<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
Annual report pursuant to section 15(d) of
The Securities Exchange Act of 1934
For the year ended December 31, 1998
Commission file number: 0-18121
_______________________
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
(Full title of the plan )
MAF BANCORP, INC.
55th & Holmes
Clarendon Hills, IL 60514
(Name of issuer of the securities held pursuant to the
plan and the address of its principal executive officer)
================================================================================
<PAGE>
REQUIRED INFORMATION
Items 1-3. Not applicable.
Item 4. The Mid America Bank, fsb Employees' Profit Sharing Plan, which is
subject to ERISA, files plan financial statements and schedules prepared in
accordance with the financial reporting requirements of ERISA.
Financial Statements. Listed below are all financial statements and
schedules filed as a part of the annual report:
(a) Audited Statements of Net Assets Available for Plan Benefits as of
December 31, 1998 and 1997, and the related statements of changes in
net assets available for plan benefits for each of the years in the
two-year period ended December 31, 1998, the six months ended December
31, 1996 and the year ended June 30, 1996.
(b) Audited Statements of Net Assets Available for Plan Benefits as of
December 31, 1998 and 1997 and the related statement of changes in net
assets available for plan benefits for each of the years in the two-
year period ended December 31, 1998, the six months ended December 31,
1996 and the year ended June 30, 1996, respectively, are hereby
incorporated by reference to the Registration Statement on Form S-8
filed by the Mid America Bank, fsb Employees' Profit Sharing Plan
(Registration No. 33-40932) with the Securities Exchange Commission on
May 30, 1991.
Exhibits
No. 23 - Auditors' consent
2
<PAGE>
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this Annual Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: June 29, 1999 Mid America Bank, fsb
------------- Employees' Profit Sharing Plan
By: /s/ Michael J. Janssen
-------------------------------
Trustee
3
<PAGE>
FINANCIAL STATEMENTS AND SCHEDULES
4
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
INDEX
-----
<TABLE>
<CAPTION>
Page
----
<S> <C>
Independent Auditors' Report 6
Financial Statements:
Statements of Net Assets Available for Plan
Benefits at December 31, 1998 and 1997 7
Statements of Changes in Net Assets Available for Plan Benefits
for each of the years in the two-year period ended December 31, 1998, the six
months ended December 31, 1996 and the year ended June 30, 1996 8
Notes to Financial Statements 9
Supplemental Schedules:
Schedule 1 - Item 27a of Form 5500 - Schedule of Assets Held for Investment
Purposes at December 31, 1998 24
Schedule 2 - Item 27d of Form 5500 - Schedule of Reportable (5%) Transactions for the
year ended December 31, 1998 25
</TABLE>
5
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Trustees
Mid America Bank, fsb
Employees' Profit Sharing Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Mid America Bank, fsb Employees' Profit Sharing Plan as of
December 31, 1998 and 1997, and the related statements of changes in net assets
available for plan benefits for each of the years in the two-year period ended
December 31, 1998, the six months ended December 31, 1996 and the year ended
June 30, 1996. These financial statements are the responsibility of the Plan's
trustees. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
Plan's trustees as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Mid
America Bank, fsb Employees' Profit Sharing Plan as of December 31, 1998 and
1997 and the changes in net assets available for plan benefits for each of the
years in the two-year period ended December 31, 1998, the six months ended
December 31, 1996 and the year ended June 30, 1996 in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes as of December 31, 1998 and reportable
transactions for the year then ended are presented for the purpose of additional
analysis and are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These supplemental schedules are the responsibility of the
Plan's trustees. The fund information in the statements of net assets available
for plan benefits and the statements of changes in net assets available for plan
benefits is presented for purposes of additional analysis rather than to present
the net assets available for plan benefits and changes in net assets available
for plan benefits of each fund. The supplemental schedules and fund information
have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ KPMG LLP
June 29, 1999
6
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Statements of Net Assets Available for Plan Benefits
<TABLE>
<CAPTION>
December 31,
-------------------------------
Assets: 1998 1997
------------ ------------
<S> <C> <C>
Investments, at fair value:
Money market deposit accounts $ 791,816 495,009
Certificates of deposit 2,852,911 2,864,683
Mutual funds 4,444,018 3,324,573
Other common stock 1,671,692 955,381
MAF Bancorp, Inc. common stock 14,535,680 12,600,953
----------- ----------
24,296,117 20,240,599
Employer's contribution receivable 800,000 700,050
Cash and other assets 49,822 72,366
----------- ----------
Net assets available for plan benefits $25,145,939 21,013,015
=========== ==========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Statements of Changes in Net Assets Available for Plan Benefits
<TABLE>
<CAPTION>
Six Months Ended Year Ended
Year Ended December 31, December 31, June 30,
-------------------------------------
1998 1997 1996 1996
------------------ ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income $ 212,935 222,295 106,438 122,337
Dividend income 538,606 405,495 200,899 192,562
Other income 10,762 7,534 3,986 1,658
----------- ----------- ---------- ----------
762,303 635,324 311,323 316,557
Gain (loss) on sale of investments:
Mutual funds 16,156 33,313 2,882 7,539
Other common stock 74,502 608 106,965 18,492
MAF Bancorp, Inc. common stock (15,436) 55,133 37,287 11,945
----------- ----------- ---------- ----------
75,222 89,054 147,134 37,976
Unrealized appreciation in fair value
of investments:
Mutual funds 427,755 316,335 53,351 133,736
Other common stock 384,245 190,085 66,196 65,550
MAF Bancorp, Inc. common stock 1,498,142 4,524,950 2,392,457 699,340
----------- ----------- ---------- ----------
2,310,142 5,031,370 2,512,004 898,626
Contributions:
Employer 800,000 700,050 65,770 360,000
Employee 1,190,484 953,132 421,580 603,454
----------- ----------- ---------- ----------
1,990,484 1,653,182 487,350 963,454
Transfer of assets from merged plan - - 2,349,219 -
----------- ----------- ---------- ----------
Total additions to net assets 5,138,151 7,408,930 5,807,030 2,216,613
Deduction from net assets attributed to
benefits paid to participants 1,005,227 1,418,865 879,025 377,739
----------- ----------- ---------- ----------
Increase in net assets available for
plan benefits 4,132,924 5,990,065 4,928,005 1,838,874
Net assets available for plan benefits:
Beginning of period 21,013,015 15,022,950 10,094,945 8,256,071
----------- ----------- ---------- ----------
End of period $25,145,939 $21,013,015 15,022,950 10,094,945
=========== =========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 1998, 1997, 1996 and June 30, 1996
(1) Description of Plan
The following description of the Mid America Bank, fsb Employees' Profit
Sharing Plan ("Plan") provides only general information. Participants
should refer to the Plan agreement for a more complete description of the
Plan's provisions.
General
The Plan is a defined contribution plan with a 401(k) salary deferral
option. All employees of Mid America Bank, fsb (the "Company") who have
completed one year of service are eligible to participate in the salary
deferral portion of the Plan. Employees who have completed one year of
service and are age twenty-one or older are eligible to receive employer
matching and discretionary contributions under the Plan. The Plan is
subject to the provisions of the Employee Retirement Income Security Act of
1974 ("ERISA"). The Plan's year end was changed to December 31, in 1996, in
conjunction with the Company changing its year end to that date.
Mergers
On May 30, 1996, N.S. Bancorp, Inc. was merged with and into MAF Bancorp,
Inc., who is the parent of the Company. Concurrently, Northwestern Savings
Bank ("Northwestern") was merged into the Company and the Company became
the plan sponsor for the Northwestern 401(k) plan. The Northwestern 401(k)
plan was merged into the Plan effective September 25, 1996. All former
Northwestern participants who were employees on July 1, 1996 became active
participants as of such date. A year of service includes any period or
periods previously credited to employees under the Northwestern 401(k)
plan. All participant's balances from the merged plan are 100% vested.
Contributions
Each year the Plan participants may contribute up to 10% of their annual
compensation as a voluntary after-tax contribution. 401(k) plan
participants are allowed to defer up to 15% of their pre-tax income as
401(k) contributions. Each year the Company will make matching
contributions equal to 35% of the first 4% of salary deferral up to a
$30,000 annual salary cap and for salary in excess of $30,000 the match is
25% of the first 2% deferred for 401(k) plan participants who have met the
service requirements.
Participant Accounts
Each participant's contribution account is credited with the participant's
contribution and an allocation of earnings. Each participant's Company
contribution account is also credited with an allocation of the Company's
contribution and forfeitures of terminated participants' nonvested
accounts, subject to federal rules governing employer contributions to
qualified plans. Allocation of the Company's contribution and forfeitures
of terminated participants' accounts are based on the ratio that each
participant's eligible compensation for the Plan year bears to the total
eligible compensation of all participants for the Plan year. The benefit to
which a participant is entitled is the benefit that can be provided from
the participant's accounts.
9
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Notes to Financial Statements-Continued
Vesting
Participants are immediately vested in their pre-tax contributions and
their voluntary after-tax contributions plus actual earnings thereon.
Vesting in the remainder of their accounts is based on years of service as
follows: Less than 3 years - 0%; 3 years - 20%; 4 years - 40%; 5 years -
60%; 6 years -80%; 7 years or more - 100%.
Payment of Benefits
On termination of service a participant may elect to leave the funds in the
plan until age 70 1/2 or receive either a lump-sum amount equal to the
value of their vested account, or annual installments over a period not to
exceed ten years.
(2) Summary of Significant Accounting Policies
Basis of Presentation
The accompanying financial statements have been prepared on the accrual
basis of accounting.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Valuation of Investments
Investments in mutual funds and common stock are stated at fair value as
determined by reference to quoted market prices. The money market deposit
and certificate of deposit accounts are stated at face value plus accrued
interest which has not been transferred from the accounts. Purchases and
sales of investments are recorded on a trade-date basis. Realized gains and
losses on sales are computed using the specific identification method.
The change in the difference between fair value and the cost of investments
for each year is reflected in the statement of changes in net assets
available for plan benefits as unrealized appreciation or depreciation in
fair value of investments.
(3) Income Taxes
The Internal Revenue Service ("IRS") has determined, in a letter dated
March 28, 1996, that the Plan is a qualified plan under Section 401(a) of
the Internal Revenue Code and the Trust, forming a part of the Plan, is
exempt from Federal income taxes under Section 501(a) of the Internal
Revenue Code.
(4) Administrative Expenses
The Company absorbs all administrative expenses of the Plan.
10
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Notes to Financial Statements-Continued
(5) Plan Termination
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will become 100 percent vested in their accounts.
(6) Transactions With Parties in Interest
The following table summarizes the balances related to transactions of the
Plan with the Company.
<TABLE>
<CAPTION>
At or for the
------------------------------------------------------------
Year Ended Six Months Ended Year Ended
December 31, December 31, June 30,
------------------------------
1998 1997 1996 1996
--------------- ------------- --------------- ----------
<S> <C> <C> <C> <C>
Money market deposit account $ 739,290 208,599 303,343 30,694
Certificates of deposit 2,852,911 2,864,683 2,985,617 1,765,682
MAF Bancorp, Inc. common stock 14,535,680 12,600,953 8,110,976 5,375,317
Interest income on deposits and Certificates of
deposit 212,935 222,295 106,438 122,337
Dividend income from MAF Bancorp, Inc. stock 133,338 96,315 42,974 76,157
Contributions to the Plan 800,000 700,050 65,770 360,000
=========== ========== ========= =========
</TABLE>
(7) Investments
As of December 31, 1998 and 1997, the Plan held the following investments
which comprised 5% or more of the Plan's net assets, at fair value:
<TABLE>
<CAPTION>
December 31,
----------------------------------
1998 1997
----------------- ---------------
<S> <C> <C>
Variable rate Certificate of deposit $ 1,912,255 1,978,301
MAF Bancorp, Inc. common stock 14,535,680 12,600,953
American Mutual Fund - Washington Fund 1,597,783 1,206,496
=========== ==========
</TABLE>
(8) Fund Information
The Plan provides that each participant may make contributions to, and
investments in, either the MAF Bancorp, Inc. Stock Fund or the other
investment options at the option of each participant. Fund information at
and for the years ended December 31, 1998 and 1997, for the six month
period ended December 31, 1996 and for the fiscal year ended June 30, 1996,
respectively are summarized on the following pages:
11
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Net Assets Available for Plan Benefits by Fund
December 31, 1998
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------------------------------------
American Mutual Funds Kemper Mutual Funds
-------------------------------------------------------------------- ----------------------------------
Washington Growth Fund Income Fund New Cash Mgmt Bond Governmental Growth Total Return
Fund of America of America Perspective Trust Fund Fund Fund Fund
------------ ----------- ----------- ----------- --------- ---- ------------ ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value $ 1,597,783 1,190,019 338,563 1,152,603 454 2,680 $ 49,701 66,101 46,114
Employer's contribution
Receivable - - - - - - - - -
Other assets - - - - - - - - -
----------- ----------- ----------- ----------- --------- ----- --------- ------ ------
Net assets available for
Plan benefits $ 1,597,783 1,190,019 338,563 1,152,603 454 2,680 $ 49,701 66,101 46,114
=========== =========== =========== =========== ========= ===== ========= ====== ======
</TABLE>
(Continued)
12
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Net Assets Available for Plan Benefits by Fund
December 31, 1998
<TABLE>
<CAPTION>
Participant Other
-----------------------------------------------------------------------------------
Directed
--------
MAF R. Baird Other
Variable Rate Money Market Bancorp Money Market 2-1/2 Year 5 Year 10 Year Common
CD Account Stock Account CD CD CD Stock
------------- ------------ ---------- ------------ ---------- ------- ------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value $ 1,912,255 739,290 14,535,680 52,526 - 477,866 462,790 1,671,692
Employer's contribution
receivable - - - - - - - -
Other assets - - - - - - - -
------------- ------------ ---------- ------------ ---------- ------- ------- ---------
Net assets available for
plan benefits $ 1,912,255 739,290 14,535,680 52,526 - 477,866 462,790 1,671,692
============= ============ ========== ============ ========== ======= ======= =========
<CAPTION>
-------------
Unallocated Total
------------ ----------
<S> <C> <C>
Assets:
Investments, at fair value $ - 24,296,117
Employer's contribution
receivable 800,000 800,000
Other assets 49,822 49,822
------------ ----------
Net assets available for
plan benefits $ 849,822 25,145,939
============ ==========
</TABLE>
13
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Net Assets Available for Plan Benefits by Fund
December 31, 1997
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------------------------------------
American Mutual Funds Kemper Mutual Funds
-------------------------------------------------------------------- ----------------------------------
Washington Growth Fund Income Fund New Cash Mgmt Bond Governmental Growth Total Return
Fund of America of America Perspective Trust Fund Fund Fund Fund
------------ ----------- ----------- ----------- --------- ---- ------------ ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value $ 1,206,496 828,422 293,515 844,691 158 884 46,171 57,870 46,366
Employer's contribution
Receivable - - - - - - - - -
Other assets - - - - - - - - -
------------ ----------- ----------- ----------- --------- ---- ------------ ------ ------------
Net assets available for
Plan benefits $ 1,206,496 828,422 293,515 844,691 158 884 46,171 57,870 46,366
============ =========== =========== =========== ========= ==== ============ ====== ============
</TABLE>
(Continued)
14
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Net Assets Available for Plan Benefits by Fund
December 31, 1997
<TABLE>
<CAPTION>
Participant Other
--------------------------------------------------------------------------------
Directed
--------
MAF R. Baird Other
Variable Rate Money Market Bancorp Money Market 2-1/2 Year 5 Year 10 Year Common
CD Account Stock Account CD CD CD Stock
------------- ------------ ---------- ------------ ---------- ------- ------- -------
Assets:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value $ 1,978,301 208,599 12,600,953 286,410 65,253 450,815 370,314 955,381
Employer's contribution
receivable - - - - - - - -
Other assets - - - - - - - -
------------- ------------ ---------- ------------ ---------- ------- ------- -------
Net assets available for
plan benefits $ 1,978,301 208,599 12,600,953 286,410 65,253 450,815 370,314 955,381
============= ============ ========== ============ ========== ======= ======= =======
<CAPTION>
-----------
Unallocated Total
----------- ----------
<S> <C> <C>
Assets:
Investments, at fair value - 20,240,599
Employer's contribution
receivable 700,050 700,050
Other assets 72,366 72,366
----------- ----------
Net assets available for
plan benefits 772,416 21,013,015
=========== ==========
</TABLE>
15
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Changes in Net Assets Available for Plan Benefits by Fund
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------
American Mutual Funds
--------------------------------------------------------------------------
Washington Growth Fund Income Fund New Cash Mgmt Bond
Fund of America of America Perspective Trust Fund
------------- ------------ ------------ ------------ --------- ------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income $ - - - - - -
Dividend income 141,805 110,218 36,331 85,462 13 103
Other income (loss) - - - - - -
---------- --------- ------- --------- --- -----
141,805 110,218 36,331 85,462 13 103
Gain /(loss) on sale of investments 978 3,896 42 11,212 - 28
Unrealized
appreciation/(depreciation)
in fair value of investments 106,420 165,859 (8,943) 153,396 - (58)
Contributions:
Employer - - - - - -
Employee 180,187 118,259 29,256 173,768 283 1,817
---------- --------- ------- --------- --- -----
180,187 118,259 29,256 173,768 283 1,817
---------- --------- ------- --------- --- -----
Total additions to net assets 429,390 398,232 56,686 423,838 296 1,890
Deduction from assets attributed
to benefits paid to participants 58,348 32,077 25,943 105,319 - 94
Transfers to (from) funds 20,245 (4,558) 14,305 (10,607) - -
---------- --------- ------- --------- --- -----
Increase (decrease) in net assets
Available for plan benefits 391,287 361,597 45,048 307,912 296 1,796
Net assets available for plan
benefits:
Beginning of period 1,206,496 828,422 293,515 844,691 158 884
---------- --------- ------- --------- --- -----
End of period $ 1,597,783 1,190,019 338,563 1,152,603 454 2,680
========== ========= ======= ========= === =====
<CAPTION>
--------------------------------------------------
Kemper Mutual Funds
--------------------------------------------------
Governmental Growth Total Return Variable Rate
Fund Fund Fund CD
------------ ------ ------------ --------------
<S> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income - - - 118,830
Dividend income 3,428 266 3,962 -
Other income (loss) - - - -
------ ------ ------ ---------
3,428 266 3,962 118,830
Gain /(loss) on sale of investments - - - -
Unrealized
appreciation/(depreciation)
in fair value of investments 102 7,965 3,014 -
Contributions:
Employer - - - -
Employee - - - 130,074
------ ------ ------ ---------
- - - 130,074
------ ------ ------ ---------
Total additions to net assets 3,530 8,231 6,976 248,904
Deduction from assets attributed
to benefits paid to participants - - - 106,202
Transfers to (from) funds - - (7,228) (208,748)
------ ------ ------ ---------
Increase (decrease) in net assets
Available for plan benefits 3,530 8,231 (252) (66,046)
Net assets available for plan
benefits:
Beginning of period 46,171 57,870 46,366 1,978,301
------ ------ ------ ---------
End of period 49,701 66,101 46,114 1,912,255
====== ====== ====== =========
</TABLE>
(Continued)
16
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Changes in Net Assets Available for Plan Benefits by Fund
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Other
-----------------------------------------------------------------------
MAF R. Baird
Money Market Bancorp Money Market 2-1/2 Year 5 Year 10 Year
Account Stock Account CD CD CD
------------ ----------- ------------- ----------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income $ 39,831 - - 307 27,051 26,916
Dividend income 57,107 57,445 23,680 - - -
Other income (loss) 15,410 - - - - -
-------- ---------- -------- ---------- ------- -------
112,348 57,445 23,680 307 27,051 26,916
Gain (loss) on sale of investments - (15,436) - - - -
Unrealized appreciation
in fair value of investments - 1,498,142 - - - -
Contributions:
Employer - - - - - -
Employee 50,468 530,573 - - - -
-------- ---------- -------- ---------- ------- -------
50,468 530,573 - - - -
-------- ---------- -------- ---------- ------- -------
Total additions to net assets 162,816 2,070,724 23,680 307 27,051 26,916
Deduction from assets attributed
to benefits paid to participants 337,893 341,944 - - - -
Transfers to (from) funds 705,768 205,947 (257,564) (65,560) - 65,560
-------- ---------- -------- ---------- ------- -------
Increase (decrease) in net assets
available for plan benefits 530,691 1,934,727 (233,884) (65,253) 27,051 92,476
Net assets available for plan
benefits:
Beginning of period 208,599 12,600,953 286,410 65,253 450,815 370,314
-------- ---------- -------- ---------- ------- -------
End of period $739,290 14,535,680 52,526 - 477,866 462,790
======== ========== ======== ========== ======= =======
<CAPTION>
--------------------------------------
Other
Common
Stock Unallocated Total
------------ ------------ ----------
<S> <C> <C> <C>
Additions to net assets attributed
to:
Interest income - - 212,935
Dividend income - 18,786 538,606
Other income (loss) - (4,648) 10,762
--------- -------- ----------
- 14,138 762,303
Gain (loss) on sale of investments 74,502 - 75,222
Unrealized appreciation
in fair value of investments 384,245 - 2,310,142
Contributions:
Employer - 800,000 800,000
Employee - (24,201) 1,190,484
--------- -------- ----------
- 775,799 1,990,484
--------- -------- ----------
Total additions to net assets 458,747 789,937 5,138,151
Deduction from assets attributed
to benefits paid to participants - (2,593) 1,005,227
Transfers to (from) funds 257,564 (715,124) -
--------- -------- ----------
Increase (decrease) in net assets
available for plan benefits 716,311 77,406 4,132,924
Net assets available for plan
benefits:
Beginning of period 955,381 772,416 21,013,015
--------- -------- ----------
End of period 1,671,692 849,822 25,145,939
========= ======== ==========
</TABLE>
17
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Changes in Net Assets Available for Plan Benefits by Fund
For the Year Ended December 31, 1997
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------
American Mutual Funds
--------------------------------------------------------------------------
Washington Growth Fund Income Fund New Cash Mgmt Bond
Fund of America of America Perspective Trust Fund
------------ ------------ ------------ ----------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income $ - - - - - -
Dividend income 84,357 85,471 34,089 59,614 72 145
Other income - - - - - -
---------- ------- ------- ------- ------ ------
84,357 85,471 34,089 59,614 72 145
Gain on sale of investments 14,538 13,684 332 4,740 - 19
Unrealized appreciation
in fair value of investments 194,520 76,987 16,579 27,100 - 13
Contributions:
Employer - - - - - -
Employee 154,745 107,081 33,011 168,635 53 356
---------- ------- ------- ------- ------ ------
154,745 107,081 33,011 168,635 53 356
---------- ------- ------- ------- ------ ------
Total additions to net assets 448,160 283,223 84,011 260,089 125 533
Deduction from assets attributed
to benefits paid to participants 63,720 117,085 5,430 43,181 10,850 56
Transfers to (from) funds (37,335) (7,710) (4,493) 55,663 8,691 (2,816)
---------- ------- ------- ------- ------ ------
Increase (decrease) in net assets
Available for plan benefits 347,105 158,428 74,088 272,571 (2,034) (2,339)
Net assets available for plan
benefits:
Beginning of period 859,391 669,994 219,427 572,120 2,192 3,223
---------- ------- ------- ------- ------ ------
End of period $1,206,496 828,422 293,515 844,691 158 884
========== ======= ======= ======= ====== ======
<CAPTION>
---------------------------------------------------
Kemper Mutual Funds
---------------------------------------------------
Governmental Growth Total Return Variable Rate
Fund Fund Fund CD
------------- ------ ------------ --------------
<S> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income $ - - - 162,349
Dividend income 3,176 7,935 7,368 -
Other income - - - -
------ ------ ------ ---------
3,176 7,935 7,368 162,349
Gain on sale of investments - - - -
Unrealized appreciation
in fair value of investments 666 389 81 -
Contributions:
Employer - - - -
Employee - - - 149,764
------ ------ ------ ---------
- - - 149,764
------ ------ ------ ---------
Total additions to net assets 3,842 8,324 7,449 312,113
Deduction from assets attributed
to benefits paid to participants - - - 397,427
Transfers to (from) funds - - - (86,651)
------ ------ ------ ---------
Increase (decrease) in net assets
Available for plan benefits 3,842 8,324 7,449 (171,965)
Net assets available for plan
benefits:
Beginning of period 42,329 49,546 38,917 2,150,266
------ ------ ------ ---------
End of period 46,171 57,870 46,366 1,978,301
====== ====== ====== =========
</TABLE>
(Continued)
18
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Changes in Net Assets Available for Plan Benefits by Fund
For the Year Ended December 31, 1997
<TABLE>
<CAPTION>
Other
---------------------------------------------------------------------
MAF R. Baird
Money Market Bancorp Money Market 2-1/2 Year 5 Year 10 Year
Account Stock Account CD CD CD
------------- ---------- ------------ ---------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income 8,915 - - 3,724 25,520 21,787
Dividend income 52,873 39,881 26,953 - - -
Other income 3,986 - - - - -
-------- ---------- ------- ---------- ------- -------
65,774 39,881 26,953 3,724 25,520 21,787
Gain on sale of investments - 55,133 - - - -
Unrealized appreciation
in fair value of investments - 4,524,950 - - - -
Contributions:
Employer - - - - - -
Employee 8,789 341,401 - - - -
-------- ---------- ------- ---------- ------- -------
8,789 341,401 - - - -
-------- ---------- ------- ---------- ------- -------
Total additions to net assets 74,563 4,961,365 26,953 3,724 25,520 21,787
Deduction from assets attributed
to benefits paid to participants 235,512 545,604 - - - -
Transfers to (from) funds 66,205 74,216 2,918 - - -
-------- ---------- ------- ---------- ------- -------
Increase (decrease) in net assets
available for plan benefits (94,744) 4,489,977 29,871 3,724 25,520 21,787
Net assets available for plan
benefits:
Beginning of period 303,343 8,110,976 256,539 61,529 425,295 348,527
-------- ---------- ------- ---------- ------- -------
End of period $208,599 12,600,953 286,410 65,253 450,815 370,314
======== ========== ======= ========== ======= =======
<CAPTION>
-----------------------------------
Other
Common
Stock Unallocated Total
-------- ------------ ----------
<C> <C> <C>
<S>
Additions to net assets attributed
to: - - 222,295
Interest income - 3,561 405,495
Dividend income - 3,548 7,534
Other income ------- ------- ----------
- 7,109 635,324
608 - 89,054
Gain on sale of investments
Unrealized appreciation 190,085 - 5,031,370
in fair value of investments
Contributions: - 700,050 700,050
Employer - (10,703) 953,132
Employee ------- ------- ----------
- 689,347 1,653,182
------- ------- ----------
190,693 696,456 7,408,930
Total additions to net assets
Deduction from assets attributed - - 1,418,865
to benefits paid to participants
(2,918) (65,770) -
Transfers to (from) funds ------- ------- ----------
Increase (decrease) in net assets 187,775 630,686 5,990,065
available for plan benefits
Net assets available for plan
benefits: 767,606 141,730 15,022,950
Beginning of period ------- ------- ----------
955,381 772,416 21,013,015
End of period ======= ======= ==========
</TABLE>
19
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Changes in Net Assets Available for Plan Benefits by Fund
For the Six Months Ended December 31, 1996
<TABLE>
<CAPTION>
Participant Directed
------------------------------------------------------------------------
American Mutual Funds
------------------------------------------------------------------------
Washington Growth Fund Income Fund New Cash Mgmt Bond
Fund of America of America Perspective Trust Fund
---------- ----------- ----------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income $ - - - - - -
Dividend income 49,674 36,404 16,235 26,627 383 118
Other income - - - - - -
-------- ------- ------- ------- ------- ---------
49,674 36,404 16,235 26,627 383 118
Gain (loss) on sale of investments 2,753 683 310 44 - (3)
Unrealized appreciation (depreciation)
in fair value of investments 33,868 12,385 3,384 14,714 - 63
Contributions:
Employer - - - - - -
Employee 72,703 63,547 14,430 82,391 1,153 116
-------- ------- ------- ------- ------- ---------
72,703 63,547 14,430 82,391 1,153 116
-------- ------- ------- ------- ------- ---------
Total additions to net assets 158,998 113,019 34,359 123,776 1,536 294
Deduction from assets attributed
to benefits paid to participants 42,050 31,578 4,045 5,535 17,383 -
Transfers to (from) funds 115,089 188,359 134 156,271 (1,000) 134
-------- ------- ------- ------- ------- ---------
Increase (decrease) in net assets
available for plan benefits 232,037 269,800 30,448 274,512 (16,847) 428
Net assets available for plan
benefits:
Beginning of period 627,354 400,194 188,979 297,608 19,039 2,795
-------- ------- ------- ------- ------- ---------
End of period $ 859,391 669,994 219,427 572,120 2,192 3,223
======== ======= ======= ======= ======= =========
<CAPTION>
---------------------------------------------------
Kemper Mutual Funds
---------------------------------------------------
Governmental Growth Total Return Variable Rate
Fund Fund Fund CD
------------ ------- ------------- -------------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest income - - - 75,895
Dividend income 1,526 12,375 6,260 -
Other income - - - -
------ ------ ------- ---------
1,526 12,375 6,260 75,895
Gain (loss) on sale of investments - 10 (915) -
Unrealized appreciation (depreciation)
in fair value of investments 236 (9,454) (1,845) -
Contributions:
Employer - - - -
Employee - - - 91,004
------ ------ ------- ---------
- - - 91,004
------ ------ ------- ---------
Total additions to net assets 1,762 2,931 3,500 166,899
Deduction from assets attributed
to benefits paid to participants - 216 - 238,869
Transfers to (from) funds - - (19,894) 1,267,306
------ ------ ------- ---------
Increase (decrease) in net assets
available for plan benefits 1,762 2,715 (16,394) 1,195,336
Net assets available for plan
benefits:
Beginning of period 40,567 46,831 55,311 954,930
------ ------ ------- ---------
End of period 42,329 49,546 38,917 2,150,266
====== ====== ======= =========
</TABLE>
(Continued)
20
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Changes in Net Assets Available for Plan Benefits by Fund
For the Six Months Ended December 31, 1996
<TABLE>
<CAPTION>
Other
--------------------------------------------------------------------
MAF R. Baird
Money Market Bancorp Money Market 2-1/2 Year 5 Year 10 Year
Account Stock Account CD CD CD
------------- --------- ------------ ---------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income $ 5,944 - - 1,796 12,311 10,492
Dividend income 23,505 9,200 8,323 - - -
Other income 1,659 - - - - -
-------- --------- ------- ---------- ------- -------
31,108 9,200 8,323 1,796 12,311 10,492
Gain (loss) on sale of investments - 37,287 - - - -
Unrealized appreciation
(depreciation)
in fair value of investments - 2,392,457 - - - -
Contributions:
Employer - - - - - -
Employee (478) 102,057 - - - -
-------- --------- ------- ---------- ------- -------
(478) 102,057 - - - -
Transfer of assets from merged plan - - - - - -
--------- --------- ------- ---------- ------- -------
Total additions to net assets 30,630 2,541,001 8,323 1,796 12,311 10,492
Deduction from assets attributed
to benefits paid to participants 117,981 221,129 - - - -
Transfers to (from) funds 360,000 415,787 244,556 - - -
-------- --------- ------- ---------- ------- -------
Increase (decrease) in net assets
available for plan benefits 272,649 2,735,659 252,879 1,796 12,311 10,492
Net assets available for plan
benefits:
Beginning of period 30,694 5,375,317 3,660 59,733 412,984 338,035
-------- --------- ------- ---------- ------- -------
End of period $303,343 8,110,976 256,539 61,529 425,295 348,527
======== ========= ======= ========== ======= =======
<CAPTION>
------------------------------------------------
Other
Common Merged
Stock Unallocated Assets Total
--------- ------------ ----------- ----------
<S> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income - - - 106,438
Dividend income - 10,269 - 200,899
Other income - 2,327 - 3,986
-------- -------- ---------- ----------
- 12,596 - 311,323
Gain (loss) on sale of investments 106,965 - - 147,134
Unrealized appreciation
(depreciation)
in fair value of investments 66,196 - - 2,512,004
Contributions:
Employer - 65,770 - 65,770
Employee - (5,343) - 421,580
-------- -------- ---------- ----------
- 60,427 - 487,350
Transfer of assets from merged plan - - 2,349,219 2,349,219
-------- -------- ---------- ----------
Total additions to net assets 173,161 73,023 2,349,219 5,807,030
Deduction from assets attributed
to benefits paid to participants - - 200,239 879,025
Transfers to (from) funds (244,556) (333,206) (2,148,980) -
-------- -------- ---------- ----------
Increase (decrease) in net assets
available for plan benefits (71,395) (260,183) - 4,928,005
Net assets available for plan
benefits:
Beginning of period 839,001 401,913 - 10,094,945
-------- -------- ---------- ----------
End of period 767,606 141,730 - 15,022,950
======== ======== ========== ==========
</TABLE>
21
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Changes in Net Assets Available for Plan Benefits by Fund
For the Year Ended June 30, 1996
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------------------------
American Mutual Funds
----------------------------------------------------------------------
Washington Growth Fund Income Fund New Cash Mgmt Bond
Fund of America of America Perspective Trust Fund
---------- ------------ ------------ ------------ --------- -----
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income $ - - - - - -
Dividend income 41,070 29,314 11,492 13,845 585 51
Other income - - - - - -
-------- ------- ------- ------- ------ -----
41,070 29,314 11,492 13,845 585 51
Gain on sale of investments 2,183 1,885 2,449 729 - 3
Unrealized appreciation
(depreciation)
in fair value of investments 84,616 10,246 15,515 16,851 - 18
Contributions:
Employer - - - - - -
Employee 78,365 64,470 23,322 80,261 5,554 25
-------- ------- ------- ------- ------ -----
78,365 64,470 23,322 80,261 5,554 25
-------- ------- ------- ------- ------ -----
Total additions to net assets 206,234 105,915 52,778 111,686 6,139 97
Deduction from assets attributed
to benefits paid to participants 16,679 45,910 37,135 11,707 3,609 160
Transfers to (from) funds 5,252 (6,221) (6,478) (4,130) 12,952 2,472
-------- ------- ------- ------- ------ -----
Increase (decrease) in net assets 194,807 53,784 9,165 95,849 15,482 2,409
Available for Plan benefits
Net assets available for plan
benefits:
Beginning of period 432,547 346,410 179,814 201,759 3,557 386
-------- ------- ------- ------- ------ -----
End of period $627,354 400,194 188,979 297,608 19,039 2,795
======== ======= ======= ======= ====== =====
<CAPTION>
----------------------------------------------------
Kemper Mutual Funds
----------------------------------------------------
Governmental Growth Total Return Variable Rate
Fund Fund Fund CD
-------------- ------ ------------ --------------
<S> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income $ - - - 55,415
Dividend income 2,915 4,387 4,127 -
Other income - - - -
------ ------ ------ -------
2,915 4,387 4,127 55,415
Gain on sale of investments 2 53 235 -
Unrealized appreciation
(depreciation)
in fair value of investments (1,300) 4,713 3,077 -
Contributions:
Employer - - - -
Employee - - - 126,923
------ ------ ------ -------
- - - 126,923
------ ------ ------ -------
Total additions to net assets 1,617 9,153 7,439 182,338
Deduction from assets attributed
to benefits paid to participants - 814 5,522 43,395
Transfers to (from) funds (377) - - (14,365)
------ ------ ------ -------
Increase (decrease) in net assets 1,240 8,339 1,917 124,578
Available for Plan benefits
Net assets available for plan
benefits:
Beginning of period 39,327 38,492 53,394 830,352
------ ------ ------ -------
End of period 40,567 46,831 55,311 954,930
====== ====== ====== =======
</TABLE>
(Continued)
22
<PAGE>
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Changes in Net Assets Available for Plan Benefits by Fund
For the Year Ended June 30, 1996
<TABLE>
<CAPTION>
Other
--------------------------------------------------------------------------------------
MAF R. Baird
Money Market Bancorp Money Market 2 Year 2-1/2 Year 5 Year 10 Year
Account Stock Account CD CD CD CD
------------- --------- ------------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Interest income $ 7,300 - - 1,587 3,388 29,460 25,187
Dividend income 43,440 31,745 8,619 - - - -
Other income - - - - - - -
--------- --------- ------------ -------- ---------- ---------- ----------
50,740 31,745 8,619 1,587 3,388 29,460 25,187
Gain on sale of investments - 11,945 - - - - -
Unrealized appreciation
(depreciation)
in fair value of investments - 699,340 - - - - -
Contributions:
Employer - - - - - - -
Employee 12,288 212,141 - - - - -
--------- --------- ------------ -------- ---------- ---------- ----------
12,288 212,141 - - - - -
--------- --------- ------------ -------- ---------- ---------- ----------
Total additions to net assets 63,028 955,171 8,619 1,587 3,388 29,460 25,187
Deduction from assets attributed
to benefits paid to participants 149,659 63,149 - - - - -
Transfers to (from) funds (35,255) 10,896 (4,959) (144,705) - (75,000) -
--------- --------- ------------ -------- ---------- ---------- ----------
Increase (decrease) in net assets (121,886) 902,918 3,660 (143,118) 3,388 (45,540) 25,187
Available for Plan benefits
Net assets available for plan
benefits:
Beginning of period 152,580 4,472,399 - 143,118 56,345 458,524 312,848
--------- --------- ------------ -------- ---------- ---------- ----------
End of period $ 30,694 5,375,317 3,660 - 59,733 412,984 338,035
========= ========= ============ ======== ========== ========== ==========
<CAPTION>
---------------------------------
Other
Common
Stock Unallocated Total
------- ------------ ----------
<S> <C> <C> <C>
Additions to net assets attributed
to:
Interest income - - 122,337
Dividend income - 972 192,562
Other income - 1,658 1,658
------- -------- ----------
- 2,630 316,557
Gain on sale of investments 18,492 - 37,976
Unrealized appreciation
(depreciation)
in fair value of investments 65,550 - 898,626
Contributions:
Employer - 360,000 360,000
Employee - 105 603,454
------- -------- ----------
- 360,105 963,454
------- -------- ----------
Total additions to net assets 84,042 362,735 2,216,613
Deduction from assets attributed
to benefits paid to participants - - 377,739
Transfers to (from) funds 754,959 (495,041) -
------- -------- ----------
Increase (decrease) in net assets 839,001 (132,306) 1,838,874
Available for Plan benefits
Net assets available for plan
benefits:
Beginning of period - 534,219 8,256,071
------- -------- ----------
End of period 839,001 401,913 10,094,945
======= ======== ==========
</TABLE>
23
<PAGE>
Schedule 1
----------
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Item 27a of Form 5500- Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Number Maturity Interest Current
Identity of Issue of Shares Date Rate Cost Value
----------------- --------- -------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Money market deposit accounts:
Mid America Bank, fsb* N/A N/A 4.75% $ 739,290 739,290
R. Baird Money Market Account N/A N/A 4.33 52,526 52,526
---------- ----------
$ 791,816 791,816
========== ==========
Certificates of deposits:
Mid America Bank, fsb* N/A 6/30/99 5.05 $1,912,255 1,912,255
Mid America Bank, fsb* N/A 12/02/00 5.87 477,866 477,866
Mid America Bank, fsb* N/A 12/02/05 6.11 462,790 462,790
---------- ----------
$2,852,911 2,852,911
========== ==========
Mutual funds:
Kemper:
U.S. Government fund 5,654 N/A N/A $ 51,290 49,701
Growth fund 4,439 N/A N/A 33,587 66,101
Total return fund 4,310 N/A N/A 15,482 46,114
American:
Washington fund 48,550 N/A N/A 1,084,551 1,597,783
Growth Fund of America 53,126 N/A N/A 837,570 1,190,019
Income Fund of America 19,525 N/A N/A 305,407 338,563
New Perspective Fund 50,222 N/A N/A 913,632 1,152,603
Cash Management Trust 454 N/A N/A 454 454
Bond fund 197 N/A N/A 2,562 2,680
---------- ----------
$3,244,535 4,444,018
========== ==========
Other common stock:
American Express 1,000 N/A N/A 44,677 102,500
Burlington Northern 2,400 N/A N/A 60,377 82,200
Capital One Fincl Corp 800 N/A N/A 91,904 92,000
Citigroup 1,000 N/A N/A 62,204 49,687
Columbia/HCA 1,500 N/A N/A 52,427 37,125
Compaq Computer Corp 500 N/A N/A 4,605 21,000
EMC Corp Mass 4,000 N/A N/A 36,677 340,000
General Electric 2,000 N/A N/A 72,177 204,000
General Motors Corp 2,000 N/A N/A 144,704 143,125
Humana, Inc. 1,000 N/A N/A 20,177 17,813
MCI Worldcom 1,865 N/A N/A 38,959 133,814
Motorola, Inc. 1,000 N/A N/A 72,927 61,062
Pepsico Incorp 1,000 N/A N/A 28,117 40,875
Philip Morris Cos Inc. 3,600 N/A N/A 109,377 192,600
Southwest Airlines 2,250 N/A N/A 29,802 51,047
Tellabs 1,500 N/A N/A 96,504 102,844
------- ---------- ----------
27,415 N/A N/A $ 965,615 1,671,692
======= ========== ==========
Common stock - MAF Bancorp, Inc.* 549,813 N/A N/A $2,500,578 14,535,680
========== ==========
</TABLE>
___________________________
N/A - Not applicable
* Asterisk denotes an investment in an entity which is a "party-in-interest" as
defined by ERISA.
See accompanying independent auditors' report.
24
<PAGE>
Schedule 2
----------
MID AMERICA BANK, fsb
EMPLOYEES' PROFIT SHARING PLAN
Item 27d of Form 5500 - Schedule of Reportable (5%) Transactions
For the Year Ended December 31, 1998
None
See accompanying independent auditors' report.
25
<PAGE>
CONSENT OF INDEPENDENT AUDITORS'
--------------------------------
The Board of Directors
MAF Bancorp, Inc.:
We consent to incorporation by reference in the registration statement (No.
333-65655) on Form S-8 of MAF Bancorp, Inc. of our report dated January 29,
1999, relating to the statements of net assets available for plan benefits of
the Mid America Bank, fsb Employees' Profit Sharing Plan as of December 31, 1998
and December 31, 1997, and the related statements of changes in net assets
available for plan benefits for each of the years in the two-year period ended
December 31, 1998, the six months ended December 31, 1996 and the year ended
June 30, 1996 which report appears in the December 31, 1998 annual report on
Form 11-K of MAF Bancorp, Inc.
/s/ KPMG LLP
Chicago, Illinois
June 29, 1999
26
