----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| (Mark                one) |                                                                                                                  |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------|
| ý                    |  QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d)                                                 |
|                      |  OF                THE SECURITIES EXCHANGE ACT OF 1934                                                           |
|                      |                                                                                                                  |
|                      | ** For                the quarterly period ended June 30, 2007**                                                 |
|                      |                                                                                                                  |
|                      |  Or                                                                                                              |
|                      |                                                                                                                  |
|  ̈                    |  TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d)                                                |
|                      |  OF                THE SECURITIES EXCHANGE ACT OF 1934                                                           |
|                      |  For                the transition period from                        to |

**Commission      file number 0-18121**

** MAF      BANCORP, INC.**

| **Delaware**                                            | **36-3664868**                     |
|---------------------------------------------------------|------------------------------------|
| (State                of Incorporation)                 | (I.R.S.                Employer    |
|                                                    | Identification                No.) |
|                                                    |                               |
| **55th                Street & Holmes Avenue**      |                               |
| **Clarendon                Hills, Illinois**            | **60514-1500**                     |
| (Address                of Principal Executive Offices) | (Zip                Code)          |

**(630) 325-7300**

| Large                accelerated filer ý |   | Accelerated                filer  ̈ |   | Non-accelerated                filer   ̈ |
|-----------------------------------------------|--------|-----------------------------------------|--------|--------------------------------------------------------|

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**TABLE      OF CONTENTS**

**Page**

| **PART                  I.   FINANCIAL                  INFORMATION**                                                             | **3**  |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                             |   |
| Item                  1.  Financial                  Statements                                                                        | 3      |
| Item                  2.  Management’s Discussion and Analysis                  of Financial Condition and Results of Operations | 15     |
| Item                  3.  Quantitative and Qualitative                  Disclosures About Market Risk                                  | 34     |
| Item                  4.  Controls and                  Procedures                                                                     | 34     |
|                                                                                                                                             |   |
| **PART                  II. OTHER INFORMATION**                                                                                                  | **35** |
|                                                                                                                                             |   |
| Item                  1. Legal                  Proceedings.                                                                                | 35     |
| Item                  1A.Risk Factors                                                                                                            | 35     |
| Item                  2.  Unregistered Sales of Equity                  Securities and Use of Proceeds                                 | 35     |
| Item                  3.  Defaults Upon Senior                  Securities                                                             | 35     |
| Item                  4.  Submission of Matters to a Vote of                  Security Holders                                         | 35     |
| Item                  5.  Other Information                                                                                            | 35     |
| Item                  6.  Exhibits                                                                                                     | 35     |
| SIGNATURES                                                                                                                                       | 37     |

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*Table          of Contents*

**Part      I.  Financial      Information**

**Item      1.  Financial Statements**

**MAF      BANCORP, INC. AND SUBSIDIARIES**

**Consolidated      Statements of Financial Condition**

|                                                                                                                                                             |   | **June                30,** |       |   | **December                31,** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|---------------------------------|--------|
|                                                                                                                                                             |   | **2007**                    |       |   | **2006**                        |   |
|                                                                                                                                                             |   |                        |       |   |                            |   |
| **Assets**                                                                                                                                                       |   |                        |       |   |                            |   |
| Cash                and due from banks                                                                                                                           |   | $                           | 202,956    |   |                            |   | 198,391 |   |
| Interest-bearing                deposits                                                                                                                         |   |                        | 84,844     |   |                            |   | 67,883 |   |
| Federal                funds sold                                                                                                                                |   |                        | 141,805    |   |                            |   | 64,944 |   |
| Total                cash and cash equivalents                                                                                                                   |   |                        | 429,605    |   |                            |   | 331,218 |   |
| Investment                securities available for sale, at fair value                                                                                           |   |                        | 265,831    |   |                            |   | 529,998 |   |
| Stock                in Federal Home Loan Bank of Chicago, at cost                                                                                               |   |                        | 146,407    |   |                            |   | 146,407 |   |
| Mortgage-backed                securities available for sale, at fair value                                                                                      |   |                        | 1,167,821  |   |                            |   | 1,195,494 |   |
| Mortgage-backed                securities held to maturity (fair value $187,678 and                $205,620)                                                     |   |                        | 196,656    |   |                            |   | 212,302 |   |
| Loans                receivable held for sale                                                                                                                    |   |                        | 39,828     |   |                            |   | 331,961 |   |
| Loans                receivable, net                                                                                                                             |   |                        | 7,153,653  |   |                            |   | 7,448,591 |   |
| Allowance                for loan losses                                                                                                                         |   |                        | (40,742    | )      |                            |   | (39,931 | ) |
| Loans                receivable, net of allowance for loan losses                                                                                                |   |                        | 7,112,911  |   |                            |   | 7,408,660 |   |
| Accrued                interest receivable                                                                                                                       |   |                        | 45,286     |   |                            |   | 50,372 |   |
| Foreclosed                real estate                                                                                                                            |   |                        | 7,050      |   |                            |   | 3,942 |   |
| Real                estate held for development or sale                                                                                                          |   |                        | 87,657     |   |                            |   | 83,049 |   |
| Premises                and equipment, net                                                                                                                       |   |                        | 167,126    |   |                            |   | 174,474 |   |
| Bank-owned                life insurance                                                                                                                         |   |                        | 153,197    |   |                            |   | 149,497 |   |
| Goodwill                                                                                                                                                         |   |                        | 386,526    |   |                            |   | 387,980 |   |
| Intangibles,                net                                                                                                                                  |   |                        | 36,660     |   |                            |   | 36,882 |   |
| Other                assets                                                                                                                                      |   |                        | 75,141     |   |                            |   | 78,263 |   |
| Total                assets                                                                                                                                      |   | $                           | 10,317,702 |   |                            |   | 11,120,499 |   |
|                                                                                                                                                             |   |                        |       |   |                            |   |   |   |
| **Liabilities                and Stockholders’ Equity**                                                                                                    |   |                        |       |   |                            |   |   |   |
| **Liabilities**                                                                                                                                                  |   |                        |       |   |                            |   |   |   |
| Deposits                                                                                                                                                         |   | $                           | 7,215,593  |   |                            |   | 7,018,010 |   |
| Borrowed                funds                                                                                                                                    |   |                        | 1,731,382  |   |                            |   | 2,773,192 |   |
| Junior                subordinated debentures                                                                                                                    |   |                        | 67,011     |   |                            |   | 67,011 |   |
| Advances                by borrowers for taxes and insurance                                                                                                     |   |                        | 48,486     |   |                            |   | 44,115 |   |
| Accrued                expenses and other liabilities                                                                                                            |   |                        | 158,718    |   |                            |   | 146,026 |   |
| Total                liabilities                                                                                                                                 |   |                        | 9,221,190  |   |                            |   | 10,048,354 |   |
| **Stockholders’                equity**                                                                                                                    |   |                        |       |   |                            |   |   |   |
| Preferred                stock, $.01 par value; authorized 5,000,000 shares; noneissued                or                outstanding                             |   |                        | –    |   |                            |   | – |   |
| Common                stock, $.01 par value; 80,000,000 shares authorized; 34,499,494 shares                issued; 33,080,150 and 32,895,846 shares outstanding |   |                        | 345        |   |                            |   | 345 |   |
| Additional                paid-in capital                                                                                                                        |   |                        | 570,362    |   |                            |   | 569,142 |   |
| Retained                earnings, substantially restricted                                                                                                       |   |                        | 600,742    |   |                            |   | 579,651 |   |
| Accumulated                other comprehensive loss, net of tax                                                                                                  |   |                        | (14,251    | )      |                            |   | (8,476 | ) |
| Treasury                stock, at cost; 1,419,344 and 1,603,648 shares                                                                                           |   |                        | (60,686    | )      |                            |   | (68,517 | ) |
| Total                stockholders’ equity                                                                                                                  |   |                        | 1,096,512  |   |                            |   | 1,072,145 |   |
| Total                liabilities and stockholders’ equity                                                                                                  |   | $                           | 10,317,702 |   |                            |   | 11,120,499 |   |

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*Table          of Contents*

**MAF      BANCORP, INC. AND SUBSIDIARIES**

**Consolidated      Statements of Operations**

|                                                                              |   | **Three                  Months Ended****June                  30,** |       |   | **Six                  Months Ended****June                  30,** |   |
|-----------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|------------|--------|--------------------------------------------------------------------|--------|
|                                                                              |   | **2007**                                                             |       |   | **2006**                                                           |   |   | **2007** |   |   | **2006** |   |
|                                                                              |   | **(Unaudited)**                                                      |       |
|                                                                              |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |
| Interest                income:                                                   |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |
| Loans                receivable                                                   |   | $                                                                    | 116,502    |   |                                                               |   | 123,575 |   |   | $ | 235,565 |   |   |   | 239,361 |   |
| Mortgage-backed                securities                available for sale       |   |                                                                 | 14,306     |   |                                                               |   | 14,621 |   |   |   | 27,293 |   |   |   | 29,386 |   |
| Mortgage-backed                securities held                to maturity         |   |                                                                 | 2,250      |   |                                                               |   | 2,596 |   |   |   | 4,584 |   |   |   | 5,278 |   |
| Federal                Home Loan Bank of                Chicago stock             |   |                                                                 | 1,011      |   |                                                               |   | 1,363 |   |   |   | 2,235 |   |   |   | 2,671 |   |
| Investment                securities available                for sale            |   |                                                                 | 3,671      |   |                                                               |   | 5,861 |   |   |   | 7,783 |   |   |   | 11,511 |   |
| Interest-bearing                deposits and                federal funds sold    |   |                                                                 | 3,292      |   |                                                               |   | 2,121 |   |   |   | 5,444 |   |   |   | 3,445 |   |
| Total                interest                income                               |   |                                                                 | 141,032    |   |                                                               |   | 150,137 |   |   |   | 282,904 |   |   |   | 291,652 |   |
| Interest                expense:                                                  |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                          |   |                                                                 | 59,380     |   |                                                               |   | 45,204 |   |   |   | 115,213 |   |   |   | 83,756 |   |
| Borrowed                funds                                                     |   |                                                                 | 21,582     |   |                                                               |   | 36,897 |   |   |   | 45,353 |   |   |   | 71,391 |   |
| Junior                subordinated                debentures                      |   |                                                                 | 1,172      |   |                                                               |   | 1,109 |   |   |   | 2,331 |   |   |   | 2,136 |   |
| Total                interest                expense                              |   |                                                                 | 82,134     |   |                                                               |   | 83,210 |   |   |   | 162,897 |   |   |   | 157,283 |   |
| Net                interest                income                                 |   |                                                                 | 58,898     |   |                                                               |   | 66,927 |   |   |   | 120,007 |   |   |   | 134,369 |   |
| Provision                for loan losses                                          |   |                                                                 | 3,150      |   |                                                               |   | 1,250 |   |   |   | 5,350 |   |   |   | 1,650 |   |
| Net                interest income after                provision for loan losses |   |                                                                 | 55,748     |   |                                                               |   | 65,677 |   |   |   | 114,657 |   |   |   | 132,719 |   |
| Non-interest                income:                                               |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                gain (loss) on sale                of:                         |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Loans                receivable held for                sale                      |   |                                                                 | 1,609      |   |                                                               |   | 2,429 |   |   |   | 4,832 |   |   |   | 5,409 |   |
| Mortgage-backed                securities                                         |   |                                                                 | –    |   |                                                               |   | – |   |   |   | 26 |   |   |   | – |   |
| Investment                securities                                              |   |                                                                 | 72         |   |                                                               |   | – |   |   |   | 1,905 |   |   |   | – |   |
| Premises                and equipment                                             |   |                                                                 | 203        |   |                                                               |   | 781 |   |   |   | 202 |   |   |   | 782 |   |
| Foreclosed                real                estate                              |   |                                                                 | (160       | )      |                                                               |   | (50 | ) |   |   | (214 | ) |   |   | (93 | ) |
|     Deposit                account service charges            |   |                                                                 | 10,764     |   |                                                               |   | 10,824 |   |   |   | 20,312 |   |   |   | 19,686 |   |
| Other                loan fees                                                    |   |                                                                 | 1,656      |   |                                                               |   | 1,211 |   |   |   | 3,263 |   |   |   | 3,127 |   |
| Bank-owned                life                insurance                           |   |                                                                 | 1,866      |   |                                                               |   | 1,861 |   |   |   | 3,725 |   |   |   | 3,355 |   |
| Brokerage                and insurance                commissions                 |   |                                                                 | 1,837      |   |                                                               |   | 1,549 |   |   |   | 3,416 |   |   |   | 3,056 |   |
| Loan                servicing fee                income                           |   |                                                                 | 596        |   |                                                               |   | 843 |   |   |   | 1,429 |   |   |   | 1,628 |   |
| Income                from real estate                operations                  |   |                                                                 | 19         |   |                                                               |   | 350 |   |   |   | 62 |   |   |   | 1,202 |   |
| Other                                                                             |   |                                                                 | 3,127      |   |                                                               |   | 2,349 |   |   |   | 5,570 |   |   |   | 4,842 |   |
| Total                non-interest                income                           |   |                                                                 | 21,589     |   |                                                               |   | 22,147 |   |   |   | 44,528 |   |   |   | 42,994 |   |
| Non-interest                expense:                                              |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                and                benefits                           |   |                                                                 | 25,483     |   |                                                               |   | 27,117 |   |   |   | 53,515 |   |   |   | 54,550 |   |
| Office                occupancy and                equipment                      |   |                                                                 | 7,664      |   |                                                               |   | 8,064 |   |   |   | 16,069 |   |   |   | 16,053 |   |
| Advertising                and                promotion                           |   |                                                                 | 1,670      |   |                                                               |   | 2,063 |   |   |   | 3,187 |   |   |   | 3,802 |   |
| Data                processing                                                    |   |                                                                 | 2,434      |   |                                                               |   | 2,242 |   |   |   | 4,931 |   |   |   | 4,908 |   |
| Other                                                                             |   |                                                                 | 8,308      |   |                                                               |   | 8,246 |   |   |   | 16,931 |   |   |   | 17,211 |   |
| Merger                related                expenses                             |   |                                                                 | 1,054      |   |                                                               |   | – |   |   |   | 1,054 |   |   |   | – |   |
| Amortization                of core deposit                intangibles            |   |                                                                 | 864        |   |                                                               |   | 1,210 |   |   |   | 1,729 |   |   |   | 2,226 |   |
| Total                non-interest                expense                          |   |                                                                 | 47,477     |   |                                                               |   | 48,942 |   |   |   | 97,416 |   |   |   | 98,750 |   |
| Income                before income                taxes                          |   |                                                                 | 29,860     |   |                                                               |   | 38,882 |   |   |   | 61,769 |   |   |   | 76,963 |   |
| Income                taxes                                                       |   |                                                                 | 9,815      |   |                                                               |   | 13,195 |   |   |   | 20,729 |   |   |   | 26,196 |   |
| Net                income                                                         |   | $                                                                    | 20,045     |   |                                                               |   | 25,687 |   |   | $ | 41,040 |   |   |   | 50,767 |   |
|                                                                              |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                earnings per share                                           |   |                                                                 | .61        |   |                                                               |   | .77 |   |   |   | 1.25 |   |   |   | 1.52 |   |
| Diluted                earnings per share                                         |   |                                                                 | .59        |   |                                                               |   | .75 |   |   |   | 1.22 |   |   |   | 1.49 |   |
|                                                                              |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Average                common and common equivalent shares outstanding:           |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                             |   |                                                                 | 32,994,150 |   |                                                               |   | 33,534,012 |   |   |   | 32,958,024 |   |   |   | 33,455,553 |   |
| Diluted                                                                           |   |                                                                 | 33,714,961 |   |                                                               |   | 34,130,762 |   |   |   | 33,615,279 |   |   |   | 34,074,445 |   |
|                                                                              |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Dividend                declared per common share                                 |   |                                                                 | .27        |   |                                                               |   | .25 |   |   |   | .54 |   |   |   | .50 |   |
|                                                                              |   |                                                                 |       |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |

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*Table          of Contents*

**MAF        BANCORP, INC. AND SUBSIDIARIES**

**Consolidated        Statements of Changes in Stockholders' Equity**

|                                                                                                                                                                                    |   | **Common                  stock** |    |   | **Additional                  paid-in capital** |   |    | **Retained                  earnings** |   |   | **Accumulated                  other compre-hensive loss** |   |   | **Treasury                  stock** |    |   | **Total** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|--------|-------------------------------------------------|--------|---------|----------------------------------------|--------|--------|-----------------------------------------------------------------|--------|--------|-------------------------------------|---------|--------|-----------|--------|
|                                                                                                                                                                                    |   |                              |    |   |                                            |   |    |                                   |   |   |                                                            |   |   |                                |    |   |      |   |
| Balance                at December 31, 2005                                                                                                                                        |   | $                                 | 336     |   |                                            |   | 527,131 |                                   |   |   | 537,140                                                         |   |   |                                | (19,391 | )      |      |   | (67,037 | ) |   |   | 978,179 |   |
| Comprehensive                income:                                                                                                                                                    |   |                              |    |   |                                            |   |    |                                   |   |   |                                                            |   |   |                                |    |   |      |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                               |   |                              | – |   |                                            |   | – |                                   |   |   | 84,583                                                          |   |   |                                | – |   |      |   | – |   |   |   | 84,583 |   |
| Other                comprehensive income, net of tax:                                                                                                                                  |   |                              |    |   |                                            |   |    |                                   |   |   |                                                            |   |   |                                |    |   |      |   |   |   |   |   |   |   |
| Unrealized                holding gain during the year                                                                                                                                  |   |                              | – |   |                                            |   | – |                                   |   |   | –                                                         |   |   |                                | 19,406  |   |      |   | – |   |   |   | 19,406 |   |
| Reclassification                adjustment of losses included in net income                                                                                                             |   |                              | – |   |                                            |   | – |                                   |   |   | –                                                         |   |   |                                | (8,187  | )      |      |   | – |   |   |   | (8,187 | ) |
| Total                comprehensive income                                                                                                                                               |   |                              | – |   |                                            |   | – |                                   |   |   | 84,583                                                          |   |   |                                | 11,219  |   |      |   | – |   |   |   | 95,802 |   |
| Adjustment                to initially apply SFAS No. 158, net of tax                                                                                                                   |   |                              | – |   |                                            |   | – |                                   |   |   | –                                                         |   |   |                                | (304    | )      |      |   | – |   |   |   | (304 | ) |
| Exercise                of 460,196 stock options and reissuance of treasury stock from option                exercise and 7,842 shares from restricted stock unit                awards |   |                              | 1       |   |                                            |   | 1,386   |                                   |   |   | (8,787                                                          | )      |   |                                | – |   |      |   | 14,372 |   |   |   | 6,972 |   |
| Issuance                of 2,343,186 shares for the acquisition of EFC Bancorp and the conversion                of 168,690 EFC Bancorp stock options                                   |   |                              | 8       |   |                                            |   | 38,905  |                                   |   |   | –                                                         |   |   |                                | – |   |      |   | 66,138 |   |   |   | 105,051 |   |
| Purchase                of 1,917,379 shares of treasury stock                                                                                                                           |   |                              | – |   |                                            |   | – |                                   |   |   | –                                                         |   |   |                                | – |   |      |   | (81,990 | ) |   |   | (81,990 | ) |
| Tax                benefits from stock-related compensation                                                                                                                             |   |                              | – |   |                                            |   | 1,720   |                                   |   |   | –                                                         |   |   |                                | – |   |      |   | – |   |   |   | 1,720 |   |
| Cash                dividends declared, $1.00 per share                                                                                                                                 |   |                              | – |   |                                            |   | – |                                   |   |   | (33,285                                                         | )      |   |                                | – |   |      |   | – |   |   |   | (33,285 | ) |
| Balance                at December 31, 2006                                                                                                                                        |   | $                                 | 345     |   |                                            |   | 569,142 |                                   |   |   | 579,651                                                         |   |   |                                | (8,476  | )      |      |   | (68,517 | ) |   |   | 1,072,145 |   |
| Comprehensive                income:                                                                                                                                                    |   |                              |    |   |                                            |   |    |                                   |   |   |                                                            |   |   |                                |    |   |      |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                               |   |                              | – |   |                                            |   | – |                                   |   |   | 41,040                                                          |   |   |                                | – |   |      |   | – |   |   |   | 41,040 |   |
| Other                comprehensive income, net of tax:                                                                                                                                  |   |                              |    |   |                                            |   |    |                                   |   |   |                                                            |   |   |                                |    |   |      |   |   |   |   |   |   |   |
| Unrealized                holding loss during                the period                                                                                                                 |   |                              | – |   |                                            |   | – |                                   |   |   | –                                                         |   |   |                                | (7,040  | )      |      |   | – |   |   |   | (7,040 | ) |
| Less:                reclassification                adjustment of gains                       included in net income                                |   |                              | – |   |                                            |   | – |                                   |   |   | –                                                         |   |   |                                | 1,283   |   |      |   | – |   |   |   | 1,283 |   |
| Amortization                of SFAS 158 transition obligation                                                                                                                           |   |                              | – |   |                                            |   | – |                                   |   |   | –                                                         |   |   |                                | (18     | )      |      |   | – |   |   |   | (18 | ) |
| Total                comprehensive income                                                                                                                                               |   |                              | – |   |                                            |   | – |                                   |   |   | 41,040                                                          |   |   |                                | (5,775  | )      |      |   | – |   |   |   | 35,265 |   |
| Cumulative                effect of adoption of FASBInterpretation                No. 48 on January                1, 2007                                                              |   |                              | – |   |                                            |   | – |                                   |   |   | 53                                                              |   |   |                                | – |   |      |   | – |   |   |   | 53 |   |
| Exercise                of 178,311 stock options and reissuance of treasury stock upon option                exercises and vesting of 10,199 restricted stock units                     |   |                              | – |   |                                            |   | – |                                   |   |   | (2,159                                                          | )      |   |                                | – |   |      |   | 7,831 |   |   |   | 5,672 |   |
| Tax                benefits from stock-related compensation                                                                                                                             |   |                              | – |   |                                            |   | 1,220   |                                   |   |   | –                                                         |   |   |                                | – |   |      |   | – |   |   |   | 1,220 |   |
| Dividend                equivalents paid related to unvested RSUs                                                                                                                       |   |                              | – |   |                                            |   | – |                                   |   |   | (23                                                             | )      |   |                                | – |   |      |   | – |   |   |   | (23 | ) |
| Cash                dividends declared, $.54 per share                                                                                                                                  |   |                              | – |   |                                            |   | – |                                   |   |   | (17,820                                                         | )      |   |                                | – |   |      |   | – |   |   |   | (17,820 | ) |
| Balance                at June 30, 2007                                                                                                                                                 |   | $                                 | 345     |   |                                            |   | 570,362 |                                   |   |   | 600,742                                                         |   |   |                                | (14,251 | )      |      |   | (60,686 | ) |   |   | 1,096,512 |   |

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*Table          of Contents*

**MAF        BANCORP, INC. AND SUBSIDIARIES**

**Consolidated        Statements of Cash Flows**

|                                                                                                                                   |   | **Six                Months Ended,** |       |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|------------|
|                                                                                                                                   |   | **June                  30,**        |       |
|                                                                                                                                   |   | **2007**                             |       |   | **2006** |   |
| **Operating                activities:**                                                                                               |   |                                 |       |   |   |   |
| Net                income                                                                                                              |   | $                                    | 41,040     |   |   |   | 50,767 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities:                        |   |                                 |       |   |   |   |   |   |
| Amortization                of premiums, discounts and deferred loan fees                                                              |   |                                 | 1,941      |   |   |   | 2,228 |   |
| Provision                for loan losses                                                                                               |   |                                 | 5,350      |   |   |   | 1,650 |   |
| Net                gain on sale of loans receivable                                                                                    |   |                                 | (4,832     | ) |   |   | (5,409 | ) |
| Net                gain on sale of investment and mortgage-backed securities                                                           |   |                                 | (1,931     | ) |   |   | – |   |
| Net                gain on real estate held for development or sale                                                                    |   |                                 | (62        | ) |   |   | (1,202 | ) |
| Net                gain on sale of premises and equipment                                                                              |   |                                 | (202       | ) |   |   | (782 | ) |
| Amortization                of mortgage servicing rights, net                                                                          |   |                                 | 2,691      |   |   |   | 2,537 |   |
| Depreciation                and amortization                                                                                           |   |                                 | 8,670      |   |   |   | 8,328 |   |
| Amortization                of core deposit intangibles                                                                                |   |                                 | 1,729      |   |   |   | 2,226 |   |
| Deferred                income tax expense                                                                                             |   |                                 | 1,793      |   |   |   | 1,792 |   |
| (Increase)                decrease in accrued interest receivable                                                                      |   |                                 | 5,086      |   |   |   | (417 | ) |
| Increase                in cash surrender value of bank-owned life insurance                                                           |   |                                 | (3,726     | ) |   |   | (3,355 | ) |
| Net                (increase) decrease in other assets and liabilities, net of effects                from                acquisitions |   |                                 | 14,907     |   |   |   | (12,132 | ) |
| Tax                benefit for stock options exercised                                                                                 |   |                                 | 1,220      |   |   |   | 1,443 |   |
| Excess                tax benefits realized on exercise of stock compensation                                                          |   |                                 | (660       | ) |   |   | (1,233 | ) |
| Loans                originated and purchased for sale                                                                                 |   |                                 | (365,000   | ) |   |   | (623,781 | ) |
| Sale                of loans originated and purchased for sale                                                                         |   |                                 | 660,466    |   |   |   | 589,275 |   |
|    Net                cash provided by operating activities                                                             |   |                                 | 368,480    |   |   |   | 11,935 |   |
|                                                                                                                                   |   |                                 |       |   |   |   |   |   |
| **Investing                activities:**                                                                                               |   |                                 |       |   |   |   |   |   |
| Loans                originated and purchased for investment                                                                           |   |                                 | (873,429   | ) |   |   | (1,198,066 | ) |
| Principal                repayments on loans receivable                                                                                |   |                                 | 1,157,593  |   |   |   | 1,264,321 |   |
| Principal                repayments on mortgage-backed securities                                                                      |   |                                 | 122,721    |   |   |   | 143,002 |   |
| Proceeds                from maturities of investment securities available for                sale                                     |   |                                 | 52,292     |   |   |   | 50,795 |   |
| Proceeds                from sale of:                                                                                                  |   |                                 |       |   |   |   |   |   |
| Investment securities                available for sale                                                                           |   |                                 | 253,237    |   |   |   | 34,484 |   |
| Mortgage-backed                securities available for sale                                                                           |   |                                 | 292,448    |   |   |   | – |   |
| Real                estate held for development or sale                                                                                |   |                                 | 2,971      |   |   |   | 8,846 |   |
| Premises                and equipment                                                                                                  |   |                                 | 4,518      |   |   |   | 870 |   |
| Purchases                of:                                                                                                           |   |                                 |       |   |   |   |   |   |
| Investment                securities available for sale                                                                                |   |                                 | (41,802    | ) |   |   | (40,094 | ) |
| Mortgage-backed                securities available for sale                                                                           |   |                                 | (378,529   | ) |   |   | (61,685 | ) |
| Real                estate held for development or sale                                                                                |   |                                 | (4,946     | ) |   |   | (26,646 | ) |
| Premises                and equipment                                                                                                  |   |                                 | (5,700     | ) |   |   | (6,966 | ) |
| Cash                paid for acquisitions, net                of cash received                                                         |   |                                 | –    |   |   |   | (42,809 | ) |
|         Net                cash provided by investing activities                               |   |                                 | 581,374    |   |   |   | 145,227 |   |
|                                                                                                                                   |   |                                 |       |   |   |   |   |   |
| **Financing                Activities:**                                                                                               |   |                                 |       |   |   |   |   |   |
| Proceeds                from:                                                                                                          |   |                                 |       |   |   |   |   |   |
| FHLB                of Chicago advances                                                                                                |   |                                 | 79,500     |   |   |   | 675,000 |   |
| Unsecured                bank term loan                                                                                                |   |                                 | –    |   |   |   | 52,000 |   |
| Unsecured                line of credit                                                                                                |   |                                 | –    |   |   |   | 50,000 |   |
| Reverse                repurchase agreements                                                                                           |   |                                 | 125,000    |   |   |   | 50,000 |   |
| Repayments                of:                                                                                                          |   |                                 |       |   |   |   |   |   |
|                    FHLB of Chicago advances                                                                             |   |                                 | (1,137,000 | ) |   |   | (765,000 | ) |
| Unsecured                bank term loan                                                                                                |   |                                 | (12,500    | ) |   |   | – |   |
| Reverse                repurchase agreements                                                                                           |   |                                 | (100,000   | ) |   |   | (150,000 | ) |
| Net                increase (decrease) in:                                                                                             |   |                                 |       |   |   |   |   |   |
|       Deposits                                                                                           |   |                                 | 197,386    |   |   |   | 27,072 |   |
|       Other                short-term borrowings                                                         |   |                                 | 3,023      |   |   |   | (9,032 | ) |
|       Advances                by borrowers for taxes and insurance                                       |   |                                 | 4,371      |   |   |   | 5,695 |   |
| Proceeds                from exercise of stock options                                                                                 |   |                                 | 5,230      |   |   |   | 4,731 |   |
| Excess                tax benefits realized on exercise of stock compensation                                                          |   |                                 | 660        |   |   |   | 1,233 |   |
| Purchase                of treasury stock                                                                                              |   |                                 | –    |   |   |   | (68,789 | ) |
| Cash                dividends paid                                                                                                     |   |                                 | (17,137    | ) |   |   | (15,900 | ) |
| Net                cash used in financing activities                                                                                   |   |                                 | (851,467   | ) |   |   | (142,990 | ) |

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*Table          of Contents*

**MAF        BANCORP, INC. AND SUBSIDIARIES**

**Consolidated        Statements of Cash Flows (continued)**

|                                                                                                                                                                                           |   |                                                             |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|
|                                                                                                                                                                                           |   | **Six                Months Ended****June                  30,** |    |
|                                                                                                                                                                                           |   | **2007**                                                         |    |   | **2006** |   |
|                                                                                                                                                                                           |   |                                                             |    |   |   |   |
| Increase                in cash and cash equivalents                                                                                                                                           |   | $                                                                | 98,387  |   |   |   | 14,172 |   |
| Cash                and cash equivalents at beginning of period                                                                                                                                |   |                                                             | 331,218 |   |   |   | 246,029 |   |
| Cash                and cash equivalents at end of period                                                                                                                                      |   | $                                                                | 429,605 |   |   |   | 260,201 |   |
|                                                                                                                                                                                           |   |                                                             |    |   |   |   |   |   |
| **Supplemental                disclosure of cash flow information:**                                                                                                                           |   |                                                             |    |   |   |   |   |   |
| Cash                paid during the period for:                                                                                                                                                |   |                                                             |    |   |   |   |   |   |
| Interest                on deposits and                borrowed funds                                                                                                                          |   | $                                                                | 165,777 |   |   |   | 154,251 |   |
| Income                taxes                                                                                                                                                                    |   |                                                             | 17,488  |   |   |   | 22,657 |   |
| Summary                of non-cash transactions:                                                                                                                                               |   |                                                             |    |   |   |   |   |   |
| Transfer                of loans receivable to                foreclosed real estate                                                                                                           |   |                                                             | 5,893   |   |   |   | 2,731 |   |
| Treasury                stock received for                withholding tax liability related to stock option exercises and restricted                stock unit vesting (254 and 12,885 shares) |   |                                                             | 13      |   |   |   | 558 |   |
| Treasury                stock received for                stock option exercises (3,952 and 29,855 shares)                                                                                |   |                                                             | 211     |   |   |   | 1,296 |   |
| Treasury                stock issued for                restricted stock units (10,199 and 7,869 shares)                                                                                       |   |                                                             | 442     |   |   |   | 343 |   |
|                                                                                                                                                                                           |   |                                                             |    |   |   |   |   |   |
|                                                                                                                                                                                           |   |                                                             |    |   |   |   |   |   |
| **Acquisition:**                                                                                                                                                                               |   |                                                             |    |   |   |   |   |   |
| Assets                acquired                                                                                                                                                                 |   | $                                                                | – |   |   |   | 1,052,403 |   |
| Common                stock                issued                                                                                                                                              |   |                                                             | – |   |   |   | 100,977 |   |
|                                                                                                                                                                                           |   |                                                             |    |   |   |   |   |   |
| Cash                paid                                                                                                                                                                       |   | $                                                                | – |   |   |   | (64,276 | ) |
| Cash                acquired                                                                                                                                                                   |   |                                                             | – |   |   |   | 21,467 |   |
| Net                cash paid for                acquisitions                                                                                                                                   |   | $                                                                | – |   |   |   | (42,809 | ) |

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*Table          of Contents*

**MAF          BANCORP, INC. AND SUBSIDIARIES**

**Notes          to Consolidated Financial Statements**

**(1)  Basis      of Presentation**

**(2)  Statement      of Cash Flows**

***       ***

**(3)  Reclassifications**

**(4)  Earnings      Per Share**

|                                                                                               |   | **For                    the Three Months Ended June 30,**     |   |
|----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|                                                                                               |   | **2007**                                                       |   |   | **2006** |   |
|                                                                                               |   | **Income                    (Numerator)**                      |   |   | **Shares                    (Denominator)** |   |   | **Per                    Share Amount** |   |   | **Income                    (Numerator)** |   |   | **Shares                    (Denominator)** |   |   | **Per                    Share Amount** |   |
|                                                                                               |   | (Dollars                  in thousands, except per share data) |   |
| Basic                  earnings per share:                                                         |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  available to common stockholders                                           |   | $                                                              | 20,045 |   |   |   | 32,994,150 |   |   | $ | .61 |   |   | $ | 25,687 |   |   |   | 33,534,012 |   |   | $ | .77 |   |
| Effect                  of dilutive securities:                                                    |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  options and restricted                  stock units                         |   |                                                           |   |   |   |   | 720,811 |   |   |   |   |   |   |   |   |   |   |   | 596,750 |   |   |   |   |   |
| Diluted                  earnings per share:                                                       |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  available to common                  stockholders plus assumed conversions |   | $                                                              | 20,045 |   |   |   | 33,714,961 |   |   | $ | .59 |   |   | $ | 25,687 |   |   |   | 34,130,762 |   |   | $ | .75 |   |

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*Table          of Contents*

**MAF          BANCORP, INC. AND SUBSIDIARIES**

**Notes          to Consolidated Financial Statements**

|                                                                                           |   | **For                  the Six Months Ended June 30,**       |   |
|------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
|                                                                                           |   | **2007**                                                     |   |   | **2006** |   |
|                                                                                           |   | **Income                  (Numerator)**                      |   |   | **Shares                  (Denominator)** |   |   | **Per                  Share Amount** |   |   | **Income                  (Numerator)** |   |   | **Shares                  (Denominator)** |   |   | **Per                  Share Amount** |   |
|                                                                                           |   | (Dollars                in thousands, except per share data) |   |
| Basic                earnings per share:                                                       |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                available to common stockholders                                         |   | $                                                            | 41,040 |   |   |   | 32,958,024 |   |   | $ | 1.25 |   |   | $ | 50,767 |   |   |   | 33,455,553 |   |   | $ | 1.52 |   |
| Effect                of dilutive securities:                                                  |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                options and restricted                stock units                         |   |                                                         |   |   |   |   | 657,255 |   |   |   |   |   |   |   |   |   |   |   | 618,892 |   |   |   |   |   |
| Diluted                earnings per share:                                                     |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                available to common                stockholders plus assumed conversions |   | $                                                            | 41,040 |   |   |   | 33,615,279 |   |   | $ | 1.22 |   |   | $ | 50,767 |   |   |   | 34,074,445 |   |   | $ | 1.49 |   |

**(5)      Income Taxes**

**(6)      Goodwill and Intangible Assets**

|                                             |   | **Core                  Deposit Intangibles** |    |   | **Mortgage                  Servicing Rights(1)** |   |   | **Total** |   |
|--------------------------------------------------|--------|-----------------------------------------------|---------|--------|---------------------------------------------------|--------|--------|-----------|--------|
|                                             |   | (Dollars                in thousands)         |    |
| Balance                at December 31, 2006 |   | $                                             | 19,333  |   |                                              |   | 17,549 |      |   |   | 36,882 |   |
| Additions                                        |   |                                          | – |   |                                              |   | 4,198  |      |   |   | 4,198 |   |
| Amortization                expense              |   |                                          | (1,729  | )      |                                              |   | (2,691 | )         |   |   | (4,420 | ) |
| Balance                at June 30, 2007          |   | $                                             | 17,604  |   |                                              |   | 19,056 |      |   |   | 36,660 |   |

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*Table          of Contents*

**MAF        BANCORP, INC. AND SUBSIDIARIES**

**Notes        to Consolidated Financial Statements**

|                                        |   | **As                  of June 30, 2007**   |   |   | **As                  of December 31, 2006**  |   |
|---------------------------------------------|--------|--------------------------------------------|--------|--------|-----------------------------------------------|--------|
|                                        |   | **Gross                  Carrying Amount** |   |   | **Accumulated                  Amortization** |   |   | **Gross                  Carrying Amount** |   |   | **Accumulated                  Amortization** |   |
|                                        |   | (Dollars                in thousands)      |   |
| Core                deposit intangibles     |   | $                                          | 40,055 |   |                                          |   | (22,451 | ) |   | $ | 40,055 |   |   |   | (20,722 | ) |
| Mortgage                servicing rights(1) |   |                                       | 27,361 |   |                                          |   | (8,305 | ) |   |   | 26,632 |   |   |   | (9,083 | ) |
| Total                                       |   | $                                          | 67,416 |   |                                          |   | (30,756 | ) |   | $ | 66,687 |   |   |   | (29,805 | ) |

|                                                                 |   | **Core                  Deposit Intangibles** |   |   | **Mortgage                  Servicing Rights** |   |
|----------------------------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------------------------------|--------|
|                                                                 |   | (Dollars                in thousands)         |   |
| Aggregate                amortization expense:                       |   |                                          |   |   |                                           |   |
| For                the six months ended June                30, 2007 |   | $                                             | 1,729  |   |                                           |   | 2,691 |   |
|                                                                 |   |                                          |   |   |                                           |   |   |   |
| Estimated                amortization expense:                       |   |                                          |   |   |                                           |   |   |   |
| for                the six months ending December 31, 2007           |   |                                          | 1,730  |   |                                           |   | 2,200 |   |
| for                the year ending December 31, 2008            |   |                                          | 2,900  |   |                                           |   | 3,900 |   |
| for                the year ending December 31, 2009            |   |                                          | 2,500  |   |                                           |   | 3,200 |   |
| for                the year ending December 31, 2010            |   |                                          | 2,200  |   |                                           |   | 2,700 |   |
| for                the year ending December 31, 2011            |   |                                          | 2,200  |   |                                           |   | 2,300 |   |
| for                the year ending December 31, 2012            |   |                                          | 1,900  |   |                                           |   | 2,000 |   |

**(7)      Share-Based Incentive Compensation**

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*Table          of Contents*

**MAF        BANCORP, INC. AND SUBSIDIARIES**

**Notes        to Consolidated Financial Statements**

|                                                               |   | **Number                of options** |      |   | **Weighted                average exercise price** |   |    | **Weighted                average remaining contractual term (in years)** |   |   | **Aggregate                intrinsic value**(1)** (in                thousands)** |   |
|--------------------------------------------------------------------|--------|--------------------------------------|-----------|--------|----------------------------------------------------|--------|---------|---------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------|--------|
|                                                               |   |                                 |      |   |                                               |   |    |                                                                      |   |   |                                                                                   |   |
| Options                outstanding at December 31, 2006            |   |                                 | 3,077,015 |   |                                               | $      | 33.82   |                                                                      |   |   |                                                                                   |   |   |   |
| Plus:                                                              |   |                                 |      |   |                                               |   |    |                                                                      |   |   |                                                                                   |   |   |   |
| Options                granted                                     |   |                                 | –   |   |                                               |   | – |                                                                      |   |   |                                                                                   |   |   |   |
|  Less:                                                        |   |                                 |      |   |                                               |   |    |                                                                      |   |   |                                                                                   |   |   |   |
| Options                exercised                                   |   |                                 | (178,311  | )      |                                               |   | 30.58   |                                                                      |   |   |                                                                                   |   |   |   |
| Options                cancelled or                expired         |   |                                 | (2,250    | )      |                                               |   | 32.79   |                                                                      |   |   |                                                                                   |   |   |   |
| Options                outstanding at June 30,                2007 |   |                                 | 2,896,454 |   |                                               |   | 34.02   |                                                                      |   |   | 5.05                                                                                   |   |   |   | 58,689 |   |
| Options                exercisable at June 30,                2007 |   |                                 | 2,896,454 |   |                                               |   | 34.02   |                                                                      |   |   | 5.05                                                                                   |   |   |   | 58,689 |   |

|                                                           |   | **Number                  ofRSUs** |          |    | **Weighted                  average grant datefair value** |   |          | **Weighted                  average term tovest  (in years)** |   |                       | **Aggregate                  intrinsic value**(3)**(in                  thousands)** |   |
|----------------------------------------------------------------|--------|------------------------------------|---------------|---------|------------------------------------------------------------|--------|---------------|--------------------------------------------------------------------|--------|----------------------------|--------------------------------------------------------------------------------------|--------|
|                                                           |   |                               |          |    |                                                       |   |          |                                                               |   |                       |                                                                                 |   |
| RSUs                    outstanding at December 31, 2006       |   |                               | 128,987       |    |                                                       | $      | 44.31         |                                                               |   |                       |                                                                                 |   |   |   |
| Plus:  RSUs                    granted               |   |                               |  — |    |                                                       |   |  – |                                                               |   |                       |                                                                                 |   |   |   |
| Less:                                                          |   |                               |          |    |                                                       |   |          |                                                               |   |                       |                                                                                 |   |   |   |
|                      RSUs vested                          |   |                               | (7,130        |  ) |                                                       |   |  43.82   |                                                               |   |                       |                                                                                 |   |   |   |
|                      RSUs cancelled                       |   |                               |  (1,967  | )       |                                                       |   | 44.05         |                                                               |   |                       |                                                                                 |   |   |   |
|                      RSUs outstanding at June 30, 2007(2) |   |                               | 119,890       |    |                                                       |   | 44.34         |                                                               |   |                  2.15 |                                                                                 |   |                  6,508 |   |
|                                                           |   |                               |          |    |                                                       |   |          |                                                               |   |                       |                                                                                 |   |   |   |   |   |

**(8)      Post-Retirement Plans**

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*Table          of Contents*

**MAF        BANCORP, INC. AND SUBSIDIARIES**

**Notes        to Consolidated Financial Statements**

|                                           |   | **For                  the Three Months Ended June 30,** |    |
|------------------------------------------------|--------|----------------------------------------------------------|---------|
|                                           |   | **SERP**                                                 |    |   | **Long-term                  medical plan** |   |
|                                           |   | **2007**                                                 |    |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                           |   | (Dollars                in thousands)                    |    |
| Service                cost                    |   | $                                                        | 227     |   |   |   | 234 |   |   |   | – |   |   |   | – |   |
| Interest                cost                   |   |                                                     | 134     |   |   |   | 113 |   |   |   | 6 |   |   |   | 7 |   |
| Expected                benefit payments       |   |                                                     | – |   |   |   | – |   |   |   | (10 | ) |   |   | (9 | ) |
| Unrecognized                prior-service cost |   |                                                     | – |   |   |   | – |   |   |   | 14 |   |   |   | 14 |   |
| Unrecognized                net loss           |   |                                                     | 2       |   |   |   | 18 |   |   |   | (29 | ) |   |   | (29 | ) |
| Net                periodic benefit cost       |   | $                                                        | 363     |   |   |   | 365 |   |   |   | (19 | ) |   |   | (17 | ) |

|                                           |   | **For                  the Six Months Ended June 30,** |    |
|------------------------------------------------|--------|--------------------------------------------------------|---------|
|                                           |   | **SERP**                                               |    |   | **Long-term                  medical plan** |   |
|                                           |   | **2007**                                               |    |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|                                           |   | (Dollars                in thousands)                  |    |
| Service                cost                    |   | $                                                      | 455     |   |   |   | 467 |   |   |   | – |   |   |   | – |   |
| Interest                cost                   |   |                                                   | 267     |   |   |   | 227 |   |   |   | 13 |   |   |   | 13 |   |
| Expected                benefit payments       |   |                                                   | – |   |   |   | – |   |   |   | (20 | ) |   |   | (18 | ) |
| Unrecognized                prior-service cost |   |                                                   | – |   |   |   | – |   |   |   | 27 |   |   |   | 29 |   |
| Unrecognized                net loss           |   |                                                   | 4       |   |   |   | 36 |   |   |   | (58 | ) |   |   | (58 | ) |
| Net                periodic benefit cost       |   | $                                                      | 726     |   |   |   | 730 |   |   |   | (38 | ) |   |   | (34 | ) |

**(9)  Commitments      and Contingencies**

**(10)      Segment Information**

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*Table          of Contents*

**MAF        BANCORP, INC. AND SUBSIDIARIES**

**Notes        to Consolidated Financial Statements**

|                                              |   | **Three                  Months Ended June 30,** |       |
|---------------------------------------------------|--------|--------------------------------------------------|------------|
|                                              |   | **2007**                                         |       |   | **2006** |   |
|                                              |   | **Banking**                                      |       |   | **Real                  Estate Operations** |   |   | **Consolidated                  Total** |   |   | **Banking** |   |   | **Real                  Estate Operations** |   |   | **Consolidated                  Total** |   |
|                                              |   | (Dollars                in thousands)            |       |
| Interest                income                    |   | $                                                | 141,026    |   |   |   | 6 |   |   |   | 141,032 |   |   | $ | 150,137 |   |   |   | – |   |   |   | 150,137 |   |
| Interest                expense                   |   |                                             | 82,331     |   |   |   | (197 | ) |   |   | 82,134 |   |   |   | 83,340 |   |   |   | (130 | ) |   |   | 83,210 |   |
| Net                interest                income |   |                                             | 58,695     |   |   |   | 203 |   |   |   | 58,898 |   |   |   | 66,797 |   |   |   | 130 |   |   |   | 66,927 |   |
| Provision                for loan losses          |   |                                             | 3,150      |   |   |   | – |   |   |   | 3,150 |   |   |   | 1,250 |   |   |   | – |   |   |   | 1,250 |   |
| Non-interest                income                |   |                                             | 21,570     |   |   |   | 19 |   |   |   | 21,589 |   |   |   | 21,797 |   |   |   | 350 |   |   |   | 22,147 |   |
| Non-interest                expense               |   |                                             | 43,087     |   |   |   | 253 |   |   |   | 43,340 |   |   |   | 44,513 |   |   |   | 303 |   |   |   | 44,816 |   |
| Depreciation                expense               |   |                                             | 4,132      |   |   |   | 5 |   |   |   | 4,137 |   |   |   | 4,101 |   |   |   | 25 |   |   |   | 4,126 |   |
| Income                before income taxes         |   |                                             | 29,896     |   |   |   | (36 | ) |   |   | 29,860 |   |   |   | 38,730 |   |   |   | 152 |   |   |   | 38,882 |   |
| Income                tax expense                 |   |                                             | 9,828      |   |   |   | (13 | ) |   |   | 9,815 |   |   |   | 13,135 |   |   |   | 60 |   |   |   | 13,195 |   |
| Net                income                         |   | $                                                | 20,068     |   |   |   | (23 | ) |   |   | 20,045 |   |   | $ | 25,595 |   |   |   | 92 |   |   |   | 25,687 |   |
|                                              |   |                                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                assets                     |   | $                                                | 10,219,354 |   |   |   | 92,666 |   |   |   | 10,312,020 |   |   | $ | 11,396,353 |   |   |   | 70,650 |   |   |   | 11,467,003 |   |
|                                              |   |                                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                revenues                     |   | $                                                | 80,283     |   |   |   | 204 |   |   |   | 80,487 |   |   | $ | 88,594 |   |   |   | 480 |   |   |   | 89,074 |   |
|                                              |   |                                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                              |   | **Six                  Months Ended June 30,** |       |
|---------------------------------------------------|--------|------------------------------------------------|------------|
|                                              |   | **2007**                                       |       |   | **2006** |   |
|                                              |   | **Banking**                                    |       |   | **Real                  Estate Operations** |   |   | **Consolidated                  Total** |   |   | **Banking** |   |   | **Real                  Estate Operations** |   |   | **Consolidated                  Total** |   |
|                                              |   | (Dollars                in thousands)          |       |
| Interest                income                    |   | $                                              | 282,898    |   |   |   | 6 |   |   |   | 282,904 |   |   | $ | 291,652 |   |   |   | – |   |   |   | 291,652 |   |
| Interest                expense                   |   |                                           | 164,146    |   |   |   | (1,249 | ) |   |   | 162,897 |   |   |   | 157,485 |   |   |   | (202 | ) |   |   | 157,283 |   |
| Net                interest                income |   |                                           | 118,752    |   |   |   | 1,255 |   |   |   | 120,007 |   |   |   | 134,167 |   |   |   | 202 |   |   |   | 134,369 |   |
| Provision                for loan losses          |   |                                           | 5,350      |   |   |   | – |   |   |   | 5,350 |   |   |   | 1,650 |   |   |   | – |   |   |   | 1,650 |   |
| Non-interest                income                |   |                                           | 44,466     |   |   |   | 62 |   |   |   | 44,528 |   |   |   | 41,792 |   |   |   | 1,202 |   |   |   | 42,994 |   |
| Non-interest                expense               |   |                                           | 88,491     |   |   |   | 507 |   |   |   | 88,998 |   |   |   | 90,015 |   |   |   | 637 |   |   |   | 90,652 |   |
| Depreciation                expense               |   |                                           | 8,408      |   |   |   | 10 |   |   |   | 8,418 |   |   |   | 8,056 |   |   |   | 42 |   |   |   | 8,098 |   |
| Income                before income taxes         |   |                                           | 60,969     |   |   |   | 800 |   |   |   | 61,769 |   |   |   | 76,238 |   |   |   | 725 |   |   |   | 76,963 |   |
| Income                tax expense                 |   |                                           | 20,449     |   |   |   | 280 |   |   |   | 20,729 |   |   |   | 25,908 |   |   |   | 288 |   |   |   | 26,196 |   |
| Net                income                         |   | $                                              | 40,520     |   |   |   | 520 |   |   |   | 41,040 |   |   | $ | 50,330 |   |   |   | 437 |   |   |   | 50,767 |   |
|                                              |   |                                           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                assets                     |   | $                                              | 10,306,877 |   |   |   | 92,786 |   |   |   | 10,399,663 |   |   | $ | 11,239,525 |   |   |   | 69,507 |   |   |   | 11,309,032 |   |
|                                              |   |                                           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                revenues                     |   | $                                              | 163,279    |   |   |   | 1,256 |   |   |   | 164,535 |   |   | $ | 175,932 |   |   |   | 1,431 |   |   |   | 177,363 |   |

**(11)      Pending Merger**

**(12)      New Accounting Pronouncements**

*The      Fair Value Option for Financial      Assets and Financial Liabilities*

----

*Table          of Contents*

**MAF        BANCORP, INC. AND SUBSIDIARIES**

**Notes        to Consolidated Financial Statements**

*Accounting      for Deferred      Compensation and Postretirement Benefit Aspects of Collateral Assignment      Split-Dollar Life Insurance Arrangements.  *

*Fair      Value      Measurements.  *
*“*
*” *

*Accounting      for Deferred      Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar      Life      Insurance Arrangements*

*Accounting      for Purchases of Life      Insurance-Determining the Amount That Could Be Realized in Accordance with      FASB      Technical Bulletin No. 85-4, Accounting for Purchases of Life      Insurance*

----

*Table          of Contents*

**MAF        BANCORP, INC. AND SUBSIDIARIES**

**Notes        to Consolidated Financial Statements**

*Accounting      for Uncertainty in      Income Taxes – an Interpretation of FASB Statement No. 109*
*.  *

*Accounting      for Servicing of      Financial Assets.  *

*Accounting      for Certain Hybrid      Financial Instruments – an amendment of FASB Statements No. 133 and      140.  *
* *

**Item      2. Management’s Discussion and Analysis of Financial      Condition and Results of Operations**

***Cautionary      Statement Regarding Forward-Looking Information***

----

*Table          of Contents*

**General**

**Critical      Accounting Policies and Estimates**

***Allowance      for loan      losses***

----

*Table          of Contents*

***Valuation      of mortgage      servicing rights***
*. *

***Valuation      of goodwill and      intangible assets***
*. *

***Real      estate held for      development.***

----

*Table          of Contents*

***Income      Taxes.***

----

*Table          of Contents*

**Results      of Operations for the Three and Six Months Ended June 30, 2007 and      2006**

**Performance      Overview**

|                                                        |   | **Three                  Months Ended****June                  30,** |      |   | **Six                  Months Ended****June                  30,** |   |
|-------------------------------------------------------------|--------|----------------------------------------------------------------------|-----------|--------|--------------------------------------------------------------------|--------|
|                                                        |   | **2007**                                                             |      |   | **2006**                                                           |   |   | **2007** |   |   | **2006** |   |
|                                                        |   | (Dollars                in thousands, except for per share data)     |      |
|                                                        |   |                                                                 |      |   |                                                               |   |   |   |   |   |   |   |
| Net                income                                   |   | $                                                                    | 20,045    |   |                                                               |   | 25,687 |   |   | $ | 41,040 |   |   |   | 50,767 |   |
| Diluted                earnings per share                   |   |                                                                 | .59       |   |                                                               |   | .75 |   |   |   | 1.22 |   |   |   | 1.49 |   |
| Return                on average assets**(1)**              |   |                                                                 | .78       | %      |                                                               |   | .90 |   |   |   | .79 |   |   |   | .90 |   |
| Return                on average equity**(1)**              |   |                                                                 | 7.31      |   |                                                               |   | 9.72 |   |   |   | 7.55 |   |   |   | 9.67 |   |
| Return                on average tangible equity**(1),(2)** |   |                                                                 | 11.60     |   |                                                               |   | 15.90 |   |   |   | 12.02 |   |   |   | 15.46 |   |
| Average                interest-earning assets              |   | $                                                                    | 9,279,741 |   |                                                               |   | 10,499,839 |   |   |   | 9,318,866 |   |   |   | 10,365,918 |   |
| Net                interest income                          |   |                                                                 | 58,898    |   |                                                               |   | 66,927 |   |   |   | 120,007 |   |   |   | 134,369 |   |
| Net                interest margin                          |   |                                                                 | 2.54      | %      |                                                               |   | 2.55 |   |   |   | 2.58 |   |   |   | 2.59 |   |
| Non-interest                income                          |   |                                                                 | 21,589    |   |                                                               |   | 22,147 |   |   |   | 44,528 |   |   |   | 42,994 |   |
| Non-interest                expense                         |   |                                                                 | 47,477    |   |                                                               |   | 48,942 |   |   |   | 97,416 |   |   |   | 98,750 |   |
| Efficiency                ratio**(3)**                      |   |                                                                 | 57.88     | %      |                                                               |   | 55.43 |   |   |   | 59.34 |   |   |   | 55.92 |   |
| Loans                sold                                   |   | $                                                                    | 199,485   |   |                                                               |   | 329,641 |   |   |   | 657,129 |   |   |   | 585,578 |   |

|                                                                     |   | **June                  30,****2007** |   |   | **December                  31, 2006** |   |   | **June                  30, 2006** |   |
|--------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|----------------------------------------|--------|--------|------------------------------------|--------|
|                                                                     |   |                                  |   |   |                                   |   |   |                               |   |
| Book                value per share                                      |   | $                                     | 33.15  |   |                                   |   | 32.59  |                               |   |   | 31.38 |   |
| Tangible                book value per share(2)                          |   |                                  | 20.93  |   |                                   |   | 20.21  |                               |   |   | 19.00 |   |
|                                                                     |   |                                  |   |   |                                   |   |   |                               |   |   |   |   |
| Stockholders’                equity to total assets                |   |                                  | 10.63  | %      |                                   |   | 9.64   |                               |   |   | 9.07 |   |
| Tangible                stockholders’ equity to tangible assets(2) |   |                                  | 6.98   |   |                                   |   | 6.21   |                               |   |   | 5.70 |   |

----

*Table          of Contents*

**Non-GAAP      Financial Information**

***Tangible      Book Value Per      Share.***
** **

|                                                                              |   | **At**      |      |
|-----------------------------------------------------------------------------------|--------|-------------|-----------|
|                                                                              |   | **6/30/07** |      |   | **12/31/06** |   |   | **6/30/06** |   |
|                                                                              |   |        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   | **Amount**  |      |   | **Per                  share** |   |   | **Amount** |   |   | **Per                  share** |   |   | **Amount** |   |   | **Per                  share** |   |
| Stockholders’                equity - as reported                           |   | $           | 1,096,512 |   |   | $ | 33.15 |   |   | $ | 1,072,145 |   |   |   | 32.59 |   |   | $ | 1,038,856 |   |   | $ | 31.38 |   |
|        Goodwill                                |   |        | (386,526  | ) |   |   | (11.69 | ) |   |   | (387,980 | ) |   |   | (11.79 | ) |   |   | (388,156 | ) |   |   | (11.73 | ) |
|        Core                deposit intangibles |   |        | (17,604   | ) |   |   | (0.53 | ) |   |   | (19,333 | ) |   |   | (0.59 | ) |   |   | (21,416 | ) |   |   | (0.65 | ) |
| Tangible                stockholders’ equity                                |   | $           | 692,382   |   |   | $ | 20.93 |   |   | $ | 664,832 |   |   |   | 20.21 |   |   | $ | 629,284 |   |   | $ | 19.00 |   |

***Tangible      Stockholders’Equity to Tangible Assets.***

|                                                                              |   | **At**      |       |
|-----------------------------------------------------------------------------------|--------|-------------|------------|
|                                                                              |   | **6/30/07** |       |   | **12/31/06** |   |   | **6/30/06** |   |
| Total                assets - as reported                                         |   | $           | 10,317,702 |   |   | $ | 11,120,499 |   |   | $ | 11,450,336 |   |
|        Goodwill                                |   |        | (386,526   | ) |   |   | (387,980 | ) |   |   | (388,156 | ) |
|        Core                deposit intangibles |   |        | (17,604    | ) |   |   | (19,333 | ) |   |   | (21,416 | ) |
| Tangible                total assets                                              |   | $           | 9,913,572  |   |   | $ | 10,713,186 |   |   | $ | 11,040,764 |   |

***Return      on Average Tangible      Stockholders’ Equity.***

|                                                       |   | **Three                  Months Ended****June                  30,** |      |   | **Six                  Months Ended**** June                  30,** |   |
|------------------------------------------------------------|--------|----------------------------------------------------------------------|-----------|--------|--------------------------------------------------------------------------|--------|
|                                                       |   | **2007**                                                             |      |   | **2006**                                                                 |   |   | **2007** |   |   | **2006** |   |
|                                                       |   |                                                                 |      |   |                                                                     |   |   |   |   |   |   |   |
| Average                stockholders’ equity          |   | $                                                                    | 1,096,137 |   |                                                                     |   | 1,056,707 |   |   | $ | 1,087,798 |   |   |   | 1,050,126 |   |
| Average                goodwill                            |   |                                                                 | (386,526  | )      |                                                                     |   | (388,135 | ) |   |   | (386,526 | ) |   |   | (372,818 | ) |
| Average                core deposit intangibles            |   |                                                                 | (18,170   | )      |                                                                     |   | (22,207 | ) |   |   | (18,600 | ) |   |   | (20,469 | ) |
| Average                tangible stockholders’ equity |   | $                                                                    | 691,441   |   |                                                                     |   | 646,365 |   |   | $ | 682,672 |   |   |   | 656,839 |   |
|                                                       |   |                                                                 |      |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |

**Net      Interest Income and Net Interest Margin**

----

*Table          of Contents*

----

*Table          of Contents*

***Average      Balances/Rates***

|                                                                                          |   | **Three                  Months Ended June 30** |       |   |         |   |
|-----------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|--------|--------------|--------|
|                                                                                          |   | **2007**                                        |       |   | **2006**     |   |   | **At                  June 30, 2007** |   |
|                                                                                          |   | **Average                  Balance**            |       |   | **Interest** |   |   | **Average                  Yield/ Cost** |   |   | **Average                  Balance** |   |   | **Interest** |   |   | **Average                  Yield/ Cost** |   |   | **Balance** |   |   | **Yield/****Cost** |   |
|                                                                                          |   | (Dollars                in thousands)           |       |   |         |   |   |   |   |
| **Assets:**                                                                                   |   |                                            |       |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                -earning assets:                                                      |   |                                            |       |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                receivable                                                               |   | $                                               | 7,280,896  |   |         |   | 116,502 |   |   |   | 6.41 | % |   | $ | 8,175,605 |   |   |   | 123,575 |   |   |   | 6.05 | % |   | $ | 7,193,481 |   |   |   | 6.50 | % |
| Mortgage-backed                securities                                                     |   |                                            | 1,343,693  |   |         |   | 16,556 |   |   |   | 4.93 |   |   |   | 1,503,482 |   |   |   | 17,217 |   |   |   | 4.58 |   |   |   | 1,364,477 |   |   |   | 5.06 |   |
| Stock                in FHLB of Chicago                                                       |   |                                            | 146,407    |   |         |   | 1,011 |   |   |   | 2.77 |   |   |   | 175,968 |   |   |   | 1,363 |   |   |   | 3.11 |   |   |   | 146,407 |   |   |   | 2.80 |   |
| Investment                securities                                                          |   |                                            | 271,199    |   |         |   | 3,671 |   |   |   | 5.43 |   |   |   | 516,338 |   |   |   | 5,861 |   |   |   | 4.55 |   |   |   | 265,831 |   |   |   | 5.64 |   |
| Interest-bearing                deposits and federalfunds                sold(1)              |   |                                            | 237,546    |   |         |   | 3,292 |   |   |   | 5.56 |   |   |   | 128,446 |   |   |   | 2,121 |   |   |   | 6.62 |   |   |   | 226,649 |   |   |   | 6.12 |   |
| Total                interest-earning assets                                                  |   |                                            | 9,279,741  |   |         |   | 141,032 |   |   |   | 6.09 |   |   |   | 10,499,839 |   |   |   | 150,137 |   |   |   | 5.73 |   |   |   | 9,196,845 |   |   |   | 6.19 |   |
| Non-interest                earning assets                                                    |   |                                            | 1,032,279  |   |         |   |   |   |   |   |   |   |   |   | 967,164 |   |   |   |   |   |   |   |   |   |   |   | 1,120,857 |   |   |   |   |   |
| Total                assets                                                                   |   |                                            | 10,312,020 |   |         |   |   |   |   |   |   |   |   |   | 11,467,003 |   |   |   |   |   |   |   |   |   |   |   | 10,317,702 |   |   |   |   |   |
| **Liabilities                and stockholders’ equity:**                                |   |                                            |       |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                      |   |                                            | 6,519,010  |   |         |   | 59,380 |   |   |   | 3.65 |   |   |   | 6,332,805 |   |   |   | 45,204 |   |   |   | 2.86 |   |   |   | 6,608,828 |   |   |   | 3.71 |   |
| Borrowed                funds                                                                 |   |                                            | 1,858,537  |   |         |   | 21,582 |   |   |   | 4.66 |   |   |   | 3,265,383 |   |   |   | 36,897 |   |   |   | 4.53 |   |   |   | 1,731,382 |   |   |   | 4.64 |   |
| Junior                subordinated debentures                                                 |   |                                            | 67,011     |   |         |   | 1,172 |   |   |   | 6.92 |   |   |   | 67,011 |   |   |   | 1,109 |   |   |   | 6.55 |   |   |   | 67,011 |   |   |   | 6.92 |   |
| Total                interest-bearing liabilities                                             |   |                                            | 8,444,558  |   |         |   | 82,134 |   |   |   | 3.90 |   |   |   | 9,665,199 |   |   |   | 83,210 |   |   |   | 3.45 |   |   |   | 8,407,221 |   |   |   | 3.93 |   |
| Non-interest                bearing deposits                                                  |   |                                            | 591,966    |   |         |   |   |   |   |   |   |   |   |   | 566,636 |   |   |   |   |   |   |   |   |   |   |   | 606,765 |   |   |   |   |   |
| Other                liabilities                                                              |   |                                            | 179,359    |   |         |   |   |   |   |   |   |   |   |   | 178,461 |   |   |   |   |   |   |   |   |   |   |   | 207,204 |   |   |   |   |   |
| Total                liabilities                                                              |   |                                            | 9,215,883  |   |         |   |   |   |   |   |   |   |   |   | 10,410,296 |   |   |   |   |   |   |   |   |   |   |   | 9,221,190 |   |   |   |   |   |
| Stockholders’                equity                                                     |   |                                            | 1,096,137  |   |         |   |   |   |   |   |   |   |   |   | 1,056,707 |   |   |   |   |   |   |   |   |   |   |   | 1,096,512 |   |   |   |   |   |
| Liabilities                and stockholders’ equity                                     |   | $                                               | 10,312,020 |   |         |   |   |   |   |   |   |   |   | $ | 11,467,003 |   |   |   |   |   |   |   |   |   |   | $ | 10,317,702 |   |   |   |   |   |
| Net                interest income/ interest rate spread                                      |   |                                            |       |   |         |   | 58,898 |   |   |   | 2.19 | % |   |   |   |   |   |   | 66,927 |   |   |   | 2.28 | % |   |   |   |   |   |   | 2.27 | % |
| Net                earning assets/net yield on averageinterest-earning                assets  |   | $                                               | 835,183    |   |         |   |   |   |   |   | 2.54 | % |   | $ | 834,640 |   |   |   |   |   |   |   | 2.55 | % |   | $ | 789,624 |   |   |   |   |   |
| Ratio                of interest-earning assets tointerest-bearing                liabilities |   |                                            |       |   |         |   |   |   |   |   | 109.89 | % |   |   |   |   |   |   |   |   |   |   | 108.64 | % |   |   | 109.39 | % |   |   |   |   |

|                                                                                          |   | **Six                  Months Ended June 30,** |       |
|-----------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|
|                                                                                          |   | **2007**                                       |       |   | **2006** |   |
|                                                                                          |   | **Average                  Balance**           |       |   | **Interest** |   |   | **Average                  Yield/ Cost** |   |   | **Average                  Balance** |   |   | **Interest** |   |   | **Average                  Yield/ Cost** |   |
|                                                                                          |   | (Dollars                in thousands)          |       |
| **Assets:**                                                                                   |   |                                           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                -earning assets:                                                      |   |                                           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                receivable                                                               |   | $                                              | 7,413,227  |   |   |   | 235,565 |   |   |   | 6.38 | % |   | $ | 8,048,589 |   |   |   | 239,361 |   |   |   | 5.97 | % |
| Mortgage-backed                securities                                                     |   |                                           | 1,297,238  |   |   |   | 31,877 |   |   |   | 4.91 |   |   |   | 1,524,835 |   |   |   | 34,664 |   |   |   | 4.55 |   |
| Stock                in FHLB of Chicago                                                       |   |                                           | 146,407    |   |   |   | 2,235 |   |   |   | 3.08 |   |   |   | 174,959 |   |   |   | 2,671 |   |   |   | 3.08 |   |
| Investment                securities                                                          |   |                                           | 289,110    |   |   |   | 7,783 |   |   |   | 5.43 |   |   |   | 515,767 |   |   |   | 11,511 |   |   |   | 4.50 |   |
| Interest-bearing                deposits and federalfunds                sold(1)              |   |                                           | 172,884    |   |   |   | 5,444 |   |   |   | 6.35 |   |   |   | 101,768 |   |   |   | 3,445 |   |   |   | 6.83 |   |
| Total                interest-earning assets                                                  |   |                                           | 9,318,866  |   |   |   | 282,904 |   |   |   | 6.09 |   |   |   | 10,365,918 |   |   |   | 291,652 |   |   |   | 5.64 |   |
| Non-interest                earning assets                                                    |   |                                           | 1,080,797  |   |   |   |   |   |   |   |   |   |   |   | 943,114 |   |   |   |   |   |   |   |   |   |
| Total                assets                                                                   |   |                                           | 10,399,663 |   |   |   |   |   |   |   |   |   |   |   | 11,309,032 |   |   |   |   |   |   |   |   |   |
| **Liabilities                and stockholders’ equity:**                                |   |                                           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                      |   |                                           | 6,484,804  |   |   |   | 115,213 |   |   |   | 3.58 |   |   |   | 6,189,767 |   |   |   | 83,756 |   |   |   | 2.73 |   |
| Borrowed                funds                                                                 |   |                                           | 2,000,986  |   |   |   | 45,353 |   |   |   | 4.57 |   |   |   | 3,253,870 |   |   |   | 71,390 |   |   |   | 4.42 |   |
| Junior                subordinated debentures                                                 |   |                                           | 67,011     |   |   |   | 2,331 |   |   |   | 6.96 |   |   |   | 67,011 |   |   |   | 2,137 |   |   |   | 6.38 |   |
| Total                interest-bearing liabilities                                             |   |                                           | 8,552,801  |   |   |   | 162,897 |   |   |   | 3.84 |   |   |   | 9,510,648 |   |   |   | 157,283 |   |   |   | 3.33 |   |
| Non-interest                bearing deposits                                                  |   |                                           | 578,698    |   |   |   |   |   |   |   |   |   |   |   | 562,679 |   |   |   |   |   |   |   |   |   |
| Other                liabilities                                                              |   |                                           | 180,366    |   |   |   |   |   |   |   |   |   |   |   | 185,579 |   |   |   |   |   |   |   |   |   |
| Total                liabilities                                                              |   |                                           | 9,311,865  |   |   |   |   |   |   |   |   |   |   |   | 10,258,906 |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                                                     |   |                                           | 1,087,798  |   |   |   |   |   |   |   |   |   |   |   | 1,050,126 |   |   |   |   |   |   |   |   |   |
| Liabilities                and stockholders’ equity                                     |   | $                                              | 10,399,663 |   |   |   |   |   |   |   |   |   |   | $ | 11,309,032 |   |   |   |   |   |   |   |   |   |
| Net                interest income/ interest rate spread                                      |   |                                           |       |   |   |   | 120,007 |   |   |   | 2.25 | % |   |   |   |   |   |   | 134,369 |   |   |   | 2.31 | % |
| Net                earning assets/net yield on averageinterest-earning                assets  |   | $                                              | 766,065    |   |   |   |   |   |   |   | 2.58 | % |   | $ | 855,270 |   |   |   |   |   |   |   | 2.59 | % |
| Ratio                of interest-earning assets tointerest-bearing                liabilities |   |                                           |       |   |   |   |   |   |   |   | 108.96 | % |   |   |   |   |   |   |   |   |   |   | 108.99 | % |

----

*Table          of Contents*

***Rate/Volume      Analysis of Net Interest Income***

|                                                            |   | **Three                  Months Ended June 30, 2007Compared to June 30, 2006 Increase                  (Decrease)** |    |   | **Six                  Months Ended June 30, 2007 Compared to June 30, 2006 Increase                  (Decrease)** |   |
|-----------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|---------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|
|                                                            |   | **Total                  Change**                                                                                        |    |   | **Due                  to Volume**                                                                                      |   |   | **Due                  to****Rate** |   |   | **Total                  Change** |   |   | **Due                  to Volume** |   |   | **Due                  to**** Rate** |   |
|                                                            |   | (Dollars                in thousands)                                                                                    |    |
| **Interest                income:**                             |   |                                                                                                                     |    |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                receivable                                 |   | $                                                                                                                        | (7,073  | )      |                                                                                                                    |   | (14,058 | ) |   |   | 6,985 |   |   |   | (3,796 | ) |   |   | (19,688 | ) |   |   | 15,892 |   |
| Mortgage-backed                securities                       |   |                                                                                                                     | (661    | )      |                                                                                                                    |   | (1,911 | ) |   |   | 1,250 |   |   |   | (2,787 | ) |   |   | (5,446 | ) |   |   | 2,659 |   |
| Investment                securities                            |   |                                                                                                                     | (2,190  | )      |                                                                                                                    |   | (3,168 | ) |   |   | 978 |   |   |   | (3,728 | ) |   |   | (5,796 | ) |   |   | 2,068 |   |
| Stock                in FHLB of Chicago                         |   |                                                                                                                     | (352    | )      |                                                                                                                    |   | (214 | ) |   |   | (138 | ) |   |   | (436 | ) |   |   | (436 | ) |   |   | – |   |
| Interest-bearing                deposits and federal funds sold |   |                                                                                                                     | 1,171   |   |                                                                                                                    |   | 1,560 |   |   |   | (389 | ) |   |   | 1,999 |   |   |   | 2,258 |   |   |   | (259 | ) |
| Total                                                           |   |                                                                                                                     | (9,105  | )      |                                                                                                                    |   | (17,791 | ) |   |   | 8,686 |   |   |   | (8,748 | ) |   |   | (29,108 | ) |   |   | 20,360 |   |
|                                                            |   |                                                                                                                     |    |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                expense:**                            |   |                                                                                                                     |    |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                deposits                        |   |                                                                                                                     | 14,176  |   |                                                                                                                    |   | 1,365 |   |   |   | 12,811 |   |   |   | 31,457 |   |   |   | 4,157 |   |   |   | 27,300 |   |
| Borrowed                funds                                   |   |                                                                                                                     | (15,315 | )      |                                                                                                                    |   | (16,315 | ) |   |   | 1,000 |   |   |   | (26,037 | ) |   |   | (28,360 | ) |   |   | 2,323 |   |
| Junior                subordinated debentures                   |   |                                                                                                                     | 63      |   |                                                                                                                    |   | – |   |   |   | 63 |   |   |   | 194 |   |   |   | – |   |   |   | 194 |   |
| Total                                                           |   |                                                                                                                     | (1,076  | )      |                                                                                                                    |   | (14,950 | ) |   |   | 13,874 |   |   |   | 5,614 |   |   |   | (24,203 | ) |   |   | 29,817 |   |
| Net                change in net interest income                |   | $                                                                                                                        | (8,029  | )      |                                                                                                                    |   | (2,841 | ) |   |   | (5,188 | ) |   |   | (14,362 | ) |   |   | (4,905 | ) |   |   | (9,457 | ) |

**Provision      for Loan Losses**

**Non-Interest      Income**

----

*Table          of Contents*

***Loan      Originations, Sales and Servicing***

|                                                                                                            |   | **Three                  Months Ended June 30,** |    |   | **Six                  Months Ended June 30,** |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|--------|------------------------------------------------|--------|
|                                                                                                            |   | **2007**                                         |    |   | **2006**                                       |   |   | **2007** |   |   | **2006** |   |
|                                                                                                            |   | (Dollars                in thousands)            |    |
| **One-                to Four-Family Originations and Purchases**                                               |   |                                             |    |   |                                           |   |   |   |   |   |   |   |
| Fixed-rate                                                                                                      |   | $                                                | 162,131 |   |                                           |   | 177,524 |   |   | $ | 288,062 |   |   |   | 304,490 |   |
| Adjustable                rate                                                                                  |   |                                             | 109,679 |   |                                           |   | 280,014 |   |   |   | 247,233 |   |   |   | 531,123 |   |
| Total                                                                                                           |   | $                                                | 271,810 |   |                                           |   | 457,538 |   |   | $ | 535,295 |   |   |   | 835,613 |   |
|                                                                                                            |   |                                             |    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Fixed-rate                %                                                                                     |   |                                             | 60      | %      |                                           |   | 39 |   |   |   | 54 | % |   |   | 36 |   |
| Adjustable                rate %                                                                                |   |                                             | 40      |   |                                           |   | 61 |   |   |   | 46 |   |   |   | 64 |   |
| Refinance                %                                                                                      |   |                                             | 52      |   |                                           |   | 29 |   |   |   | 51 |   |   |   | 30 |   |
|                                                                                                            |   |                                             |    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| **Loan                Sales**                                                                                   |   |                                             |    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| One-                to four-family fixed-rate                                                                   |   | $                                                | 162,463 |   |                                           |   | 172,510 |   |   | $ | 298,299 |   |   |   | 308,235 |   |
| One-                to four-family adjustable rate                                                              |   |                                             | 25,106  |   |                                           |   | 150,054 |   |   |   | 317,189 |   |   |   | 241,954 |   |
| Total                one-to four-family                                                                         |   |                                             | 187,569 |   |                                           |   | 322,564 |   |   |   | 615,488 |   |   |   | 550,189 |   |
| Equity                lines of credit and home equity loans                                                     |   |                                             | 11,916  |   |                                           |   | 7,077 |   |   |   | 41,641 |   |   |   | 35,389 |   |
| Total                loans sold                                                                                 |   | $                                                | 199,485 |   |                                           |   | 329,641 |   |   | $ | 657,129 |   |   |   | 585,578 |   |
|                                                                                                            |   |                                             |    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Gain                on sale of one- to four-family mortgages                                                    |   | $                                                | 1,486   |   |                                           |   | 2,312 |   |   | $ | 4,435 |   |   |   | 4,690 |   |
| Gain                on sale of equity lines of credit                                                           |   |                                             | 123     |   |                                           |   | 117 |   |   |   | 397 |   |   |   | 719 |   |
| Total                loan sale gains                                                                            |   | $                                                | 1,609   |   |                                           |   | 2,429 |   |   | $ | 4,832 |   |   |   | 5,409 |   |
| Margin                on one- to four-family loan sales                                                         |   |                                             | .79     | %      |                                           |   | .72 |   |   |   | .72 | % |   |   | .85 |   |
|                                                                                                            |   |                                             |    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| **Loan                Servicing**                                                                               |   |                                             |    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Loan                servicing fee income                                                                        |   | $                                                | 596     |   |                                           |   | 843 |   |   | $ | 1,429 |   |   |   | 1,628 |   |
| Capitalized                mortgage servicing rights as a percentageof                loans serviced for others |   |                                             | .62     | %      |                                           |   | .67 |   |   |   | .62 | % |   |   | .67 |   |
|                                                                                                            |   |                                             |    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |

***Gain      on Sale of Investment Securities***

***Deposit      Account Service Charges***

|                                              |   | **Three                  Months Ended June 30,** |   |   | **Six                  Months Ended June 30,** |   |
|---------------------------------------------------|--------|--------------------------------------------------|--------|--------|------------------------------------------------|--------|
|                                              |   | **2007**                                         |   |   | **2006**                                       |   |   | **2007** |   |   | **2006** |   |
|                                              |   | (Dollars                in thousands)            |   |
| Deposit                service fees               |   | $                                                | 10,764 |   |                                           |   | 10,824 |   |   | $ | 20,312 |   |   |   | 19,686 |   |
| Deposit                service fees/total revenue |   |                                             | 13.4   | %      |                                           |   | 12.2 |   |   |   | 12.3 | % |   |   | 11.1 |   |

|                                       |   | **At**                             |    |
|--------------------------------------------|--------|------------------------------------|---------|
|                                       |   | **June                  30, 2007** |    |   | **December                  31, 2006** |   |   | **June                  30, 2006** |   |
|                                       |   |                               |    |   |   |   |   |   |   |
| Number                of checking accounts |   |                               | 264,300 |   |   |   | 266,200 |   |   |   | 268,900 |   |

| (1) | Total                revenue equals net interest income plus non-interest                income. |
|-----|--------------------------------------------------------------------------------------------------|

----

*Table          of Contents*

***Real      Estate Development Operations***

|                                                                                                                   |   | **Three                  Months Ended June 30,** |   |   | **Six                  Months Ended June 30,** |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|--------|------------------------------------------------|--------|
|                                                                                                                   |   | **2007**                                         |   |   | **2006**                                       |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                   |   | (Dollars                in thousands)            |   |
| Real                estate development income                                                                          |   | $                                                | 19     |   |                                           |   | 350 |   |   | $ | 62 |   |   |   | 1,202 |   |
| Residential                lot sale closings                                                                           |   |                                             | 1      |   |                                           |   | 19 |   |   |   | 4 |   |   |   | 73 |   |
| Lots                under contract at period end                                                                       |   |                                             | 21     |   |                                           |   | 26 |   |   |   | 21 |   |   |   | 26 |   |
| Investment                in real estate held for development or                sale at period                end |   | $                                                | 87,657 |   |                                           |   | 70,498 |   |   | $ | 87,657 |   |   |   | 70,498 |   |

**Non-Interest      Expense**

|                                                                              |   | **Three                  Months Ended June 30,** |   |   |     |   |    | **Six                  Months Ended June 30,**      |   |   |     |   |
|-----------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|--------|----------|--------|---------|-----------------------------------------------------|--------|--------|----------|--------|
|                                                                              |   | **2007**                                         |   |   | **2006** |   |    | **Percentage                  Increase (Decrease)** |   |   | **2007** |   |   | **2006** |   |   | **Percentage                  Increase (Decrease)** |   |
|                                                                              |   | (Dollars                in thousands)            |   |
|                                                                              |   |                                             |   |   |     |   |    |                                                |   |   |     |   |   |   |   |   |   |   |
| Compensation                                                                      |   | $                                                | 20,299 |   |     |   | 20,652  |                                                |   |   | (1.7     | )%     |   | $ | 41,254 |   |   |   | 40,706 |   |   |   | 1.3 | % |
| Employee                benefits                                                  |   |                                             | 5,184  |   |     |   | 6,465   |                                                |   |   | (19.8    | )      |   |   | 12,261 |   |   |   | 13,844 |   |   |   | (11.4 | ) |
| Total                compensation and                benefits                     |   |                                             | 25,483 |   |     |   | 27,117  |                                                |   |   | (6.0     | )      |   |   | 53,515 |   |   |   | 54,550 |   |   |   | (1.9 | ) |
| Office                occupancy                                                   |   |                                             | 5,967  |   |     |   | 5,868   |                                                |   |   | 1.7      |   |   |   | 12,484 |   |   |   | 11,725 |   |   |   | 6.5 |   |
| Furniture,                fixture and equipment                                   |   |                                             | 1,697  |   |     |   | 2,196   |                                                |   |   | (22.7    | )      |   |   | 3,585 |   |   |   | 4,328 |   |   |   | (17.2 | ) |
| Advertising                and promotion                                          |   |                                             | 1,670  |   |     |   | 2,063   |                                                |   |   | (19.0    | )      |   |   | 3,187 |   |   |   | 3,802 |   |   |   | (16.2 | ) |
| Data                processing                                                    |   |                                             | 2,434  |   |     |   | 2,242   |                                                |   |   | 8.6      |   |   |   | 4,931 |   |   |   | 4,908 |   |   |   | .5 |   |
| Amortization                of core deposit intangibles                           |   |                                             | 864    |   |     |   | 1,210   |                                                |   |   | (28.6    | )      |   |   | 1,729 |   |   |   | 2,226 |   |   |   | (22.3 | ) |
| Merger                related costs                                               |   |                                             | 1,054  |   |     |   | – |                                                |   |   | 100.0    |   |   |   | 1,054 |   |   |   | – |   |   |   | 100.0 |   |
| *Other                expenses:*                                                  |   |                                             |   |   |     |   |    |                                                |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Professional                fees                    |   |                                             | 516    |   |     |   | 650     |                                                |   |   | (20.6    | )      |   |   | 1,293 |   |   |   | 1,424 |   |   |   | (9.3 | ) |
|  Stationery,                brochures and                supplies            |   |                                             | 484    |   |     |   | 802     |                                                |   |   | (39.7    | )      |   |   | 1,154 |   |   |   | 1,585 |   |   |   | (27.2 | ) |
|  Postage                                                                     |   |                                             | 679    |   |     |   | 666     |                                                |   |   | 2.1      |   |   |   | 1,312 |   |   |   | 1,407 |   |   |   | (6.8 | ) |
|  Telephone                                                                   |   |                                             | 513    |   |     |   | 440     |                                                |   |   | 16.6     |   |   |   | 1,051 |   |   |   | 926 |   |   |   | 13.5 |   |
|  Transaction                fraud losses,                net                 |   |                                             | 751    |   |     |   | 619     |                                                |   |   | 21.3     |   |   |   | 1,360 |   |   |   | 1,085 |   |   |   | 25.3 |   |
|  Correspondent                banking                services                |   |                                             | 342    |   |     |   | 367     |                                                |   |   | (6.8     | )      |   |   | 731 |   |   |   | 819 |   |   |   | (10.7 | ) |
|  Title                fees, recording fees                and credit reports |   |                                             | 439    |   |     |   | 693     |                                                |   |   | (36.7    | )      |   |   | 883 |   |   |   | 1,160 |   |   |   | (23.9 | ) |
|  Security                                                                    |   |                                             | 469    |   |     |   | 412     |                                                |   |   | 14.1     |   |   |   | 982 |   |   |   | 819 |   |   |   | 19.9 |   |
|  Insurance                                                                   |   |                                             | 559    |   |     |   | 475     |                                                |   |   | 17.7     |   |   |   | 1,116 |   |   |   | 946 |   |   |   | 18.1 |   |
|  FDIC                premiums and OTS                assessment              |   |                                             | 663    |   |     |   | 619     |                                                |   |   | 7.1      |   |   |   | 1,321 |   |   |   | 1,242 |   |   |   | 6.4 |   |
|  Real                estate held for                investment (1)           |   |                                             | 1,029  |   |     |   | 1,013   |                                                |   |   | 1.6      |   |   |   | 1,886 |   |   |   | 2,010 |   |   |   | (6.2 | ) |
|  Other                                                                       |   |                                             | 1,864  |   |     |   | 1,490   |                                                |   |   | 25.1     |   |   |   | 3,842 |   |   |   | 3,788 |   |   |   | 1.4 |   |
| Total                other                expenses                                |   |                                             | 8,308  |   |     |   | 8,246   |                                                |   |   | 0.8      |   |   |   | 16,931 |   |   |   | 17,211 |   |   |   | (1.6 | ) |
|                                                                              |   | $                                                | 47,477 |   |     |   | 48,942  |                                                |   |   | (3.0     | )%     |   | $ | 97,416 |   |   |   | 98,750 |   |   |   | (1.4 | )% |

**Income      Tax Expense**

----

*Table          of Contents*

**Changes      in Financial Condition**

|                                                         |   | **June                30,**           |       |   | **December                31,** |   |       | **Amount****Increase/** |   |   | **Percentage                Increase/** |   |
|--------------------------------------------------------------|--------|---------------------------------------|------------|--------|---------------------------------|--------|------------|-------------------------|--------|--------|-----------------------------------------|--------|
|                                                         |   | **2007**                              |       |   | **2006**                        |   |       | **(Decrease)**          |   |   | **(Decrease)**                          |   |
|                                                         |   | (Dollars                in thousands) |       |
| **Assets:**                                                  |   |                                  |       |   |                            |   |       |                    |   |   |                                    |   |
| Cash                and cash equivalents                     |   | $                                     | 429,605    |   |                            |   | 331,218    |                    |   |   | 98,387                                  |   |   |   | 29.7 | % |
| Investment                securities available for sale      |   |                                  | 265,831    |   |                            |   | 529,998    |                    |   |   | (264,167                                | )      |   |   | (49.8 | ) |
| Stock                in FHLB of Chicago                      |   |                                  | 146,407    |   |                            |   | 146,407    |                    |   |   | –                                 |   |   |   | – |   |
| Mortgage-backed                securities available for sale |   |                                  | 1,167,821  |   |                            |   | 1,195,494  |                    |   |   | (27,673                                 | )      |   |   | (2.3 | ) |
| Mortgage-backed                securities held to maturity   |   |                                  | 196,656    |   |                            |   | 212,302    |                    |   |   | (15,646                                 | )      |   |   | (7.4 | ) |
| Loans                receivable held for sale                |   |                                  | 39,828     |   |                            |   | 331,961    |                    |   |   | (292,133                                | )      |   |   | (88.0 | ) |
| Loans                receivable, net                         |   |                                  | 7,112,911  |   |                            |   | 7,408,660  |                    |   |   | (295,749                                | )      |   |   | (4.0 | ) |
| Bank-owned                life insurance                     |   |                                  | 153,197    |   |                            |   | 149,497    |                    |   |   | 3,700                                   |   |   |   | 2.5 |   |
| Goodwill                and intangibles                      |   |                                  | 423,186    |   |                            |   | 424,862    |                    |   |   | (1,676                                  | )      |   |   | (.4 | ) |
| Other                                                        |   |                                  | 382,260    |   |                            |   | 390,100    |                    |   |   | (7,840                                  | )      |   |   | (2.1 | ) |
| Total                assets                                  |   |                                  | 10,317,702 |   |                            |   | 11,120,499 |                    |   |   | (802,797                                | )      |   |   | (7.2 | ) |
|                                                         |   |                                  |       |   |                            |   |       |                    |   |   |                                    |   |   |   |   |   |
| **Liabilities                and Equity:**                   |   |                                  |       |   |                            |   |       |                    |   |   |                                    |   |   |   |   |   |
| Deposits                                                     |   |                                  | 7,215,593  |   |                            |   | 7,018,010  |                    |   |   | 197,583                                 |   |   |   | 2.8 |   |
| Borrowed                funds                                |   |                                  | 1,731,382  |   |                            |   | 2,773,192  |                    |   |   | (1,041,810                              | )      |   |   | (37.6 | ) |
| Junior                subordinated debentures                |   |                                  | 67,011     |   |                            |   | 67,011     |                    |   |   | –                                 |   |   |   | – |   |
| Other                liabilities                             |   |                                  | 207,204    |   |                            |   | 190,141    |                    |   |   | 17,063                                  |   |   |   | 9.0 |   |
| Total                liabilities                             |   |                                  | 9,221,190  |   |                            |   | 10,048,354 |                    |   |   | (827,164                                | )      |   |   | (8.2 | ) |
| Stockholders’                equity                    |   |                                  | 1,096,512  |   |                            |   | 1,072,145  |                    |   |   | 24,367                                  |   |   |   | 2.3 |   |
| Total                liabilities and                equity   |   | $                                     | 10,317,702 |   |                            |   | 11,120,499 |                    |   |   | (802,797                                | )      |   |   | (7.2 | )% |

***Loans      Receivable.***
*** ***

|                                                     |   | **At                  June 30, 2007** |      |   | **At                  December 31, 2006** |   |   | **Increase/                  (Decrease)**** by                  category** |   |
|----------------------------------------------------------|--------|---------------------------------------|-----------|--------|-------------------------------------------|--------|--------|---------------------------------------------------------------------------------|--------|
|                                                     |   | **Amount**                            |      |   | **%                  of Loans**           |   |   | **Amount**                                                                      |   |   | **%                  of Loans** |   |   | **Amount** |   |   | **Percentage** |   |
|                                                     |   | (Dollars                in thousands) |      |
| One-                to four-family                       |   | $                                     | 3,732,182 |   |                                      |   | 52.2   | %                                                                               |   | $ | 4,012,468 |   |   |   | 53.9 | % |   | $ | (280,286 | ) |   |   | (7.0 | )% |
| Home                equity lines of credit               |   |                                  | 1,137,230 |   |                                      |   | 15.9   |                                                                            |   |   | 1,211,037 |   |   |   | 16.2 |   |   |   | (73,807 | ) |   |   | (6.1 | ) |
| Home                equity  and consumer loans |   |                                  | 92,770    |   |                                      |   | 1.3    |                                                                            |   |   | 96,471 |   |   |   | 1.3 |   |   |   | (3,701 | ) |   |   | (3.8 | ) |
| Multi-family                                             |   |                                  | 823,972   |   |                                      |   | 11.5   |                                                                            |   |   | 801,866 |   |   |   | 10.8 |   |   |   | 22,106 |   |   |   | 2.8 |   |
| Commercial                real                estate     |   |                                  | 634,629   |   |                                      |   | 8.9    |                                                                            |   |   | 628,957 |   |   |   | 8.4 |   |   |   | 5,672 |   |   |   | .9 |   |
| Construction                                             |   |                                  | 225,409   |   |                                      |   | 3.1    |                                                                            |   |   | 194,254 |   |   |   | 2.6 |   |   |   | 31,155 |   |   |   | 16.0 |   |
| Land                                                     |   |                                  | 302,087   |   |                                      |   | 4.2    |                                                                            |   |   | 304,685 |   |   |   | 4.1 |   |   |   | (2,598 | ) |   |   | (.8 | ) |
| Commercial                business loans                 |   |                                  | 205,374   |   |                                      |   | 2.9    |                                                                            |   |   | 198,853 |   |   |   | 2.7 |   |   |   | 6,521 |   |   |   | 3.2 |   |
| Total                loans receivable, net               |   | $                                     | 7,153,653 |   |                                      |   | 100.0  | %                                                                               |   | $ | 7,448,591 |   |   |   | 100.0 | % |   | $ | (294,938 | ) |   |   | (4.0 | )% |

----

*Table          of Contents*

***Deposits.***

|                                         |   | **At                  June 30, 2007** |      |   | **At                  December 31, 2006** |   |
|----------------------------------------------|--------|---------------------------------------|-----------|--------|-------------------------------------------|--------|
|                                         |   | **Amount**                            |      |   | **%                  of Total**           |   |   | **Weighted                  Average Rate** |   |   | **Amount** |   |   | **%                  of Total** |   |   | **Weighted                  Average Rate** |   |
|                                         |   | (Dollars                in thousands) |      |
|                                         |   |                                  |      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                checking           |   | $                                     | 305,442   |   |                                      |   | 4.2 | % |   |   | – | % |   | $ | 300,624 |   |   |   | 4.4 | % |   |   | – | % |
| Non-interest                bearing checking |   |                                  | 301,323   |   |                                      |   | 4.2 |   |   |   | – |   |   |   | 303,480 |   |   |   | 4.3 |   |   |   | – |   |
| Interest                bearing accounts     |   |                                  | 671,239   |   |                                      |   | 9.3 |   |   |   | .99 |   |   |   | 739,149 |   |   |   | 10.5 |   |   |   | 1.03 |   |
| Commercial                money markets      |   |                                  | 97,250    |   |                                      |   | 1.4 |   |   |   | 4.24 |   |   |   | 105,783 |   |   |   | 1.5 |   |   |   | 4.03 |   |
| Money                market                  |   |                                  | 1,262,347 |   |                                      |   | 17.5 |   |   |   | 4.29 |   |   |   | 900,959 |   |   |   | 12.8 |   |   |   | 3.84 |   |
| Passbooks                                    |   |                                  | 1,034,992 |   |                                      |   | 14.3 |   |   |   | .69 |   |   |   | 1,113,980 |   |   |   | 15.9 |   |   |   | .71 |   |
| Core                deposits                 |   |                                  | 3,672,593 |   |                                      |   | 50.9 |   |   |   | 1.96 |   |   |   | 3,463,975 |   |   |   | 49.4 |   |   |   | 1.57 |   |
|                                         |   |                                  |      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificate                accounts:         |   |                                  | 3,543,085 |   |                                      |   | 49.1 |   |   |   | 4.89 |   |   |   | 3,554,317 |   |   |   | 50.6 |   |   |   | 4.72 |   |
|                                         |   |                                  |      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unamortized                discount          |   |                                  | (85       | )      |                                      |   | – |   |   |   | – |   |   |   | (282 | ) |   |   | – |   |   |   | – |   |
| Total                deposits                |   | $                                     | 7,215,593 |   |                                      |   | 100.0 | % |   |   | 3.40 | % |   | $ | 7,018,010 |   |   |   | 100.0 | % |   |   | 3.17 | % |
|                                         |   |                                  |      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

***Borrowed      Funds***

|                                               |   | **At                  June 30, 2007** |      |   | **At                  December 31, 2006**  |   |
|----------------------------------------------------|--------|---------------------------------------|-----------|--------|--------------------------------------------|--------|
|                                               |   | **Amount**                            |      |   | **Weighted                  Average Rate** |   |   | **Amount** |   |   | **Weighted                  Average Rate** |   |
|                                               |   |                                  |      |   |                                       |   |   |   |   |   |   |   |
| Federal                Home Loan Bank advances:    |   |                                  |      |   |                                       |   |   |   |   |   |   |   |
| Fixed                rate                          |   | $                                     | 1,047,500 |   |                                       |   | 4.32 | % |   | $ | 1,605,000 |   |   |   | 4.30 | % |
| Adjustable                rate                     |   |                                  | 50,000    |   |                                       |   | 5.37 |   |   |   | 150,000 |   |   |   | 5.45 |   |
| Open                Line                           |   |                                  | –   |   |                                       |   | – |   |   |   | 400,000 |   |   |   | 5.29 |   |
| Total                FHLBC                advances |   |                                  | 1,097,500 |   |                                       |   | 4.37 |   |   |   | 2,155,000 |   |   |   | 4.56 |   |
| Reverse                repurchase agreements       |   |                                  | 425,000   |   |                                       |   | 4.78 |   |   |   | 400,000 |   |   |   | 4.94 |   |
| Unsecured                term loan                 |   |                                  | 135,000   |   |                                       |   | 6.30 |   |   |   | 147,500 |   |   |   | 6.32 |   |
| Other                borrowings                    |   |                                  | 73,775    |   |                                       |   | 4.83 |   |   |   | 70,750 |   |   |   | 4.74 |   |
| Unamortized                premium (discount)      |   |                                  | 107       |   |                                       |   | – |   |   |   | (58 | ) |   |   | – |   |
| Total                borrowed                funds |   | $                                     | 1,731,382 |   |                                       |   | 4.64 | % |   | $ | 2,773,192 |   |   |   | 4.71 | % |

***Junior      Subordinated      Debentures***
**.  **

***Stockholders’      Equity***

----

*Table          of Contents*

**Asset      Quality and Allowance for Loan Losses**

***Delinquent      Loans.***

|                                    |   | **61-90                    Days**       |   |   | **>                    90 Days(2)**                       |   |
|-----------------------------------------|--------|-----------------------------------------|--------|--------|--------------------------------------------------------------|--------|
|                                    |   | **Number                    of Loans**  |   |   | **Principal                    Balance of Delinquent Loans** |   |   | **As                    a Percent of Total Loans(1)** |   |   | **Number                    of Loans** |   |   | **Principal                    Balance of Delinquent Loans** |   |   | **As                    a Percent of TotalLoans(1)** |   |
|                                    |   | (Dollars                  in thousands) |   |
| June                  30, 2007          |   |                                    | 138    |   |                                                         | $      | 11,840 |   |   |   | .17 | % |   |   | 642 |   |   | $ | 72,366 |   |   |   | 1.01 | % |
| March                  31, 2007         |   |                                    | 89     |   |                                                         |   | 9,022 |   |   |   | .12 |   |   |   | 663 |   |   |   | 71,001 |   |   |   | .97 |   |
| December 31,                  2006 |   |                                    | 170    |   |                                                         |   | 13,948 |   |   |   | .18 |   |   |   | 620 |   |   |   | 66,486 |   |   |   | .89 |   |
| September                  30, 2006     |   |                                    | 107    |   |                                                         |   | 8,967 |   |   |   | .11 |   |   |   | 470 |   |   |   | 48,568 |   |   |   | .62 |   |
| June                  30, 2006          |   |                                    | 107    |   |                                                         |   | 7,810 |   |   |   | .10 |   |   |   | 439 |   |   |   | 43,379 |   |   |   | .54 |   |

***    Non-Performing        Assets***

|                                                        |   | **At**                               |    |    |        |   |
|-------------------------------------------------------------|--------|--------------------------------------|---------|--------------|-------------|--------|
|                                                        |   | **6/30/07**                          |    |         | **3/31/07** |   |   | **12/31/06** |   |   | **9/30/06** |   |   | **6/30/06** |   |
|                                                        |   | (Dollar                in thousands) |    |         |        |   |
| Non-accrual                loans:                           |   |                                 |    |         |        |   |   |   |   |   |   |   |   |   |   |
| One-                to four-family                          |   | $                                    | 44,536  |         |        |   | 45,821 |   |   |   | 41,756 |   |   |   | 32,985 |   |   |   | 29,393 |   |
| Equity                lines of credit and home equity loans |   |                                 | 16,335  |         |        |   | 15,723 |   |   |   | 13,761 |   |   |   | 10,108 |   |   |   | 9,808 |   |
| Multi-family                                                |   |                                 | 3,494   |         |        |   | 3,839 |   |   |   | 2,505 |   |   |   | 2,391 |   |   |   | 1,235 |   |
| Commercial                real estate                       |   |                                 | 1,543   |         |        |   | 1,057 |   |   |   | 6,784 |   |   |   | 1,865 |   |   |   | 1,778 |   |
| Construction                                                |   |                                 | 2,601   |         |        |   | 168 |   |   |   | – |   |   |   | – |   |   | – |   |
| Land                                                        |   |                                 | 1,869   |         |        |   | 2,460 |   |   |   | – |   |   |   | – |   |   | – |   |
| Commercial                business loans                    |   |                                 | 1,979   |         |        |   | 1,922 |   |   |   | 1,649 |   |   |   | 1,194 |   |   |   | 1,157 |   |
| Consumer                loans                               |   |                                 | 9       |         |        |   | 11 |   |   |   | 31 |   |   |   | 25 |   |   |   | 8 |   |
| Total                                                       |   | $                                    | 72,366  |         |        |   | 71,001 |   |   |   | 66,486 |   |   |   | 48,568 |   |   |   | 43,379 |   |
| Non-performing                loans to total loans          |   |                                 | 1.01    | %            |        |   | .97 |   |   |   | .89 |   |   |   | .62 |   |   |   | .54 |   |
| Foreclosed                real estate:                      |   |                                 |    |         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                real                estate        |   | $                                    | – |         |        |   | – |   |   |   | 697 |   |   |   | 746 |   |   |   | – |   |
|  One-                to four-family                    |   |                                 | 7,050   |         |        |   | 3,721 |   |   |   | 3,245 |   |   |   | 3,088 |   |   |   | 2,092 |   |
| Total                foreclosed real                estate  |   | $                                    | 7,050   |         |        |   | 3,721 |   |   |   | 3,942 |   |   |   | 3,834 |   |   |   | 2,092 |   |
| Total                non-performing assets                  |   | $                                    | 79,416  |         |        |   | 74,722 |   |   |   | 70,428 |   |   |   | 52,402 |   |   |   | 45,471 |   |
| Total                non-performing assets to total assets  |   |                                 | .77     | %            |        |   | .72 |   |   |   | .63 |   |   |   | .46 |   |   |   | .40 |   |
|                                                        |   |                                 |    |         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

***Non-accrual      loans.***

----

*Table          of Contents*

|                                                                                                                                                                                                                   |   | **At**                             |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                                                                                                                                                                   |   | **June                  30, 2007** |   |   | **December                  31, 2006** |   |   | **June                  30, 2006** |   |
|                                                                                                                                                                                                                   |   |                               |   |   |   |   |   |   |   |
| One-                to four-family, equity lines of credit and home equity loans as a                percentage of total loans                                                                                         |   |                               | 69.3   | % |   |   | 71.3 |   |   |   | 74.4 |   |
| Non-performing                one- to four-family, equity lines of credit and home equity loans                as a                percentage of total non-performing loans                                            |   |                               | 84.1   |   |   |   | 83.5 |   |   |   | 90.2 |   |
| Percentage                of non-performing one- to four-family, equity lines of credit and                home                equity loans with private mortgage insurance or other                guarantees    |   |                               | 12.2   |   |   |   | 16.2 |   |   |   | 20.6 |   |
| Percentage                of one- to four-family, equity lines of credit and home equity                loans without private mortgage insurance and with combined loan-                to-value greater than 90% |   |                               | 7.6    |   |   |   | 9.0 |   |   |   | 7.6 |   |

***Classified      Assets***
**. **

----

*Table          of Contents*

***Allowance      for Loan Losses***

|                                            |   | **For                  the Three Months Ended June 30,** |    |   | **For                  Six Months Ended June 30,** |   |
|-------------------------------------------------|--------|----------------------------------------------------------|---------|--------|----------------------------------------------------|--------|
|                                            |   | **2007**                                                 |    |   | **2006**                                           |   |   | **2007** |   |   | **2006** |   |
|                                            |   | (Dollars                in thousands)                    |    |
|                                            |   |                                                     |    |   |                                               |   |   |   |   |   |   |   |
| Balance                at beginning of period   |   | $                                                        | 40,435  |   |                                               |   | 41,021 |   |   | $ | 39,931 |   |   |   | 36,495 |   |
| Provision                for loan losses        |   |                                                     | 3,150   |   |                                               |   | 1,250 |   |   |   | 5,350 |   |   |   | 1,650 |   |
| Balance                acquired in acquisitions |   |                                                     | – |   |                                               |   | – |   |   |   | – |   |   |   | 4,294 |   |
| Charge-offs                                     |   |                                                     | (2,857  | )      |                                               |   | (1,993 | ) |   |   | (4,578 | ) |   |   | (2,244 | ) |
| Recoveries                                      |   |                                                     | 14      |   |                                               |   | 120 |   |   |   | 39 |   |   |   | 203 |   |
| Balance                at end of period         |   | $                                                        | 40,742  |   |                                               |   | 40,398 |   |   | $ | 40,742 |   |   |   | 40,398 |   |

**Liquidity      and Capital Resources**

----

*Table          of Contents*

|                                                                             |   | **Total**                             |      |   | **Less                  than 1 Year** |   |      | **1                  to 3**** Years** |   |   | **3                  to 5****Years** |   |   | **After                  5 Years** |    |
|----------------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|---------------------------------------|--------|-----------|--------------------------------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------|---------|
|                                                                             |   | (Dollars                in thousands) |      |
| One-                to four-family mortgage commitments                          |   | $                                     | 293,218   |   |                                  |   | 293,218   |                                       |   |   | –                              |   |   |                               | – |   |   |   | – |   |
| Equity                line and equity loan commitments                           |   |                                  | 43,826    |   |                                  |   | 43,826    |                                       |   |   | –                              |   |   |                               | – |   |   |   | – |   |
| Unused                portion of equity lines of credit                          |   |                                  | 1,108,688 |   |                                  |   | 1,108,688 |                                       |   |   | –                              |   |   |                               | – |   |   |   | – |   |
| Commitments                to sell one- to four-family mortgage and equity loans |   |                                  | 83,049    |   |                                  |   | 83,049    |                                       |   |   | –                              |   |   |                               | – |   |   |   | – |   |
| SBIC                commitments                                                  |   |                                  | 2,651     |   |                                  |   | 2,651     |                                       |   |   | –                              |   |   |                               | – |   |   |   | – |   |
| Other                mortgage loans                                              |   |                                  | 68,387    |   |                                  |   | 68,387    |                                       |   |   | –                              |   |   |                               | – |   |   |   | – |   |
| Commercial                business lines                                         |   |                                  | 424,492   |   |                                  |   | 277,842   |                                       |   |   | 103,910                              |   |   |                               | 42,220  |   |   |   | 520 |   |
| Letters                of credit(1)                                              |   |                                  | 107,503   |   |                                  |   | 45,192    |                                       |   |   | 38,429                               |   |   |                               | 17,407  |   |   |   | 6,475 |   |
| Commercial                business loan commitments                              |   |                                  | 12,425    |   |                                  |   | 12,425    |                                       |   |   | –                              |   |   |                               | – |   |   |   | – |   |
| Loans-in-process                                                                 |   |                                  | 26,151    |   |                                  |   | 26,151    |                                       |   |   | –                              |   |   |                               | – |   |   |   | – |   |
| Contingent                liability under recourse provisions(2)                 |   |                                  | 61,855    |   |                                  |   | 61,855    |                                       |   |   | –                              |   |   |                               | – |   |   |   | – |   |
| Total                                                                            |   | $                                     | 2,232,245 |   |                                  |   | 2,023,284 |                                       |   |   | 142,339                              |   |   |                               | 59,627  |   |   |   | 6,995 |   |

|                                                |   | **Total(1)**                          |      |   | **Less                  than 1 Year** |   |      | **1                  to 3 Years** |   |   | **3                  to 5 Years** |   |   | **After                  5 Years** |    |
|-----------------------------------------------------|--------|---------------------------------------|-----------|--------|---------------------------------------|--------|-----------|-----------------------------------|--------|--------|-----------------------------------|--------|--------|------------------------------------|---------|
|                                                |   | (Dollars                in thousands) |      |
| Certificates                of deposit              |   | $                                     | 3,543,000 |   |                                  |   | 3,077,819 |                              |   |   | 420,798                           |   |   |                               | 34,042  |   |   |   | 10,341 |   |
| FHLB                of Chicago advances             |   |                                  | 1,097,500 |   |                                  |   | 681,000   |                              |   |   | 406,500                           |   |   |                               | 10,000  |   |   |   | – |   |
| Other                borrowings                     |   |                                  | 498,774   |   |                                  |   | 73,417    |                              |   |   | 100,000                           |   |   |                               | 200,000 |   |   |   | 125,357 |   |
| Unsecured                term bank loan             |   |                                  | 135,000   |   |                                  |   | –   |                              |   |   | 28,000                            |   |   |                               | 33,000  |   |   |   | 74,000 |   |
| Junior                subordinated debentures       |   |                                  | 67,011    |   |                                  |   | –   |                              |   |   | –                           |   |   |                               | – |   |   |   | 67,011 |   |
| Purchase                obligations                 |   |                                  | 5,449     |   |                                  |   | 4,233     |                              |   |   | 1,208                             |   |   |                               | 8       |   |   |   | – |   |
| Real                estate development contracts(2) |   |                                  | 6,807     |   |                                  |   | 4,766     |                              |   |   | 2,041                             |   |   |                               | – |   |   |   | – |   |
| Post                retirement benefit plans        |   |                                  | 5,848     |   |                                  |   | 157       |                              |   |   | 1,071                             |   |   |                               | 903     |   |   |   | 3,717 |   |
| Operating                leases                     |   |                                  | 51,795    |   |                                  |   | 5,600     |                              |   |   | 10,354                            |   |   |                               | 9,129   |   |   |   | 26,712 |   |
| Total                                               |   | $                                     | 5,411,184 |   |                                  |   | 3,846,992 |                              |   |   | 969,972                           |   |   |                               | 287,082 |   |   |   | 307,138 |   |
|                                                |   |                                  |      |   |                                  |   |      |                              |   |   |                              |   |   |                               |    |   |   |   |   |   |

***    Regulatory      Capital***

----

*Table          of Contents*

|                                                         |   | **Actual**                            |    |   | **For                  Capital Adequacy Purposes** |   |   | **To                  Be Well Capitalized Under Prompt Corrective Action                  Provisions** |   |
|--------------------------------------------------------------|--------|---------------------------------------|---------|--------|----------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------|--------|
|                                                         |   | **Amount**                            |    |   | **Ratio**                                          |   |   | **Amount**                                                                                             |   |   | **Ratio** |   |   | **Amount** |   |   | **Ratio** |   |
|                                                         |   | (Dollars                in thousands) |    |
| *At                June 30, 2007:*                           |   |                                  |    |   |                                               |   |   |                                                                                                   |   |   |   |   |   |   |   |   |   |   |
| Tangible                capital (to total assets)            |   | $                                     | 800,263 |   |                                               |   | 8.15   | %                                                                                                      |   | $ | >147,352 |   |   |   | >1.50 | % |   | N/A |   |   | N/A |   |
| Core                capital (to total assets)                |   |                                  | 800,263 |   |                                               |   | 8.15   |                                                                                                   |   |   | >392,938 |   |   |   | >4.00 |   |   | $ | >491,173 |   |   |   |  > 5.00 | % |
| Total                capital (to risk-weighted assets)  |   |                                  | 814,255 |   |                                               |   | 11.71  |                                                                                                   |   |   | >556,310 |   |   |   | >8.00 |   |   |   | >695,388 |   |   |   | >10.00 |   |
| Core                capital (to risk-weighted assets)        |   |                                  | 800,263 |   |                                               |   | 11.51  |                                                                                                   |   | N/A |   |   | N/A |   |   |   | >417,233 |   |   |   | > 6.00 |   |
|                                                         |   |                                  |    |   |                                               |   |   |                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *At                December 31, 2006:*                  |   |                                  |    |   |                                               |   |   |                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible                capital (to total assets)            |   |                                  | 789,888 |   |                                               |   | 7.44   |                                                                                                   |   |   | >159,286 |   |   |   | >1.50 |   |   | N/A |   |   | N/A |   |
| Core                capital (to total assets)                |   |                                  | 789,888 |   |                                               |   | 7.44   |                                                                                                   |   |   | >424,763 |   |   |   | >4.00 |   |   |   | >530,954 |   |   |   | > 5.00 |   |
| Total                capital (to risk-weighted assets)       |   |                                  | 804,554 |   |                                               |   | 11.01  |                                                                                                   |   |   | >584,478 |   |   |   | >8.00 |   |   |   | >730,597 |   |   |   | >10.00 |   |
| Core                capital (to risk-weighted assets)        |   |                                  | 789,888 |   |                                               |   | 10.81  |                                                                                                   |   | N/A |   |   | N/A |   |   |   | >438,358 |   |   |   | >6.00 |   |

|                                                                            |   | **Tangible**                          |      |   | **Core** |   |      | **Risk-Based** |   |
|---------------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|----------|--------|-----------|----------------|--------|
|                                                                            |   | (Dollars                in thousands) |      |
| Stockholder’s                equity of the Bank                           |   | $                                     | 1,192,577 |   |     |   | 1,192,577 |           |   |   | 1,192,577 |   |
| Goodwill                and core deposit intangibles                            |   |                                  | (404,130  | )      |     |   | (404,130  | )              |   |   | (404,130 | ) |
| Non-permissible                subsidiary deduction                             |   |                                  | (402      | )      |     |   | (402      | )              |   |   | (402 | ) |
| Non-includible                purchased mortgageservicing                rights |   |                                  | (1,906    | )      |     |   | (1,906    | )              |   |   | (1,906 | ) |
| Adjustment                for available for sale securities                     |   |                                  | 13,802    |   |     |   | 13,802    |           |   |   | 13,802 |   |
| SFAS                158 adjustment                                              |   |                                  | 322       |   |     |   | 322       |           |   |   | 322 |   |
| Recourse                on loan sales                                           |   |                                  | –   |   |     |   | –   |           |   |   | (26,500 | ) |
| General                allowance for loan losses                                |   |                                  | –   |   |     |   | –   |           |   |   | 40,492 |   |
| Regulatory                capital of the Bank                                   |   | $                                     | 800,263   |   |     |   | 800,263   |           |   |   | 814,255 |   |

**Asset/Liability      Management**

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*Table          of Contents*

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*Table          of Contents*

|                                                                                                                 |   | **Scheduled                  Expected Maturity at June 30, 2007** |      |
|----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|-----------|
|                                                                                                                 |   | **<                  1/2 Yr.**                                 |      |   | **1⁄2                  - 1 Yr.** |   |   | **1                  – 3 Yrs.** |   |   | **3                  – 5 Yrs.** |   |   | **5+                  Yrs.** |   |   | **Total** |   |
|                                                                                                                 |   | (Dollars                in thousands)                             |      |
| Interest-earning                assets:                                                                              |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                receivable held for sale                                                                        |   | $                                                                 | 39,828    |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 39,828 |   |
| Loans                receivable                                                                                      |   |                                                              | 2,505,506 |   |   |   | 1,003,872 |   |   |   | 2,077,003 |   |   |   | 1,170,919 |   |   |   | 396,353 |   |   |   | 7,153,653 |   |
| Mortgage-backed                securities                                                                            |   |                                                              | 237,797   |   |   |   | 123,021 |   |   |   | 319,073 |   |   |   | 234,095 |   |   |   | 450,491 |   |   |   | 1,364,477 |   |
| Investment                securities                                                                                 |   |                                                              | 111,973   |   |   |   | 19,071 |   |   |   | 71,950 |   |   |   | 9,368 |   |   |   | 53,469 |   |   |   | 265,831 |   |
| Stock                in FHLB of Chicago                                                                              |   |                                                              | 146,407   |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 146,407 |   |
| Interest-bearing                deposits                                                                             |   |                                                              | 84,844    |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 84,844 |   |
| Federal                funds sold                                                                                    |   |                                                              | 141,805   |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 141,805 |   |
| Total                interest-earning assets                                                                         |   |                                                              | 3,268,160 |   |   |   | 1,145,964 |   |   |   | 2,468,026 |   |   |   | 1,414,382 |   |   |   | 900,313 |   |   |   | 9,196,845 |   |
| Interest-bearing                liabilities:                                                                         |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                checking accounts                                                                    |   |                                                              | 20,137    |   |   |   | 22,890 |   |   |   | 82,361 |   |   |   | 69,003 |   |   |   | 476,848 |   |   |   | 671,239 |   |
| Money                market accounts                                                                                 |   |                                                              | 969,150   |   |   |   | 16,007 |   |   |   | 42,850 |   |   |   | 53,069 |   |   |   | 278,521 |   |   |   | 1,359,597 |   |
| Passbook                accounts                                                                                     |   |                                                              | 55,536    |   |   |   | 48,409 |   |   |   | 151,537 |   |   |   | 130,746 |   |   |   | 648,764 |   |   |   | 1,034,992 |   |
| Certificate                accounts                                                                                  |   |                                                              | 1,666,841 |   |   |   | 1,410,978 |   |   |   | 420,798 |   |   |   | 34,042 |   |   |   | 10,341 |   |   |   | 3,543,000 |   |
| FHLBC                advances                                                                                        |   |                                                              | 397,939   |   |   |   | 287,972 |   |   |   | 401,641 |   |   |   | 10,056 |   |   |   | – |   |   |   | 1,097,608 |   |
| Other                borrowings                                                                                      |   |                                                              | 582,890   |   |   |   | 526 |   |   |   | 50,000 |   |   |   | – |   |   |   | 358 |   |   |   | 633,774 |   |
|                    Junior subordinated debentures                                                     |   |                                                              | 67,011    |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 67,011 |   |
| Total                interest-bearing liabilities                                                                    |   |                                                              | 3,759,504 |   |   |   | 1,786,782 |   |   |   | 1,149,187 |   |   |   | 296,916 |   |   |   | 1,414,832 |   |   |   | 8,407,221 |   |
| Interest                sensitivity gap                                                                              |   | $                                                                 | (491,344  | ) |   |   | (640,818 | ) |   |   | 1,318,839 |   |   |   | 1,117,466 |   |   |   | (514,519 | ) |   |   | 789,624 |   |
| Cumulative                gap                                                                                        |   | $                                                                 | (491,344  | ) |   |   | (1,132,162 | ) |   |   | 186,677 |   |   |   | 1,304,143 |   |   |   | 789,624 |   |   |   |   |   |
| Cumulative                gap as a percentage of total assets                                                        |   |                                                              | (4.76     | )% |   |   | (10.97 | ) |   |   | 1.81 |   |   |   | 12.64 |   |   |   | 7.65 |   |   |   |   |   |
| Cumulative                net interest-earning assets as a percentage of interest-bearing                liabilities |   |                                                              | 86.93     | % |   |   | 79.59 |   |   |   | 102.79 |   |   |   | 118.65 |   |   |   | 109.39 |   |   |   |   |   |
|                                                                                                                 |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **At                December 31, 2006**                                                                              |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                gap                                                                                        |   | $                                                                 | (491,867  | ) |   |   | (820,930 | ) |   |   | 307,610 |   |   |   | 1,463,014 |   |   |   | 743,471 |   |   |   |   |   |
| Cumulative                gap as a percentage of total assets                                                        |   |                                                              | (4.42     | )% |   |   | (7.38 | ) |   |   | 2.77 |   |   |   | 13.16 |   |   |   | 6.69 |   |   |   |   |   |
| Cumulative                net interest-earning assets as a percentage of interest-bearing                liabilities |   |                                                              | 88.66     |   |   |   | 85.42 |   |   |   | 104.23 |   |   |   | 119.10 |   |   |   | 108.03 |   |   |   |   |   |

**Item      3.  Quantitative and Qualitative      Disclosures About Market Risk**

**Item      4.  Controls and      Procedures**

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*Table          of Contents*

**Part      II.  Other Information**

**Item      1.   Legal Proceedings.**

**Item      1A.   Risk Factors.**

**Item      2.   Unregistered Sales of Equity      Securities and Use of Proceeds.**

| **Period**                                                 |   | **Total                  Number of Shares****Purchased(1)** |    |   | **Average                  Price Paid per Share** |   |    | **Total                  Number of Shares Purchased as Part of Publicly Announced Plans                  or                  Programs** |   |   | **Maximum                  Number of Shares that May Yet be Purchased under the Plans or                  Programs** |   |
|------------------------------------------------------------|--------|-------------------------------------------------------------|---------|--------|---------------------------------------------------|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------|--------|
| April                1, 2007 through April 30, 2007        |   |                                                        | – |   |                                              | $      | – |                                                                                                                                    |   |   | –                                                                                                              |   |   |   | – |   |
| May                1, 2007  through May 31, 2007 |   |                                                        | – |   |                                              |   | – |                                                                                                                                    |   |   | –                                                                                                              |   |   |   | – |   |
| June                1, 2007 through June 30, 2007          |        |                                                             | 3,952   |   |                                              |   | 53.42   |                                                                                                                                         |   |   | –                                                                                                              |        |   |   | – |  |
| Total                                                      |   |                                                        | 3,952   |   |                                              | $      | 53.42   |                                                                                                                                    |   |   | –                                                                                                              |   |   |   |   |   |

| (1) | Reflects                3,952 shares that were surrendered to us in payment of option exercise                prices. The table does not include 170 shares that were surrendered                in                payment of withholding tax in connection with an option exercise                during                the quarter. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item      3.  Defaults Upon Senior      Securities.**

**Item      4.  Submission of Matters to a Vote of      Security Holders.**

**Item      5.  Other Information.**

**Item      6.   Exhibits.**

|   | Exhibit                  No. 2.1 | Agreement                  and Plan of Merger dated as of April 30, 2007 by and between National                  City                  Corporation and MAF Bancorp, Inc. (Incorporated herein by reference                  to                  Exhibit 2.1 to Registrant’s Form 8-K (File No. 0- 18121) dated May 1,                  2007.) |
|--------|----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Exhibit                  No. 3.1  | Restated                  Certificate of Incorporation. (Incorporated herein by reference                  to Exhibit                  3.1 to Registrant’s Form 8-K (File No. 0-18121) dated December 19,                  2000).             |
|--------|-----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Exhibit                  No. 3.2  | Amended                  and Restated By-laws of Registrant, as amended.+                                                                                                                                                                           |
|   | Exhibit                  No. 31.1 | Certification                  of Chief Executive Officer.+                                                                                                                                                                                         |
|   | Exhibit                  No. 31.2 | Certification                  of Chief Financial Officer.+                                                                                                                                                                                         |
|   | Exhibit                  No. 32.1 | Certification                  of Chief Executive Officer and Chief Financial Officer pursuant                  to 18                  U.S.C. Section 1350, as adopted pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002.+ |

|   | *                    Indicates management contracts or compensatory plans or arrangements                    required to be filed as an exhibit. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | +                    Filed                    herewith. |
|--------|---------------------------------------------------------|

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*Table              of Contents*

**SIGNATURES**

|   | MAF                Bancorp, Inc.                                                                                                                  |   |                          |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|
|   | (Registrant)                                                                                                                                      |   |                          |
|   |                                                                                                                                              |   |                          |
|   |                                                                                                                                              |   |                          |
|   | /s/  Allen                H. Koranda                                                                                                    |   | August                9, 2007 |
|   | Allen                H. Koranda                                                                                                                   |   | (Date)                        |
|   | Chairman                of the Board andChief                Executive Officer(Principal                Executive Officer)                        |   |                          |
|   |                                                                                                                                              |   |                          |
|   | /s/  Jerry                A. Weberling                                                                                                  |   | August                9, 2007 |
|   | Jerry                A. Weberling                                                                                                                 |   | (Date)                        |
|   | Senior                Executive Vice President andChief                Financial Officer and Director(Principal                Financial Officer) |   |                          |

----

**EXHIBIT        INDEX**

|                                   |   |                                                                                                                                                                                                                                                                                                                                                      |
|----------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit                  No. 2.1       |   | Agreement                  and Plan of Merger dated as of April 30, 2007 by and between National                  City                  Corporation and MAF Bancorp, Inc. (Incorporated herein by reference                  to                  Exhibit 2.1 to Registrant’s Form 8-K (File No. 0-18121) dated May 1,                  2007.)  |
| Exhibit                  No. 3.1       |   | Restated                  Certificate of Incorporation. (Incorporated herein by reference                  to Exhibit                  3.1 to Registrant’s Form 8-K (File No. 0-18121) dated December 19,                  2000).                                                                                                              |
| Exhibit                  No. 3.2       |   | Amended                  and Restated By-laws of Registrant, as amended. +                                                                                                                                                                                                                                                                           |
| Exhibit No. 31.1             |   | Certification                  of Chief Executive Officer. +                                                                                                                                                                                                                                                                                         |
| Exhibit                  No. 31.2 |   | Certification                  of Chief Financial Officer. +                                                                                                                                                                                                                                                                                         |
| Exhibit                  No. 32.1 |   | Certification                  of Chief Executive Officer and Chief Financial Officer pursuant                  to 18                  U.S.C. Section 1350, as adopted pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002.+                                                                                                  |

| + | Filed                  herewith.                                                                                                                                   |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| * | Indicates* *management                  contracts or compensatory plans or arrangements required to be                  filed as an                  exhibit. |