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MAF BANCORP REPORTS 25 PERCENT RISE IN THIRD QUARTER EARNINGS, 83 PERCENT INCREASE IN YEAR-TO-DATE EARNINGS

 MAF BANCORP REPORTS 25 PERCENT RISE IN THIRD QUARTER EARNINGS,
 83 PERCENT INCREASE IN YEAR-TO-DATE EARNINGS
 CLARENDON HILLS, Ill., April 15 /PRNewswire/ -- MAF Bancorp, Inc. (NASDAQ-NMS: MAFB), the holding company of Mid America Federal Savings Bank, today reported an increase in third quarter earnings to $2.5 million, or $.71 per share, compared to $2.0 million, or $.57 per share, in last year's third quarter. Earnings for the nine months ended March 31, 1992, totaled $7.3 million, or $2.06 per share, compared to $4.0 million, or $1.13 per share, last year.
 Positive results in third quarter net interest income, mortgage banking activities and land development sales were the primary factors in the improved operating performance. Allen Koranda, chairman of the board and chief executive officer, commented, "We are very pleased with the company's overall performance as all of our basic businesses posted solid results. The year-to-date return on equity of 15.1 percent exceeds the 13 percent goal we established at the beginning of the year."
 The continued decline in interest rates helped boost the bank's net interest income to $9.5 million in the quarter ended March 31, 1992, compared to $8.2 million in last year's third quarter, a 15.3 percent increase. The bank's net interest margin improved to 2.74 percent for the current three-month period compared to 2.38 percent in last year's comparable period and 2.44 percent and 2.39 percent in the first two quarters of this year. The bank's cost of average interest-bearing liabilities continued to fall at a faster pace than the decline in the yield on average interest-earning assets. The yield on average interest-earning assets declined by 89 basis points for the three months ended March 31, 1992, compared to the prior year period, while the average cost of funds declined by 122 basis points between the same two periods.
 The bank recorded a provision for loan losses of $1.3 million in the third quarter of this year compared to $100,000 in last year's period. Charge-offs during the current quarter were $262,000 compared to $0 in the prior year period. The larger provision for losses is a function of the continued negative outlook for commercial real estate, the weaker- than-expected recovery and the higher level of charge-offs. Non- performing assets remained stable during the quarter at $25.2 million, or 1.69 percent of total assets, compared to $25.7 million, or 1.76 percent of total assets, at Dec. 31, 1991. At March 31, 1992, the bank's general loan loss reserve totaled $4.9 million, equal to .50 percent of total loans receivable.
 Non-interest income doubled to $4.0 million in the current quarter compared to $2.0 million in last year's third quarter. Interest rates declining to near 20-year lows have fueled a refinancing boom resulting in a record volume of loans being closed in the third quarter, yielding substantial loan sale gains through the bank's mortgage banking operations. Gains on loans and mortgage-backed securities totaled $1.1 million in the current quarter compared to $278,000 for the quarter ended March 31, 1991. New loan volume totaled $219.7 million in the current quarter compared to $104.7 million in the same period last year.
 A considerable improvement in sales in the bank's real estate development projects helped increase income from real estate operations to $664,000 for the third quarter of this year compared with a loss of $6,000 in last year's comparable period. Mid America Developments, the bank's wholly owned subsidiary, closed 68 lot sales during the quarter and 49 contracts are pending as of March 31, 1992.
 Non-interest expense increased 10.6 percent to $7.8 million in the current quarter, from $7.0 million last year. The increase was attributable to higher loan officer commissions and other compensation payments generated from the record loan volume, as well as increases in other benefits expense. The bank also recorded am extraordinary credit of $296,000 in the current quarter, equal to $.08 per share, which resulted from income tax benefits generated from the utilization of a state net operating loss carryforward.
 The improvement in earnings for the nine-month period was achieved despite a $2.9 million increase in the provision for loan losses during the current period as compared to last year's nine-month period. Increases of $2.7 million in net interest income and $7.7 million in non-interest income over last year's totals accounted for the substantial improvement in earnings. The rise in net interest income resulted principally from a favorable interest rate environment and more aggressive deposit liability pricing, which helped to expand the bank's interest rate spread. The increase in non-interest income was attributable to a substantial improvement in loan sale and real estate profits and a $1.3 million gain from the sale of loan servicing rights. Additionally, last year's non-interest income total was reduced by certain non-recurring real estate and investment security writedowns.
 At March 31, 1992, total assets were $1.49 billion, up slightly from the $1.46 billion at Dec. 31, 1991. Although the balance of loans receivable remained steady at $965.6 million, mortgage-backed securities increased to $309.2 million compared to $280.1 million at Dec. 31, 1991. The progress made in real estate sales helped reduce the balance of real estate held for development or sale to $15.2 million, down from $18.0 million three months ago.
 Total deposits remained stable at $1.25 billion compared to $1.23 billion at Dec. 31, 1991. Stockholders' equity increased to $67.5 million, resulting in a fully diluted tangible book value per share of $18.66. The bank's tangible, core and risk-based capital percentages were 4.16 percent, 4.16 percent and 8.73 percent, respectively, compared to federal requirements of 1.50 percent, 3.00 percent and 7.20 percent. The Office of Thrift Supervision completed its regularly scheduled examination of the bank during the third quarter.
 Mid America Federal Savings Bank is a federally chartered stock savings bank. The bank operates a network of 13 retail banking offices primarily in the western suburbs of Chicago.
 MAF BANCORP, INC.
 Results of Operations (Unaudited)
 (Dollars in thousands, except per share data)
 Periods ended Three Months Nine Months
 March 31 1992 1991 1992 1991
 Interest income $30,327 $33,489 $92,956 $105,056
 Interest expense 20,831 25,251 67,093 81,880
 Net interest income 9,496 8,238 25,863 23,176
 Provision for loan losses 1,300 100 3,300 450
 Net interest income after
 provision for loan losses 8,196 8,138 22,563 22,726
 Non-interest income:
 Gain on sale of:
 Loans receivable 987 250 2,667 1,112
 Mortgage-backed securities 155 28 550 106
 Loan servicing rights 96 -- 1,296 --
 Gain (loss) on sale and
 writedown of investment
 securities -- (361) 68 (1,042)
 Income (loss) from real
 estate operations 664 (6) 1,832 (729)
 Gain (loss) on sale and
 writedown of foreclosed
 real estate 1 (2) (421) (908)
 Loan servicing fee income 682 876 2,054 2,583
 Deposit account service
 charges 515 409 1,625 1,267
 Other 866 809 2,716 2,344
 Total non-interest income 3,966 2,003 12,387 4,733
 Non-interest expense:
 Compensation and benefits 4,789 3,787 12,962 11,150
 Office occupancy and
 equipment 1,031 922 2,841 2,732
 Federal deposit insurance
 premiums 673 650 2,026 1,823
 Data processing 394 503 1,185 1,556
 Other 907 1,185 3,093 3,641
 Total non-interest expense 7,794 7,047 22,107 20,902
 Income before income taxes
 and extraordinary item 4,368 3,094 12,843 6,557
 Income taxes 2,151 1,081 6,391 2,587
 Inc. before extraord. item 2,217 2,013 6,452 3,970
 Extraord. item - tax benefit
 arising from utilization
 of loss carryforwards 296 -- 812 --
 Net income $ 2,513 $ 2,013 $ 7,264 $ 3,970
 Earnings per share:
 Inc. before extraord. item $.63 $.57 $1.83 $1.13
 Extraordinary item .08 -- .23 --
 Net income $.71 $.57 $2.06 $1.13
 MAF BANCORP, INC.
 Selected Financial Data (Unaudited)
 (In thousands, except per share data)
 3/31/92 6/30/91
 Total assets $1,488,781 $1,473,033
 Cash and investment securities 148,653 201,575
 Mortgage-backed securities 309,231 249,320
 Loans receivable, net 965,613 952,361
 Real estate held for development or sale 15,244 20,427
 Deposits 1,251,962 1,237,464
 Borrowed funds 138,388 152,552
 Stockholders' equity $ 67,483 $ 59,766
 Tangible book value per share $19.10 $16.95
 Tangible book value per share
 (fully diluted) $18.66 $16.95
 Stockholders' equity to total assets (pct) 4.53 4.06
 Tangible capital ratio (bank only) 4.16 3.87(A)
 Core capital ratio (bank only) 4.16 3.87(A)
 Risk-based capital ratio (bank only) 8.73 7.82(A)
 Common shares outstanding:
 Weighted average for three-month period 3,529,954 3,525,000
 At end of period 3,533,256 3,525,000
 Non-performing loans $ 16,354 $ 21,712
 Non-performing assets 25,215 26,555
 Allowance for loan losses $ 4,919 $ 1,888
 Non-performing loans to total loans
 (pct) 1.80 2.38
 Non-performing assets to total assets
 (pct) 1.69 1.80
 Allowance for loan losses to total
 loans (pct) .50 .20
 Mortgage loans serviced for others $ 884,667 $ 999,930
 Investment in real estate subsidiary $ 19,741 $ 21,895
 Nine Months ended Year ended
 3/31/92 6/30/91
 Performance ratios, annualized (pct):
 Return on average assets .66 .33
 Return on average equity 15.13 8.67
 Average yield on earning assets 9.00 9.71
 Average cost of interest-bearing
 liabilities 6.71 7.61
 Interest rate spread 2.29 2.10
 Net interest margin 2.53 2.23
 Average interest-earning assets to
 average interest-bearing liabilities 103.67 101.73
 Non-interest expense to average assets 2.01 1.86
 Non-interest expense to average assets
 and loans serviced for others 1.21 1.15
 Loans originations $ 512,951 $ 466,830
 Loans and mortgage-backed securities
 sold $ 234,208 $ 265,929
 (A) -- As of July 1, 1991, the tangible, core and risk-based capital ratios decreased to 3.66 percent, 3.66 percent and 7.42 percent, respectively, as a result of an increase in the transitional deduction for investment in real estate activities from 10 percent to 25 percent.
 -0- 4/15/92
 /CONTACT: Allen H. Koranda, chairman, or Jerry A. Weberling, CFO of MAF Bancorp, 708-325-7300/
 (MAFB) CO: MAF Bancorp, Inc. ST: Illinois IN: FIN SU: ERN


GK -- NY086 -- 8779 04/15/92 14:10 EDT
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