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MAF BANCORP REPORTS RISE IN SECOND QUARTER EARNINGS TO $.65 PER SHARE

MAF BANCORP REPORTS RISE IN SECOND QUARTER EARNINGS TO $.65 PER SHARE
 CLARENDON HILLS, Ill., Jan. 14 /PRNewswire/ -- MAF Bancorp, Inc. (NASDAQ-NMS: MAFB), the holding company of Mid America Federal Savings Bank, reported second quarter earnings of $2.3 million, or $.65 per share, up significantly from last year's $306,000, or $.09 per share. The six month earnings of $4.8 million, or $1.35 per share, were also a substantial improvement over last year's $2.0 million, or $.56 per share. Allen Koranda, chairman of the board and chief executive officer, stated, "We are pleased to report another good quarter of solid operating results and further strengthening of our balance sheet."
 A favorable interest rate environment and a substantial improvement in non-interest income were the primary reasons for the improvement in the second quarter earnings. Net interest income totalled $8.1 million compared to $7.6 million in the prior year period, a 7.1 percent increase. The bank's net interest margin improved to 2.39 percent from 2.11 percent a year ago. While the decrease in long-term interest rates resulted in a decrease in the bank's average yield on interest-earning assets to 8.98 percent from 9.81 percent a year ago, this change was more than offset by a decline in the cost of average interest-bearing liabilities to 6.59 percent from 7.58 percent.
 The bank's net interest income was reduced by a $1.5 million provision for loan losses for the current quarter compared to a $100,000 loss provision in last year's second quarter and a $500,000 loss provision established in the first quarter of fiscal 1992. Non-performing assets decreased slightly to $25.7 million, or 1.76 percent of total assets at Dec. 31, 1991 compared to $26.2 million, or 1.82 percent of total assets at Sept. 30, 1991. The increased provision was the result of management's evaluation of inherent risks within its loan portfolio, a reassessment of economic conditions which remain weaker than anticipated and a continued negative outlook for the commercial real estate sector. In addition, the loss provision reflects management's view of a regulatory environment which increasingly emphasizes the importance of building general loan loss reserves. At Dec. 31, 1991, the bank's general loan loss reserve was $3.9 million.
 Non-interest income totalled $5.1 million in the current quarter compared to $405,000 last year. The prior year period included $3.1 million in real estate and investment securities writedowns offset by a $1.0 million gain on the sale of a parcel of land. The current quarter's results included a $1.2 million gain from the sale of loan servicing rights on $119.5 million of mortgage loans serviced for others. Following this sale, the bank's loan servicing portfolio totalled $896.1 million. Koranda said, "We felt the timing was appropriate and the price was right for the sale of a small portion of our loan servicing portfolio. It allowed us to supplement our quarterly earnings and enhance our capital ratios. It also provides a clear example of how valuable these rights are, both as a liquid, saleable asset and as a component of core earnings." Although the bank's loan servicing fee income declined to $506,000 in the current quarter from $863,000 last year, this was primarily due to a writedown of $260,000 on previously capitalized excess loan servicing fees, unrelated to the servicing rights sale.
 The bank's mortgage banking activities benefited substantially from reduced interest rates and heavy loan volume as gains on sale of loans more than doubled to $1.1 million from $523,000 last year. Income from real estate operations totalled $819,000 in the quarter ended Dec. 31, 1991 compared to a loss of ($791,000) last year, as lot sale activity in the company's largest subdivision improved following the opening of a new phase of the development.
 During the quarter, the bank obtained deeds in lieu of foreclosure on two land loans to its largest borrower totalling $4.5 million, resulting in a $461,000 writedown on one of the parcels which is reflected as a reduction of non-interest income. These two loans had previously been classified as non-performing loans.
 Non-interest expense remained stable during the quarter at $7.2 million compared to $7.0 million last year, a 3.3 percent increase. Compensation and benefits expense increased by 15.0 percent due to normal salary increases, higher medical costs and increased loan officer commissions associated with the heavy loan volume. In addition, federal deposit insurance premiums were up 15.4 percent due to both deposit and premium rate increases. The increases in these two categories were largely offset by declines in data processing expense and other non- interest expense. The bank also recorded a $343,000 extraordinary credit in the current quarter resulting from the utilization of tax loss carryforwards to reduce state income taxes.
 Earnings for the six month period ended Dec. 31, 1991 reflected strong core banking profits as net interest income after provision for loan losses remained essentially unchanged at $14.4 million compared to $14.6 million last year, despite an increase in the loan loss provision to $2.0 million from $350,000 last year. Loan sales profits totalled $1.7 million compared to $862,000 in the comparable prior year period. While last year's six month results included the real estate and investment securities writedowns recorded in that period's second quarter, the current period showed improved profits from real estate operations and higher fee income generated from Bank products and services. Non-interest expense increased only 3.3 percent between the comparable six month periods largely due to the same reasons as for the second quarter.
 On an annualized basis, the six month earnings total resulted in a return on average equity equal to 15.15 percent and a return on average assets of .65 percent.
 At Dec. 31, 1991, total assets were $1.46 billion, virtually unchanged from the $1.47 billion at fiscal year ended June 30, 1991. Deposits decreased to $1.23 billion compared to $1.24 billion at June 30, 1991. Stockholders' equity totalled $64.8 million resulting in a tangible book value per share of $18.36. The bank's tangible, core and risk-based capital percentages were 4.03 percent, 4.03 percent and 8.30 percent, respectively, compared to federal requirements of 1.50 percent, 3.00 percent and 7.20 percent, respectively.
 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
 (Dollars in thousands, except per share data -- Unaudited)
 Periods ended Three Months Six Months
 Dec. 31 1991 1990 1991 1990
 Interest income $30,756 $35,183 $62,629 $71,567
 Interest expense 22,662 27,624 46,262 56,629
 Net interest income 8,094 7,559 16,367 14,938
 Provision for loan losses 1,500 100 2,000 350
 Net interest income after provision
 for loan losses 6,594 7,459 14,367 14,588
 Non-interest income:
 Gain (loss) on sale of:
 Loans receivable 1,127 523 1,680 862
 Mortgage-backed
 securities 398 48 395 78
 Loan Servicing Rights 1,200 0 1,200 0
 Gain (loss) on sale of and writedown
 of investment securities 68 (449) 68 (681)
 Income (loss) from real estate
 operations 819 (791) 1,168 (723)
 Loss on sale and writedown of
 foreclosed real estate (439) (900) (422) (906)
 Loan servicing fee income 506 863 1,372 1,707
 Deposit account service
 charges 547 430 1,110 859
 Other 916 681 1,850 1,534
 Total non-interest income 5,142 405 8,421 2,730
 Non-interest expense:
 Compensation and
 benefits 4,155 3,613 8,173 7,363
 Office occupancy
 and equipment 905 894 1,810 1,810
 Federal deposit
 insurance premiums 676 586 1,353 1,173
 Data processing 383 531 791 1,053
 Other 1,097 1,359 2,186 2,456
 Total non-interest
 expense 7,216 6,983 14,313 13,855
 Income before income taxes and
 extraordinary item 4,520 881 8,475 3,463
 Income taxes 2,559 575 4,240 1,506
 Income before
 extraordinary item 1,961 306 4,235 1,957
 Extraordinary item - Tax benefit
 arising from utilization of loss
 carryforwards 343 0 516 0
 Net income $2,304 $306 $4,751 $1,957
 Earnings per share:
 Income before
 extraordinary item $.55 $.09 $1.20 $.56
 Extraordinary item .10 - .15 -
 Net income $.65 $ .09 $1.35 $ .56
 MAF BANCORP, INC.
 Selected Financial Data
 (In thousands, except per share data -- Unaudited)
 Periods ended 12/31/91 6/30/91
 Total assets $1,462,672 1,473,033
 Cash and investment securities 152,868 201,575
 Mortgage-backed securities 280,195 249,320
 Loans receivable, net 962,359 952,361
 Real estate held for development or sale 18,016 20,427
 Deposits 1,232,066 1,237,464
 Borrowed Funds 143,637 152,552
 Stockholders' equity 64,786 59,766
 Book value per share 18.36 16.95
 Stockholders' equity to
 total assets (in percents) 4.43 4.06
 Tangible capital
 ratio (Bank only -- in percents) 4.03 3.87(a)
 Core capital ratio
 (Bank only -- in percents) 4.03 3.87(a)
 Risk-based capital ratio
 (Bank only -- in percents) 8.30 7.82(a)
 Common shares outstanding:
 Weighted average for
 three month period 3,527,680 3,525,000
 At end of period 3,528,934 3,525,000
 Non-performing loans $16,697 21,712
 Non-performing assets 25,687 26,555
 Allowance for loan losses 3,879 1,888
 Non-performing loans
 to total loans (in percents) 1.87 2.38
 Non-performing assets
 to total assets (in percents) 1.76 1.80
 Allowance for loan losses
 to total loans (in percents) .43 .20
 Mortgage loans serviced for others $ 896,139 999,930
 Investment in real estate subsidiary 21,244 21,895
 Six months ended Year ended
 12/31/91 6/30/91
 Performance ratios, annualized:
 Return on average assets .65 pct. .33 pct.
 Return on average equity 15.15 pct. 8.67 pct.
 Average yield on earning assets 9.13 pct. 9.71 pct.
 Average cost of interest-bearing
 liabilities 6.72 pct. 7.43 pct.
 Interest rate spread 2.41 pct. 2.28 pct.
 Net interest margin 2.41 pct. 2.23 pct.
 Average interest-earning assets to average
 interest-bearing liabilities 100.22 pct. 99.31 pct.
 Non-interest expense to average
 assets 1.97 pct. 1.86 pct.
 Non-interest expense to average assets
 and loans serviced for others 1.16 pct. 1.15 pct.
 Loan originations $293,268 466,830
 Loans and mortgage-backed securities
 sold 133,688 265,929
 (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- 1/14/92
 /CONTACT: Allen H. Koranda, chairman, or Jerry Weberling, chief financial officer, 708-325-7300, both of MAF Bancorp/
 (MAFB) CO: MAF Bancorp, Inc. ST: Illinois IN: FIN SU: ERN SM -- NY075 -- 9771 01/14/92 17:51 EST
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