EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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For: MAF Bancorp, Inc. Contacts: Jerry A. Weberling, Chief
55th Street & Holmes Avenue Financial Officer
Clarendon Hills, IL 60514 Michael J. Janssen, Senior
Vice President
www.mafbancorp.com (630) 325-7300
MAF BANCORP REPORTS RECORD RESULTS OF $.58 PER SHARE
FOR THE SECOND QUARTER
Clarendon Hills, Illinois, July 20, 2000 - MAF Bancorp, Inc. (MAFB) announced
today that earnings per share for the quarter ended June 30, 2000 increased 9%
to a record $.58 per diluted share, compared to $.53 per diluted share reported
in last year's second quarter. The strong results for the quarter were
attributable to higher net interest income which increased by 10% from a year
ago, growth in deposit account service charges which increased by 22% from last
year, as well as from a lower effective tax rate and a lower number of
outstanding shares resulting from ongoing stock repurchases. These improvements
were partially offset by an increase in non-interest expense. Last year's second
quarter results included a $2.9 million gain on the sale of a large commercial
parcel, equal to $.07 per diluted share. Exclusive of this gain, and excluding a
$251,000 commercial parcel gain in the current period, diluted earnings per
share in the current period increased by 24% over last year's second quarter.
Net income for the period totaled $13.7 million compared to $13.2 million in the
year earlier period. Cash earnings per share (diluted), which excludes
amortization of goodwill and deposit base intangibles, totaled $.62 in the
current quarter compared to $.57 in last year's second quarter. Return on
average equity was 15.43% in the current quarter and the return on average
assets was 1.12%.
Net interest income, after provision for loan losses, totaled $31.8 million for
the quarter ended June 30, 2000 compared to $28.8 million a year ago and $30.2
million in the quarter ended March 31, 2000. The net interest margin improved
over the past three months to 2.75% compared to 2.71% for the quarter ended
March 31, 2000. In last year's second quarter, the net interest margin was
2.94%. The yield on average interest-earning assets increased 15 basis points to
7.26% over the past three months while the cost of interest-bearing liabilities
increased by 11 basis points to 4.87%. Despite the modest improvement over the
past three months, management expects that there will be pressure on the net
interest margin for the remainder of this year due to higher funding costs from
upward repricing of certificates of deposit and borrowed funds.
Average interest-earning assets in the current quarter grew to $4.67 billion
from $3.93 billion reported for last year's second quarter and up from $4.51
billion reported for the quarter ended March 31, 2000. Increases in loans
receivable balances led to the growth in interest-earning assets. The balance
sheet loan growth was generated from the high concentration of adjustable rate
loan originations which the Bank has generally retained in its portfolio. Loan
volume totaled $429.3 million in the current quarter, modestly lower than the
$464.0 million reported for the quarter ended June 30, 1999 but up considerably
from the $302.4 million reported for the quarter ended March 31, 2000.
Non-interest income declined to $7.8 million in the current quarter, compared to
$9.6 million reported in the second quarter of last year. Exclusive of the
$251,000 and $2.9 million gains on commercial property sales included in the
current period and last year's second quarter, respectively, total non-interest
income increased by 12%. Positive results in real estate development income and
higher fee income from deposit account products were offset by reduced gains on
sales of loans, and a loss of approximately $700,000 on a sale of a
mortgage-backed security from the available for sale portfolio.
The Company's real estate development operation reported outstanding results in
the current quarter, with income totaling $2.7 million. A total of 169
residential lots were sold in the current quarter compared to 140 lots in last
year's
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second quarter. Results in the Company's Tallgrass of Naperville development
continue to be excellent, accounting for $2.3 million of the real estate
development income in the second quarter, on sales of 92 residential lots. The
Company had a total of 51 lots under contract at June 30, 2000, including 46
lots in the Tallgrass development. The strong demand for lots in the Tallgrass
subdivision has reduced available inventory pending completion of improvements
in the next phase of the project. As a result, real estate development income in
the next quarter will be lower than in the current quarter.
Deposit account service fees totaled $3.1 million for the current quarter, up
22% from the $2.5 million reported for the quarter ended June 30, 1999. Deposit
account fee income is one of the Company's strongest revenue growth areas,
reflecting the Company's focus on growing its transaction account base. Total
checking accounts exceeded 110,000 at quarter end, increasing at an annualized
rate of 15.5% during the first six months of this year.
Higher interest rates and competitive pricing pressures led to continued low
mortgage banking profits resulting from loan sales. Total loan sales generated
gains of $105,000 in the current quarter compared to $382,000 a year ago. Loan
sales in the current quarter totaled $73.8 million compared to $72.7 million for
the quarter ended June 30, 1999.
Non-interest expense totaled $18.0 million in the current quarter, compared to
$16.5 million reported for the quarter ended June 30, 1999 and $17.7 million for
the quarter ended March 31, 2000. Compensation and benefits expense totaled
$10.1 million in the current quarter, compared to $9.3 million a year ago. This
change was primarily due to normal compensation increases and compensation
associated with three additional branch locations. As previously announced, the
Company completed the purchase of two Illinois branches from M&I Bank, FSB,
during the current quarter.
The ratio of total non-interest expense to average assets improved to 1.47% for
the current quarter, compared to 1.59% in last year's second quarter and 1.50%
three months ago. The Company's efficiency ratio, a measure of the amount of
expense needed to generate each dollar of revenue, was 45.13%, considerably
better than peer group averages.
Income tax expense totaled $7.9 million in the current quarter, equal to an
effective income tax rate of 36.7%, compared to $8.7 million and an effective
tax rate of 39.6% for the quarter ended June 30, 1999. The lower effective
income tax rate in the current period compared to a year ago was primarily the
result of proactive tax planning involving the 1999 transfer of Bank portfolio
assets to an operating subsidiary.
Asset quality improved considerably during the quarter as a large foreclosed
real estate parcel was sold. Non-performing assets at June 30, 2000 declined by
$8.2 million to $16.2 million, or .33% of total assets, compared to $24.5
million or .51% of total assets at March 31, 2000. The decline was largely
attributable to the sale of a $6.1 million commercial office building during the
quarter. The Company recorded a provision for loan losses of $300,000 in the
current quarter, with no net charge-offs recorded. The Bank's allowance for loan
losses was $17.9 million at June 30, 2000, equal to 117.1% of total
non-performing loans, 110.0% of total non-performing assets and .43% of total
loans receivable.
For the six months ended June 30, 2000, net income totaled $26.8 million
compared to $24.9 million for the comparable period last year. Earnings per
share increased to $1.13 per diluted share compared to $.99 per diluted share,
an increase of 14%. Exclusive of the gains on sale of commercial land equal to
$.01 per share and $.07 per share included in the 2000 and 1999 results,
respectively, the year-over-year earnings per share increase was 22%. Return on
average equity was 15.16% for the current six-month period and return on average
assets was 1.11%.
Net interest income after provision for loan losses totaled $62.0 million, up
8.9% from the $56.9 million reported for the first six months of 1999. The net
interest margin declined to 2.73% in the current six-month period compared to
2.94% a year ago, while average interest-earning assets expanded by 17.7% to
$4.59 billion from $3.90 billion last year.
Non-interest income declined by $1.4 million for the first six months of 2000
compared to 1999, the result of declines in the net gains from sale of loans and
securities totaling $2.8 million. Income from real estate operations improved by
$638,000, or 14.1%, and deposit account service fees increased by $924,000, or
19.5%. Non-interest expenses increased by $3.0 million, or 9.1%, due in part to
the Company's internal growth and branch acquisitions as well as from increased
marketing costs relating to the Company's radio-based branding campaign. This
initiative, along with heavier print
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advertising for deposit products, has been instrumental in expanding total
deposits and new retail checking account openings.
Total assets increased to $4.99 billion at June 30, 2000, up $171.4 million from
the $4.82 billion reported at March 31, 2000. The growth in assets during the
three-month period was driven by an increase in loans receivable of $173.7
million. The balance of loans receivable at June 30, 2000 stood at $4.20
billion. Deposit balances grew by $119.8 million in the quarter, including $91
million from the purchase of the two branch offices during the quarter.
Borrowed funds increased by $42.2 million to $1.67 billion at June 30, 2000,
compared to $1.62 billion at March 31, 2000. Total stockholders' equity was
$359.2 million at June 30, 2000, resulting in a stated book value per share of
$15.51 and a tangible book value per share of $12.43. The Company repurchased
291,000 shares of its common stock during the current quarter at an average
price of $16.74 per share. The Bank's tangible, core and risk-based capital
percentages of 6.03%, 6.03% and 11.59%, respectively, at June 30, 2000 exceeded
all regulatory requirements by a significant margin.
MAF Bancorp is the parent company of Mid America Bank, a federally chartered
stock savings bank. The Bank operates a network of 27 retail banking offices
primarily in Chicago and its western suburbs. The Company's common stock trades
on the Nasdaq Stock Market under the symbol MAFB.
Forward-Looking Information
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Statements contained in this news release that are not historical facts may
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. The Company's
ability to predict results or the actual effect of future plans or strategies is
inherently uncertain. Factors which could have a material adverse effect on the
operations and future prospects of the Company and the subsidiaries include, but
are not limited to, changes in interest rates, general economic conditions,
legislative/regulatory changes, monetary and fiscal policies of the U.S.
Government, including policies of the U.S. Treasury and the Federal Reserve
Board, the quality or composition of the Company's loan or investment
portfolios, demand for loan products, deposit flows, competition, demand for
financial services in the Company's market area, the possible short-term
dilutive effect of potential acquisitions, and 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.
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MAF BANCORP, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
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2000 1999 2000 1999
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(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Interest income...................................................... $84,631 $68,895 $164,722 $136,333
Interest expense..................................................... 52,570 39,852 102,118 78,887
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Net interest income................................................. 32,061 29,043 62,604 57,446
Provision for loan losses............................................ 300 250 600 500
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Net interest income after provision for loan losses................. 31,761 28,793 62,004 56,946
Non-interest income:
Gain (loss) on sale of:
Loans receivable................................................. 105 382 154 1,838
Mortgage-backed securities....................................... (658) 32 (650) 36
Investment securities............................................ - - 133 538
Foreclosed real estate........................................... 132 108 204 120
Income from real estate operations.................................. 2,701 3,917 5,176 4,538
Deposit account service charges..................................... 3,100 2,541 5,670 4,746
Loan servicing fee income........................................... 473 654 1,029 1,030
Brokerage commissions............................................... 476 627 1,154 1,219
Other............................................................... 1,489 1,376 2,707 2,888
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Total non-interest income........................................ 7,818 9,637 15,577 16,953
Non-interest expense:
Compensation and benefits........................................... 10,112 9,269 20,257 18,735
Office occupancy and equipment...................................... 1,990 1,818 3,905 3,625
Federal deposit insurance premiums.................................. 149 393 296 797
Data processing..................................................... 736 600 1,452 1,191
Advertising and promotion........................................... 888 823 1,890 1,355
Amortization of goodwill ........................................... 811 650 1,495 1,300
Amortization of core deposit intangibles............................ 373 327 649 654
Other............................................................... 2,938 2,644 5,739 5,047
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Total non-interest expense....................................... 17,997 16,524 35,683 32,704
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Income before income taxes....................................... 21,582 21,906 41,898 41,195
Income taxes......................................................... 7,911 8,667 15,118 16,277
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Net income....................................................... $13,671 $13,239 $ 26,780 $ 24,918
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Basic earnings per share............................................. $ .59 $ .55 $ 1.14 $ 1.02
======= ======= ======== ========
Diluted earnings per share........................................... .58 .53 1.13 .99
======= ======= ======== ========
</TABLE>
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MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
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(UNAUDITED)
<S> <C> <C>
ASSETS
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Cash and due from banks......................................................... $ 56,534 $ 71,721
Interest-bearing deposits....................................................... 22,682 51,306
Federal funds sold.............................................................. 108,969 35,013
Investment securities, at cost (fair value of $12,388 and $12,321).............. 12,060 11,999
Investment securities available for sale, at fair value......................... 173,466 194,105
Stock in Federal Home Loan Bank of Chicago, at cost............................. 80,775 75,025
Mortgage-backed securities, at amortized cost
(fair value of $85,576 and $92,095)........................................... 88,965 94,251
Mortgage-backed securities available for sale, at fair value.................... 27,337 39,703
Loans receivable held for sale.................................................. 35,973 12,601
Loans receivable, net of allowance for losses of $17,870 and $17,276............ 4,160,524 3,871,968
Accrued interest receivable..................................................... 26,248 23,740
Foreclosed real estate.......................................................... 981 7,415
Real estate held for development or sale........................................ 10,919 15,889
Premises and equipment, net..................................................... 45,523 42,489
Other assets.................................................................... 71,111 49,640
Intangible assets, net of accumulated amortization of $12,699 and $10,555....... 71,179 61,200
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$4,993,246 $4,658,065
LIABILITIES AND STOCKHOLDERS' EQUITY
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Liabilities:
Deposits....................................................................... 2,876,553 2,699,242
Borrowed funds................................................................. 1,665,075 1,526,363
Advances by borrowers for taxes and insurance.................................. 37,785 34,767
Accrued expenses and other liabilities......................................... 54,668 44,772
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Total liabilities........................................................... 4,634,081 4,305,144
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Stockholders' equity:
Preferred stock, $.01 par value; authorized
5,000,000 shares; none outstanding - -
Common stock, $.01 par value;
80,000,000 shares authorized; 25,420,650 shares issued;
23,161,974 and 23,911,508 shares outstanding................................ 254 254
Additional paid-in capital..................................................... 197,343 194,874
Retained earnings, substantially restricted.................................... 213,506 198,156
Stock in Gain Deferral Plan; 226,640 and 223,453 shares........................ 595 511
Accumulated other comprehensive loss........................................... (3,035) (3,675)
Treasury stock, at cost; 2,485,316 and 1,732,595 shares........................ (49,498) (37,199)
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Total stockholders' equity............................................... 359,165 352,921
Commitments and contingencies................................................... __________ __________
$4,993,246 $4,658,065
</TABLE>
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MAF BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except share data)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31, JUNE 30,
2000 1999 1999
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<S> <C> <C> <C>
Book value per share....................................... $ 15.51 $ 14.76 $ 14.24
Tangible book value per share.............................. 12.43 12.20 11.74
Stockholders' equity to total assets....................... 7.19% 7.58% 8.04%
Tangible capital ratio (Bank only)......................... 6.03% 6.32% 6.53%
Core capital ratio (Bank only)............................. 6.03% 6.32% 6.53%
Risk-based capital ratio (Bank only)....................... 11.59% 12.32% 12.66%
Common shares outstanding:.................................
Actual.................................................... 23,161,974 23,911,508 24,156,627
Basic (weighted average).................................. 23,245,139 24,043,647 24,139,952
Diluted (weighted average)................................ 23,518,493 24,593,038 24,894,128
Non-performing loans....................................... $ 15,262 $ 15,645 $ 13,056
Non-performing assets...................................... 16,244 23,061 22,084
Allowance for loan losses.................................. 17,870 17,276 16,978
Non-performing loans to total loans........................ .36% .40% .38%
Non-performing assets to total assets...................... .33% .50% .52%
Allowance for loan losses to total loans................... .43% .44% .49%
Mortgage loans serviced for others......................... $ 1,247,136 $ 1,226,874 $ 1,129,715
Investment in Bank real estate subsidiaries................ 5,929 7,930 10,706
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
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2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Average balance data:
Total assets.................................. $4,903,009 $4,157,126 $4,817,044 $4,119,912
Loans receivable.............................. 4,118,049 3,457,332 4,034,245 3,410,019
Interest-earning assets....................... 4,668,637 3,934,544 4,588,169 3,898,114
Deposits...................................... 2,700,355 2,554,424 2,641,760 2,544,095
Interest-bearing liabilities.................. 4,325,660 3,626,342 4,249,779 3,589,396
Stockholders' equity.......................... 354,494 337,846 353,406 338,722
Performance ratios (annualized):...............
Return on average assets...................... 1.12% 1.27% 1.11% 1.21%
Return on average equity...................... 15.43 15.67 15.16 14.71
Average yield on interest-earning assets...... 7.26 7.00 7.19 7.00
Average cost of interest-bearing
liabilities................................ 4.87 4.41 4.82 4.43
Interest rate spread.......................... 2.39 2.59 2.37 2.57
Net interest margin........................... 2.75 2.94 2.73 2.94
Average interest-earning assets to
average interest-bearing liabilities....... 107.93 108.50 107.96 108.60
Non-interest expense to average assets........ 1.47 1.59 1.48 1.59
Non-interest expense to average assets
and loans serviced for others.............. 1.17 1.25 1.08 1.25
Efficiency ratio.............................. 45.13 42.72 45.72 44.28
Loan originations and purchases................ $ 429,323 $ 464,014 $ 736,229 $ 855,124
Loans and mortgage-backed securities
sold ......................................... 73,772 72,672 109,484 211,869
Cash dividends declared per share.............. .10 .09 .19 .16
</TABLE>
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