cost funding added in the St. Francis merger. Lending Production QE 9/30/04 QE 6/30/04 QE 9/30/03 Amount % Amount % Amount % Loan Category (000's) 1-4 family originations $484,498 50% $838,508 65% $1,289,206 81% Multi-family 23,638 2 51,427 4 63,888 4 Equity lines of credit 317,127 33 282,064 22 156,392 10 All other 147,624 15 123,779 9 76,020 5 Total loan originations $972,887 100% $1,295,778 100% $1,585,506 100% 1-4 family originations Fixed rate % 33% 41% 58% Adjustable rate % 67 59 42 Refinance % 25 50 66 While interest rates remain at historically low levels, refinancing activity slowed significantly during the quarter, leading to lower residential mortgage loan volume in the current quarter compared to both a year ago and the second quarter of this year. Competitive pressures in the Company's market areas have also impacted 1-4 family lending volumes. The decline in 1- 4 family lending activity has been offset in part by success in the Bank's equity line of credit and business banking areas where loan originations advanced considerably. Home equity loan balances increased to $1.23 billion at September 30, 2004 compared to $1.12 billion at June 30, 2004 (37% annualized increase) and $534 million at September 30, 2003. Home equity loan balances are primarily floating-rate assets and represent approximately 18% of the Company's total loan portfolio at September 30, 2004, compared to 10% at September 30, 2003. Non-Interest Income QE 9/30/04 QE 6/30/04 QE 9/30/03 Total non-interest income (000's) $19,516 $19,082 $17,023 Non-interest income / total revenue* 23.2% 22.6% 27.5% * total revenue = net interest income plus non-interest income Overview. In the current quarter, gains on sales of loans and mortgage- backed securities declined from a year ago but mortgage servicing-related income increased. Income from deposit account service charges also increased as a percentage of total revenue compared to the second quarter of 2004 and the prior year quarter. Lower income from real estate development operations impacted the current period's results. Last year's third quarter results were highlighted by significant loan sale gains, reflecting high loan sale volume occurring during a declining interest rate environment, offset by high loan servicing amortization expense and a writedown of an investment security. Compared to the second quarter of 2004, non-interest income increased modestly, primarily the result of higher loan sale gains and loan servicing fee income and additional income from a $15 million investment in bank owned life insurance, offset in part by a recovery of a valuation allowance on mortgage servicing rights that was recorded in the second quarter of 2004. Loan Sales and Loan Servicing QE 9/30/04 QE 6/30/04 QE 9/30/03 Loan Sales Fixed-rate loans sold (000's) $158,562 $208,089 $434,925 Adjustable rate loans sold (000's) 154,467 49,403 40,107 Total loans sold (000's) $313,029 $257,492 $475,032 Loan sale gains (000's) $2,978 $1,676 $7,138 Margin on loan sales 95 bp 65 bp* 150 bp Loan Servicing Loan servicing fee income (expense) (000's) $584 $(115) $(2,640) Valuation recovery on mortgage servicing rights (000's) - 1,200 - Capitalized mortgage servicing rights as a percentage of loans serviced for others 74 bp 75 bp 62 bp * A change in accounting treatment first implemented during the June 30, 2004 quarter resulted in a 30 basis point reduction in margin on loan sales. During the quarter, overall loan sale volume increased by 22% to $313.0 million compared to $257.5 million in the second quarter of 2004. The mix of the type of loan sales changed considerably, however, as fixed-rate loan sales declined, reflecting the lower fixed-rate loan origination volume experienced during much of 2004, and sales of adjustable-rate loans increased substantially, reflecting consumers' preference for these products and the Company's decision to sell some of its production as interest rates declined. Deposit Account Service Fees QE 9/30/04 QE 6/30/04 QE 9/30/03 Deposit service charges (000's) $8,848 $8,721 $6,051 Growth rate (year over year) 46.2% 46.3% 3.2% Growth rate (sequential quarter annualized) 5.8% 44.0% 6.1% Deposit service fees / total revenue 10.5% 10.3% 9.8% Number of checking accounts 240,400 238,500 171,400 Deposit account service fees increased considerably compared to the third quarter of 2003, primarily due to the impact of the St. Francis merger. As a percentage of total revenue, deposit service fees advanced compared to the year ago quarter and were slightly ahead of results for the second quarter of 2004. The growth rate in fee revenue has slowed over the past three months, however, as competition for checking accounts has intensified. Real Estate Development Operations QE 9/30/04 QE 6/30/04 QE 9/30/03 RE development income - total (000's) $1,650 $2,509 $3,009 Residential lot sales 28 64 75 Pending lot sales at quarter end 11 10 57 Investment in real estate held for development or sale (000's) $37,179 $38,416 $27,475 All but one of the 28 lot sales during the quarter were residential lots in the Company's Shenandoah subdivision in Plainfield, IL. Nearly all of the lot sales in the first two quarters of 2004 were also in this 326-lot development, where 19 lots remain as of September 30, 2004. The increase in the investment in real estate compared to a year ago relates primarily to land purchases for the planned Springbank joint venture development in Plainfield, Illinois. In early October 2004, the Company received approval from the village of Plainfield for the Springbank project. The project will include 1,600 residential lots, 300 multi-family lots and other commercial parcels. Development will begin in the fourth quarter of 2004. The Company had expected to receive the necessary municipal approvals earlier in 2004. As a result of the extent of the delay, lot sale closings from this development are not expected to begin until the first half of 2005 and the corresponding profits previously expected to be reported in 2004 will be delayed until 2005. Securities Sales QE 9/30/04 QE 6/30/04 QE 9/30/03 Investment securities: Net gains (losses) on sale and writedowns (000's) $3 $(32) $(1,516) Mortgage-backed securities: Net gains on sale (000's) - - $645 There was minimal sale activity of securities during the current quarter. During last year's third quarter, the Company recorded a $1.9 million other than temporary impairment writedown on an investment security. This writedown was partially offset by gains on the sale of equity securities as well as from the sale of primarily fixed-rate mortgage backed securities and other fixed- rate debt securities. Non-Interest Expense QE 9/30/04 QE 6/30/04 QE 9/30/03 Total non-interest expense (000's) $44,263 $45,184 $29,409 Non-interest expense to average assets 1.90% 1.96% 1.79% Efficiency ratio(1) 52.65% 53.61% 46.83% (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. During the current quarter, total non-interest expense decreased by $921,000, or 8.2% on an annualized basis compared to the second quarter of 2004. Compensation and benefits expense declined by $923,000 during the third quarter, primarily reflecting lower incentive compensation and savings realized from completing the St. Francis integration, partially offset by personnel additions in other areas and increased medical costs. The data processing systems conversion relating to the St. Francis merger occurred on May 31, 2004 and the current quarter was the first three-month period in which merger-related compensation savings were fully reflected in operating results. Office occupancy and equipment expense increased by $698,000 during the quarter due primarily to higher depreciation expense on furniture and fixtures, moving costs to relocate loan files to a new central location and higher rent expense. Compared to a year ago, all major categories of non-interest expense in the current quarter showed increases due to significant growth of the Company during the past year, including expansion into new markets. The added cost of management personnel and infrastructure needed to facilitate this growth and to address the increased compliance burden under new regulations also contributed to higher expenses year over year. Compensation and benefits expense totaled $23.1 million in the current period compared to $17.1 million in the third 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 new branch offices opened during the past year also contributed to increased compensation costs. Office occupancy and equipment costs totaled $7.4 million in the current period compared to $3.7 million a year ago. This increase from a year ago is due primarily to the operation of 68 branch offices, compared to 43 offices operated at September 30, 2003 and the rent expenses for the corporate offices of St. Francis, where the lease terminated on September 30, 2004, and the Company's former loan operation facilities where the leases terminate on October 31, 2004. Income tax expense totaled $13.1 million in the current quarter, an effective income tax rate of 33.3%, slightly higher than the 33.0% effective rate reported in the second quarter of 2004. In last year's third quarter, income tax expense equaled $12.0 million or an effective income tax rate of 36.9%. 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. Asset Quality QE 9/30/04 QE 6/30/04 QE 9/30/03 Non-performing loans (NPL) (000's) $30,557 $28,944 $27,618 Non-performing assets (NPA) (000's) $31,692 $31,152 $36,682 NPL / total loans .45% .43% .56% NPA / total assets .34% .33% .55% Allowance for loan losses (ALL) (000's) $34,936 $34,721 $21,372 ALL / total loans .52% .52% .43% ALL / NPL 114.3% 120.0% 77.4% Provision for loan losses (000's) $350 $280 - Net charge-offs (recoveries) (000's) $135 $(4) $18 The Company continues to maintain strong asset quality. At September 30, 2004, 89% of non-performing loans consisted of loans secured by one-to four- family residential properties, compared to 93% at June 30, 2004. The Company recorded a provision for loan losses of $350,000 in the current quarter, primarily reflecting a change in the mix of loans resulting from the increase in home equity and business banking loans in the portfolio, the increase in non-performing loans and charge-offs. Balance Sheet & Capital QE 9/30/04 QE 6/30/04 QE 9/30/03 Assets: Total assets (000's) $9,321,289 $9,374,628 $6,715,321 Loans receivable (000's) $6,770,270 $6,730,929 $5,181,365 Mortgage-backed securities (000's) $1,019,260 $975,348 $350,844 Liabilities and Equity: Total liabilities (000's) $8,386,609 $8,468,564 $6,099,149 Deposits (000's) $5,640,231 $5,673,046 $4,263,696 Borrowed funds (000's) $2,559,229 $2,612,099 $1,702,323 Stockholders' equity (000's) $934,680 $906,064 $616,172 Other: 1-4 family residential loans / total loans 59.5% 60.9% 75.1% Core deposits / total deposits 60.6% 60.6% 58.7% Book value per share $28.63 $27.74 $24.18 Stockholders' equity / total assets 10.0% 9.7% 9.2% Total assets declined by $53.3 million over the past three months (2.3% annualized) due primarily to declines in cash and cash equivalent balances of $86.1 million, which were used to repay certain borrowings and to fund some modest deposit declines. The balance of loans receivable increased by $39.3 million during the quarter (2.3% annualized) due to the continued growth in home equity loan balances, which more than offset declines in 1-4 family first mortgage loan balances, which resulted primarily from loan sale activity. Consistent with management's strategy to increase the diversification of the loan portfolio, the percentage of 1-4 family residential loans to total loans decreased to 59.5% at September 30, 2004 compared to 60.9% at June 30, 2004 and 75.1% a year ago. The December 2003 merger with St. Francis has enabled the Company to accelerate its portfolio diversification strategy. Stockholders' equity increased during the quarter as the increase from net income of $26.3 million and an $11.2 million after-tax increase in the market value of securities available for sale, which were partially offset by $6.8 million of dividends. The increase in the value of securities was due to the decline in longer-term interest rates during the current quarter. In addition, the Company repurchased 118,600 shares during the quarter at an average price of $40.00 per share. Through September 30, 2004, a total of 1,498,600 shares have been repurchased under the Company's 1.6 million share repurchase program at an average price of $40.03 per share. The Bank's tangible, core and risk-based capital percentages of 7.05%, 7.05% and 10.79%, respectively, at September 30, 2004, exceeded all minimum regulatory capital requirements. Results for the Nine Months Ended September 30, 2004 Diluted earnings per share totaled $2.29 in the current nine-month period compared to $2.42 last year. For the nine months ended September 30, 2004, net income totaled $77.1 million compared to $59.3 million in last year's comparable period. Net interest income totaled $193.8 million compared to $126.5 million last year. The net interest margin expanded to 3.05% for the nine months ended September 30, 2004, compared to 2.92% for the first nine months of 2003. Return on equity for the nine months ended September 30, 2004 was 11.28% compared to 14.55% for the nine months ended September 30, 2003. Non-interest income totaled $59.0 million for the nine months ended September 30, 2004, equal to 23.3% of total revenue. For the nine months ended September 30, 2003, non-interest income was $50.0 million, or 28.3% of total revenue. In the prior year period, there was considerable loan refinancing activity resulting in gains on sale of loans totaling $22.9 million compared to $6.4 million in the current year. Gains on sales of mortgage-backed securities were $488,000 for the current period compared to $6.0 million for the prior nine-month period. Higher deposit account service charges, loan servicing fees and positive changes in net investment securities gains in 2004 more than offset these declines and contributed to the overall increase in non-interest income in 2004 compared to 2003. The 2003 results do not reflect the operations acquired in the merger with St. Francis Capital Corp. in December 2003 and only reflect the operations of Fidelity Bancorp for a portion of the nine-month period. Non-interest expense totaled $136.3 million in the current nine-month period, compared to $82.8 million reported for the nine months ended September 30, 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. Recent Developments On June 5, 2004, the Company announced it had reached an agreement to acquire Chesterfield Financial Corp. in a cash and stock transaction valued at approximately $128.5 million. The Company expects this transaction to close in the fourth quarter of 2004. At June 30, 2004, Chesterfield had assets of $362 million, deposits of $280 million and four banking facilities in the Chicago area. Outlook for 2004 The Company announced lowered earnings guidance for 2004 of $3.05 to $3.10 per diluted share. The midpoint of the previous guidance range for 2004 of $3.20 to $3.35 per share included $.16 of estimated profits per share related to a contemplated mortgage servicing sale that was previously expected to occur in the fourth quarter, which is no longer being considered due to changes in market conditions, and anticipated real estate lot sales in the Springbank project, which are now expected to begin closing in the first half of 2005. Management's decision to forego the sale of servicing was caused by the dramatic decline in long-term interest rates over the past three months that reduced market values for mortgage servicing rights to a level that management concluded no longer warranted a sale. After further delay during the third quarter of 2004 in receipt of the long-awaited municipal approvals for Springbank, the project was approved in October 2004, approximately five months later than originally expected. The Company currently estimates income for real estate operations to be in the range of $1.0-1.5 million for the fourth quarter of 2004, with no income being generated this year from the Springbank development. MAF Bancorp is the parent company of Mid America Bank, a federally chartered stock savings bank. The Bank currently operates a network of 68 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 including the statements in the "Outlook for 2004" section above, 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, difficulties implementing the Company's business model in the Milwaukee area markets, 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, difficulties or delays in completing the acquisition of Chesterfield, higher than expected costs or unanticipated difficulties associated with the integration of Chesterfield into MAF, deteriorating economic conditions which could result in increased delinquencies in MAF's or Chesterfield's loan portfolio, the quality or composition of MAF's or Chesterfield's loan or investment portfolios, demand for financial services and residential real estate in MAF's or Chesterfield'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 Nine Months Ended September 30, September 30, 2004 2003 2004 2003 (Unaudited) (Unaudited) Interest income $105,639 78,160 $311,024 229,111 Interest expense 41,080 33,252 117,266 102,585 Net interest income 64,559 44,908 193,758 126,526 Provision for loan losses 350 - 930 - Net interest income after provision for loan losses 64,209 44,908 192,828 126,526 Non-interest income: Net gain (loss) on sale and writedown of: Loans receivable held for sale 2,978 7,138 6,434 22,940 Mortgage-backed securities - 645 489 5,997 Investment securities 3 (1,516) 2,805 (6,943) Foreclosed real estate 227 78 423 311 Income from real estate operations 1,650 3,009 5,261 6,332 Deposit account service charges 8,848 6,051 25,425 17,450 Loan servicing fee income (expense) 584 (2,640) 710 (6,056) Valuation recovery (allowance) on mortgage servicing rights - - 1,755 (940) Brokerage commissions 1,044 982 3,142 2,361 Other 4,182 3,276 12,549 8,559 Total non-interest income 19,516 17,023 58,993 50,011 Non-interest expense: Compensation and benefits 23,083 17,134 72,723 48,426 Office occupancy and equipment 7,420 3,717 20,645 10,701 Advertising and promotion 2,452 1,700 7,453 4,798 Data processing 1,598 1,036 6,005 3,001 Other 8,980 5,401 27,310 14,732 Amortization of core deposit intangibles 730 421 2,201 1,170 Total non-interest expense 44,263 29,409 136,337 82,828 Income before income taxes 39,462 32,522 115,484 93,709 Income taxes 13,141 12,016 38,399 34,376 Net income $26,321 20,506 77,085 59,333 Basic earnings per share $.81 .82 2.35 2.48 Diluted earnings per share .79 .79 2.29 2.42 MAF BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands) September 30, December 31, 2004 2003 (Unaudited) Assets Cash and due from banks $118,461 144,290 Interest-bearing deposits 67,614 57,988 Federal funds sold 42,767 19,684 Total cash and cash equivalents 228,842 221,962 Investment securities available for sale, at fair value 345,713 365,334 Stock in Federal Home Loan Bank of Chicago, at cost 321,681 384,643 Mortgage-backed securities available for sale, at fair value 920,643 971,969 Mortgage-backed securities held to maturity (fair value $98,544) 98,617 - Loans receivable held for sale 53,830 44,511 Loans receivable, net of allowance for losses of $34,936 and $34,555 6,716,440 6,324,596 Accrued interest receivable 33,329 31,168 Foreclosed real estate 1,135 3,200 Real estate held for development or sale 37,179 32,093 Premises and equipment, net 133,096 122,817 Other assets 131,071 130,615 Goodwill 262,368 262,488 Intangibles 37,345 38,189 $9,321,289 8,933,585 Liabilities and Stockholders' Equity Liabilities: Deposits 5,640,231 5,580,455 Borrowed funds 2,559,229 2,299,427 Advances by borrowers for taxes and insurance 54,975 41,149 Accrued expenses and other liabilities 132,174 110,950 Total liabilities 8,386,609 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 and 33,063,853 shares issued; 32,649,961 and 33,063,853 shares outstanding 331 331 Additional paid-in capital 497,981 495,747 Retained earnings, substantially restricted 453,497 402,402 Accumulated other comprehensive income, net of tax 1,368 2,109 Stock in Gain Deferral Plan; 244,304 and 240,879 shares 1,160 1,015 Treasury stock, at cost; 471,504 at September 30, 2004 (19,657) - Total stockholders' equity 934,680 901,604 $9,321,289 8,933,585 MAF BANCORP, INC. AND SUBSIDIARIES SELECTED FINANCIAL DATA (In thousands, except share data) (Unaudited) September 30, December 31, September 30, 2004 2003 2003 Book value per share $ 28.63 $ 27.27 $ 24.18 Stockholders' equity to total assets 10.03% 10.09% 9.18% Tangible capital ratio (Bank only) 7.05 7.16 7.07 Core capital ratio (Bank only) 7.05 7.16 7.07 Risk-based capital ratio (Bank only) 10.79 11.45 11.74 Common shares outstanding: Actual 32,649,961 33,063,853 25,483,307 Basic (weighted average) 32,618,611 27,951,055 25,154,529 Diluted (weighted average) 33,369,209 28,836,235 25,824,670 Non-performing loans $30,557 $32,787 $27,618 Non-performing assets 31,692 43,684 36,682 Allowance for loan losses 34,936 34,555 21,372 Non-performing loans to total loans .45% .51% .56% Non-performing assets to total assets .34 .49 .55 Allowance for loan losses to total loans .52 .54 .43 Mortgage loans serviced for others $3,462,655 $3,330,039 $2,227,003 Capitalized mortgage servicing rights, net 25,486 24,128 13,840 Core deposit intangibles 11,859 14,061 7,659 Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 Average balance data: Total assets $9,310,753 $6,554,049 $9,162,628 $6,151,169 Loans receivable 6,798,504 5,049,184 6,641,028 4,697,927 Interest-earning assets 8,593,867 6,141,847 8,466,420 5,782,512 Deposits 5,202,504 3,846,976 5,186,117 3,613,130 Interest-bearing liabilities 7,760,660 5,470,455 7,646,400 5,156,209 Stockholders' equity 910,788 596,895 910,981 543,695 Performance ratios (annualized): Return on average assets 1.13% 1.25% 1.12% 1.29% Return on average equity 11.56 13.74 11.28 14.55 Average yield on interest-earning assets 4.90 5.08 4.89 5.29 Average cost of interest-bearing liabilities 2.10 2.41 2.04 2.66 Interest rate spread 2.80 2.67 2.85 2.63 Net interest margin 3.00 2.92 3.05 2.92 Average interest-earning assets to average interest-bearing liabilities 110.74 112.27 110.72 112.15 Non-interest expense to average assets 1.90 1.79 1.98 1.80 Non-interest expense to average assets and loans serviced for others 1.40 1.34 1.48 1.33 Efficiency ratio(1) 52.65 46.83 54.65 46.67 Loan originations $972,886 $1,585,506 $3,169,547 $4,033,727 Loans sold 313,029 475,032 704,002 1,354,008 Cash dividends declared per share .21 .18 .63 .54 (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. DATASOURCE: MAF Bancorp, Inc. CONTACT: Jerry A. Weberling, Chief Financial Officer, +1-630-887-5999, or Michael J. Janssen, SVP, +1-630-986-7544, both of MAF Bancorp, Inc. Web site: http://www.mafbancorp.com/

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