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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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 September 30, 2002

or

|o | 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

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 changes since last report)

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 ý        No o

Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule 12(b)-2 of the Exchange Act).

Yes o        No ý

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: 4,622,328 shares of common stock, par value $0.01 per share,
were outstanding as of November 12, 2002.

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EFC Bancorp, Inc.        Form 10-Q        For the Quarter Ended September 30, 2002        INDEX

|               |  |                                                                                                   |  | Page
|-------------- |  | ------------------------------------------------------------------------------------------------- |  | ----
|PART I.        |  | FINANCIAL INFORMATION                                                                             |  |     
|Item 1.        |  | Financial Statements (unaudited)                                                                  |  |     
|               |  | Consolidated Balance Sheets at September 30, 2002 and December 31, 2001                           |  | 1   
|               |  | Consolidated Statements of IncomeFor the Three and Nine Months Ended September 30, 2002 and 2001 |  | 2   
|               |  | Consolidated Statements of Cash FlowsFor the Nine Months Ended September, 2002 and 2001          |  | 3   
|               |  | Notes to Consolidated Financial Statements                                                        |  | 4   
|Item 2.        |  | Management's Discussion and Analysis of Financial Condition and Results of Operations             |  | 6   
|Item 3.        |  | Quantitative and Qualitative Disclosures About Market Risk                                        |  | 13  
|Item 4.        |  | Controls and Procedures                                                                           |  | 13  
|PART II:       |  | OTHER INFORMATION                                                                                 |  | 14  
|Item 1.        |  | Legal Proceedings                                                                                 |  | 14  
|Item 2.        |  | Changes in Securities and Use of Proceeds                                                         |  | 14  
|Item 3.        |  | Defaults Upon Senior Securities                                                                   |  | 14  
|Item 4.        |  | Submission of Matters to a Vote of Security Holders                                               |  | 14  
|Item 5.        |  | Other Information                                                                                 |  | 14  
|Item 6.        |  | Exhibits and Reports on Form 8-K                                                                  |  | 14  
|SIGNATURES     |  | 15                                                                                               
|Certifications |  |                                                                                                  

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PART I. FINANCIAL INFORMATION  EFC BANCORP, INC.

Item 1. Financial Statements.

EFC BANCORP, INC.  AND SUBSIDIARIES        Consolidated Balance Sheets (unaudited)        September 30, 2002 and December 31, 2001

|                                                             |                                                                                                                                     | September 30,
2002 |             | December 31,
2001 |            
|------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ----------- | ----------------- | -----------
|Assets                                                       |                                                                                                                                     |                    |             |                   |            
|Cash and cash equivalents:                                   |                                                                                                                                     |                    |             |                   |            
|                                                             | On hand and in banks                                                                                                                |                    | $           | 2,948,128         |            
|                                                             | Interest bearing deposits with financial institutions                                                                               |                    |             | 35,007,194        |            
|Loans receivable, net                                        |                                                                                                                                     |                    | 567,429,893 |                   | 537,070,664
|Mortgage-backed securities available-for-sale, at fair value |                                                                                                                                     |                    | 14,717,883  |                   | 13,855,715 
|Investment securities available-for-sale, at fair value      |                                                                                                                                     |                    | 83,393,645  |                   | 68,615,462 
|Foreclosed real estate                                       |                                                                                                                                     |                    | 1,985,742   |                   |           
|Stock in Federal Home Loan Bank of Chicago, at cost          |                                                                                                                                     |                    | 9,245,700   |                   | 8,891,900  
|Accrued interest receivable                                  |                                                                                                                                     |                    | 3,860,421   |                   | 3,682,120  
|Office properties and equipment, net                         |                                                                                                                                     |                    | 12,983,942  |                   | 10,990,206 
|Other assets                                                 |                                                                                                                                     |                    | 17,252,838  |                   | 12,162,083 
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total assets                                                 |                                                                                                                                     | $                  | 748,825,386 |                   | 673,443,440
|                                                             |                                                                                                                                     |                    |             |                   |            
|Liabilities and Stockholders' Equity                         |                                                                                                                                     |                    |             |                   |            
|Liabilities:                                                 |                                                                                                                                     |                    |             |                   |            
|                                                             | Deposits                                                                                                                            |                    | $           | 492,481,847       |            
|                                                             | Borrowed money                                                                                                                      |                    |             | 171,831,662       |            
|                                                             | Advance payments by borrowers for taxes and insurance                                                                               |                    |             | 531,922           |            
|                                                             | Income taxes payable                                                                                                                |                    |             | 269,297           |            
|                                                             | Accrued expenses and other liabilities                                                                                              |                    |             | 9,467,149         |            
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total liabilities                                            |                                                                                                                                     |                    | 674,581,877 |                   | 604,814,877
|                                                             |                                                                                                                                     |                    |             |                   |            
|Minority interest                                            |                                                                                                                                     |                    | (54,330     | )                 |           
|                                                             |                                                                                                                                     |                    |             |                   |            
|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                                                                                                          |                    |             | 71,684,612        |            
|                                                             | Treasury stock, at cost, 2,824,906 and 2,884,873 shares at September 30, 2002 and December 31, 2001, respectively                   |                    |             | (33,073,211       | )          
|                                                             | Unearned employee stock ownership plan (ESOP), 409,533 and 439,498 shares at September 30, 2002 and December 31, 2001, respectively |                    |             | (6,123,548        | )          
|                                                             | Unearned stock award plan, 65,553 and 107,943 shares at September 30, 2002 and December 31, 2001, respectively                      |                    |             | (729,278          | )          
|                                                             | Retained earnings, substantially restricted                                                                                         |                    |             | 40,961,399        |            
|                                                             | Accumulated other comprehensive income                                                                                              |                    |             | 1,502,951         |            
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total stockholders' equity                                   |                                                                                                                                     |                    | 74,297,839  |                   | 68,628,563 
|                                                             |                                                                                                                                     |                    |             |                   |            
|Commitments and contingencies                                |                                                                                                                                     |                    |            |                   |           
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total liabilities and stockholders' equity                   |                                                                                                                                     | $                  | 748,825,386 |                   | 673,443,440
|                                                             |                                                                                                                                     |                    |             |                   |            

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, 2002 and 2001

|                                                     |                                                                                                    | Three months ended
September 30, |            | Nine months ended
September 30,
|---------------------------------------------------- | -------------------------------------------------------------------------------------------------- | -------------------------------- | ---------- | -------------------------------
|
|Interest income:                                     |                                                                                                    |                                  |            |                                
|                                                     | Loans secured by real estate                                                                       |                                  | $          | 8,387,811                      
|                                                     | Other loans                                                                                        |                                  |            | 1,377,223                      
|                                                     | Mortgage-backed securities available-for-sale                                                      |                                  |            | 124,541                        
|                                                     | Investment securities available-for-sale and interest bearing deposits with financial institutions |                                  |            | 1,129,267                      
|                                                     |                                                                                                    |                                  |            |                                
|Total interest income                                |                                                                                                    |                                  | 11,018,842 |                                
|                                                     |                                                                                                    |                                  |            |                                
|Interest expense:                                    |                                                                                                    |                                  |            |                                
|                                                     | Deposits                                                                                           |                                  |            | 3,449,025                      
|                                                     | Borrowed money                                                                                     |                                  |            | 2,313,926                      
|                                                     |                                                                                                    |                                  |            |                                
|Total interest expense                               |                                                                                                    |                                  | 5,762,951  |                                
|                                                     |                                                                                                    |                                  |            |                                
|Net interest income before provision for loan losses |                                                                                                    |                                  | 5,255,891  |                                
|Provision for loan losses                            |                                                                                                    |                                  | 225,000    |                                
|                                                     |                                                                                                    |                                  |            |                                
|Net interest income after provision for loan losses  |                                                                                                    |                                  | 5,030,891  |                                
|                                                     |                                                                                                    |                                  |            |                                
|Noninterest income:                                  |                                                                                                    |                                  |            |                                
|                                                     | Service fees                                                                                       |                                  |            | 608,330                        
|                                                     | Insurance and brokerage commissions                                                                |                                  |            | 59,919                         
|                                                     | Information Technology sales and service income, net                                               |                                  |            | 243,355                        
|                                                     | Gain on sale of securities                                                                         |                                  |            |                               
|                                                     | Gain on sale of foreclosed real estate                                                             |                                  |            |                               
|                                                     | Gain on sale of loans                                                                              |                                  |            | 200,409                        
|                                                     | Other                                                                                              |                                  |            | 231,427                        
|                                                     |                                                                                                    |                                  |            |                                
|Total noninterest income                             |                                                                                                    |                                  | 1,343,440  |                                
|                                                     |                                                                                                    |                                  |            |                                
|Noninterest expense:                                 |                                                                                                    |                                  |            |                                
|                                                     | Compensation and benefits                                                                          |                                  |            | 2,586,407                      
|                                                     | Office building, net                                                                               |                                  |            | 607,876                        
|                                                     | Federal insurance premiums                                                                         |                                  |            | 19,206                         
|                                                     | Advertising                                                                                        |                                  |            | 181,981                        
|                                                     | Data processing                                                                                    |                                  |            | 229,200                        
|                                                     | NOW/checking account expenses                                                                      |                                  |            | 155,282                        
|                                                     | Other                                                                                              |                                  |            | 452,324                        
|                                                     |                                                                                                    |                                  |            |                                
|Total noninterest expense                            |                                                                                                    |                                  | 4,232,276  |                                
|                                                     |                                                                                                    |                                  |            |                                
|Income before income taxes and minority interest     |                                                                                                    |                                  | 2,142,055  |                                
|Income tax expense                                   |                                                                                                    |                                  | 727,242    |                                
|                                                     |                                                                                                    |                                  |            |                                
|Income before minority interest                      |                                                                                                    |                                  | 1,414,813  |                                
|Minority interest                                    |                                                                                                    |                                  | 34,377     |                                
|                                                     |                                                                                                    |                                  |            |                                
|Net income                                           |                                                                                                    | $                                | 1,449,190  |                                
|                                                     |                                                                                                    |                                  |            |                                
|Earnings per share:                                  |                                                                                                    |                                  |            |                                
|                                                     | Basic                                                                                              |                                  | $          | 0.34                           
|                                                     | Diluted                                                                                            |                                  |            | 0.32                           
|                                                     |                                                                                                    |                                  |            |                                

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, 2002 and 2001

|                                                 |                                                                                  | 2002                                                                          |             | 2001        |            
|------------------------------------------------ | -------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ----------- | ----------- | -----------
|Cash flows from operating activities:            |                                                                                  |                                                                               |             |             |            
|                                                 | Net income                                                                       |                                                                               | $           | 4,612,278   |            
|                                                 | Adjustment to reconcile net income to net cash provided by operating activities: |                                                                               |             |             |            
|                                                 |                                                                                  | Amortization of premiums and discounts, net                                   |             |             | (8,633     
|                                                 |                                                                                  | Provision for loan losses                                                     |             |             | 675,000    
|                                                 |                                                                                  | Stock award plan shares allocated                                             |             |             | 471,588    
|                                                 |                                                                                  | ESOP shares committed to be released                                          |             |             | 448,071    
|                                                 |                                                                                  | Change in fair value of ESOP shares                                           |             |             | 20,917     
|                                                 |                                                                                  | Gain on sale of securities                                                    |             |             |           
|                                                 |                                                                                  | Gain on sale of foreclosed real estate                                        |             |             |           
|                                                 |                                                                                  | Gain on sale of loans                                                         |             |             | (200,409   
|                                                 |                                                                                  | Minority interest in subsidiary                                               |             |             | (54,330    
|                                                 |                                                                                  | Depreciation of office properties and equipment                               |             |             | 591,328    
|                                                 |                                                                                  | (Increase)/decrease in accrued interest receivable and other assets, net      |             |             | (5,659,933 
|                                                 |                                                                                  | Increase in income taxes payable, accrued expenses and other liabilities, net |             |             | 695,135    
|                                                 |                                                                                  |                                                                               |             |             |            
|Net cash provided by operating activities        |                                                                                  |                                                                               | 1,591,012   |             | 8,030,669  
|                                                 |                                                                                  |                                                                               |             |             |            
|Cash flows from investing activities:            |                                                                                  |                                                                               |             |             |            
|                                                 | Net (increase)/decrease in loans receivable                                      |                                                                               |             | 5,106,839   |            
|                                                 | Purchases of loans receivable                                                    |                                                                               |             | (51,143,896 | )          
|                                                 | Proceeds from the sale of loans                                                  |                                                                               |             | 13,217,497  |            
|                                                 | Purchases of mortgage-backed securities available-for-sale                       |                                                                               |             | (5,130,634  | )          
|                                                 | Principal payments on mortgage-backed securities available-for-sale              |                                                                               |             | 4,147,334   |            
|                                                 | Maturities of investment securities available-for-sale                           |                                                                               |             | 19,547,992  |            
|                                                 | Proceeds from the sale of investment securities available for sale               |                                                                               |             |            |            
|                                                 | Purchases of investment securities available-for-sale                            |                                                                               |             | (32,111,658 | )          
|                                                 | Purchases of office properties and equipment                                     |                                                                               |             | (2,585,064  | )          
|                                                 | Purchases of stock in the Federal Home Loan Bank of Chicago                      |                                                                               |             | (353,800    | )          
|                                                 | Cash investment in majority-owned subsidiary                                     |                                                                               |             | (420,000    | )          
|                                                 | Proceeds from the sale of foreclosed real estate                                 |                                                                               |             |            |            
|                                                 |                                                                                  |                                                                               |             |             |            
|Net cash used in investing activities            |                                                                                  |                                                                               | (49,725,390 | )           | (62,625,184
|                                                 |                                                                                  |                                                                               |             |             |            
|Cash flows from financing activities:            |                                                                                  |                                                                               |             |             |            
|                                                 | Net increase in deposits                                                         |                                                                               |             | 72,397,558  |            
|                                                 | Proceeds from borrowed money                                                     |                                                                               |             | 609,750     |            
|                                                 | Repayments on borrowed money                                                     |                                                                               |             | (3,978,088  | )          
|                                                 | Cash dividends paid                                                              |                                                                               |             | (1,626,153  | )          
|                                                 | Purchase of treasury stock                                                       |                                                                               |             | (51,325     | )          
|                                                 | Stock options exercised                                                          |                                                                               |             | 562,668     |            
|                                                 |                                                                                  |                                                                               |             |             |            
|Net cash provided by financing activities        |                                                                                  |                                                                               | 67,914,410  |             | 69,301,824 
|                                                 |                                                                                  |                                                                               |             |             |            
|Net increase in cash and cash equivalents        |                                                                                  |                                                                               | 19,780,032  |             | 14,707,309 
|Cash and cash equivalents at beginning of period |                                                                                  |                                                                               | 18,175,290  |             | 27,022,671 
|                                                 |                                                                                  |                                                                               |             |             |            
|Cash and cash equivalents at end of period       |                                                                                  | $                                                                             | 37,955,322  |             | 41,729,980 
|                                                 |                                                                                  |                                                                               |             |             |            

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), its majority-owned subsidiary, Computer Dynamics
Group Inc. (CDGI), its wholly-owned subsidiary, Elgin Financial Savings Bank (the Bank) and its wholly-owned subsidiary, Fox Valley Service Corporation of Elgin. A controlling interest in CDGI
was purchased for $420,000 in January 2002. The accompanying financial statements include the operating results of CDGI for the three and nine months ended September 30, 2002 since the
date of acquisition. 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 accounting principles generally accepted in the United States of America 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 2001 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, 2002 and 2001 are as follows:

|                                                                                       |                                                                                     | Three months ended
September 30, |           | Nine months ended
September 30, |          
|-------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | -------------------------------- | --------- | ------------------------------- | ---------
|
|Net income                                                                             |                                                                                     | $                                | 1,449,190 |                                 | 1,168,763
|Other comprehensive income, net of tax:                                                |                                                                                     |                                  |           |                                 |          
|                                                                                       | Unrealized holding gains on securities arising during the period, net of tax effect |                                  |           | 716,014                         |          
|Reclassification adjustment for net gain on sales of securities realized in net income |                                                                                     |                                  |          |                                 | (20,672  
|                                                                                       |                                                                                     |                                  |           |                                 |          
|Comprehensive income                                                                   |                                                                                     | $                                | 2,165,204 |                                 | 1,601,673
|                                                                                       |                                                                                     |                                  |           |                                 |          

There
were no sales of investment securities as of and for the three and nine months ended September 30, 2002. For both the three and nine month periods ended September 30,
2001 the sale of securities resulted in a gain of $32,812 ($20,672 net of tax effect).

Note 3: COMPUTATION OF PER SHARE EARNINGS

Basic
earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is calculated by dividing net income
by the weighted average number of common shares outstanding adjusted for the dilutive effect of outstanding stock options. ESOP shares are only considered outstanding for earnings per share
calculations when they are released or committed to be released.

4

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Presented
below are the calculations for the basic and diluted earnings per share:

|                                             |  | Three months ended
September 30, |           | Nine months ended
September 30,
|-------------------------------------------- |  | -------------------------------- | --------- | -------------------------------
|
|Basic:                                       |  |                                  |           |                                
|Net income                                   |  | $                                | 1,449,190 |                                
|Weighted average shares outstanding          |  |                                  | 4,240,404 |                                
|                                             |  |                                  |           |                                
|Basic earnings per share                     |  | $                                | 0.34      |                                
|                                             |  |                                  |           |                                
|Diluted:                                     |  |                                  |           |                                
|Net income                                   |  | $                                | 1,449,190 |                                
|Weighted average shares outstanding          |  |                                  | 4,240,404 |                                
|Effect of dilutive stock options outstanding |  |                                  | 236,356   |                                
|                                             |  |                                  |           |                                
|Diluted weighted average shares outstanding  |  |                                  | 4,476,760 |                                
|                                             |  |                                  |           |                                
|Diluted earnings per share                   |  | $                                | 0.32      |                                
|                                             |  |                                  |           |                                

5

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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, 2002 and results of operations for the three and nine months ended
September 30, 2002, 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 2001 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, 2002 and December 31, 2001

Total assets at September 30, 2002 were $748.8 million, which represented an increase of $75.4 million, or 11.2%, compared to
$673.4 million at December 31, 2001. The increase in total assets was primarily as a result of an increase in loans receivable of $30.3 million, or 5.7%, to $567.4 million
at September 30, 2002 from $537.1 million at December 31, 2001. The increase in loans receivable was primarily attributable to strong loan demand and loan purchases during the
period. In addition, cash and cash equivalents increased $19.8 million, or 108.8%, to $38.0 million at September 30, 2002 from $18.2 million at December 31, 2001 and
investment securities increased $14.8 million, or 21.5%, to $83.4 million at September 30, 2002 from $68.6 million at December 31, 2001. The growth in total assets
was funded by increases in deposits. Deposits increased $72.4 million to $492.5 million at September 30, 2002 from $420.1 million at December 31, 2001. Stockholders'
equity increased by $5.7 million to $74.3 million at September 30, 2002 from $68.6 million at December 31, 2001. The increase in stockholders' equity was primarily
the result of the Company's increase in net income during the period, proceeds from the exercise of stock options, and a $1.3 million increase in the Company's accumulated other comprehensive
income relating to its available-for-sale investment portfolio, the effect of which was partially offset by dividends paid.

Comparison of Operating Results For the Three Months Ended September 30, 2002 and 2001

General.The Company's net income increased $280,000, or 24.0%, to $1.4 million for the three
months ended September 30, 2002, from $1.2 million for the three months ended September 30, 2001.

Interest Income.Interest income decreased $120,000, or 1.1%, to $11.0 million for the three
months ended September 30, 2002, compared with $11.1 million for the same period in 2001. This decrease resulted from an increase in the average balance of interest-earning assets,
offset by a decrease in the average rate earned on those interest-earning assets. The average balance of interest-earning assets increased by $76.2 million, or 12.2%, to $703.6 million
for the three months ended September 30, 2002 from $627.4 million for the comparable period in 2001. The average yield on interest-earning assets decreased by 80 basis points to 6.33%
for the three months ended September 30, 2002 from 7.13% for the three months ended September 30, 2001.

6

---

Mortgage
loan interest income decreased by $239,000 for the three months ended September 30, 2002 compared with the same period in 2001. The average balance of mortgage loans
increased $26.7 million, while the loan yield decreased by 62 basis points from 7.55% to 6.93%. Interest income from other loans increased $251,000 for the three months ended
September 30, 2002. This increase resulted from a combination of an increase in average balance of $25.3 million, offset by a 113 basis point decrease in yield from 7.64% for the three
months ended September 30, 2001 to 6.51% for the three months ended September 30, 2002. Interest income from investment securities, mortgage-backed securities and short-term
deposits decreased by $32,000 for the three months ended September 30, 2002, compared with the same period in 2001. This decrease resulted from a combination of an increase in average balance
of $23.6 million, offset by a 104 basis point decrease in yield from 5.02% for the three months ended September 30, 2001 to 3.98% for the three months ended September 30, 2002.
The decrease in yield is largely attributed to the effect of the lower interest rate environment reducing yields on short-term deposits.

Interest Expense.Interest expense decreased by $674,000, or 10.5%, to $5.8 million for the
three months ended September 30, 2002 from $6.4 million for the three months ended September 30, 2001. This decrease resulted from an increase in the average balance of
interest-bearing liabilities, offset by a decrease in the average rate paid on those interest-bearing liabilities. The average balance of interest-bearing liabilities increased by
$82.5 million, or 15.2%, to $625.7 million for the three months ended September 30, 2002 from $543.2 million for the three months ended September 30, 2001. This
change reflects a $79.4 million increase in the deposit accounts, which is primarily attributable to a $41.6 million increase in money market accounts, a $24.4 million increase in
passbook savings accounts and a $9.9 million increase in certificates of deposit, partially offset by a decrease of $3.5 million in NOW accounts. The remaining $3.2 million
increase is attributable to advances from the FHLB-Chicago. The average rate paid on combined deposits and borrowed money decreased by 106 basis points to 3.68% for the three months ended
September 30, 2002 from 4.74% for the three months ended September 30, 2001.

Net Interest Income Before Provision for Loan Losses.Net interest income before provision for loan
losses increased $554,000, or 11.8%, to $5.3 million for the three months ended September 30, 2002 from $4.7 million for the comparable period in 2001. The net interest margin as
a percent of interest-earning assets increased by 3 basis points to 3.05% for the three months ended September 30, 2002 from 3.02% for the comparable period in 2001.

Provision for Loan Losses.The provision for loan losses increased by $90,000, to $225,000 for the
three months ended September 30, 2002 from $135,000 in 2001. This increase is primarily due to the growth and change in the composition of the loan portfolio. At September 30, 2002,
December 31, 2001 and September 30, 2001, non-performing loans totaled $2.1 million, $2.6 million and $1.2 million, respectively. At September 30,
2002, the ratio of the allowance for loan losses to non-performing loans was 136.5% compared to 87.4% at December 31, 2001 and 175.4% at September 30, 2001. The ratio of the
allowance to total loans was 0.52%, 0.42% and 0.40%, at September 30, 2002, December 31, 2001 and September 30, 2001, respectively. There were no charge-offs for the
three months ended September 30, 2002. Charge-offs totaled $16,000 for the three months ended September 30, 2001. Management periodically calculates an allowance sufficiency
analysis based upon the portfolio composition, asset classifications, loan-to-value ratios, probable impairments in the loan portfolio, and other factors.

Noninterest Income.Noninterest income totaled $1.3 million and $433,000 for the three months
ended September 30, 2002 and 2001, respectively. The increase in noninterest income is primarily attributable to increases in service fees of $300,000, information/technology sales and service
income of $243,000 related to the Company's majority-owned subsidiary CDGI, an increase of $178,000 in the cash surrender value of the Company's bank owned life insurance primarily purchased in
December 2001, and $200,000 in gains on sale of loans. There were no loan sales for the comparable period in 2001.

Noninterest Expense.Noninterest expense increased $1.0 million, to $4.2 million for
the three months ended September 30, 2002 from $3.2 million for the comparable period in 2001. Compensation and benefits increased by $646,000. This increase was primarily due to a
combination of annual salary increases, the addition of staff and the related compensation and benefits expenses of CDGI. The additional staff expenses are primarily attributed to the opening of the
Bank's new Carpentersville, Illinois branch. All other operating expenses, including advertising, audit, data processing, marketing, postage, communications, and other expense increased by a combined
$393,000, or 31.4%, to $1.6 million for the three months ended September 30, 2002 from $1.2 million for the three months ended September 30, 2001. Of the increase in other
operating expenses, $158,000 or 40.3% is related to CDGI.

7

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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 $727,000 and $637,000 for the three months ended
September 30, 2002 and 2001, respectively. The increase was primarily due to a $336,000 increase in earnings before income taxes to $2.1 million for the three months ended
September 30, 2002 from $1.8 million for the prior year period. The effective tax rate was 34.0% and 35.3% for the three months ended September 30, 2002 and 2001, respectively.
The decrease in the effective tax rate for the three months ended September 30, 2002 is primarily due to the increase in tax exempt income including municipal interest income and an increase in
income from bank owned life insurance.

Comparison of Operating Results For the Nine Months Ended September 30, 2002 and 2001

General.The Company's net income increased $1.6 million, or 52.2%, to $4.6 million for
the nine months ended September 30, 2002, from $3.0 million for the nine months ended September 30, 2001.

Interest Income.Interest income increased $717,000, or 2.2%, to $33.3 million for the nine
months ended September 30, 2002, compared with $32.6 million for the same period in 2001. The increase in interest income was primarily due to an increase in average interest-earning
assets, which increased by $82.3 million, or 13.7%, to $682.1 million for the nine months ended September 30, 2002 from $599.8 million for the comparable period in 2001,
offset by a decrease in the average yield on interest-earning assets by 69 basis points to 6.57% for the nine months ended September 30, 2002 from 7.26% for the nine months ended
September 30, 2001.

Mortgage
loan interest income increased by $692,000 for the nine months ended September 30, 2002 compared with the same period in 2001. The average balance of mortgage loans
increased $43.1 million, while the loan yield decreased by 48 basis points from 7.56% to 7.08%. Interest income from other loans increased $695,000 for the nine months ended
September 30, 2002. This increase resulted from a combination of an increase in average balance of $26.4 million, offset by a 156 basis point decrease in yield from 8.08% for the nine
months ended September 30, 2001 to 6.52% for the nine months ended September 30, 2002. Interest income from investment securities, mortgage-backed securities and short-term
deposits decreased by $334,000 for the nine months ended September 30, 2002, compared with the same period in 2001. This decrease resulted from a combination of an increase in average balance
of $12.1 million, offset by a 100 basis point decrease in yield from 5.58% for the nine months ended September 30, 2001 to 4.58% for the nine months ended September 30, 2002. The
decrease in yield is largely attributed to the effect of the lower interest rate environment reducing yields on short-term deposits.

Interest Expense.Interest expense decreased by $2.1 million, or 11.1%, to
$17.2 million for the nine months ended September 30, 2002 from $19.3 million for the nine months ended September 30, 2001. This decrease resulted from an increase in the
average balance of interest-bearing liabilities, offset by a decrease in the average rate paid on those interest-bearing liabilities. The average balance of interest-bearing liabilities increased by
$87.4 million, or 16.8%, to $606.4 million for the nine months ended September 30, 2002 from $519.0 million for the nine months ended September 30, 2001. This change
reflects a $75.3 million increase in the deposit accounts, which is primarily attributable to a $50.4 million increase in money market accounts and a $28.1 million increase in
passbook savings accounts, partially offset by a decrease of $6.1 million in certificates of deposits. The remaining $12.1 million increase is attributable to advances from the
FHLB-Chicago. The average rate paid on combined deposits and borrowed money decreased by 118 basis points to 3.78% for the nine months ended September 30, 2002 from 4.96% for the
nine months ended September 30, 2001.

Net Interest Income Before Provision for Loan Losses.Net interest income before provision for loan
losses increased $2.8 million, or 21.6%, to $16.1 million for the nine months ended September 30, 2002 from $13.3 million for the comparable period in 2001. The net
interest margin as a percent of interest-earning assets increased by 26 basis points to 3.22% for the nine months ended September 30, 2002 from 2.96% for the comparable period in 2001.

Provision for Loan Losses.The provision for loan losses increased by $345,000, to $675,000 for the
nine months ended September 30, 2002 from $330,000 in 2001. This increase is primarily due to the growth and change in the composition of the loan portfolio. At September 30, 2002,
December 31, 2001 and September 30, 2001, non-performing loans totaled $2.1 million, $2.6 million and $1.2 million, respectively. Charge-offs
totaled $3,000 and $101,000 for the nine months ended September 30, 2002 and 2001, respectively. Management periodically

8

---

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 $3.6 million and $1.2 million for the
nine months ended September 30, 2002 and 2001, respectively. The increase in noninterest income is primarily attributable to increases in service fees of $547,000, insurance and brokerage
commissions of $114,000, gains on sale of loans of $200,000, information/technology sales and service income of $984,000 related to the Company's majority-owned subsidiary CDGI and an increase of
$515,000 in the cash surrender value of the Company's bank owned life insurance. The increase in insurance and brokerage commissions is the result of a greater emphasis placed on this area.

Noninterest Expense.Noninterest expense increased $2.9 million, to $12.3 million for
the nine months ended September 30, 2002 from $9.4 million for the comparable period in 2001. Compensation and benefits increased by $2.0 million. This increase was primarily due
to a combination of annual salary increases, the addition of staff and the related compensation and benefits expenses of CDGI. The additional staff expenses are primarily attributed to the opening of
the Bank's new Carpentersville, Illinois branch. All other operating expenses, including advertising, audit, data processing, marketing, postage, communications, and other expense increased by a
combined $792,000, or 21.0%, to $4.6 million for the nine months ended September 30, 2002 from $3.8 million for the nine months ended September 30, 2001. Of the increase in
other operating expenses, $450,000 or 56.8% is related to CDGI. 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 $2.2 million and $1.6 million for the
nine months ended September 30, 2002 and 2001, respectively. The increase was primarily due to a $2.0 million increase in earnings before income taxes to $6.7 million for the nine
months ended September 30, 2002 from $4.7 million for the prior year period. The effective tax rate was 32.2% and 35.1% for the nine months ended September 30, 2002 and 2001,
respectively. The decrease in the effective tax rate for the nine months ended September 30, 2002 is primarily due to the increase in tax exempt income including municipal interest income and
increase in income from bank owned life insurance.

Liquidity and Capital Resources

The Company's primary source of funding for dividends and periodic stock repurchases has been dividends from the Bank. The Bank's ability to pay dividends and
other capital distributions to the Company is generally limited by OTS regulations.

The
Bank's primary sources of funds are savings deposits, proceeds from the principal and interest payments on loans and proceeds from the maturity 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
single-family, 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.

In
addition to the primary investing activities of the Bank, the Company has repurchased shares of its common stock from time to time in the open market. The Company is in the process of
its sixth stock repurchase program, which was previously announced in September 2001. Under this program the Company is authorized to repurchase up to 231,808, or 5.0% of its outstanding common
stock. Under this current program, 32,800 shares of the Company's common stock have been repurchased at an average price per share of $12.84. As of September 30, 2002, the Company repurchased a
total of 2,888,073 shares of the Company's common stock at an average price per share of $11.65.

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, 2002, cash and interest-bearing demand accounts totaled $38.0 million, or 5.1% of total assets.

9

---

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, 2002 and 2001.

At
September 30, 2002, the Bank exceeded all of its regulatory capital requirements. The following is a summary of the Bank's regulatory capital ratios at September 30,
2002:

Total Capital to Total Assets

9.24
%Total Capital to Risk-Weighted Assets

13.69
%Tier I Leverage Ratio

9.10
%Tier I to Risk-Weighted Assets

13.39
%


At
September 30, 2002, the Company had a Total Capital to Total Assets ratio of 9.92%.

On
September 18, 2002, the Company announced its third quarter dividend of $0.1350 per share. The dividend was paid on October 8, 2002 to stockholders of record on
September 30, 2002.

Recent Accounting Pronouncements

In July 2001, the FASB issued SFAS No. 141, "Business Combinations"(SFAS No. 141) and SFAS
No. 142, "Goodwill and Other Intangible Assets"(SFAS No. 142). SFAS No. 141 requires that all business combinations initiated
after June 30, 2001 be accounted for under the purchase method and addresses the initial recognition and measurement of goodwill and other intangible assets acquired in a business combination.
SFAS No. 142 addresses the initial recognition and measurement of intangible assets acquired outside of a business combination and the accounting for goodwill and other intangible assets
subsequent to their acquisition. SFAS No. 142 provides that intangible assets with finite useful lives be amortized and that goodwill and intangible assets with indefinite lives will not be
amortized, but will rather be tested at least annually for impairment. SFAS No. 142 was effective January 1, 2002 for calendar year companies. The adoption of SFAS No. 141 and
No. 142 did not have a material impact on the Company's results of operations or financial condition.

In
June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities." This statement addresses financial accounting and reporting
for costs associated with exit or disposal activities and nullifies Emerging Task Force (EITF) Issue No. 94-3, "Liability Recognition for Certain Employee Termination Benefits and
Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring)." This Statement is effective for exit or disposal activities that are initiated after December 31, 2002.
Adoption of this statement is not expected to have a material effect on the Company's consolidated financial statements.

In
October 2002, the FASB issued SFAS No. 147 "Acquisitions of Certain Financial Institutions." This statement, which provides guidance on the accounting for the
acquisition of a financial institution, applies to all acquisitions except transactions between two or more mutual enterprises. The provisions of this Statement that relate to the application of SFAS
No. 144 apply to certain long-term customer-relationship intangible assets recognized in an acquisition of a financial institution, including those acquired in transactions between
mutual enterprises. The excess of the fair value of liabilities assumed over the fair value of tangible and identifiable intangible assets acquired in a business combination represents goodwill that
should be accounted for under SFAS No. 142. If certain criteria in this SFAS No. 147 are met, the amount of the unidentifiable intangible asset will be reclassified to goodwill upon the
adoption of SFAS No. 142, and financial institutions meeting these conditions will be required
to restate previously issued financials. Provisions of this statement that relate to the application of the purchase method of accounting are effective for acquisitions on or after October 1,
2002. The provision of this Statement relating to accounting for impairment or disposal of certain long-term customer-relationship intangible assets are effective on October 1,
2002, with earlier application permitted. The adoption of this Statement is not expected to have a material effect on the Company's consolidated financial statements.

10

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Average Balance Sheet

The following tables set forth certain information relating to the Bank for the three and nine months ended September 30, 2002 and 2001, respectively. The
average yields and costs are derived by dividing income or expense by the average balance of interest-earning assets or interest-bearing liabilities, respectively, for the periods shown and reflect
annualized yields and costs. Average balances are derived from average monthly balances. The yields and costs include fees, which are considered adjustments to yields. Tax exempt income has been
calculated on a tax equivalent basis.

|                                                                 |                                            | Three Months Ended September 30, 2002 |        | Three Months Ended September 30, 2001 |        
|---------------------------------------------------------------- | ------------------------------------------ | ------------------------------------- | ------ | ------------------------------------- | -------
|
|
|Assets:                                                          |                                            |                                       |        |                                       |        
|Interest earning assets:                                         |                                            |                                       |        |                                       |        
|                                                                 | Short-term deposits and FHLB stock         |                                       | $      | 47,170                                |        
|                                                                 | Investment securities                      |                                       |        | 76,195                                |        
|                                                                 | Mortgage-backed securities                 |                                       |        | 11,802                                |        
|                                                                 | Mortgage loans                             |                                       |        | 483,823                               |        
|                                                                 | Other loans                                |                                       |        | 84,625                                |        
|                                                                 |                                            |                                       |        |                                       |        
|                                                                 |                                            | Total interest earning assets         |        |                                       | 703,615
|                                                                 |                                            |                                       |        |                                       |        
|Noninterest earning assets                                       |                                            |                                       | 40,119 |                                       |        
|                                                                 |                                            |                                       |        |                                       |        
|                                                                 |                                            | Total assets                          |        | $                                     | 743,734
|                                                                 |                                            |                                       |        |                                       |        
|Liabilities and stockholders' equity                             |                                            |                                       |        |                                       |        
|Interest-bearing liabilities                                     |                                            |                                       |        |                                       |        
|                                                                 | Deposits:                                  |                                       |        |                                       |        
|                                                                 | Money market accounts                      |                                       | $      | 126,082                               |        
|                                                                 | Passbook savings accounts                  |                                       |        | 100,433                               |        
|                                                                 | NOW Accounts                               |                                       |        | 32,264                                |        
|                                                                 | Certificates of deposit                    |                                       |        | 195,231                               |        
|                                                                 |                                            |                                       |        |                                       |        
|                                                                 |                                            | Total deposits                        |        |                                       | 454,010
|                                                                 | FHLB Advances                              |                                       |        | 171,700                               |        
|                                                                 |                                            |                                       |        |                                       |        
|                                                                 | Total interest-bearing liabilities         |                                       |        | 625,710                               |        
|                                                                 |                                            |                                       |        |                                       |        
|Noninterest-bearing liabilities                                  |                                            |                                       | 44,669 |                                       |        
|                                                                 |                                            |                                       |        |                                       |        
|                                                                 |                                            | Total liabilities                     |        |                                       | 670,379
|Total stockholders' equity                                       |                                            |                                       | 73,355 |                                       |        
|                                                                 |                                            |                                       |        |                                       |        
|                                                                 | Total liabilities and stockholders' equity |                                       | $      | 743,734                               |        
|                                                                 |                                            |                                       |        |                                       |        
|Net interest income before provision for loan losses             |                                            |                                       |        |                                       | 5,373  
|                                                                 |                                            |                                       |        |                                       |        
|Interest rate spread                                             |                                            |                                       |        |                                       |        
|                                                                 |                                            |                                       |        |                                       |        
|Net interest margin as a percent of interest earning assets      |                                            |                                       |        |                                       |        
|                                                                 |                                            |                                       |        |                                       |        
|Ratio of interest-earning assets to interest-bearing liabilities |                                            |                                       |        |                                       |        
|                                                                 |                                            |                                       |        |                                       |        

11

---

|                                                                 |                                            | Nine Months Ended September 30, 2002 |        | Nine Months Ended September 30, 2001 |        
|---------------------------------------------------------------- | ------------------------------------------ | ------------------------------------ | ------ | ------------------------------------ | -------
|
|
|Assets:                                                          |                                            |                                      |        |                                      |        
|Interest earning assets:                                         |                                            |                                      |        |                                      |        
|                                                                 | Short-term deposits and FHLB stock         |                                      | $      | 37,893                               |        
|                                                                 | Investment securities                      |                                      |        | 72,175                               |        
|                                                                 | Mortgage-backed securities                 |                                      |        | 12,054                               |        
|                                                                 | Mortgage loans                             |                                      |        | 482,233                              |        
|                                                                 | Other loans                                |                                      |        | 77,706                               |        
|                                                                 |                                            |                                      |        |                                      |        
|                                                                 |                                            | Total interest earning assets        |        |                                      | 682,061
|                                                                 |                                            |                                      |        |                                      |        
|Noninterest earning assets                                       |                                            |                                      | 37,718 |                                      |        
|                                                                 |                                            |                                      |        |                                      |        
|                                                                 |                                            | Total assets                         |        | $                                    | 719,779
|                                                                 |                                            |                                      |        |                                      |        
|Liabilities and stockholders' equity                             |                                            |                                      |        |                                      |        
|Interest-bearing liabilities                                     |                                            |                                      |        |                                      |        
|                                                                 | Deposits:                                  |                                      |        |                                      |        
|                                                                 | Money market accounts                      |                                      | $      | 117,156                              |        
|                                                                 | Passbook savings accounts                  |                                      |        | 99,997                               |        
|                                                                 | NOW Accounts                               |                                      |        | 31,662                               |        
|                                                                 | Certificates of deposit                    |                                      |        | 184,122                              |        
|                                                                 |                                            |                                      |        |                                      |        
|                                                                 |                                            | Total deposits                       |        |                                      | 432,937
|                                                                 | FHLB Advances                              |                                      |        | 173,422                              |        
|                                                                 |                                            |                                      |        |                                      |        
|                                                                 | Total interest-bearing liabilities         |                                      |        | 606,359                              |        
|                                                                 |                                            |                                      |        |                                      |        
|Noninterest-bearing liabilities                                  |                                            |                                      | 42,012 |                                      |        
|                                                                 |                                            |                                      |        |                                      |        
|                                                                 |                                            | Total liabilities                    |        |                                      | 648,371
|Total stockholders' equity                                       |                                            |                                      | 71,408 |                                      |        
|                                                                 |                                            |                                      |        |                                      |        
|                                                                 | Total liabilities and stockholders' equity |                                      | $      | 719,779                              |        
|                                                                 |                                            |                                      |        |                                      |        
|Net interest income before provision for loan losses             |                                            |                                      |        |                                      | 16,451 
|                                                                 |                                            |                                      |        |                                      |        
|Interest rate spread                                             |                                            |                                      |        |                                      |        
|                                                                 |                                            |                                      |        |                                      |        
|Net interest margin as a percent of interest earning assets      |                                            |                                      |        |                                      |        
|                                                                 |                                            |                                      |        |                                      |        
|Ratio of interest-earning assets to interest-bearing liabilities |                                            |                                      |        |                                      |        
|                                                                 |                                            |                                      |        |                                      |        

12

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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, 2002.

|       |  |   |         |  |   |         |   | NPV as % of Portfolio
Value of Assets |   
|------ |  | - | ------- |  | - | ------- | - | ------------------------------------- | --
|
|
|
|
|+300   |  | $ | 51,927  |  | $ | (54,034 | ) | (50.99                                | )%
|+200   |  |   | 74,601  |  |   | (31,360 | ) | (29.60                                | ) 
|+100   |  |   | 93,675  |  |   | (12,286 | ) | (11.59                                | ) 
|Static |  |   | 105,961 |  |   |        |   |                                      |   
|-100   |  |   | 119,298 |  |   | 13,337  |   | 12.59                                 |   
|-200   |  |   | 122,895 |  |   | 16,934  |   | 15.98                                 |   
|-300   |  |   | 125,393 |  |   | 19,432  |   | 18.34                                 |   

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.

Item 4.    Controls and Procedures

(a)Evaluation of disclosure controls and procedures.The Company maintains controls and procedures designed to
ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the
time periods specified in the rules and forms of the Securities and Exchange Commission. Based upon their evaluation of those controls and procedures performed within 90 days of the filing date
of this report, the chief executive officer and
the chief financial officer of the Company concluded that the Company's disclosure controls and procedures were adequate.

(b)Changes in internal controls.The Company made no significant changes in its internal controls or in other
factors that could significantly affect these controls subsequent to the date of the evaluation of those controls by the chief executive officer and chief financial officer.

13

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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.



| |  | 3.1  |  | Certificate of Incorporation of EFC Bancorp, Inc.*                                                                                                
| |  | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 3.2  |  | Bylaws of EFC Bancorp, Inc.*                                                                                                                      
| |  | 11.0 |  | Statement re: Computation of Per Share Earnings Incorporated herein by reference to Footnote 3 on page 5 of this document.                        
| |  | 99.1 |  | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
| |  | 99.2 |  | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.





---

14

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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 14, 2002 |  | By:                                                                                                             
|       |  |                   |  |                                                                                                                 
|       |  |                   |  | Barrett J. O'Connor
President and Chief Executive Officer
(Principal executive officer)                         
|Dated: |  | November 14, 2002 |  | By:                                                                                                             
|       |  |                   |  |                                                                                                                 
|       |  |                   |  | James J. Kovac
Executive Vice President and Chief
Financial Officer
(Principal financial and accounting officer)

15

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Certification

I,
Barrett J. O'Connor, certify that:

1.    I
have reviewed this quarterly report on Form 10-Q of EFC Bancorp, Inc.;

2.    Based
on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.    Based
on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.    The
registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-14 and 15d-14) for the registrant and we have:



5.    The
registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's
board of directors (or persons performing the equivalent function):



6.    The
registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material
weaknesses.

|By:                                                           |  | /s/ Barrett J. O'Connor |  | 
|------------------------------------------------------------- |  | ----------------------- |  | 
|Barrett J. O'Connor
Chief Executive Officer
November 14, 2002 |  |                        

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Certification

I,
James J. Kovac, certify that:

1.    I
have reviewed this quarterly report on Form 10-Q of EFC Bancorp, Inc.;

2.    Based
on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.    Based
on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.    The
registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-14 and 15d-14) for the registrant and we have:



5.    The
registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's
board of directors (or persons performing the equivalent function):



6.    The
registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material
weaknesses.

|By:                                                      |  | /s/ James J. Kovac |  | 
|-------------------------------------------------------- |  | ------------------ |  | 
|James J. Kovac
Chief Financial Officer
November 14, 2002 |  |                   

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