Chicago's MAF Bancorp to purhcase St. Francis Bank

Northwestern Financial Review, Jul 1-Jul 14, 2003

Chicago-based MAF Bancorp, the parent company of Mid America Bank, has agreed to acquire St. Francis Bank, Brookfield, Wis. St. Francis, with assets of $2.3 billion, has 22 branch offices in Milwaukee and its surrounding areas. Both banks' boards of directors have approved a definitive agreement.

Based on the closing price of MAF common stock on May 20, 2003, the transaction has a value of $264 million. Following the completion of the St. Francis acquisition and the previously announced acquisition of Chicago-based Fidelity Bancorp, MAF will have assets of more than $9 billion and a market capitalization of approximately $1.1 billion.

The transaction is expected to close in the fourth quarter. In connection with the merger, St. Francis Bank will be merged with Mid America Bank. MAF plans to operate in the Milwaukee area under the St. Francis name following the merger.

"This is an excellent opportunity to acquire a quality company that gives us a significant entry into an attractive, adjacent new market," said Alien Koranda, chairman of the board and CEO of MAF Bancorp. "Milwaukee is the largest major metropolitan market nearest to Chicago, and the two cities are separated by only 80 miles. St. Francis is a strong competitor, holding the No. 5 deposit market share in the Milwaukee area. We believe the franchise is well positioned to take advantage of opportunities in the city's many attractive markets, offering us a great deal of potential for future growth."

Koranda indicated that no St. Francis branch offices would be closed following the merger.

In conjunction with the agreement, MAF also announced that Mid America Bank has made a commitment to provide $500 million in loans over the next five years to Milwaukee area communities and neighborhoods with predominantly minority populations, to residents of low- to moderate-income census tracts, and to people whose income is below 80 percent of median income. The $500 million loan commitment will target one- to four-family and multi-family residential lending initiatives. The program will begin following the closing of the St. Francis transaction. The combined bank will preserve and add to the community lending programs and home buying counseling which St. Francis presently offers. Additionally, Mid America Bank will continue the support of local housing groups.

Mid America bank has assets of $6 billion and 34 retail banking offices primarily in Chicago and its western suburbs.