SOURCE: MAF Bancorp, Inc.

January 30, 2006 07:00 ET

MAF Bancorp Reports Increase in Fourth Quarter Earnings Per Share; Company Reports Calendar 2005 Results of $3.13 Per Share

CLARENDON HILLS, IL -- (MARKET WIRE) -- January 30, 2006 --MAF Bancorp, Inc. (NASDAQ: MAFB) reported net income for the fourth quarter ended December 31, 2005 of $27.1 million, or $.83 per diluted share, up 12% compared to 2004 fourth quarter earnings per share. Net income was $25.2 million, or $.74 per diluted share in last year's fourth quarter.

For the twelve months ended December 31, 2005, diluted earnings per share totaled $3.13 compared to $3.01 per diluted share reported in 2004.

          Net Interest Income and Net Interest Margin

                               QE 12/31/05  QE  9/30/05  QE 12/31/04
                               -----------  -----------  -----------
Net interest margin                   2.69%        2.84%        3.07%
Interest rate spread                  2.44%        2.61%        2.84%
Net interest income (000's)    $    64,018  $    66,124  $    67,530

Average assets:
Yield on interest-earning
 assets                               5.38%        5.23%        4.98%
  Yield on loans receivable           5.69%        5.48%        5.16%
  Yield on mortgage-backed
   securities                         4.37%        4.24%        3.88%
Average interest-earning
 assets (000's)                $ 9,505,190  $ 9,301,466  $ 8,804,297

Average liabilities:
Cost of interest-bearing
 liabilities                          2.94%        2.62%        2.14%
  Cost of deposits                    2.30%        2.01%        1.51%
  Cost of borrowed funds              4.13%        3.81%        3.44%
Average interest-bearing
 liabilities (000's)           $ 8,671,094  $ 8,468,997  $ 7,915,439
Net Interest Margin: 4th Quarter 2005 v. 3rd Quarter 2005. The net interest margin declined 15 basis points during the quarter resulting in lower net interest income despite an increase in average interest-earning assets. The increase in the cost of deposits reflects higher interest rates and a change in the mix of the Company's deposit portfolio.

Higher interest rates also resulted in increased asset yields but the effect of those advances was not as significant as the increased cost of interest-bearing liabilities. The increase in yield on loans receivable was driven by higher rates on new one- to four-family mortgage loans and the upward repricing of the equity line of credit and business banking portfolios. The Company expects further compression in the interest rate spread and net interest margin due to the currently inverted yield curve and continued strong competition in the Company's markets.

Net Interest Margin: 4th Quarter 2005 v. 4th Quarter 2004. On a year-over-year basis, the net interest margin declined by 38 basis points due to a combination of the flattening yield curve and rising rates along with increased pricing competition in the Company's markets. Average interest-earning assets and average interest-bearing liabilities for the current quarter grew by 8.0% and 9.5%, respectively, compared to the prior year period.

Loan Portfolio Composition

                         12/31/05            9/30/05           12/31/04
                         --------            -------           --------
                                    (Dollars in thousands)
One- to
 four-family       $4,246,345   58.9% $4,194,928   59.1% $4,036,826  58.7%
Home equity loans
 and lines of
 credit             1,346,750   18.7   1,360,520   19.1   1,336,090  19.4
Multi-family          687,205    9.5     676,976    9.5     646,269   9.4
Commercial real
 estate               473,740    6.6     458,409    6.5     476,796   6.9
Commercial
 business             146,746    2.0     154,249    2.2     147,345   2.1
Construction          154,873    2.1     128,265    1.8     134,759   2.1
Land                  150,012    2.1     121,945    1.7      92,779   1.3
Consumer loans          5,566    0.1       6,117    0.1       7,650   0.1
                   ---------- ------  ---------- ------  ---------- -----
 Total loans
  receivable, net  $7,211,237  100.0% $7,101,409  100.0% $6,878,514 100.0%
                   ========== ======  ========== ======  ========== ======
Growth in the loan portfolio was 6.2% annualized during the quarter and 4.8% over the past year. Growth in equity line of credit balances proved challenging during 2005, as prime interest rates rose 200 basis points during the year. Rate competition for business lending remains strong in both the Chicago and Milwaukee markets.
                     Non-Interest Income

                               QE 12/31/05  QE  9/30/05  QE 12/31/04
                               -----------  -----------  -----------
Total non-interest
 income (000's)                $    23,574  $    19,790  $    17,293
Non-interest income / total
 revenue(1)                           26.9%        23.0%        20.4%

(1) Total revenue equals net interest income plus non-interest income.
Non-interest income increased 19.1% compared to the third quarter of 2005 and 36.3% compared to the fourth quarter of 2004. The fourth quarter of 2005 includes a $2.4 million gain on the sale of mortgage servicing rights and $2.8 million in income from real estate operations as the Company completed its first sales in the Springbank development.
Residential Mortgage Originations, Sales and Servicing

                               QE 12/31/05  QE  9/30/05  QE 12/31/04
                               -----------  -----------  -----------
                                      (Dollars in thousands)
1-4 Family Originations and
 Purchases
  Fixed-rate                   $   159,512  $   213,713  $   174,371
  Adjustable rate                  353,523      358,729      335,930
                               -----------  -----------  -----------
    Total                      $   513,035  $   572,442  $   510,301
                               ===========  ===========  ===========

  Fixed-rate %                          31%          37%          34%
  Adjustable rate %                     69%          63%          66%
  Refinance %                           33%          31%          35%

Loan Sales
  1-4 family fixed-rate        $   166,778  $   205,102  $   154,490
  1-4 family adjustable rate             -        2,622       55,590
                               -----------  -----------  -----------
    Total 1-4 family               166,778      207,724      210,080
Equity lines of credit and
 home equity loans                  11,698       23,570            -
                               -----------  -----------  -----------
Total loans sold               $   178,476  $   231,294  $   210,080
                               ===========  ===========  ===========

Gain on sale of 1-4 family
 mortgages                     $     1,575  $     2,159  $     2,860
Gain on sale of equity lines
 of credit                             266          495            -
                               -----------  -----------  -----------
    Total loan sale gains      $     1,841  $     2,654  $     2,860
                               ===========  ===========  ===========
Margin on 1-4 family
 loan sales                            .94%        1.04%        1.36%

Loan Servicing
Gain on sale of mortgage
 servicing rights              $     2,400  $         -  $         -
Loan servicing fee income              443          479          521
Capitalized mortgage servicing
 rights as a percentage of
 loans serviced for others             .69%         .69%         .71%
Total one- to four-family residential mortgage loan volume was down 10% during the past three months compared to the third quarter of 2005, and down 15% in 2005 compared to 2004, as rising rates led to reduced consumer demand while competition remained strong. During the fourth quarter, the Company completed a sale of servicing rights on approximately $750 million of loans, or 21% of its one- to four-family mortgage loans serviced for others portfolio, at a pre-tax gain of $2.4 million. The loan servicing rights were sold to take advantage of an increase in servicing values early in the fourth quarter and represented primarily single service customers.
Deposit Account Service Fees

                               QE 12/31/05  QE  9/30/05  QE 12/31/04
                               -----------  -----------  -----------
Deposit service
 charges (000's)               $     9,436  $     9,342  $     8,687
Deposit service fees / total
 revenue                              10.8%        10.9%        10.2%
Number of checking accounts
 (period end)                      252,200      252,900      245,000
Higher fees implemented during the third quarter of 2005 contributed to modest growth in deposit service charges in the current quarter. Checking account growth remains challenging as the Company's markets continue to be very competitive.
Real Estate Development Operations

                               QE 12/31/05  QE  9/30/05  QE 12/31/04
                               -----------  -----------  -----------
Real estate development
 income - total (000's)        $     2,762  $         -  $     1,396
Residential lot sale
 closings                              123            -           22
Pending lot sales at
 quarter end                            85          186            -
Investment in real estate
 held for development or
 sale (000's)                  $    50,066  $    50,332  $    35,091
The Company closed its first sales in the Springbank development in Plainfield, IL during the current quarter. As a result of delays in this project during the year and higher than expected development costs, income for the year from real estate development were significantly lower than originally planned. Included in income for the quarter ended December 31, 2005 is $428,000 related to the Shendandoah project that was completed during 2005. The Company expects higher income from real estate development in 2006, with most of the income coming in the second half of the year.
                             Non-Interest Expense

                                      QE 12/31/05  QE 9/30/05  QE 12/31/04
                                      -----------  -----------  -----------

Total non-interest expense (000's)   $    44,369  $    44,929  $    46,511
Non-interest expense to average assets      1.72%        1.78%        1.95%
Efficiency ratio(1)                        52.08%       52.28%       53.59%

(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 write-down of mortgage-backed and
     investment securities and mortgage servicing rights.
4th Quarter 2005 v. 3rd Quarter 2005. Total non-interest expense declined by $560,000 compared to the third quarter of 2005 as compensation and benefits expense fell by $919,000 primarily due to lower accruals for annual incentive compensation. Advertising costs declined by $838,000 from the previous quarter primarily due to a reevaluation of direct mail strategies and reduced special promotion and premium expenses. Other expense was up $726,000 primarily due to costs related to compliance initiatives and a $322,000 charge related to the write-off of a contingent receivable from a previous acquisition.

4th Quarter 2005 v. 4th Quarter 2004. Compared to a year ago, total non-interest expense declined $2.1 million, or 4.6%. Compensation and benefits decreased by $882,000, or 3.7%, primarily due to process improvement initiatives and lower accruals for annual incentive compensation and medical benefit expenses. Other non-interest expenses declined by $1.3 million primarily due to lower telephone expense, reduced fraud and bad check losses and lower costs related to the Bank's affordable housing investments.

                              Income Tax Expense
Income tax expense totaled $14.6 million in the current quarter, equal to an effective income tax rate of 35.0%, higher than the 33.4% reported in the third quarter of 2005 and higher than the 33.8% effective rate reported for the quarter ended December 31, 2004. The increase in the effective tax rate over the past three months was due in part to lower earnings from tax-advantaged bank-owned life insurance investments in the current quarter. The higher effective tax rate in the current quarter compared to the fourth quarter of 2004 was primarily the result of the resolution of certain prior years' income tax matters during 2004.
                                 Asset Quality

                                       12/31/05     9/30/05     12/31/04
                                     -----------  -----------  -----------
                                             (Dollars in thousands)

Non-performing loans (NPL)           $    31,160  $    35,377  $    31,473
Non-performing assets (NPA)          $    31,949  $    36,166  $    32,960
NPL / total loans                            .43%         .50%         .46%
NPA / total assets                           .30%         .35%         .34%
Allowance for loan losses (ALL)      $    36,495  $    36,335  $    36,255
ALL / total loans                            .51%         .51%         .53%
ALL / NPL                                  117.1%       102.7%       115.2%
Provision for loan losses for the
 quarter ended                       $     1,500  $       480  $       285
Net charge-offs for the quarter
 ended                               $     1,340  $       279  $       263
Non-performing loans declined $4.2 million over the last three months and are lower compared to December 31, 2004. The Company continues to experience strong credit quality. The large decrease in non-performing loans from the previous quarter was primarily the result of the charge-offs taken in the quarter and two equity lines of credit, aggregating $3.0 million, that are no longer non-performing. One of these loans was brought current and the other loan was repaid in full in the fourth quarter. Net charge-offs in the current quarter included $620,000 of charge-offs on two commercial loans and $613,000 of net charge-offs on one- to four-family mortgage loans and equity lines of credit. While net charge-offs increased substantially in the current quarter from prior periods, the overall level of charge-offs was not significant and the Company has not identified negative trends in asset quality. The provision for loan losses of $1.5 million for the quarter reflects the increase in net charge-offs and growth in the portfolio. At December 31, 2005, 93% of non-performing loans consisted of loans secured by one- to four-family residential properties, equal to the 93% reported at September 30, 2005.
                                 Balance Sheet & Capital

                                        12/31/05     9/30/05     12/31/04
                                     -----------  -----------  -----------
                                            (Dollars in thousands)

Assets:
Total assets                         $10,487,504  $10,259,035  $ 9,681,384
Loans receivable                       7,289,224    7,143,669    6,881,780
Mortgage-backed securities             1,556,570    1,519,526    1,193,189

Liabilities and Equity:
Total liabilities                    $ 9,509,325  $ 9,293,068  $ 8,706,998
Deposits                               6,197,503    6,132,037    5,935,708
Borrowed funds                         3,057,669    2,898,399    2,600,667
Junior subordinated debentures            67,011       67,011            -
Stockholders' equity                     978,179      965,967      974,386

Other:
Core deposits / total deposits              53.4%        55.1%        59.6%
Book value per share                 $     30.50  $     30.14  $     29.28

Stockholders' equity / total assets          9.3%         9.4%        10.1%


Deposit Composition

                                      12/31/05                9/30/05
                                     ----------              ---------
                                           Weighted               Weighted
                                           Average                Average
                                 Amount     Rate       Amount      Rate
                              -----------  --------  -----------  --------
                                         (Dollars in thousands)

Commercial checking           $   258,632         -  $   282,431         -
Non-interest bearing checking     291,462         -      267,322         -
Interest-bearing checking         816,387      0.98%     814,261      0.97%
Commercial money market            60,064      3.07%      78,678      2.96%
Money market                      615,280      2.34%     622,032      2.08%
Passbook                        1,268,680      0.60%   1,312,553      0.58%
                              -----------  --------  -----------  --------
Core deposits                   3,310,505      0.96%   3,377,277      0.91%
                              -----------  --------  -----------  --------

Certificates of deposit         2,885,998      3.65%   2,753,634      3.34%
                              -----------  --------  -----------  --------

Unamortized premium                 1,000         -        1,126         -
                              -----------  --------  -----------  --------
  Total deposits              $ 6,197,503      2.22% $ 6,132,037      2.00%
                              ===========  ========  ===========  ========



                                       12/31/04
                                      ----------
                                           Weighted
                                           Average
                                 Amount     Rate
                              -----------  --------

                              (Dollars in thousands)

Commercial checking           $   239,249         -
Non-interest bearing checking     250,569         -
Interest-bearing checking         972,009      0.94%
Commercial money market            64,810      1.47%
Money market                      611,507      0.97%
Passbook                        1,399,099      0.57%
                              -----------  --------

Core deposits                   3,537,243      0.68%
                              -----------  --------



Certificates of deposit         2,395,605      2.66%
                              -----------  --------


Unamortized premium                 2,860         -
                              -----------  --------
Total deposits                $ 5,935,708      1.48%
                              ===========  ========

Stockholders' Equity

Stockholders' equity increased by $12.2 million in the past three months primarily from net income of $27.1 million partially offset by cash dividends of $7.4 million and a $7.9 million decrease in the fair value of the Company's available for sale securities portfolio. The Bank's tangible, core and risk-based capital ratios at December 31, 2005, exceeded minimum and well-capitalized regulatory capital requirements.

Results for the Twelve Months Ended December 31, 2005

Diluted earnings per share totaled $3.13 in the current year up 4% from $3.01 last year. For the twelve months ended December 31, 2005, net income totaled $103.4 million compared to $101.5 million in last year's comparable period. Net interest income was slightly higher at $264.8 million compared to $261.3 million last year, as increases in net interest-earning assets were largely offset by contracting interest rate spreads. The net interest margin contracted to 2.88% for 2005, compared to 3.06% for 2004. Non-interest income totaled $79.2 million in 2005, up 3.8% compared to 2004, despite significantly lower income from real estate operations. Non-interest income for 2005 included $664,000 related to bank owned life insurance proceeds and $2.4 million gain on sale of mortgage loan servicing rights.

The Company's successful cost control efforts during the year held non-interest expense flat at $184.0 million in 2005 compared to 2004. This was achieved while operations continued to expand through acquisition (Chesterfield Financial Corp. in October 2004) and three new branch openings in 2005. The ratio of non-interest expense to average assets improved to 1.84% in 2005 compared to 1.99% in 2004. Compensation and benefits expense increased 1.5% in 2005 compared to 2004 while occupancy and equipment costs increased by 5.0% over this same period largely due to a greater number of branch office facilities compared to a year ago.

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. At December 31, 2005, EFC had approximately $1.0 billion in assets and $735 million in deposits. The transaction is scheduled to close on January 31, 2006 and the Company expects to complete the data processing conversion by February 20, 2006. The Company expects that anticipated cost savings will be recognized over the course of the year as the acquired operations are fully integrated.

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 75 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, unanticipated changes in interest rates or further inversion of the yield curve, less than anticipated balance sheet growth, unanticipated changes in secondary mortgage market conditions, deposit flows, competition, adverse federal or state legislative or regulatory developments, higher than expected compliance costs, 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 loan products, financial services and residential real estate in the Company's market areas, delays in real estate development projects, difficulties relating to the integration of the EFC acquisition and 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.


                   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,
                        2005          2004          2005          2004
                    ------------  ------------  ------------  ------------
                                          (Unaudited)

Interest income     $    128,324  $    110,149  $    478,656  $    421,173
Interest expense          64,306        42,619       213,897       159,885
                    ------------  ------------  ------------  ------------
  Net interest
   income                 64,018        67,530       264,759       261,288
Provision for loan
 losses                    1,500           285         1,980         1,215
                    ------------  ------------  ------------  ------------
  Net interest
   income after
   provision for
   loan losses            62,518        67,245       262,779       260,073

Non-interest income:
  Net gain (loss) on
   sale and
   write-down of:
    Loans receivable
     held for sale         1,841         2,860        10,675         9,294
    Mortgage-backed
     securities                -            11             -           500
    Investment
     securities                -        (1,983)          727           822
    Foreclosed real
     estate                   25            83           221           506
    Mortgage loan
     servicing
     rights                2,400             -         2,400             -
  Income from real
   estate operations       2,762         1,396         2,928         6,657
  Deposit account
   service charges         9,436         8,687        35,193        34,112
  Other loan fees          1,917         1,272         6,303         5,775
  Loan servicing
   fee income, net           443           521         2,261         1,231
  Valuation recovery
   on mortgage
   servicing rights           46           317           171         2,072
  Brokerage
   commissions             1,261           952         4,441         4,094
  Other                    3,443         3,177        13,831        11,223
                    ------------  ------------  ------------  ------------
    Total
     non-interest
     income               23,574        17,293        79,151        76,286

Non-interest
 expense:
  Compensation and
   benefits               22,897        23,779        97,963        96,502
  Office occupancy
    and equipment          7,786         7,339        29,393        27,984
  Advertising and
   promotion               1,229         1,626         8,313         9,079
  Data processing          2,100         2,007         8,144         8,012
  Other                    9,640        10,959        37,334        39,469
  Amortization of
   core deposit
   intangibles               717           801         2,902         3,002
                    ------------  ------------  ------------  ------------
    Total
     non-interest
     expense              44,369        46,511       184,049       184,048
                    ------------  ------------  ------------  ------------
Income before income
 taxes                    41,723        38,027       157,881       152,311
Income taxes              14,591        12,855        54,528        50,789
                    ------------  ------------  ------------  ------------
  Net income        $     27,132  $     25,172  $    103,353  $    101,522
                    ============  ============  ============  ============

Basic earnings per
 share              $        .85  $        .76  $       3.20  $       3.09
                    ============  ============  ============  ============
Diluted earnings per
 share              $        .83  $        .74  $       3.13  $       3.01
                    ============  ============  ============  ============

Average common and
 common equivalent
 shares outstanding
 (in thousands):
Basic                     32,062        33,165        32,307        32,897
Diluted                   32,693        33,961        32,984        33,707

                   MAF BANCORP, INC. AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                         (Dollars in thousands)
                                                December 31,  December 31,
                                                    2005          2004
                                                ------------  ------------
                                                 (Unaudited)
Assets
Cash and due from banks                         $    183,799  $    148,055
Interest-bearing deposits                             38,491        56,089
Federal funds sold                                    23,739        42,854
                                                ------------  ------------
    Total cash and cash equivalents                  246,029       246,998
Investment securities available for sale, at
 fair value                                          475,152       388,959
Stock in Federal Home Loan Bank of Chicago,
 at cost                                             165,663       278,916
Mortgage-backed securities available for sale,
 at fair value                                     1,313,409       948,168
Mortgage-backed securities held to maturity
 (fair value $237,489 and $244,615)                  243,161       245,021
Loans receivable held for sale                       114,482        39,521
Loans receivable, net                              7,211,237     6,878,514
Allowance for loan losses                            (36,495)      (36,255)
                                                ------------  ------------
  Loans receivable, net of allowance for
    loan losses                                    7,174,742     6,842,259
                                                ------------  ------------
Accrued interest receivable                           44,339        34,888
Foreclosed real estate                                   789         1,487
Real estate held for development or sale              50,066        35,091
Premises and equipment, net                          149,312       140,898
Other assets                                         175,938       135,249
Goodwill                                             304,251       305,166
Intangibles, net                                      30,171        38,763
                                                ------------  ------------
                                                  10,487,504     9,681,384
                                                ============  ============
Liabilities and Stockholders' Equity

Liabilities:
  Deposits                                         6,197,503     5,935,708
  Borrowed funds                                   3,057,669     2,600,667
  Junior subordinated debentures                      67,011             -
  Advances by borrowers for taxes and insurance       45,115        43,285
  Accrued expenses and other liabilities             142,027       127,338
                                                ------------  ------------
    Total liabilities                              9,509,325     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;
   32,066,721 and 33,273,235 shares outstanding          336           336
Additional paid-in capital                           527,131       522,047
Retained earnings, substantially restricted          537,140       468,408
Accumulated other comprehensive loss, net of tax     (19,391)       (1,676)
Stock in Gain Deferral Plan;  245,467 shares at
 December 31, 2004                                         -         1,211
Treasury stock, at cost 1,567,921 and
 361,407 shares                                      (67,037)      (15,940)
                                                ------------  ------------
    Total stockholders' equity                       978,179       974,386
                                                ------------  ------------
                                                $ 10,487,504  $  9,681,384
                                                ============  ============


                   MAF BANCORP, INC. AND SUBSIDIARIES
                        SELECTED FINANCIAL DATA
                   (In thousands, except share data)
                              (Unaudited)

                    December 31,  December 31,
                        2005          2004
                    ------------  ------------
Book value per
 share              $      30.50  $      29.28
Tangible book value
 per share                 20.70         19.72
Stockholders' equity
 to total assets            9.33%        10.06%
Tangible
 stockholders'
 equity to tangible
 assets                     6.52          7.01
Tangible capital
 ratio (Bank only)          7.07          7.14
Core capital ratio
 (Bank only)                7.07          7.14
Risk-based capital
 ratio (Bank only)         11.15         11.30
Common shares
 outstanding          32,066,721    33,273,235
Mortgage loans
 serviced for
 others             $  2,919,075  $  3,641,445
Capitalized mortgage
 servicing rights,
 net                      20,007        25,697
Core deposit
 intangibles, net         10,164        13,066

                        Three Months Ended             Year Ended
                           December 31,                December 31,
                        2005          2004          2005          2004
                    ------------  ------------  ------------  ------------
Average balance
 data:
  Total assets      $ 10,340,168  $  9,547,131  $  9,994,672  $  9,259,279
  Loans receivable     7,243,131     6,961,222     7,051,371     6,721,514
  Interest-earning
   assets              9,505,190     8,804,297     9,193,692     8,551,351
  Interest-bearing
   deposits            5,639,587     5,345,977     5,575,696     5,226,301
  Interest-bearing
   liabilities         8,671,094     7,915,439     8,360,019     7,714,028
  Stockholders'
   equity                974,797       964,612       961,538       924,462

Performance ratios
 (annualized):
  Return on average
   assets                   1.05%         1.05%         1.03%         1.10%
  Return on average
   equity                  11.13         10.44         10.75         10.98
  Return on average
   tangible equity(1)      16.45         15.23         16.03         15.81
  Average yield on
   interest-earning
   assets                   5.38          4.98          5.21          4.92
  Average cost of
   interest-bearing
   liabilities              2.94          2.14          2.56          2.07
  Interest rate
   spread                   2.44          2.84          2.65          2.85
  Net interest
   margin                   2.69          3.07          2.88          3.06
  Non-interest
   expense to
   average
   assets                   1.72          1.95          1.84          1.99
  Non-interest
   expense to
   average assets
   and loans
   serviced for
   others                   1.29          1.43          1.36          1.46
  Efficiency
   ratio(2)                52.08         53.59         54.01         54.74
Loans sold               178,476       210,080       825,750       914,081
Cash dividends
 declared per
 share                       .23           .21           .92           .84

(1) Return on average tangible equity is calculated by dividing annualized
    net income by average equity less the sum of average goodwill and core
    deposit intangibles.
(2) 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 write-down of mortgage-backed and investment
    securities and mortgage servicing rights.

Contact Information

  • Contacts:

    Jerry A. Weberling
    Chief Financial Officer
    (630) 887-5999

    Michael J. Janssen
    SVP
    (630) 986-7544

    MAF Bancorp, Inc.
    55th Street & Holmes Avenue
    Clarendon Hills, IL 60514
    www.mafbancorp.com