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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

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FORM 10-Q

(Mark One)

|/x/ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ---------------------------------------------------------------------------------------

For the quarterly period ended September 30, 2000

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 1-13605

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EFC BANCORP, INC.(Exact name of registrant as specified in its charter)

Delaware(State or other jurisdiction of incorporation or organization)

36-4193304(I.R.S. Employer Identification No.)1695 Larkin Avenue, Elgin, Illinois(Address of principal executive offices)

60123(Zip Code)


(847) 741-3900(Registrant's telephone number, including area code)

Not Applicable(Former name, former address and former fiscal year, if changed since last report)

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Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days. Yes /x/  No / /

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 4,880,169 shares of common stock,
par value $0.01 per share, were outstanding as of November 13, 2000.

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EFC Bancorp, Inc.

Form 10-Q

For the Quarter Ended September 30, 2000

INDEX

|           |  |                                                                                                   |  | Page
|---------- |  | ------------------------------------------------------------------------------------------------- |  | ----
|PART I.    |  | FINANCIAL INFORMATION                                                                             |  | 1   
|Item 1.    |  | Financial Statements (unaudited)                                                                  |  | 1   
|           |  | Consolidated Balance Sheets at September 30, 2000 and December 31, 1999                           |  | 1   
|           |  | Consolidated Statements of IncomeFor the Three and Nine Months Ended September 30, 2000 and 1999 |  | 2   
|           |  | Consolidated Statements of Cash FlowsFor the Nine Months Ended September 30, 2000 and 1999       |  | 3   
|           |  | Notes to Consolidated Financial Statements                                                        |  | 4   
|Item 2.    |  | Management's Discussion and Analysis of Financial Condition and Results of Operations             |  | 5   
|Item 3.    |  | Quantitative and Qualitative Disclosures About Market Risk                                        |  | 11  
|PART II:   |  | OTHER INFORMATION                                                                                 |  | 12  
|Item 1.    |  | Legal Proceedings                                                                                 |  | 12  
|Item 2.    |  | Changes in Securities and Use of Proceeds                                                         |  | 12  
|Item 3.    |  | Defaults Upon Senior Securities                                                                   |  | 12  
|Item 4.    |  | Submission of Matters to a Vote of Security Holders                                               |  | 12  
|Item 5.    |  | Other Information                                                                                 |  | 12  
|Item 6.    |  | Exhibits and Reports on Form 8-K                                                                  |  | 12  
|SIGNATURES |  | 13                                                                                               

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PART I. FINANCIAL INFORMATION  EFC BANCORP, INC.  September 30, 2000

Item 1.Financial Statements.

EFC BANCORP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (unaudited)

September 30, 2000 and December 31, 1999

|                                                             |                                                                                                                                     | September 30,
2000 |             | December 31,
1999 |            
|------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ----------- | ----------------- | -----------
|Assets                                                       |                                                                                                                                    
|Cash and cash equivalents:                                   |                                                                                                                                     |                    |             |                   |            
|                                                             | On hand and in banks                                                                                                                |                    | $           | 2,414,526         |            
|                                                             | Interest bearing deposits with financial institutions                                                                               |                    |             | 19,231,717        |            
|Loans receivable, net                                        |                                                                                                                                     |                    | 451,632,718 |                   | 396,006,771
|Mortgage-backed securities available-for-sale, at fair value |                                                                                                                                     |                    | 9,971,910   |                   | 11,882,080 
|Investment securities available-for-sale, at fair value      |                                                                                                                                     |                    | 62,513,513  |                   | 61,079,696 
|Foreclosed real estate                                       |                                                                                                                                     |                    | 214,930     |                   | 168,145    
|Stock in Federal Home Loan Bank of Chicago, at cost          |                                                                                                                                     |                    | 7,410,000   |                   | 5,760,000  
|Accrued interest receivable                                  |                                                                                                                                     |                    | 3,182,864   |                   | 2,807,426  
|Office properties and equipment, net                         |                                                                                                                                     |                    | 9,057,606   |                   | 8,640,410  
|Other assets                                                 |                                                                                                                                     |                    | 2,558,628   |                   | 2,453,629  
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total assets                                                 |                                                                                                                                     | $                  | 568,188,412 |                   | 510,971,752
|                                                             |                                                                                                                                     |                    |             |                   |            
|                                                             | Liabilities and Stockholders' Equity                                                                                                |                   
|Liabilities:                                                 |                                                                                                                                     |                    |             |                   |            
|                                                             | Deposits                                                                                                                            |                    | $           | 362,941,068       |            
|                                                             | Borrowed money                                                                                                                      |                    |             | 133,200,000       |            
|                                                             | Advance payments by borrowers for taxes and insurance                                                                               |                    |             | 265,284           |            
|                                                             | Income taxes payable                                                                                                                |                    |             | 616,681           |            
|                                                             | Accrued expenses and other liabilities                                                                                              |                    |             | 5,142,909         |            
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total liabilities                                            |                                                                                                                                     |                    | 502,165,942 |                   | 444,549,663
|                                                             |                                                                                                                                     |                    |             |                   |            
|Stockholders' Equity:                                        |                                                                                                                                     |                    |             |                   |            
|                                                             | Preferred stock, par value $.01 per share, authorized 2,000,000 shares; no shares issued                                            |                    |             |                  |            
|                                                             | Common stock, par value $.01 per share, authorized 25,000,000 shares; issued 7,491,434 shares                                       |                    |             | 74,914            |            
|                                                             | Additional paid-in capital                                                                                                          |                    |             | 71,878,322        |            
|                                                             | Treasury stock, at cost, 2,611,265 and 2,331,184 shares at September 30, 2000 and December 31, 1999, respectively                   |                    |             | (30,528,058       | )          
|                                                             | Unearned employee stock ownership plan (ESOP), 489,440 and 519,406 shares at September 30, 2000 and December 31, 1999, respectively |                    |             | (7,318,388        | )          
|                                                             | Unearned stock award plan, 179,234 and 222,224 shares at September 30, 2000 and December 31, 1999, respectively                     |                    |             | (1,993,979        | )          
|                                                             | Retained earnings, substantially restricted                                                                                         |                    |             | 35,039,381        |            
|                                                             | Accumulated other comprehensive loss                                                                                                |                    |             | (1,129,722        | )          
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total stockholders' equity                                   |                                                                                                                                     |                    | 66,022,470  |                   | 66,422,089 
|                                                             |                                                                                                                                     |                    |             |                   |            
|Commitments and contingencies                                |                                                                                                                                     |                    |            |                   |           
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total liabilities and stockholders' equity                   |                                                                                                                                     | $                  | 568,188,412 |                   | 510,971,752
|                                                             |                                                                                                                                     |                    |             |                   |            

See
accompanying notes to consolidated financial statements.

1

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EFC BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Income (unaudited)

For the three and nine months ended September 30, 2000 and 1999

|                                                     |                                                                                                    | Three Months Ended
September 30, |            | Nine Months Ended
September 30,
|---------------------------------------------------- | -------------------------------------------------------------------------------------------------- | -------------------------------- | ---------- | -------------------------------
|
|Interest income:                                     |                                                                                                    |                                  |            |                                
|                                                     | Loans secured by real estate                                                                       |                                  | $          | 7,779,436                      
|                                                     | Other loans                                                                                        |                                  |            | 767,443                        
|                                                     | Mortgage-backed securities available-for-sale                                                      |                                  |            | 206,483                        
|                                                     | Investment securities available-for-sale and interest bearing deposits with financial institutions |                                  |            | 1,411,957                      
|                                                     |                                                                                                    |                                  |            |                                
|Total interest income                                |                                                                                                    |                                  | 10,165,319 |                                
|                                                     |                                                                                                    |                                  |            |                                
|Interest expense:                                    |                                                                                                    |                                  |            |                                
|                                                     | Deposits                                                                                           |                                  |            | 4,140,277                      
|                                                     | Borrowed money                                                                                     |                                  |            | 1,990,650                      
|                                                     |                                                                                                    |                                  |            |                                
|Total interest expense                               |                                                                                                    |                                  | 6,130,927  |                                
|                                                     |                                                                                                    |                                  |            |                                
|Net interest income before provision for loan losses |                                                                                                    |                                  | 4,034,392  |                                
|Provision for loan losses                            |                                                                                                    |                                  | 111,258    |                                
|                                                     |                                                                                                    |                                  |            |                                
|Net interest income after provision for loan losses  |                                                                                                    |                                  | 3,923,134  |                                
|                                                     |                                                                                                    |                                  |            |                                
|Noninterest income:                                  |                                                                                                    |                                  |            |                                
|                                                     | Service fees                                                                                       |                                  |            | 249,032                        
|                                                     | Insurance and brokerage commissions                                                                |                                  |            | 38,240                         
|                                                     | Loss on sale of foreclosed real estate                                                             |                                  |            |                               
|                                                     | Gain on sale of securities                                                                         |                                  |            | 81,309                         
|                                                     | Other                                                                                              |                                  |            | 17,082                         
|                                                     |                                                                                                    |                                  |            |                                
|Total noninterest income                             |                                                                                                    |                                  | 385,663    |                                
|                                                     |                                                                                                    |                                  |            |                                
|Noninterest expense:                                 |                                                                                                    |                                  |            |                                
|                                                     | Compensation and benefits                                                                          |                                  |            | 1,616,189                      
|                                                     | Office building, net                                                                               |                                  |            | 86,019                         
|                                                     | Depreciation and repairs                                                                           |                                  |            | 235,179                        
|                                                     | Data processing                                                                                    |                                  |            | 128,013                        
|                                                     | Federal insurance premium                                                                          |                                  |            | 17,268                         
|                                                     | NOW account operating expenses                                                                     |                                  |            | 121,160                        
|                                                     | Other                                                                                              |                                  |            | 623,960                        
|                                                     |                                                                                                    |                                  |            |                                
|Total noninterest expense                            |                                                                                                    |                                  | 2,827,788  |                                
|                                                     |                                                                                                    |                                  |            |                                
|Income before income taxes                           |                                                                                                    |                                  | 1,481,009  |                                
|Income tax expense                                   |                                                                                                    |                                  | 523,211    |                                
|                                                     |                                                                                                    |                                  |            |                                
|Net income                                           |                                                                                                    | $                                | 957,798    |                                
|                                                     |                                                                                                    |                                  |            |                                
|Earnings per share (basic and diluted)               |                                                                                                    | $                                | 0.22       |                                
|                                                     |                                                                                                    |                                  |            |                                

See
accompanying notes to consolidated financial statements.

2

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EFC BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (unaudited)

For the nine months ended September 30, 2000 and 1999

|                                                 |                                                                                  | 2000                                                                          |            | 1999        |           
|------------------------------------------------ | -------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ---------- | ----------- | ----------
|Cash flows from operating activities:            |                                                                                  |                                                                               |            |             |           
|                                                 | Net income                                                                       |                                                                               | $          | 2,920,083   |           
|                                                 | Adjustment to reconcile net income to net cash provided by operating activities: |                                                                               |            |             |           
|                                                 |                                                                                  | Amortization of premiums and discounts, net                                   |            |             | 27,409    
|                                                 |                                                                                  | Provision for loan losses                                                     |            |             | 267,000   
|                                                 |                                                                                  | Stock award plan shares allocated                                             |            |             | 478,263   
|                                                 |                                                                                  | ESOP shares committed to be released                                          |            |             | 448,071   
|                                                 |                                                                                  | Change in fair value of ESOP shares                                           |            |             | (161,275  
|                                                 |                                                                                  | Gain on sale of securities                                                    |            |             | (150,057  
|                                                 |                                                                                  | Loss on sale of foreclosed real estate                                        |            |             | 7,413     
|                                                 |                                                                                  | Depreciation of office properties and equipment                               |            |             | 507,268   
|                                                 |                                                                                  | Decrease in accrued interest receivable and other assets, net                 |            |             | (558,246  
|                                                 |                                                                                  | Increase in income taxes payable, accrued expenses and other liabilities, net |            |             | 599,177   
|                                                 |                                                                                  |                                                                               |            |             |           
|Net cash provided by operating activities        |                                                                                  |                                                                               | 4,385,106  |             | 4,812,824 
|                                                 |                                                                                  |                                                                               |            |             |           
|Cash flows from investing activities:            |                                                                                  |                                                                               |            |             |           
|                                                 | Net increase in loans receivable                                                 |                                                                               |            | (21,944,893 | )         
|                                                 | Purchases of loans receivable                                                    |                                                                               |            | (34,162,550 | )         
|                                                 | Principal payments on mortgage-backed securities available-for-sale              |                                                                               |            | 1,933,454   |           
|                                                 | Maturities of investment securities available-for-sale                           |                                                                               |            | 4,060,634   |           
|                                                 | Proceeds from sale of investment securities available for sale                   |                                                                               |            | 7,063,076   |           
|                                                 | Purchases of investment securities available-for-sale                            |                                                                               |            | (12,258,653 | )         
|                                                 | Purchases of office properties and equipment                                     |                                                                               |            | (924,464    | )         
|                                                 | Purchases of stock in the Federal Home Loan Bank of Chicago                      |                                                                               |            | (1,650,000  | )         
|                                                 | Proceeds from the sale of foreclosed real estate                                 |                                                                               |            | 160,298     |           
|                                                 |                                                                                  |                                                                               |            |             |           
|                                                 | Net cash used in investing activities                                            |                                                                               |            | (57,723,098 | )         
|                                                 |                                                                                  |                                                                               |            |             |           
|Cash flows from financing activities:            |                                                                                  |                                                                               |            |             |           
|                                                 | Cash dividends paid                                                              |                                                                               |            | (1,394,801  | )         
|                                                 | Purchase of treasury stock                                                       |                                                                               |            | (2,856,334  | )         
|                                                 | Net increase in deposits                                                         |                                                                               |            | 39,061,775  |           
|                                                 | Proceeds from borrowed money                                                     |                                                                               |            | 94,000,000  |           
|                                                 | Repayments on borrowed money                                                     |                                                                               |            | (76,000,000 | )         
|                                                 |                                                                                  |                                                                               |            |             |           
|Net cash provided by financing activities        |                                                                                  |                                                                               | 52,810,640 |             | 54,532,921
|                                                 |                                                                                  |                                                                               |            |             |           
|Net decrease in cash and cash equivalents        |                                                                                  |                                                                               | (527,352   | )           | (3,278,967
|Cash and cash equivalents at beginning of period |                                                                                  |                                                                               | 22,173,595 |             | 23,279,906
|                                                 |                                                                                  |                                                                               |            |             |           
|Cash and cash equivalents at end of period       |                                                                                  | $                                                                             | 21,646,243 |             | 20,000,939
|                                                 |                                                                                  |                                                                               |            |             |           

See
accompanying notes to consolidated financial statements.

3

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EFC BANCORP, INC.

Notes to Consolidated Financial Statements

Note 1: BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements include the accounts of EFC Bancorp, Inc. (the Company) and its wholly-owned subsidiary, Elgin
Financial Savings Bank (the Bank) and its wholly-owned subsidiary, Fox Valley Service Corp. Certain amounts for the prior year have been reclassified to conform to the current year presentation.

In
the opinion of the management of the Company, the accompanying consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the
financial position and results of operations for the periods presented. All significant intercompany transactions have been eliminated in consolidation. These interim financial statements have been
prepared according to the rules and regulations of the Securities and Exchange Commission and therefore certain information and footnote disclosures normally included in financial statements presented
in accordance with generally accepted accounting principles have been condensed or omitted. The results of operations for the interim periods are not necessarily indicative of the results to be
expected for the full year. It is suggested that the accompanying unaudited consolidated financial statements be read in conjunction with the Company's 1999 Annual Report on Form 10-K. Currently,
other than investing in various securities, the Company does not directly transact any material business other than through the Bank. Accordingly, the discussion herein addresses the operations of the
Company as they are conducted through the Bank.

Note 2: COMPREHENSIVE INCOME

The Company's comprehensive income for the three and nine month periods ended September 30, 2000 and 1999 are as follows:

|                                                                            |                                                                           | Three Months Ended
September 30, |         | Nine Months Ended
September 30, |        
|--------------------------------------------------------------------------- | ------------------------------------------------------------------------- | -------------------------------- | ------- | ------------------------------- | -------
|
|Net income                                                                  |                                                                           | $                                | 957,798 |                                 | 969,448
|Other comprehensive loss, net of tax:                                       |                                                                           |                                  |         |                                 |        
|                                                                            | Unrealized holding gains (losses) on securities arising during the period |                                  |         | 516,141                         |        
|Reclassification adjustment for net gain realized in net income, net of tax |                                                                           |                                  | (51,225 | )                               | (8,010 
|                                                                            |                                                                           |                                  |         |                                 |        
|                                                                            | Comprehensive income                                                      |                                  | $       | 1,422,714                       |        
|                                                                            |                                                                           |                                  |         |                                 |        

For
the three and nine month periods ended September 30, 2000 the sale of investment securities resulted in a gain of $81,309 and $150,057 ($51,225 and $94,536 net of tax effect), respectively. For
the
three and nine month periods ended September 30, 1999 the sale of investment securities resulted in a gain of $12,715 ($8,010 net of tax effect).

4

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## 

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

The following analysis discusses changes in the financial condition at September 30, 2000 and results of operations for the three and nine months ended
September 30, 2000, and should be read in conjunction with the Company's Unaudited Consolidated Financial Statements and the notes thereto, appearing in Part I, Item 1 of this document.

Forward-looking Statements

This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995, and is including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe
future plans, strategies and expectations of the Company, are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The
Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and
the subsidiaries include, but are not limited to, changes in: interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government,
including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for
financial services in the Company's market area and accounting principles and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance
should not be placed on such statements. Further information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is
included in the Company's filings with the SEC, including its 1999 Annual Report on Form 10-K.

The
Company does not undertakeand specifically disclaims any obligationto publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Comparison of Financial Condition at September 30, 2000 and December 31, 1999

Total assets at September 30, 2000 were $568.2 million, which represented an increase of $57.2 million, or 11.2%, compared to $511.0 million at December 31,
1999. The increase in total assets was primarily as a result of an increase in loans receivable of $55.6 million, or 14.0%, to $451.6 million at September 30, 2000 from $396.0 million at December 31,
1999. Of the $55.6 million increase, $34.2 million was due to loans purchased. The increase in loans receivable was primarily attributable to strong loan demand during the period. The growth in total
assets was funded by increases in borrowed money and deposits. Borrowed money, representing FHLB advances, increased by $18.0 million to $133.2 million at September 30, 2000 from $115.2 million at
December 31, 1999. Deposits increased $39.0 million to $362.9 million at September 30, 2000 from $323.9 million at December 31, 1999. Stockholders' equity decreased by $400,000 to $66.0 million at
September 30, 2000 from $66.4 million at December 31, 1999. The decrease in stockholders' equity was primarily the result of the Company completing its third and fourth stock repurchases since
becoming a public company in April, 1998. The third stock repurchase program, a 5.0% repurchase announced on October 1, 1999, was completed January 13, 2000; total shares repurchased were 270,370 and
the average price was $10.38 per share. Subsequently, on March 22, 2000, the Company announced the completion of the fourth stock repurchase program; total shares repurchased were 256,851, or 5.0%, of
the outstanding shares of common stock and the average price was $10.20. After these transactions, there were 4,880,169 shares

5

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of common stock issued and outstanding. In addition to the stock repurchases, dividends totaling $0.12 per share were declared during each of the three quarters of 2000.

Comparison of Operating Results for the Three Months Ended September 30, 2000 and 1999

General.The Company's net income decreased $11,000, to $958,000 for the three months ended
September 30, 2000, from $969,000 for the three months ended September 30, 1999.

Interest Income.Interest income increased $2.1 million, or 25.1%, to $10.2 million for the
three months ended September 30, 2000, compared with $8.1 million for the same period in 1999. The increase in interest income was primarily due to an increase in average interest-earning assets,
which increased by $92.9 million, or 20.5%, to $545.4 million for the three months ended September 30, 2000 from $452.5 million for the comparable period in 1999, and an increase in the average yield
on interest-earning
assets by 27 basis points to 7.45% for the three months ended September 30, 2000 from 7.18% for the three months ended September 30, 1999.

Mortgage
loan interest income increased by $1.4 million for the three months ended September 30, 2000 compared with the same period in 1999. The average balance of mortgage loans
increased $71.7 million, while the loan yield increased by 3 basis points from 7.50% to 7.53%. Interest income from investment securities, mortgage-backed securities and short term deposits increased
by $221,000 for the three months ended September 30, 2000, compared with the same period in 1999. This increase resulted from a combination of an increase in average balance of $3.5 million and a 74
basis point increase in yield.

Interest Expense.Interest expense increased by $1.9 million, or 45.0%, to $6.1 million for the
three months ended September 30, 2000 from $4.2 million for the three months ended September 30, 1999. This increase resulted from the combination of an increase in the average balance of
interest-bearing liabilities, and an overall increase in the average rate paid on those interest-bearing liabilities. The average balance of interest-bearing liabilities increased by $95.8 million, or
25.4%, to $472.4 million at September 30, 2000 from $376.6 million at September 30, 1999. This change reflects a $53.5 million increase in the deposit accounts, with the remaining $42.3 million
increase attributable to advances from the FHLB-Chicago. The average rate paid on combined deposits and borrowed money increased by 70 basis points to 5.19% for the three months ended September 30,
2000 from 4.49% for the three months ended September 30, 1999. The Company's stock repurchase programs will generally cause interest-bearing liabilities to rise at a greater rate than interest-earning
assets due to the reduction in stockholders' equity as a funding source.

Net Interest Income Before Provision for Loan Losses.Net interest income before provision for
loan losses increased $137,000, or 3.5%, to $4.0 million for the three months ended September 30, 2000 from $3.9 million for the comparable period in 1999. The net interest margin as a percent of
interest-earning assets decreased by 49 basis points to 2.96% for the three months ended September 30, 2000 from 3.45% for the comparable period in 1999.

Provision for Loan Losses.The provision for loan losses increased by $66,000, to $111,000 for
the three months ended September 30, 2000 from $45,000 in 1999. At September 30, 2000, December 31, 1999 and September 30, 1999, non-performing loans totaled $5.0 million, $1.3 million and $1.9
million, respectively. The increase in non-performing loans from $1.3 million to $5.0 million primarily represents one $3.5 million first mortgage loan secured by a commercial office building past due
over 90 days at September 30, 2000. At September 30, 2000, the ratio of the allowance for loan losses to non-performing loans was 36.2% compared to 121.7% at December 31, 1999 and 78.7% at September
30, 1999. The ratio of the allowance to total loans was 0.40%, 0.39% and 0.40%, at September 30,
2000, December 31, 1999 and September 30, 1999, respectively. There were no charge-offs for the three months ended September 30, 2000. Charge-offs for the three months ended September 30, 1999

6

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amounted to $25,000. Management periodically calculates an allowance sufficiency analysis based upon the portfolio composition, asset classifications, loan-to-value ratios, potential impairments in
the loan portfolio, and other factors.

Noninterest Income.Noninterest income totaled $386,000 and $312,000 for the three months ended
September 30, 2000 and 1999, respectively. The increase in noninterest income is primarily attributable to a gain on sale of securities totaling $81,000 and an increase in insurance and brokerage
commission income of $4,000.

Noninterest Expense.Noninterest expense increased $151,000, to $2.8 million for the three
months ended September 30, 2000 from $2.7 million for the comparable period in 1999. Compensation and benefits increased by $100,000. This increase was primarily due to a combination of annual salary
increases, the addition of staff and increases in employee health insurance costs. The additional staff expenses are primarily attributed to the opening of the Bank's two new branches and the hiring
of marketing and human resource personnel. All other operating expenses, including advertising, marketing, postage, communications, data processing and other office expense increased by a combined
$51,000, or 4.4%, to $1.2 million for the three months ended September 30, 2000 from $1.1 million for the three months ended September 30, 1999. Of this increase, $52,000 is related to NOW account
operating expenses, primarily representing increases in data processing and imaging expenses. Management continues to emphasize the importance of expense management and control while continuing to
provide expanded banking services to a growing market base.

Income Tax Expense.Income tax expense totaled $523,000 for the three months ended September
30, 2000 compared to $518,000 for the comparable period in 1999. The effective tax rate was 35.3% and 34.8% for the three months ended September 30, 2000 and 1999, respectively.

Comparison of Operating Results For the Nine Months Ended September 30, 2000 and 1999

General.The Company's net income decreased $161,000, to $2.9 million for the nine months ended
September 30, 2000, from $3.1 million for the nine months ended September 30, 1999.

Interest Income.Interest income increased $5.8 million, or 25.0%, to $29.1 million for the
nine months ended September 30, 2000, compared with $23.3 million for the same period in 1999. The increase in interest income was primarily due to an increase in average interest-earning assets,
which increased by $90.3 million, or 20.8%, to $524.3 million for the nine months ended September 30, 2000 from $434.0 million for the comparable period in 1999, and an increase in the average yield
on interest-earning assets by 25 basis points to 7.40% for the nine months ended September 30, 2000 from 7.15% for the nine months ended September 30, 1999.

Mortgage
loan interest income increased by $4.1 million for the nine months ended September 30, 2000. The average balance of mortgage loans increased $75.4 million, while the loan
yield decreased 4 basis points from 7.53% to 7.49%. Interest income from investment securities, mortgage-backed securities and short term deposits increased $519,000 for the nine months ended
September 30, 2000, compared with the same period in 1999. This increase resulted from a combination of a decrease in the average balance of $953,000 and an 82 basis point increase in yield.

Interest Expense.Interest expense increased by $5.3 million, or 46.2%, to $16.8 million for
the nine months ended September 30, 2000 from $11.5 million for the nine months ended September 30, 1999. This increase resulted from the combination of an increase in the average balance of
interest-bearing liabilities, and an overall increase in the average rate paid on those interest-bearing liabilities. The average balance of interest-bearing liabilities increased by $105.2 million,
or 30.3%, to $452.2 million for the nine months ended September 30, 2000 from $347.0 million for the nine months ended September 30, 1999. This change reflects a $58.5 million increase in deposit
accounts, with the remaining $46.7 million increase attributed to advances from the FHLB-Chicago. The average rate paid

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on combined deposits and borrowed money increased by 54 basis points to 4.96% for the nine months ended September 30, 2000 from 4.42% for the nine months ended September 30, 1999. The Company's stock
repurchase programs will generally cause interest-bearing liabilities to rise at a greater rate than interest-earning assets due to the reduction in stockholders' equity as a funding source.

Net Interest Income Before Provision for Loan Losses.Net interest income before provision for
loan losses increased $507,000, or 4.3%, to $12.3 million for the nine months ended September 30, 2000 from $11.8 million for the comparable period in 1999. The net interest margin as a percent of
interest-
earning assets decreased 50 basis points to 3.12% for the nine months ended September 30, 2000 from 3.62% for the comparable period in 1999.

Provision for Loan Losses.The provision for loan losses increased by $132,000, to $267,000 for
the nine months ended September 30, 2000 from $135,000 in 1999. At September 30, 2000, December 31, 1999 and September 30, 1999, non-performing loans totaled $5.0 million, $1.3 million and $1.9
million, respectively. The increase in non-performing loans from $1.3 million to $5.0 million primarily represents one $3.5 million first mortgage loan secured by a commercial office building past due
over 90 days at September 30, 2000. At September 30, 2000, the ratio of the allowance for loan losses to non-performing loans was 36.2% compared to 121.7% at December 31, 1999 and 78.7% at September
30, 1999. The ratio of the allowance to total loans was 0.40%, 0.39% and 0.40% at September 30, 2000, December 31, 1999 and September 30, 1999, respectively. Charge-offs for the nine months ended
September 30, 2000 and 1999 amounted to $3,000 and $27,000, respectively. Management periodically calculates an allowance sufficiency analysis based upon the portfolio composition, asset
classifications, loan-to-value ratios, potential impairments in the loan portfolio, and other factors.

Noninterest Income.Noninterest income totaled $1.0 million and $829,000 for the nine months
ended September 30, 2000 and 1999, respectively. The increase in noninterest income is primarily attributed to a gain on sale of securities totaling $150,000 and an increase in insurance and brokerage
commissions of $49,000.

Noninterest Expense.Noninterest expense increased $798,000, to $8.5 million for the nine
months ended September 30, 2000 from $7.7 million for the comparable period in 1999. Compensation and benefits increased by $374,000. This increase is primarily due to a combination of annual salary
increases, the addition of staff and increases in employee health insurance costs. The additional staff expenses are primarily attributed to the opening of the Bank's two new branches and the hiring
of marketing and human resource personnel. All other operating expenses, including advertising, marketing, postage, communication, data processing and other office expense increased by a combined
$424,000, or 12.8%, to $3.7 million for the nine months ended September 30, 2000 from $3.3 million for the nine months ended September 30, 1999. Of this increase, $101,000 is related to media
advertising and marketing and $150,000 is related to NOW account operating expenses, primarily representing increases in data processing and imaging expenses. Management continues to emphasize the
importance of expense management and control while continuing to provide expanded banking services to a growing market base.

Income Tax Expense.Income tax expense totaled $1.6 million for the nine months ended September
30, 2000 compared to $1.7 million for the comparable period in 1999. The decrease in the provision for income taxes was primarily the result of a decrease of $241,000 in income before income tax
expense for the nine months ended September 30, 2000 compared to the nine months ended September 30,
1999. The effective tax rate was 35.6% and 35.5% for the nine months ended September 30, 2000 and 1999, respectively.

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Liquidity and Capital Resources

The Bank's primary sources of funds are savings deposits, proceeds from the principal and interest payments on loans and proceeds from the maturation of
securities and borrowings from the FHLB-Chicago. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit outflows and mortgage prepayments are
greatly influenced by general interest rates, economic conditions and competition.

The
primary investing activities of the Bank are the origination of residential one-to-four-family loans and, to a lesser extent multi-family and commercial real estate, construction
and land, commercial and consumer loans and the purchase of mortgage-backed and mortgage-related securities. In addition, the Bank purchases loans, consisting of multi-family and commercial real
estate. Deposit flows are affected by the level of interest rates, the interest rates and products offered by the local competitors, the Bank and other factors.

The
Bank's most liquid assets are cash and interest-bearing demand accounts. The levels of these assets are dependent on the Bank's operating, financing, lending and investing
activities during any given period. At September 30, 2000, cash and interest-bearing demand accounts totaled $21.6 million, or 3.8% of total assets.

See
the "Consolidated Statements of Cash Flows" in the Unaudited Consolidated Financial Statements included in this Form 10-Q for the sources and uses of cash flows for operating,
investing and financing activities for the nine months ended September 30, 2000 and 1999.

At
September 30, 2000, the Bank exceeded all of its regulatory capital requirements. The following is a summary of the Bank's regulatory capital ratios at September 30, 2000:

Total Capital to Total Assets

10.57%Total Capital to Risk-Weighted Assets

16.30%Tier I Leverage Ratio

10.84%Tier I to Risk-Weighted Assets

16.60%


At
September 30, 2000, the Company had a Total Capital to Total Assets ratio of 11.62%.

On
September 20, 2000, the Company announced its third quarter dividend of $0.12 per share. The effective date of the dividend was September 30, 2000. Payment of the cash dividend was
made on October 10, 2000.

Year 2000

The Bank did not experience any material disruptions of the systems or software applications due to the start of the Year 2000 nor has the Bank experienced any
problems with third party vendors, suppliers or service providers. The Bank developed contingency plans, which were validated by a third party and will be updated periodically during 2000. These plans
continue to be maintained and can be implemented, in the unlikely event that any mission critical systems fail. In addition, the Bank did not incur Year 2000 related expenses for the nine months ended
September 30, 2000.

Recent Accounting Pronouncements

The Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments
and Hedging Activities," in June 1998. SFAS No. 133 standardizes the accounting for derivative instruments, including certain derivative instruments embedded in other contracts. Under the standard,
entities are required to carry all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (I.E., gains or losses) of a derivative
instrument depends on whether it has been

9

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designated and qualifies as part of a hedging relationship and, if so, on the reason for holding it. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge
of exposures to changes in fair values, cash flows, or foreign currencies. If the hedged exposure is a fair value exposure, the gain or loss on the derivative instrument is recognized in earnings in
the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. If the hedged exposure is a cash flow exposure, the effective portion of the
gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside earnings) and subsequently reclassified into earnings when the forecasted
transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness as well as the ineffective portion of the gain or loss is reported in earnings immediately. SFAS No. 133
is effective for all quarters of fiscal years beginning after June 15, 1999. Earlier application is encouraged, but is permitted only as of the beginning of any fiscal quarter that begins after the
issuance of the statement. This statement should not be applied retroactively to financial statements of prior periods. During June 1999, the FASB issued the Statement of Financial Accounting
Standards No. 137, "Accounting for Derivative Instruments and Hedging Activities-Deferral of the Effective Date of FASB Statement No. 133 - an amendment of FASB Statement No. 133," ("SFAS 137") that
delays SFAS 133 until fiscal years beginning after June 15, 2000. The FASB issued Statement No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities - an amendment of
FASB Statement No. 133" in June 2000, which statement addresses various implementation issues relating to SFAS No. 133. The Company anticipates that the adoption of SFAS No. 133 will not have a
material impact on the Company's results of operations.

Statement
of Financial Accounting Standards ("SFAS") No. 140"Accounting for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities", was issued by the Financial Accounting Standards Board ("FASB") in September 2000. SFAS No. 140 supercedes and replaces FASB SFAS No. 125, "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities". Accordingly, SFAS No. 140 is now the authoritative
accounting literature for transfers and servicing of financial assets and extinguishments of liabilities. SFAS No. 140 also includes several additional disclosure requirements in the area of
securitized financial assets and collateral arrangements. The provisions of SFAS No. 140 related to transfers of financial assets are to be applied to all transfers of assets occurring after March 31,
2001. The collateral recognition and disclosure provisions in SFAS No. 140 are effective for fiscal years ending after December 15, 2000. The Company anticipates that the adoption of SFAS No. 140 will
not have a material impact in the Company's results of operations.

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Item 3.Quantitative and Qualitative Disclosures About Market Risk.

The Bank's interest rate sensitivity is monitored by management through the use of a Net Portfolio Value Model which generates estimates of the change in the
Bank's net portfolio value ("NPV") over a range of interest rate scenarios. NPV is the present value of expected cash flows from assets, liabilities, and off-balance sheet contracts. The NPV ratio,
under any interest rate scenario, is defined as the NPV in that scenario divided by the market value of assets in the same scenario. The model assumes estimated prepayment rates, reinvestment rates
and deposit decay rates. The Sensitivity Measure is the decline in the NPV ratio, in basis points, caused by a 2% increase or decrease in rates, whichever produces a larger decline. The higher the
institution's Sensitivity Ratio, the greater its exposure to interest rate risk is considered to be. The following NPV Table sets forth the Bank's NPV as of September 30, 2000.

(In Thousands)

Change in Interest Rates in Basis Points (Rate Shock)Net Portfolio Value

NPV as % of Portfolio
Value of AssetsAmount

$ Change

% Change

NPV Ratio

% Change+300

$
43,105

$
(14,489
)
(25.16
)%
8.00
%
(22.71
)%+200


42,060


(15,534
)
(26.97
)
7.82

(24.44
)+100


49,124


(8,470
)
(14.71
)
8.99

(13.14
)Static


57,594






10.35

-100


65,655


8,061

14.00

11.59

11.98-200


72,999


15,405

26.75

12.68

22.51-300


75,574


17,980

31.22

12.95

25.12


Certain
shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in NPV require the making of certain assumptions which may or
may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the NPV Table presented assumes that the composition of the Bank's interest
sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and also assumes that a particular change in interest rates is reflected
uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Accordingly, although the NPV Table provides an indication of the Bank's
interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on the Bank's
net interest income and may differ from actual results.

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PART II. OTHER INFORMATION

Item 1.Legal Proceedings.

The Company is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. Such routine
legal proceedings, in the aggregate, are believed by management to be immaterial to the Company's financial condition, results of operations and cash flows.

Item 2.Changes in Securities and Use of Proceeds.

None.

Item 3.Defaults Upon Senior Securities.

None.

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

None.

Item 5.Other Information.

None.

Item 6.Exhibits and Reports on Form 8-K (§.249.308 of this Chapter).

(a)

Exhibits3.1

Certificate of Incorporation of EFC Bancorp, Inc.*3.2

Bylaws of EFC Bancorp, Inc. *11.0

Statement re: Computation of Per Share Earnings27.0

Financial Data Schedule(b)

Reports on Form 8-KNone.


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## 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.

|       |  |                   |  | EFC BANCORP, INC.
|------ |  | ----------------- |  | -----------------
|Dated: |  | November 13, 2000 |  | By:              
|Dated: |  | November 13, 2000 |  | By:              

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