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

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FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2001

or

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

For the transition period from  to

Commission File Number 1-13605

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

Delaware(State or other jurisdiction of incorporation or organization)

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

60123(Zip Code)


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

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

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

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 4,611,161 shares of common stock,
par value $0.01 per share, were outstanding as of November 10, 2001.

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EFC Bancorp, Inc.
Form 10-Q
For the Quarter Ended September 30, 2001

INDEX

|           |                                                                                       |                                                                                                   |    | Page
|---------- | ------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------- | -- | ----
|PART I.    | FINANCIAL INFORMATION                                                                 |                                                                                                   |   
|Item 1.    | Financial Statements (unaudited)                                                      |                                                                                                   |   
|           |                                                                                       | Consolidated Balance Sheets at September 30, 2001 and December 31, 2000                           |    | 1   
|           |                                                                                       | Consolidated Statements of IncomeFor the Three and Nine Months Ended September 30, 2001 and 2000 |    | 2   
|           |                                                                                       | Consolidated Statements of Cash FlowsFor the Nine Months Ended September 30, 2001 and 2000       |    | 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                            |                                                                                                   | 12
|PART II:   | OTHER INFORMATION                                                                     |                                                                                                   | 13
|Item 1.    | Legal Proceedings                                                                     |                                                                                                   | 13
|Item 2.    | Changes in Securities and Use of Proceeds                                             |                                                                                                   | 13
|Item 3.    | Defaults Upon Senior Securities                                                       |                                                                                                   | 13
|Item 4.    | Submission of Matters to a Vote of Security Holders                                   |                                                                                                   | 13
|Item 5.    | Other Information                                                                     |                                                                                                   | 13
|Item 6.    | Exhibits and Reports on Form 8-K                                                      |                                                                                                   | 13
|SIGNATURES |                                                                                       | 14                                                                                               

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PART I. FINANCIAL INFORMATION  EFC BANCORP, INC.  SEPTEMBER 30, 2001

Item 1.  Financial Statements.

EFC BANCORP, INC.
AND SUBSIDIARIES

Consolidated Balance Sheets (unaudited)
September 30, 2001 and December 31, 2000

|                                                             |                                                                                                                                     | September 30,
2001 |             | December 31,
2000 |            
|------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ----------- | ----------------- | -----------
|Assets                                                       |                                                                                                                                     |                    |             |                   |            
|Cash and cash equivalents:                                   |                                                                                                                                     |                    |             |                   |            
|                                                             | On hand and in banks                                                                                                                |                    | $           | 2,047,254         |            
|                                                             | Interest bearing deposits with financial institutions                                                                               |                    |             | 39,682,726        |            
|Loans receivable, net                                        |                                                                                                                                     |                    | 526,565,224 |                   | 459,794,835
|Mortgage-backed securities available-for-sale, at fair value |                                                                                                                                     |                    | 11,264,466  |                   | 9,453,560  
|Investment securities available-for-sale, at fair value      |                                                                                                                                     |                    | 57,473,866  |                   | 64,070,927 
|Foreclosed real estate                                       |                                                                                                                                     |                    |            |                   | 539,792    
|Stock in Federal Home Loan Bank of Chicago, at cost          |                                                                                                                                     |                    | 8,760,000   |                   | 7,760,000  
|Accrued interest receivable                                  |                                                                                                                                     |                    | 3,695,506   |                   | 3,723,849  
|Office properties and equipment, net                         |                                                                                                                                     |                    | 9,777,843   |                   | 9,004,320  
|Other assets                                                 |                                                                                                                                     |                    | 1,253,934   |                   | 1,831,034  
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total assets                                                 |                                                                                                                                     | $                  | 660,520,819 |                   | 583,200,988
|                                                             |                                                                                                                                     |                    |             |                   |            
|Liabilities and Stockholders' Equity                         |                                                                                                                                     |                    |             |                   |            
|Liabilities:                                                 |                                                                                                                                     |                    |             |                   |            
|                                                             | Deposits                                                                                                                            |                    | $           | 407,599,076       |            
|                                                             | Borrowed money                                                                                                                      |                    |             | 175,200,000       |            
|                                                             | Advance payments by borrowers for taxes and insurance                                                                               |                    |             | 523,936           |            
|                                                             | Income taxes payable                                                                                                                |                    |             | 461,513           |            
|                                                             | Accrued expenses and other liabilities                                                                                              |                    |             | 8,419,396         |            
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total liabilities                                            |                                                                                                                                     |                    | 592,203,921 |                   | 515,915,886
|                                                             |                                                                                                                                     |                    |             |                   |            
|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                                                                                                          |                    |             | 71,650,194        |            
|                                                             | Treasury stock, at cost, 2,852,473 and 2,657,165 shares at September 30, 2001 and December 31, 2000, respectively                   |                    |             | (33,180,050       | )          
|                                                             | Unearned employee stock ownership plan (ESOP), 449,486 and 479,452 shares at September 30, 2001 and December 31, 2000, respectively |                    |             | (6,720,967        | )          
|                                                             | Unearned stock award plan, 122,107 and 164,896 shares at September 30, 2001 and December 31, 2000, respectively                     |                    |             | (1,358,431        | )          
|                                                             | Retained earnings, substantially restricted                                                                                         |                    |             | 36,949,990        |            
|                                                             | Accumulated other comprehensive income (loss)                                                                                       |                    |             | 901,248           |            
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total stockholders' equity                                   |                                                                                                                                     |                    | 68,316,898  |                   | 67,285,102 
|                                                             |                                                                                                                                     |                    |             |                   |            
|Commitments and contingencies                                |                                                                                                                                     |                    |            |                   |           
|                                                             |                                                                                                                                     |                    |             |                   |            
|Total liabilities and stockholders' equity                   |                                                                                                                                     | $                  | 660,520,819 |                   | 583,200,988
|                                                             |                                                                                                                                     |                    |             |                   |            

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, 2001 and 2000

|                                                     |                                                                                                    | Three months ended
September 30, |            | Nine months ended
September 30, |           
|---------------------------------------------------- | -------------------------------------------------------------------------------------------------- | -------------------------------- | ---------- | ------------------------------- | ----------
|
|Interest income:                                     |                                                                                                    |                                  |            |                                 |           
|                                                     | Loans secured by real estate                                                                       |                                  | $          | 8,626,654                       |           
|                                                     | Other loans                                                                                        |                                  |            | 1,126,235                       |           
|                                                     | Mortgage-backed securities available-for-sale                                                      |                                  |            | 184,003                         |           
|                                                     | Investment securities available-for-sale and interest bearing deposits with financial institutions |                                  |            | 1,201,799                       |           
|                                                     |                                                                                                    |                                  |            |                                 |           
|Total interest income                                |                                                                                                    |                                  | 11,138,691 |                                 | 10,165,319
|                                                     |                                                                                                    |                                  |            |                                 |           
|Interest expense:                                    |                                                                                                    |                                  |            |                                 |           
|                                                     | Deposits                                                                                           |                                  |            | 4,193,496                       |           
|                                                     | Borrowed money                                                                                     |                                  |            | 2,243,800                       |           
|                                                     |                                                                                                    |                                  |            |                                 |           
|Total interest expense                               |                                                                                                    |                                  | 6,437,296  |                                 | 6,130,927 
|                                                     |                                                                                                    |                                  |            |                                 |           
|Net interest income before provision for loan losses |                                                                                                    |                                  | 4,701,395  |                                 | 4,034,392 
|Provision for loan losses                            |                                                                                                    |                                  | 135,000    |                                 | 111,258   
|                                                     |                                                                                                    |                                  |            |                                 |           
|Net interest income after provision for loan losses  |                                                                                                    |                                  | 4,566,395  |                                 | 3,923,134 
|                                                     |                                                                                                    |                                  |            |                                 |           
|Noninterest income:                                  |                                                                                                    |                                  |            |                                 |           
|                                                     | Service fees                                                                                       |                                  |            | 308,739                         |           
|                                                     | Insurance and brokerage commissions                                                                |                                  |            | 73,966                          |           
|                                                     | Gain (Loss) on sale of foreclosed real estate                                                      |                                  |            |                                |           
|                                                     | Gain on sale of securities                                                                         |                                  |            | 32,812                          |           
|                                                     | Other                                                                                              |                                  |            | 17,511                          |           
|                                                     |                                                                                                    |                                  |            |                                 |           
|Total noninterest income                             |                                                                                                    |                                  | 433,028    |                                 | 385,663   
|                                                     |                                                                                                    |                                  |            |                                 |           
|Noninterest expense:                                 |                                                                                                    |                                  |            |                                 |           
|                                                     | Compensation and benefits                                                                          |                                  |            | 1,785,674                       |           
|                                                     | Office building, net                                                                               |                                  |            | 98,693                          |           
|                                                     | Depreciation and repairs                                                                           |                                  |            | 306,975                         |           
|                                                     | Data processing                                                                                    |                                  |            | 123,672                         |           
|                                                     | Federal insurance premium                                                                          |                                  |            | 17,354                          |           
|                                                     | NOW account operating expenses                                                                     |                                  |            | 153,208                         |           
|                                                     | Other                                                                                              |                                  |            | 707,592                         |           
|                                                     |                                                                                                    |                                  |            |                                 |           
|Total noninterest expense                            |                                                                                                    |                                  | 3,193,168  |                                 | 2,827,788 
|                                                     |                                                                                                    |                                  |            |                                 |           
|Income before income taxes                           |                                                                                                    |                                  | 1,806,255  |                                 | 1,481,009 
|Income tax expense                                   |                                                                                                    |                                  | 637,492    |                                 | 523,211   
|                                                     |                                                                                                    |                                  |            |                                 |           
|Net income                                           |                                                                                                    | $                                | 1,168,763  |                                 | 957,798   
|                                                     |                                                                                                    |                                  |            |                                 |           
|Earnings per share (basic and diluted)               |                                                                                                    | $                                | 0.27       |                                 | 0.22      
|                                                     |                                                                                                    |                                  |            |                                 |           

See
accompanying notes to consolidated financial statements.

2

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EFC BANCORP, INC.  AND SUBSIDIARIES    Consolidated Statements of Cash Flows (unaudited)  For the nine months ended September 30, 2001 and 2000

|                                                     |                                                                                  | 2001                                                                          |             | 2000        |            
|---------------------------------------------------- | -------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ----------- | ----------- | -----------
|Cash flows from operating activities:                |                                                                                  |                                                                               |             |             |            
|                                                     | Net income                                                                       |                                                                               | $           | 3,031,370   |            
|                                                     | Adjustment to reconcile net income to net cash provided by operating activities: |                                                                               |             |             |            
|                                                     |                                                                                  | Amortization of premiums and discounts, net                                   |             |             | 114,569    
|                                                     |                                                                                  | Provision for loan losses                                                     |             |             | 330,000    
|                                                     |                                                                                  | Stock award plan shares allocated                                             |             |             | 476,037    
|                                                     |                                                                                  | ESOP shares committed to be released                                          |             |             | 448,071    
|                                                     |                                                                                  | Change in fair value of ESOP shares                                           |             |             | (111,432   
|                                                     |                                                                                  | Gain on sale of securities                                                    |             |             | (32,812    
|                                                     |                                                                                  | (Gain)/Loss on sale of foreclosed real estate                                 |             |             | (8,014     
|                                                     |                                                                                  | Depreciation of office properties and equipment                               |             |             | 553,559    
|                                                     |                                                                                  | (Increase)/Decrease in accrued interest receivable and other assets, net      |             |             | 6,753      
|                                                     |                                                                                  | Increase in income taxes payable, accrued expenses and other liabilities, net |             |             | 3,222,568  
|                                                     |                                                                                  |                                                                               |             |             |            
|Net cash provided by operating activities            |                                                                                  |                                                                               | 8,030,669   |             | 4,385,106  
|                                                     |                                                                                  |                                                                               |             |             |            
|Cash flows from investing activities:                |                                                                                  |                                                                               |             |             |            
|                                                     | Net increase in loans receivable                                                 |                                                                               |             | (25,427,983 | )          
|                                                     | Purchases of loans receivable                                                    |                                                                               |             | (45,229,516 | )          
|                                                     | Purchases of mortgage-backed securities available-for-sale                       |                                                                               |             | (6,241,440  | )          
|                                                     | Principal payments on mortgage-backed securities available-for-sale              |                                                                               |             | 4,419,684   |            
|                                                     | Maturities of investment securities available-for-sale                           |                                                                               |             | 24,135,018  |            
|                                                     | Proceeds from the sale of investment securities available for sale               |                                                                               |             | 4,032,812   |            
|                                                     | Purchases of investment securities available-for-sale                            |                                                                               |             | (20,091,594 | )          
|                                                     | Purchases of office properties and equipment                                     |                                                                               |             | (1,327,081  | )          
|                                                     | Purchases of stock in the Federal Home Loan Bank of Chicago                      |                                                                               |             | (1,000,000  | )          
|                                                     | Proceeds from the sale of foreclosed real estate                                 |                                                                               |             | 4,104,916   |            
|                                                     |                                                                                  |                                                                               |             |             |            
|Net cash used in investing activities                |                                                                                  |                                                                               | (62,625,184 | )           | (57,723,098
|                                                     |                                                                                  |                                                                               |             |             |            
|Cash flows from financing activities:                |                                                                                  |                                                                               |             |             |            
|                                                     | Cash dividends paid                                                              |                                                                               |             | (1,571,164  | )          
|                                                     | Purchase of treasury stock                                                       |                                                                               |             | (2,192,733  | )          
|                                                     | Net increase in deposits                                                         |                                                                               |             | 38,065,721  |            
|                                                     | Proceeds from borrowed money                                                     |                                                                               |             | 60,000,000  |            
|                                                     | Repayments on borrowed money                                                     |                                                                               |             | (25,000,000 | )          
|                                                     |                                                                                  |                                                                               |             |             |            
|Net cash provided by financing activities            |                                                                                  |                                                                               | 69,301,824  |             | 52,810,640 
|                                                     |                                                                                  |                                                                               |             |             |            
|Net increase/(decrease) in cash and cash equivalents |                                                                                  |                                                                               | 14,707,309  |             | (527,352   
|Cash and cash equivalents at beginning of period     |                                                                                  |                                                                               | 27,022,671  |             | 22,173,595 
|                                                     |                                                                                  |                                                                               |             |             |            
|Cash and cash equivalents at end of period           |                                                                                  | $                                                                             | 41,729,980  |             | 21,646,243 
|                                                     |                                                                                  |                                                                               |             |             |            

See
accompanying notes to consolidated financial statements.

3

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EFC BANCORP, INC.

Notes to Consolidated Financial Statements

Note 1: BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements include the accounts of EFC Bancorp, Inc. (the Company) and its wholly-owned subsidiary,
Elgin Financial Savings Bank (the Bank) and its wholly-owned subsidiary, Fox Valley Service Corporation of Elgin. 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 2000 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, 2001 and 2000 are as follows:

|                                                                                       |                                                                  | Three months ended
September 30, |           | Nine months ended
September 30, |        
|-------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | -------------------------------- | --------- | ------------------------------- | -------
|
|Net income                                                                             |                                                                  | $                                | 1,168,763 |                                 | 957,798
|Other comprehensive income, net of tax:                                                |                                                                  |                                  |           |                                 |        
|                                                                                       | Unrealized holding gains on securities arising during the period |                                  |           | 453,582                         |        
|Reclassification adjustment for net gain on sales of securities realized in net income |                                                                  |                                  | (20,672   | )                               | (51,225
|                                                                                       |                                                                  |                                  |           |                                 |        
|                                                                                       | Comprehensive income                                             |                                  | $         | 1,601,673                       |        
|                                                                                       |                                                                  |                                  |           |                                 |        

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

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,
2001 |           | Three Months
Ended
September 30,
2000 |           | Nine Months
Ended
September 30,
2001 |           | Nine Months
Ended
September 30,
2000
|-------------------------------------------- |  | ------------------------------------- | --------- | ------------------------------------- | --------- | ------------------------------------ | --------- | ------------------------------------
|Basic:                                       |  |                                       |           |                                       |           |                                      |           |                                     
|Net income                                   |  | $                                     | 1,168,763 |                                       | 957,798   |                                      | 3,031,370 |                                     
|Weighted average shares outstanding          |  |                                       | 4,241,304 |                                       | 4,387,365 |                                      | 4,276,511 |                                     
|                                             |  |                                       |           |                                       |           |                                      |           |                                     
|Basic earnings per share                     |  | $                                     | 0.27      |                                       | 0.22      |                                      | 0.71      |                                     
|                                             |  |                                       |           |                                       |           |                                      |           |                                     
|Diluted:                                     |  |                                       |           |                                       |           |                                      |           |                                     
|Net income                                   |  | $                                     | 1,168,763 |                                       | 957,798   |                                      | 3,031,370 |                                     
|Weighted average shares outstanding          |  |                                       | 4,241,304 |                                       | 4,387,365 |                                      | 4,276,511 |                                     
|Effect of dilutive stock options outstanding |  |                                       | 66,248    |                                       | 82        |                                      | 14,394    |                                     
|                                             |  |                                       |           |                                       |           |                                      |           |                                     
|Diluted weighted average shares outstanding  |  |                                       | 4,307,552 |                                       | 4,387,447 |                                      | 4,290,905 |                                     
|                                             |  |                                       |           |                                       |           |                                      |           |                                     
|Diluted earnings per share                   |  | $                                     | 0.27      |                                       | 0.22      |                                      | 0.71      |                                     
|                                             |  |                                       |           |                                       |           |                                      |           |                                     

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, 2001 and results of operations for the three and nine months ended September 30,
2001, 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 2000 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, 2001 and December 31, 2000

Total assets at September 30, 2001 were $660.5 million, which represented an increase of $77.3 million, or 13.3%, compared to
$583.2 million at December 31, 2000. The increase in total assets was primarily as a result of an increase in loans receivable of $66.8 million, or 14.5%, to $526.6 million
at September 30, 2001 from $459.8 million at December 31, 2000. Of the $66.8 million increase, $45.2 million represents loans purchased. The remaining increase in
loans receivable was primarily attributable to strong loan demand during the period. In addition, cash and cash equivalents increased $14.7 million, or 54.4%, to $41.7 million at
September 30, 2001 from $27.0 million at December 31, 2000. These increases were partially offset by a decrease in investment securities of $6.6 million, or 10.3%, to
$57.5 million at September 30, 2001 from $64.1 million at December 31, 2000. The growth in total assets was funded by increases in borrowed money and deposits. Borrowed
money, representing FHLB advances, increased by $35.0 million to $175.2 million at September 30, 2001 from $140.2 million at December 31, 2000. Deposits increased
$38.1 million to $407.6 million at September 30, 2001 from $369.5 million at December 31, 2000. Stockholders' equity increased by $1.0 million to
$68.3 million at September 30, 2001 from $67.3 million at December 31, 2000. The increase in stockholders' equity was primarily the result of the Company's net income
during the period and a $946,000 increase in the

6

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Company's accumulated other comprehensive income relating to its available-for-sale investment portfolio, the effect of which was partially offset by stock repurchases and
dividends paid.

Comparison of Operating Results For the Three Months Ended September 30, 2001 and 2000

General.The Company's net income increased $211,000, or 22.0%, to $1.2 million for the
three months ended September 30, 2001, from $958,000 for the three months ended September 30, 2000.

Interest Income.Interest income increased $973,000, or 9.6%, to $11.1 million for the
three months ended September 30, 2001, compared with $10.2 million for the same period in 2000. The increase in interest income was primarily due to an increase in average
interest-earning assets, which increased by $82.0 million, or 15.0%, to $627.4 million for the three months ended September 30, 2001 from $545.4 million for the comparable
period in 2000, offset by a decrease in the average yield on interest-earning assets by 35 basis points to 7.10% for the three months ended September 30, 2001 from 7.45% for the three months
ended September 30, 2000.

Mortgage
loan interest income increased by $847,000 for the three months ended September 30, 2001 compared with the same period in 2000. The average balance of mortgage loans
increased $44.0 million, while the loan yield increased by 2 basis points from 7.53% to 7.55%. Interest income from investment securities, mortgage-backed securities and short-term
deposits decreased by $227,000 for the three months ended September 30, 2001, compared with the same period in 2000. This decrease resulted from a combination of an increase in average balance
of $10.5 million and offset by a 155 basis point decrease in yield from 6.45% for the three months ended September 30, 2000 to 4.90% for the three months ended September 30, 2001.
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 increased by $306,000, or 5.0%, to $6.4 million for
the three months ended September 30, 2001 from $6.1 million for the three months ended September 30, 2000. This increase 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
$70.8 million, or 15.0%, to $543.2 million at September 30, 2001 from $472.4 million at September 30, 2000. This change reflects a $37.5 million increase in
the deposit accounts, which represents a $53.0 million increase in money market accounts, partially offset by a decrease of $15.8 million in certificates of deposits. The remaining
$33.3 million increase is attributable to advances from the FHLB-Chicago. The average rate paid on combined deposits and borrowed money decreased by 45 basis points to 4.74% for the
three months ended September 30, 2001 from 5.19% for the three months ended September 30, 2000.

Net Interest Income Before Provision for Loan Losses.Net interest income before provision for
loan losses increased $667,000, or 16.5%, to $4.7 million for the three months ended September 30, 2001 from $4.0 million for the comparable period in 2000. The net interest
margin as a percent of interest-earning assets increased by 4 basis points to 3.00% for the three months ended September 30, 2001 from 2.96% for the comparable period in 2000.

Provision for Loan Losses.The provision for loan losses increased by $24,000, to $135,000 for
the three months ended September 30, 2001 from $111,000 in 2000. At September 30, 2001, December 31, 2000 and September 30, 2000, non-performing loans totaled
$1.2 million, $4.5 million and $5.0 million, respectively. The $3.3 million decrease in non-performing loans from December 31, 2000 to
September 30, 2001 is largely the result of the pay-off of a $3.5 million loan, which was secured by a commercial office building located in St. Charles, Illinois. At
September 30, 2001, the ratio of the allowance for loan losses to non-performing loans was 175.4% compared to 41.5% at December 31, 2000 and 36.2% at September 30,
2000. The ratio of the allowance to total loans was 0.40%, 0.41% and 0.40%, at September 30, 2001, December 31, 2000 and September 30, 2000, respectively. Charge-offs

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totaled $16,000 for the three months ended September 30, 2001. There were no charge-offs for the three months ended September 30, 2000. Management periodically calculates an
allowance sufficiency analysis
based upon the portfolio composition, asset classifications, loan-to-value ratios, potential impairments in the loan portfolio, and other factors.

Noninterest Income.Noninterest income totaled $433,000 and $386,000 for the three months ended
September 30, 2001 and 2000, respectively. The increase in noninterest income is primarily attributable to an increase in service fees of $60,000 and insurance and brokerage commission income
of $36,000, partially offset by a decrease in gain on sale of securities of $48,000.

Noninterest Expense.Noninterest expense increased $365,000, to $3.2 million for the
three months ended September 30, 2001 from $2.8 million for the comparable period in 2000. Compensation and benefits increased by $169,000. This increase was primarily due to a
combination of annual salary increases and the addition of staff. The additional staff expenses are primarily attributed to the opening of the Bank's new East Dundee, Illinois branch. All other
operating expenses, including advertising, marketing, postage, communications, data processing and other office expense increased by a combined $196,000, or 16.2%, to $1.4 million for the three
months ended September 30, 2001 from $1.2 million for the three months ended September 30, 2000. 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 $637,000 and $523,000 for the three months ended
September 30, 2001 and 2000, respectively. The increase was due to a $325,000 increase in earnings before income taxes to $1.8 million for the three months ended September 30,
2001 from $1.5 million for the prior year period. The effective tax rate was 35.3% for both the three months ended September 30, 2001 and 2000.

Comparison of Operating Results For the Nine Months Ended September 30, 2001 and 2000

General.The Company's net income increased $111,000, to $3.0 million for the nine
months ended September 30, 2001, from $2.9 million for the nine months ended September 30, 2000.

Interest Income.Interest income increased $3.5 million, or 12.0%, to
$32.6 million for the nine months ended September 30, 2001, compared with $29.1 million for the same period in 2000. The increase in interest income was primarily due to an
increase in average interest-earning assets, which increased by $75.5 million, or 14.4%, to $599.8 million for the nine months ended September 30, 2001 from $524.3 million
for the comparable period in 2000, offset by a decrease in the average yield on interest-earning assets by 16 basis points to 7.24% for the nine months ended September 30, 2001 from 7.40% for
the nine months ended September 30, 2000.

Mortgage
loan interest income increased by $2.6 million for the nine months ended September 30, 2001 compared with the same period in 2000. The average balance of
mortgage loans increased $42.4 million, while the loan yield increased by 7 basis points from 7.49% to 7.56%. Interest income from investment securities, mortgage-backed securities and
short-term deposits decreased by $302,000 for the nine months ended September 30, 2001, compared with the same period in 2000. This decrease resulted from a combination of an
increase in average balance of $9.7 million and offset by a 103 basis point decrease in yield from 6.52% for the nine months ended September 30, 2000 to 5.49% for the nine months ended
September 30, 2001. 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 increased by $2.5 million, or 14.9%, to
$19.3 million for the nine months ended September 30, 2001 from $16.8 million for the nine months ended September 30, 2000. This increase resulted from an increase in the
average balance of interest-bearing liabilities. The average balance of interest-bearing liabilities increased by $66.7 million, or 14.8%, to $519.0 million at

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September 30, 2001 from $452.3 million at September 30, 2000. This change reflects a $30.1 million increase in the deposit accounts, which is largely attributed to a
$35.6 million increase in money market accounts. The remaining $36.6 million increase is attributable to advances from the FHLB-Chicago. The average rate paid on combined
deposits and borrowed money was 4.96% for both the nine months ended September 30, 2001 and 2000.

Net Interest Income Before Provision for Loan Losses.Net interest income before provision for
loan losses increased $981,000, or 8.0%, to $13.3 million for the nine months ended September 30, 2001 from $12.3 million for the comparable period in 2000. The net interest
margin as a percent of interest-earning assets decreased by 17 basis points to 2.95% for the nine months ended September 30, 2001 from 3.12% for the comparable period in 2000.

Provision for Loan Losses.The provision for loan losses increased by $63,000, to $330,000 for
the nine months ended September 30, 2001 from $267,000 in 2000. At September 30, 2001, December 31, 2000 and September 30, 2000, non-performing loans totaled
$1.2 million, $4.5 million and $5.0 million, respectively. The $3.3 million decrease in non-performing loans from December 31, 2000 to
September 30, 2001 is largely the result of the pay-off of a $3.5 million loan, which was secured by a commercial office building located in St. Charles, Illinois. At
September 30, 2001, the ratio of the allowance for loan losses to non-performing loans was 175.4% compared to 41.5% at December 31, 2000 and 36.2% at September 30,
2000. The ratio of the allowance to total loans was 0.40%, 0.41% and 0.40%, at September 30, 2001, December 31, 2000 and September 30, 2000, respectively. Charge-offs
totaled $101,000 and $3,000 for the nine months ended September 30, 2001 and 2000, respectively. Management periodically calculates an allowance sufficiency analysis based upon the portfolio
composition, asset classifications, loan-to-value ratios, potential impairments in the loan portfolio, and other factors.

Noninterest Income.Noninterest income totaled $1.2 million and $1.0 million for
the nine months ended September 30, 2001 and 2000, respectively. The increase in noninterest income is primarily attributable to an increase in insurance and brokerage commission income of
$139,000 and an increase in service fees of $130,000, partially offset by a decrease in gain on sale of securities of $117,000.

Noninterest Expense.Noninterest expense increased $945,000, to $9.4 million for the
nine months ended September 30, 2001 from $8.5 million for the comparable period in 2000. Compensation and benefits increased by $498,000. This increase was primarily due to a
combination of annual salary increases and the addition of staff. The additional staff expenses are primarily attributed to the opening of the Bank's new East Dundee, Illinois branch and the hiring of
human resource personnel. All other operating expenses, including advertising, marketing, postage, communications, data processing and other office expense increased by a combined $447,000, or 11.9%,
to $4.2 million for the nine months ended September 30, 2001 from $3.7 million for the nine months ended September 30, 2000. Management continues to emphasize the
importance of expense management and control while continuing to provide expanded banking services to a growing market base.

Income Tax Expense.Income tax expense totaled $1.6 million for both the nine months
ended September 30, 2001 and 2000. The effective tax rate was 35.1% and 35.6% for the nine months ended September 30, 2001 and 2000, respectively.

Liquidity and Capital Resources

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

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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 on September 27, 2001. Under this program the Company is authorized to repurchase up to 231,808, or 5.0% of its outstanding common stock.

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, 2001, cash and interest-bearing demand accounts totaled $41.7 million, or 6.3% of total assets.

See
the "Consolidated Statements of Cash Flows" in the Unaudited Consolidated Financial Statements included in this Form 10-Q for the sources and uses of cash flows
for operating, investing and financing activities for the nine months ended September 30, 2001 and 2000.

At
September 30, 2001, the Bank exceeded all of its regulatory capital requirements. The following is a summary of the Bank's regulatory capital ratios at September 30,
2001:

Total Capital to Total Assets

9.68
%Total Capital to Risk-Weighted Assets

14.96
%Tier I Leverage Ratio

9.74
%Tier I to Risk-Weighted Assets

14.75
%


At
September 30, 2001, the Company had a Total Capital to Total Assets ratio of 10.34%.

On
September 7, 2001, the Company announced its third quarter dividend of $0.1250 per share. The dividend was paid on October 9, 2001 to stockholders of record on
September 28, 2001.

Recent Accounting Pronouncements

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

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

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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 is effective January 1, 2002 for calendar year companies, however, any acquired goodwill or
intangible assets recorded in transactions closed subsequent to June 30, 2001 will be subject immediately to the nonamortization and amortization provisions of SFAS No. 142. The Company
anticipates that the adoption of SFAS No. 141 and No. 142 will not have a material impact on the Company's results of operations or financial condition.

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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, 2001.

(In thousands)

|       |  |   |         |  |   |         |   | NPV as % of Portfolio
Value of Assets |   
|------ |  | - | ------- |  | - | ------- | - | ------------------------------------- | --
|
|
|
|+300   |  | $ | 43,813  |  | $ | (40,169 | ) | (47.83                                | )%
|+200   |  |   | 55,950  |  |   | (28,032 | ) | (33.38                                | ) 
|+100   |  |   | 70,041  |  |   | (13,941 | ) | (16.60                                | ) 
|Static |  |   | 83,982  |  |   |        |   |                                      |   
|-100   |  |   | 98,524  |  |   | 14,542  |   | 17.32                                 |   
|-200   |  |   | 104,511 |  |   | 20,529  |   | 24.44                                 |   
|-300   |  |   | 110,074 |  |   | 26,092  |   | 31.07                                 |   

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

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PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings.

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

Item 2.  Changes in Securities and Use of Proceeds.

None.

Item 3.  Defaults Upon Senior Securities.

None.

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

None.

Item 5.  Other Information.

None.

Item 6.  Exhibits and Reports on Form 8-K.



| |  | 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.



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SIGNATURES

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

|                         |  | EFC BANCORP, INC.
|------------------------ |  | -----------------
|Dated: November 13, 2001 |  | By:              
|Dated: November 13, 2001 |  | By:              

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