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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

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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 March 31, 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

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

Delaware

36-4193304(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)1695 Larkin Avenue, Elgin, Illinois

60123(Address of principal executive offices)

(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 ý    No o

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: 4,621,761 shares of common stock,
par value $0.01 per share, were outstanding as of May 10, 2002.

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EFC Bancorp, Inc.
Form 10-Q
For the Quarter Ended March 31, 2002
INDEX

|           |  |                                                                                                  |  | Page
|---------- |  | ------------------------------------------------------------------------------------------------ |  | ----
|PART I.    |  | FINANCIAL INFORMATION                                                                            |  |     
|Item 1.    |  | Financial Statements (unaudited)                                                                 |  |     
|           |  | Consolidated Balance Sheets at
        March 31, 2002 and December 31, 2001                      |  | 1   
|           |  | Consolidated Statements of IncomeFor the Three
        Months Ended March 31, 2002 and 2001     |  | 2   
|           |  | Consolidated Statements of Cash FlowsFor the Three
        Months Ended March 31, 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                                       |  | 10  
|PART II:   |  | OTHER INFORMATION                                                                                |  | 11  
|Item 1.    |  | Legal Proceedings                                                                                |  | 11  
|Item 2.    |  | Changes in Securities and Use of Proceeds                                                        |  | 11  
|Item 3.    |  | Defaults Upon Senior Securities                                                                  |  | 11  
|Item 4.    |  | Submission of Matters to a Vote of Security Holders                                              |  | 11  
|Item 5.    |  | Other Information                                                                                |  | 11  
|Item 6.    |  | Exhibits and Reports on Form 8-K                                                                 |  | 11  
|SIGNATURES |  | 12                                                                                              

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PART I. FINANCIAL INFORMATION  EFC BANCORP, INC.

Item 1. Financial Statements.  EFC BANCORP, INC.  AND SUBSIDIARIESConsolidated Balance Sheets (unaudited)  March 31, 2002 and December 31, 2001

|                                                             |                                                                                                                                 | March 31,
2002 |             | December 31,
2001 |            
|------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------- | -------------- | ----------- | ----------------- | -----------
|Assets                                                       |                                                                                                                                 |                |             |                   |            
|Cash and cash equivalents:                                   |                                                                                                                                 |                |             |                   |            
|                                                             | On hand and in banks                                                                                                            |                | $           | 2,340,591         |            
|                                                             | Interest bearing deposits with financial institutions                                                                           |                |             | 29,393,018        |            
|Loans receivable, net                                        |                                                                                                                                 |                | 550,958,246 |                   | 537,070,664
|Mortgage-backed securities available-for-sale, at fair value |                                                                                                                                 |                | 12,278,114  |                   | 13,855,715 
|Investment securities available-for-sale, at fair value      |                                                                                                                                 |                | 70,709,184  |                   | 68,615,462 
|Stock in Federal Home Loan Bank of Chicago, at cost          |                                                                                                                                 |                | 9,020,700   |                   | 8,891,900  
|Accrued interest receivable                                  |                                                                                                                                 |                | 3,897,389   |                   | 3,682,120  
|Office properties and equipment, net                         |                                                                                                                                 |                | 11,579,803  |                   | 10,990,206 
|Other assets                                                 |                                                                                                                                 |                | 13,980,521  |                   | 12,162,083 
|                                                             |                                                                                                                                 |                |             |                   |            
|Total assets                                                 |                                                                                                                                 | $              | 704,157,566 |                   | 673,443,440
|                                                             |                                                                                                                                 |                |             |                   |            
|Liabilities and Stockholders' Equity                         |                                                                                                                                 |                |             |                   |            
|Liabilities:                                                 |                                                                                                                                 |                |             |                   |            
|                                                             | Deposits                                                                                                                        |                | $           | 447,841,413       |            
|                                                             | Borrowed money                                                                                                                  |                |             | 175,605,298       |            
|                                                             | Advance payments by borrowers for taxes and insurance                                                                           |                |             | 2,046,161         |            
|                                                             | Income taxes payable                                                                                                            |                |             | 950,522           |            
|                                                             | Accrued expenses and other liabilities                                                                                          |                |             | 7,829,113         |            
|                                                             |                                                                                                                                 |                |             |                   |            
|Total liabilities                                            |                                                                                                                                 |                | 634,272,507 |                   | 604,814,877
|                                                             |                                                                                                                                 |                |             |                   |            
|Minority interest                                            |                                                                                                                                 |                | (37,105     | )                 |           
|                                                             |                                                                                                                                 |                |             |                   |            
|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                                                                                                      |                |             | 71,653,687        |            
|                                                             | Treasury stock, at cost, 2,869,673 and 2,884,873 shares at March 31, 2002 and December 31, 2001, respectively                   |                |             | (33,416,316       | )          
|                                                             | Unearned employee stock ownership plan (ESOP), 429,509 and 439,498 shares at March 31, 2002 and December 31, 2001, respectively |                |             | (6,422,262        | )          
|                                                             | Unearned stock award plan, 93,813 and 107,943 shares at March 31, 2002 and December 31, 2001, respectively                      |                |             | (1,043,670        | )          
|                                                             | Retained earnings, substantially restricted                                                                                     |                |             | 39,041,813        |            
|                                                             | Accumulated other comprehensive income                                                                                          |                |             | 33,998            |            
|                                                             |                                                                                                                                 |                |             |                   |            
|Total stockholders' equity                                   |                                                                                                                                 |                | 69,922,164  |                   | 68,628,563 
|                                                             |                                                                                                                                 |                |             |                   |            
|Commitments and contingencies                                |                                                                                                                                 |                |            |                   |           
|                                                             |                                                                                                                                 |                |             |                   |            
|Total liabilities and stockholders' equity                   |                                                                                                                                 | $              | 704,157,566 |                   | 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 months ended March 31, 2002 and 2001

|                                                     |                                                                                                    | Three months ended
March 31,
|---------------------------------------------------- | -------------------------------------------------------------------------------------------------- | ----------------------------
|
|Interest income:                                     |                                                                                                    |                             
|                                                     | Loans secured by real estate                                                                       |                             
|                                                     | Other loans                                                                                        |                             
|                                                     | Mortgage-backed securities available-for-sale                                                      |                             
|                                                     | Investment securities available-for-sale and interest bearing deposits with financial institutions |                             
|                                                     |                                                                                                    |                             
|Total interest income                                |                                                                                                    |                             
|                                                     |                                                                                                    |                             
|Interest expense:                                    |                                                                                                    |                             
|                                                     | Deposits                                                                                           |                             
|                                                     | Borrowed money                                                                                     |                             
|                                                     |                                                                                                    |                             
|Total interest expense                               |                                                                                                    |                             
|                                                     |                                                                                                    |                             
|Net interest income before provision for loan losses |                                                                                                    |                             
|Provision for loan losses                            |                                                                                                    |                             
|                                                     |                                                                                                    |                             
|Net interest income after provision for loan losses  |                                                                                                    |                             
|                                                     |                                                                                                    |                             
|Noninterest income:                                  |                                                                                                    |                             
|                                                     | Service fees                                                                                       |                             
|                                                     | Insurance and brokerage commissions                                                                |                             
|                                                     | Information Technology sales and service income                                                    |                             
|                                                     | Other                                                                                              |                             
|                                                     |                                                                                                    |                             
|Total noninterest income                             |                                                                                                    |                             
|                                                     |                                                                                                    |                             
|Noninterest expense:                                 |                                                                                                    |                             
|                                                     | Compensation and benefits                                                                          |                             
|                                                     | Office building, net                                                                               |                             
|                                                     | Federal insurance premiums                                                                         |                             
|                                                     | Advertising                                                                                        |                             
|                                                     | Data processing                                                                                    |                             
|                                                     | NOW/checking account expenses                                                                      |                             
|                                                     | Other                                                                                              |                             
|                                                     |                                                                                                    |                             
|Total noninterest expense                            |                                                                                                    |                             
|                                                     |                                                                                                    |                             
|Income before income taxes                           |                                                                                                    |                             
|Income tax expense                                   |                                                                                                    |                             
|                                                     |                                                                                                    |                             
|Income before minority interest                      |                                                                                                    |                             
|Minority interest                                    |                                                                                                    |                             
|                                                     |                                                                                                    |                             
|Net income                                           |                                                                                                    | $                           
|                                                     |                                                                                                    |                             
|Earnings per share:                                  |                                                                                                    |                             
|                                                     | Basic                                                                                              |                             
|                                                     | Diluted                                                                                            |                             
|                                                     |                                                                                                    |                             

See
accompanying notes to consolidated financial statements.

2

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EFC BAN CORP, INC. AND SUBSIDIARIES

Consolidated
Statements of Cash Flows (unaudited)
For the three months ended March 31, 2002 and 2001

|                                                                                 |                                                                     | 2002                                                                          |             | 2001        |           
|-------------------------------------------------------------------------------- | ------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ----------- | ----------- | ----------
|Cash flows from operating activities:                                            |                                                                     |                                                                               |             |             |           
|                                                                                 | Net income                                                          |                                                                               | $           | 1,568,438   |           
|Adjustment to reconcile net income to net cash provided by operating activities: |                                                                     |                                                                               |             |             |           
|                                                                                 |                                                                     | Amortization of premiums and discounts, net                                   |             |             | 38,350    
|                                                                                 |                                                                     | Provision for loan losses                                                     |             |             | 225,000   
|                                                                                 |                                                                     | Stock award plan shares allocated                                             |             |             | 157,196   
|                                                                                 |                                                                     | ESOP shares committed to be released                                          |             |             | 149,357   
|                                                                                 |                                                                     | Change in fair value of ESOP shares                                           |             |             | (10,008   
|                                                                                 |                                                                     | Gain on sale of foreclosed real estate                                        |             |             |          
|                                                                                 |                                                                     | Minority interest in subsidiary                                               |             |             | (37,105   
|                                                                                 |                                                                     | Depreciation of office properties and equipment                               |             |             | 187,562   
|                                                                                 |                                                                     | (Increase)/decrease in accrued interest receivable and other assets, net      |             |             | (1,490,263
|                                                                                 |                                                                     | Increase in income taxes payable, accrued expenses and other liabilities, net |             |             | 1,281,716 
|                                                                                 |                                                                     |                                                                               |             |             |           
|Net cash provided by operating activities                                        |                                                                     |                                                                               | 2,070,243   |             | 4,980,784 
|                                                                                 |                                                                     |                                                                               |             |             |           
|Cash flows from investing activities:                                            |                                                                     |                                                                               |             |             |           
|                                                                                 | Net (increase)/decrease in loans receivable                         |                                                                               |             | 3,757,071   |           
|                                                                                 | Purchases of loans receivable                                       |                                                                               |             | (17,869,653 | )         
|                                                                                 | Purchases of mortgage-backed securities available-for-sale          |                                                                               |             |            |           
|                                                                                 | Principal payments on mortgage-backed securities available-for-sale |                                                                               |             | 1,488,373   |           
|                                                                                 | Maturities of investment securities available-for-sale              |                                                                               |             | 6,903,565   |           
|                                                                                 | Purchases of investment securities available-for-sale               |                                                                               |             | (9,269,775  | )         
|                                                                                 | Purchases of office properties and equipment                        |                                                                               |             | (777,159    | )         
|                                                                                 | Purchases of stock in the Federal Home Loan Bank of Chicago         |                                                                               |             | (128,800    | )         
|                                                                                 | Cash investment in majority-owned subsidiary                        |                                                                               |             | (420,000    | )         
|                                                                                 | Proceeds from the sale of foreclosed real estate                    |                                                                               |             |            |           
|                                                                                 |                                                                     |                                                                               |             |             |           
|Net cash used in investing activities                                            |                                                                     |                                                                               | (16,316,378 | )           | (8,679,927
|                                                                                 |                                                                     |                                                                               |             |             |           
|Cash flows from financing activities:                                            |                                                                     |                                                                               |             |             |           
|                                                                                 | Cash dividends paid                                                 |                                                                               |             | (526,206    | )         
|                                                                                 | Purchase of treasury stock                                          |                                                                               |             | (4,200      | )         
|                                                                                 | Stock options exercised                                             |                                                                               |             | 172,438     |           
|                                                                                 | Net increase in deposits                                            |                                                                               |             | 27,757,124  |           
|                                                                                 | Proceeds from borrowed money                                        |                                                                               |             | 405,298     |           
|                                                                                 | Repayments on borrowed money                                        |                                                                               |             |            |           
|                                                                                 |                                                                     |                                                                               |             |             |           
|                                                                                 | Net cash provided by financing activities                           |                                                                               |             | 27,804,454  |           
|                                                                                 |                                                                     |                                                                               |             |             |           
|Net increase in cash and cash equivalents                                        |                                                                     |                                                                               | 13,558,319  |             | 9,691,449 
|Cash and cash equivalents at beginning of period                                 |                                                                     |                                                                               | 18,175,290  |             | 27,022,671
|                                                                                 |                                                                     |                                                                               |             |             |           
|Cash and cash equivalents at end of period                                       |                                                                     | $                                                                             | 31,733,609  |             | 36,714,120
|                                                                                 |                                                                     |                                                                               |             |             |           
|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 Services
Dynamics Inc. ("CSDI"), 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
CSDI was purchased for $420,000 in January 2002. The accompanying income statement includes the operating results of CSDI for the three months ended March 31, 2002. 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 month periods ended March 31, 2002 and 2001 are as follows:

|                                        |                                                                                              | Three months ended
March 31,
|--------------------------------------- | -------------------------------------------------------------------------------------------- | ----------------------------
|
|Net income                              |                                                                                              | $                           
|Other comprehensive income, net of tax: |                                                                                              |                             
|                                        | Unrealized holding gains (losses) on securities arising during the period, net of tax effect |                             
|                                        |                                                                                              |                             
|Comprehensive income                    |                                                                                              | $                           
|                                        |                                                                                              |                             

There
were no sales of investment securities as of and for the three months ended March 31, 2002 and 2001.

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
March 31, 2002 |           | Three Months Ended
March 31, 2001
|-------------------------------------------- |  | --------------------------------- | --------- | ---------------------------------
|Basic:                                       |  |                                   |           |                                  
|Net income                                   |  | $                                 | 1,568,438 |                                  
|Weighted average shares outstanding          |  |                                   | 4,180,489 |                                  
|                                             |  |                                   |           |                                  
|Basic earnings per share                     |  | $                                 | 0.38      |                                  
|                                             |  |                                   |           |                                  
|Diluted:                                     |  |                                   |           |                                  
|Net income                                   |  | $                                 | 1,568,438 |                                  
|Weighted average shares outstanding          |  |                                   | 4,180,489 |                                  
|Effect of dilutive stock options outstanding |  |                                   | 159,270   |                                  
|                                             |  |                                   |           |                                  
|Diluted weighted average shares outstanding  |  |                                   | 4,339,759 |                                  
|                                             |  |                                   |           |                                  
|Diluted earnings per share                   |  | $                                 | 0.36      |                                  
|                                             |  |                                   |           |                                  

5

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PART I: FINANCIAL INFORMATION
EFC BANCORP, INC.
March 31, 2002

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

The following analysis discusses changes in the financial condition at March 31, 2002 and results of operations for the three months ended March 31,
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 March 31, 2002 and December 31, 2001

Total assets at March 31, 2002 were $704.2 million, which represented an increase of $30.8 million, or 4.6%, 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 $13.9 million, or 2.6%, to $551.0 million
at March 31, 2002 from $537.1 million at December 31, 2001. Of the $13.9 million increase, $4.7 million represents net 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 $13.5 million, or 74.6%, to $31.7 million at
March 31, 2002 from $18.2 million at December 31, 2001. These increases were partially offset by a decrease in mortgage-backed securities of $1.6 million, or 11.4%, to
$12.3 million at March 31, 2002 from $13.9 million at December 31, 2001. The growth in total assets was funded by increases in deposits. Deposits increased
$27.7 million to $447.8 million at March 31, 2002 from $420.1 million at December 31, 2001. Stockholders' equity increased by $1.3 million to
$69.9 million at March 31, 2002 from $68.6 million at December 31, 2001. The increase in stockholders'

6

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equity was primarily the result of the Company's increase in net income during the period, the effect of which was partially offset by a decrease in the Company's accumulated other comprehensive
income relating to its available-for-sale investment portfolio and dividends paid.

Comparison of Operating Results For the Three Months Ended March 31, 2002 and 2001

General.The Company's net income increased $667,000, or 74.0%, to $1.6 million for the three
months ended March 31, 2002, from $902,000 for the three months ended March 31, 2001.

Interest Income.Interest income increased $450,000, or 4.2%, to $11.1 million for the three
months ended March 31, 2002, compared with $10.7 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 $81.3 million, or 14.0%, to $661.8 million for the three months ended March 31, 2002 from $580.5 million for the comparable period in 2001, offset by a
decrease in the average yield on interest-earning assets by 58 basis points to 6.79% for the three months ended March 31, 2002 from 7.37% for the three months ended March 31, 2001.

Mortgage
loan interest income increased by $614,000 for the three months ended March 31, 2002 compared with the same period in 2001. The average balance of mortgage loans
increased $52.0 million, while the loan yield decreased by 32 basis points from 7.60% to 7.28%. Interest income from investment securities, mortgage-backed securities and short-term
deposits decreased by $324,000 for the three months ended March 31, 2002, compared with the same period in 2001. This decrease resulted from a combination of a decrease in average balance of
$580,000 and a 120 basis point decrease in yield from 6.02% for the three months ended March 31, 2001 to 4.82% for the three months ended March 31, 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 $801,000, or 12.3%, to $5.7 million for the
three months ended March 31, 2002 from $6.5 million for the three months ended March 31, 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 $83.3 million, or 16.5%, to
$588.6 million at March 31, 2002 from $505.3 million at March 31, 2001. This change reflects a $66.6 million increase in the deposit accounts, which represents a
$61.2 million increase in money market accounts and a $26.6 million increase in passbook savings accounts, partially offset by a decrease of $21.6 million in certificates of
deposits. The remaining $16.7 million increase is attributable to advances from the FHLB-Chicago. The average rate paid on combined deposits and borrowed money decreased by 127
basis points to 3.87% for the three months ended March 31, 2002 from 5.14% for the three months ended March 31, 2001.

Net Interest Income Before Provision for Loan Losses.Net interest income before provision for loan
losses increased $1.2 million, or 30.0%, to $5.4 million for the three months ended March 31, 2002 from $4.2 million for the comparable period in 2001. The net interest
margin as a percent of interest-earning assets increased by 47 basis points to 3.36% for the three months ended March 31, 2002 from 2.89% for the comparable period in 2001.

Provision for Loan Losses.The provision for loan losses increased by $135,000, to $225,000 for the
three months ended March 31, 2002 from $90,000 in 2001. At March 31, 2002, December 31, 2001 and March 31, 2001, non-performing loans totaled
$3.5 million, $2.6 million and $5.0 million, respectively. At March 31, 2002, the ratio of the allowance for loan losses to non-performing loans was 69.9%
compared to 87.4% at December 31, 2001 and 39.8% at March 31, 2001. The ratio of the allowance to total loans was 0.45%, 0.42% and 0.42%, at March 31, 2002, December 31,
2001 and March 31, 2001, respectively. There were no charge-offs for the three months ended March 31, 2002 and 2001. Management periodically calculates an allowance
sufficiency analysis based upon the portfolio

7

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composition, asset classifications, loan-to-value ratios, potential impairments in the loan portfolio, and other factors.

Noninterest Income.Noninterest income totaled $1.1 million and $342,000 for the three months
ended March 31, 2002 and 2001, respectively. The increase in noninterest income is primarily attributable to
increases in service fees of $102,000, insurance and brokerage commission income of $135,000, information/technology sales and service income of $302,000 related to the Company's majority-owned
subsidiary Computer Services Dynamics, Inc. ("CSDI") and an increase of $166,000 in the cash 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 including a new employee, who was added during the first quarter of 2002.

Noninterest Expense.Noninterest expense increased $997,000, to $4.0 million for the three
months ended March 31, 2002 from $3.0 million for the comparable period in 2001. Compensation and benefits increased by $797,000. This increase was primarily due to a combination of
annual salary increases, the addition of staff and the related compensation and benefits of CSDI. 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 $201,000,
or 16.7%, to $1.4 million for the three months ended March 31, 2002 from $1.2 million for the three months ended March 31, 2001. 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 $714,000 and $505,000 for the three months ended
March 31, 2002 and 2001, respectively. The increase was primarily due to an $856,000 increase in earnings before income taxes to $2.3 million for the three months ended March 31,
2002 from $1.4 million for the prior year period. The effective tax rate was 31.5% and 35.9% for the three months ended March 31, 2002 and 2001, respectively. The decrease in the
effective tax rate for the three months ended March 31, 2002 is primarily due to the increase in municipal interest income and income from bank owned life insurance, which are tax exempt.

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.

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. As of March 31, 2002, the Company repurchased 2,869,673 shares of the Company's common stock at an average price per share of $11.64.

8

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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 March 31, 2002, cash and interest-bearing demand accounts totaled $31.7 million, or 4.5% 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 three months ended March 31, 2002 and 2001.

At
March 31, 2002, the Bank exceeded all of its regulatory capital requirements. The following is a summary of the Bank's regulatory capital ratios at March 31, 2002:

Total Capital to Total Assets

9.32
%Total Capital to Risk-Weighted Assets

13.91
%Tier I Leverage Ratio

9.41
%Tier I to Risk-Weighted Assets

13.90
%


At
March 31, 2002, the Company had a Total Capital to Total Assets ratio of 9.92%.

On
March 8, 2002, the Company announced its first quarter dividend of $0.13 per share. The dividend was paid on April 9, 2002 to stockholders of record on March 29,
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.

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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 March 31, 2002.

|       |  |   |         |  |   |         |   | NPV as % of Portfolio
Value of Assets |   
|------ |  | - | ------- |  | - | ------- | - | ------------------------------------- | --
|
|
|
|
|+300   |  | $ | 45,429  |  | $ | (41,048 | ) | (47.47                                | )%
|+200   |  |   | 59,205  |  |   | (27,272 | ) | (31.54                                | ) 
|+100   |  |   | 72,929  |  |   | (13,548 | ) | (15.67                                | ) 
|Static |  |   | 86,477  |  |   |        |   |                                      |   
|-100   |  |   | 98,732  |  |   | 12,255  |   | 14.17                                 |   
|-200   |  |   | 104,378 |  |   | 17,901  |   | 20.70                                 |   
|-300   |  |   | 110,312 |  |   | 23,835  |   | 27.56                                 |   

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.

The annual meeting of the stockholders was held April 23, 2002. The following proposals were voted on by the stockholders.

|PROPOSAL |                                                                                                                | FOR |           | WITHHELD |         | ABSTAIN |        | BROKER
NON-VOTES
|-------- | -------------------------------------------------------------------------------------------------------------- | --- | --------- | -------- | ------- | ------- | ------ | ----------------
|1)       | Election of Directorsnominees for three year term                                                             |     |           |          |         |         |        |                 
|         | Leo M. Flanagan, Jr.                                                                                           |     | 4,248,320 |          | 48,859  |         | N/A    |                 
|         | Peter A. Traeger                                                                                               |     | 4,246,188 |          | 50,991  |         | N/A    |                 
|         | James A. Alpeter                                                                                               |     | 4,023,577 |          | 273,602 |         | N/A    |                 
|2)       | Approval of appointment of KPMG LLP as the Company's Independent Auditors for the Year ended December 31, 2002 |     | 4,244,349 |          | 21,863  |         | 30,967 |                 

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: May 14, 2002 |  | By:              
|Dated: May 14, 2002 |  | By:              

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