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MAF BANCORP REPORTS SHARP RISE IN SECOND QUARTER EARNINGS

 CLARENDON HILLS, Ill., Jan. 19 /PRNewswire/ -- MAF Bancorp, Inc. (NASDAQ-NMS: MAFB), the holding company of Mid America Federal Savings Bank, announced today that earnings for the second quarter ended Dec. 31, 1992 were up nearly 40 percent over the year ago quarter, totalling $3.2 million, or $.86 per fully diluted share, compared to $2.3 million, or $.65 per share in the last year's second quarter. The results for the prior year quarter included a $.10 per share extraordinary gain. The current quarter's operating earnings were the highest quarterly results since the company went public in January 1990. The record earnings reflected substantially stronger net interest income results, lower operating expenses and a smaller effective tax rate, offset by a decline in non-interest income.
 The improved earnings resulted from higher net interest income, which totalled $9.6 million, versus $8.1 million for the quarter ended Dec. 31, 1991, an increase of 18.5 percent. This substantial increase reflected an increase in the Bank's net interest margin to 2.64 percent from 2.39 percent a year ago, an improvement which was largely driven by an expansion in the level of net interest-earning assets. The ratio of average interest-earning assets to average interest-bearing liabilities was 105.5 percent for the current quarter, compared to 102.9 percent for the quarter ended Dec. 31, 1991. The current quarter's net interest margin of 2.64 percent also was a slight improvement over the net interest margin for the first quarter of this fiscal year which was 2.60 percent.
 The provision for loan losses was $600,000 in the current quarter compared to $1.5 million in the year ago quarter. The Bank's non- performing assets decreased by nearly 15 percent during the second quarter, to $20.9 million, or 1.36 percent of total assets at Dec. 31, 1992, compared to $24.5 million, or 1.61 percent of total assets, three months ago and $25.7 million, or 1.76 percent of total assets, one year ago. The decline in problem assets was largely attributable to the sale and writedown of certain foreclosed real estate. Approximately one third, or $7.0 million of the Bank's remaining problem assets represent restructured or renegotiated loans which carry a weighted average yield of 6.87 percent. The allowance for loan losses stood at $7.0 million at Dec. 31, 1992, equal to .71 percent of total loans.
 Non-interest income totalled $3.2 million in the quarter ended Dec. 31, 1992, down by $2.0 million from the year earlier level. The Bank recorded writedowns of $1.1 million on foreclosed real estate during the quarter, most of which was attributable to the Bank's largest commercial office building held in foreclosed real estate. This writedown was based on the Bank obtaining a new appraisal on this property. Non-interest income also reflected writedowns of $860,000 on the Bank's only two high-risk mortgage derivative securities. These writedowns are attributed to the extremely high level of prepayments on the underlying mortgage collateral which impaired the value of these interest-only and residual securities. The carrying value of these securities after the writedowns was $544,000.
 The foreclosed real estate and investment securities writedowns were largely offset by excellent real estate development profits which totalled $2.0 million in the current quarter. The company closed 116 lot sales in the quarter, all of which were in the 1,115-lot Ashbury subdivision, the company's largest remaining development. This project is now 50 percent sold out despite being open for only four building seasons during a less than robust housing market. Additionally, non-interest income continued to reflect strong loan sale profits from the Bank's mortgage banking operation as gains totalled $1.1 million, consistent with fiscal 1993's first quarter total of $1.2 million but down from last year's second quarter level of $1.5 million. Mortgage loan volume totalled $224 million in the second quarter, compared to $159 million in the comparable period last year. Last year's second quarter non-interest income results also included a one-time non- recurring gain of $1.2 million from the sale of loan servicing rights.
 Non-interest expense totalled $7.0 million in the current quarter, compared to $7.2 million for the quarter ended Dec. 31, 1991. The decline was attributable to a decline in compensation and benefits expense as the other major categories of expenses showed only modest increases or decreases. The company's net effective tax rate declined to 38.4 percent in the current quarter compared to 49.0 percent in last year's second quarter, reflecting the adoption of a new income tax accounting pronouncement in this fiscal year. In addition, the Bank was recently informed by the FDIC that its 1993 deposit insurance premium rate will remain at .23 percent, reflecting the Bank's regulatory ranking in the highest of nine categories.
 Operating earnings for the six months ended Dec. 31, 1992 totalled $6.2 million or $1.68 per fully diluted share compared to $4.2 million, or $1.20 per share for the six months ended Dec. 31, 1991. Improvements in net interest income were offset by declines in non-interest income. Net interest income, after provision for loan losses, totalled $17.5 million, up 21.7 percent from the $14.4 million reported for the six months ended Dec. 31, 1991. Non-interest income was $6.6 million in the current six-month period, down $1.8 million from the year earlier period, largely the result of the foreclosed real estate and investment securities writedowns recorded this year and the gain on the loan servicing rights sale last year, offset by a substantial improvement in income from real estate operations. During this year's first quarter, the company also adopted the Financial Accounting Standard Board's new income tax accounting policy, which added $1.25 million, or $.34 per share to the company's earnings for the six months ended Dec. 31, 1992, resulting in reported earnings of $2.02 per share for this period. The company's annualized return on assets and return on equity for the six months ended Dec. 31, 1992 were .89 percent, and 18.23 percent, respectively.
 Total assets at Dec. 31, 1992 were $1.54 billion, an increase of $25.8 million from June 30, 1992, the company's fiscal year end. Total deposits at Dec. 31, 1992 were $1.29 billion, up $19.4 million from the June 30, 1992 level. The Bank's tangible, core and risk-based capital ratios were 5.41 percent, 5.41 percent and 11.58 percent at Dec. 31, 1992 respectively, exceeding all current and fully phased-in capital requirements. Total stockholders' equity, all of which is tangible, was $78.1 million at Dec. 31, 1992 resulting in a tangible book value per share of $21.98.
 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. The stock of MAF Bancorp, Inc., is quoted on the NASDAQ National Market System under the symbol MAFB.
 MAF BANCORP, INC.
 Results of Operations
 (Unaudited, dollars in thousands, except per share data)
 Periods ended Three months Six months
 Dec. 31, 1992 1991 1992 1991
 Interest income $ 28,408 30,756 57,770 62,629
 Interest expense 18,816 22,662 38,790 46,262
 Net interest income 9,592 8,094 18,980 16,367
 Provision for loan losses 600 1,500 1,500 2,000
 Net interest income
 after provision for
 loan losses 8,992 6,594 17,480 14,367
 Non-interest income:
 Gain (loss) on sale of:
 Loans receivable 1,128 1,127 2,247 1,680
 Mortgage-backed
 securities (11) 398 104 395
 Loan servicing rights -- 1,200 -- 1,200
 Gain (loss) on sale and
 writedown of investment
 securities (860) 68 (860) 68
 Income from real
 estate operations 2,023 819 2,310 1,168
 Loss on sale and
 writedown of foreclosed
 real estate (1,040) (439) (1,184) (422)
 Loan servicing fee income 622 506 1,283 1,372
 Deposit account
 service charges 530 547 1,104 1,110
 Brokerage commissions 432 410 927 766
 Other 361 506 710 1,084
 Total non-interest income 3,185 5,142 6,641 8,421
 Non-interest expense:
 Compensation and benefits 3,632 3,767 7,383 7,494
 Office occupancy
 and equipment 867 905 1,821 1,810
 Federal deposit
 insurance premiums 700 676 1,399 1,353
 Data processing 382 367 694 763
 Other 1,404 1,501 2,736 2,893
 Total non-interest
 expense 6,985 7,216 14,033 14,313
 Income before income
 taxes, extraordinary
 item and change in
 accounting principle 5,192 4,520 10,088 8,475
 Income taxes 1,996 2,559 3,869 4,240
 Income before
 extraordinary item 3,196 1,961 6,219 4,235
 Extraordinary item --
 tax benefit arising from
 utilization of loss
 carryforwards -- 343 -- 516
 Cumulative effect of change
 in accounting for income
 taxes -- -- 1,250 --
 Net income $ 3,196 2,304 7,469 4,751
 Primary earnings per share:
 Income before
 extraordinary item $ .86 $ .55 $1.68 $1.20
 Extraordinary item -- .10 -- .15
 Cumulative effect of change
 in accounting for income
 taxes -- -- .34 --
 Net income $ .86 $ .65 $2.02 $1.35
 Fully diluted earnings
 per share:
 Income before
 extraordinary item $ .86 $ .55 $1.68 $1.20
 Extraordinary item -- .10 -- .15
 Cumulative effect of
 change in accounting
 for income taxes -- -- .34 --
 Net income $ .86 $ .65 $2.02 $1.35
 MAF BANCORP, INC.
 Selected Financial Data
 (Unaudited, dollars in thousands, except share data)
 12/31/92 6/30/92
 Total assets $ 1,539,143 $ 1,513,331
 Cash and investment
 securities 175,489 183,093
 Mortgage-backed securities 330,203 321,625
 Loans receivable, net 972,897 945,769
 Real estate held for
 development or sale 11,883 13,956
 Deposits 1,287,995 1,268,557
 Borrowed funds 122,151 130,905
 Subordinated capital notes 19,932 19,915
 Stockholders' equity 78,078 70,202
 Tangible book value per share 21.98 19.85
 Stockholders' equity to
 total assets (as a percent) 5.07 4.64
 Tangible capital ratio
 (Bank Only) 5.41 5.28
 Core capital ratio (Bank Only) 5.41 5.28
 Risk-based capital ratio
 (Bank Only) 11.58 11.06
 Shares outstanding:
 Actual 3,552,070 3,536,907
 Primary (weighted average) 3,714,241 3,577,359
 Fully diluted
 (weighted average) 3,731,002 3,645,450
 Non-performing loans $ 13,523 14,344
 Non-performing assets 20,897 24,176
 Allowance for loan losses 7,044 5,736
 Non-performing loans to total
 loans (as a percent) 1.48 1.58
 Non-performing assets to total
 assets (as a percent) 1.36 1.60
 Allowance for loan losses to
 total loans (as a percent) .71 .60
 Mortgage loans serviced
 for others 835,108 877,649
 Investment in real
 estate subsidiary 20,098 18,155
 Periods ended Six months Year
 12/31/92 12/31/91 6/30/92
 Performance ratios (annualized)
 (As a percent):
 Return on average assets .89(A) .65 .67
 Return on average equity 18.23(A) 15.15 15.03
 Average yield on earning assets 7.96 9.13 8.85
 Average cost of interest-bearing
 liabilities 5.60 6.89 6.54
 Interest rate spread 2.36 2.24 2.31
 Net interest margin 2.62 2.39 2.55
 Average interest-earning
 assets to average interest-
 bearing liabilities 105.22 102.84 103.75
 Non-interest expense to average
 assets 1.83 1.97 2.02
 Non-interest expense to average
 assets and loans serviced for
 others 1.18 1.16 1.23
 Loans originations $424,321 $293,268 $650,793
 Loans and mortgage-backed
 securities sold 160,661 133,688 299,763
 (A) -- Income from cumulative effect of change in accounting for income taxes has not been annualized.
 -0- 1/19/93
 /CONTACT: Allen H. Koranda, chairman, or Jerry A. Weberling, chief financial officer of MAF Bancorp, Inc., 708-325-7300/
 (MAFB)


CO: MAF Bancorp, Inc. ST: Illinois IN: FIN SU: ERN

TS -- NY038 -- 6257 01/19/93 11:07 EST
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