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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, 1999
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: 5,365,790 shares of common stock, par value $0.01 per
share, were outstanding as of November 9, 1999.

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## 

EFC Bancorp, Inc.
Form 10-Q
For the Quarter Ended September 30, 1999

INDEX

|           |  |                                                                                                   |  | Page
|---------- |  | ------------------------------------------------------------------------------------------------- |  | ----
|PART I.    |  | FINANCIAL INFORMATION                                                                             |  |     
|Item 1.    |  | Financial Statements                                                                              |  |     
|           |  | Consolidated Balance Sheets at September 30, 1999 and December 31, 1998                           |  | 1   
|           |  | Consolidated Statements of IncomeFor the Three and Nine Months Ended
September 30, 1999 and 1998 |  | 2   
|           |  | Consolidated Statements of Cash FlowsFor the Nine Months Ended
September 30, 1999 and 1998       |  | 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                                        |  | 14  
|PART II:   |  | OTHER INFORMATION                                                                                 |  |     
|Item 1.    |  | Legal Proceedings                                                                                 |  | 15  
|Item 2.    |  | Changes in Securities and Use of Proceeds                                                         |  | 15  
|Item 3.    |  | Defaults Upon Senior Securities                                                                   |  | 15  
|Item 4.    |  | Submission of Matters to a Vote of Security Holders                                               |  | 15  
|Item 5.    |  | Other Information                                                                                 |  | 15  
|Item 6.    |  | Exhibits and Reports on Form 8-K                                                                  |  | 15  
|SIGNATURES |  | 16                                                                                               



## 

PART I. FINANCIAL INFORMATION
EFC BANCORP, INC.
September 30, 1999

Item 1. Financial Statements.

EFC BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)
September 30, 1999 and December 31, 1998

|                                                                                                                                    |  | September 30,
1999 |             | December 31,
1998 |  
|----------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | ----------- | ----------------- | -
|Assets                                                                                                                              |  |                    |             |                   |  
|Cash and cash equivalents:                                                                                                          |  |                    |             |                   |  
|On hand and in banks                                                                                                                |  | $                  | 5,029,680   |                   | $
|Interest bearing deposits with financial institutions                                                                               |  |                    | 14,971,259  |                   |  
|Loans receivable, net                                                                                                               |  |                    | 369,686,944 |                   |  
|Mortgage-backed securities available-for-sale, at fair value                                                                        |  |                    | 12,560,643  |                   |  
|Investment securities available-for-sale, at fair value                                                                             |  |                    | 58,594,512  |                   |  
|Foreclosed real estate                                                                                                              |  |                    | 83,334      |                   |  
|Stock in Federal Home Loan Bank of Chicago, at cost                                                                                 |  |                    | 4,960,000   |                   |  
|Accrued interest receivable                                                                                                         |  |                    | 2,148,754   |                   |  
|Office properties and equipment, net                                                                                                |  |                    | 8,049,928   |                   |  
|Other assets                                                                                                                        |  |                    | 1,569,589   |                   |  
|                                                                                                                                    |  |                    |             |                   |  
|Total assets                                                                                                                        |  | $                  | 477,654,643 |                   | $
|                                                                                                                                    |  |                    |             |                   |  
|Liabilities and Stockholders' Equity                                                                                                |  |                    |             |                   |  
|Liabilities:                                                                                                                        |  |                    |             |                   |  
|Deposits                                                                                                                            |  | $                  | 308,913,355 |                   | $
|Borrowed money                                                                                                                      |  |                    | 94,200,000  |                   |  
|Advance payments by borrowers for taxes and insurance                                                                               |  |                    | 511,865     |                   |  
|Accrued expenses and other liabilities                                                                                              |  |                    | 5,223,885   |                   |  
|                                                                                                                                    |  |                    |             |                   |  
|Total liabilities                                                                                                                   |  |                    | 408,849,105 |                   |  
|                                                                                                                                    |  |                    |             |                   |  
|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                                                                                                          |  |                    | 72,086,163  |                   |  
|Treasury stock, at cost, 2,084,044 shares at September 30, 1999 and 374,500 shares at December 31, 1998, respectively               |  |                    | (25,101,132 | )                 |  
|Unearned employee stock ownership plan (ESOP), 529,392 and 559,360 shares at September 30, 1999 and December 31, 1998, respectively |  |                    | (7,915,807  | )                 |  
|Unearned stock award plan, 244,720 and 289,668 shares at September 30, 1999 and December 31, 1998, respectively                     |  |                    | (2,722,509  | )                 |  
|Retained Earnings, substantially restricted                                                                                         |  |                    | 33,045,972  |                   |  
|Accumulated other comprehensive income (loss)                                                                                       |  |                    | (662,063    | )                 |  
|                                                                                                                                    |  |                    |             |                   |  
|Total stockholders' equity                                                                                                          |  |                    | 68,805,538  |                   |  
|                                                                                                                                    |  |                    |             |                   |  
|Commitments and contingencies                                                                                                       |  |                    |            |                   |  
|                                                                                                                                    |  |                    |             |                   |  
|Total liabilities and stockholders' equity                                                                                          |  | $                  | 477,654,643 |                   | $
|                                                                                                                                    |  |                    |             |                   |  

See
accompanying notes to consolidated financial statements.



EFC BANCORP, INC. AND SUBSIDIARIES   Consolidated Statements of Income (unaudited)   For the three and nine months ended September 30, 1999 and 1998

|                                                     |  | Three months ended
September 30, |           | Nine months ended
September 30, |          
|---------------------------------------------------- |  | -------------------------------- | --------- | ------------------------------- | ---------
|
|Interest income:                                     |  |                                  |           |                                 |          
|Loans secured by real estate                         |  | $                                | 6,404,202 |                                 | 5,325,534
|Other loans                                          |  |                                  | 376,021   |                                 | 306,462  
|Mortgage-backed securities available-for-sale        |  |                                  | 227,151   |                                 | 317,379  
|Investment securities available-for-sale             |  |                                  | 1,117,847 |                                 | 1,316,265
|                                                     |  |                                  |           |                                 |          
|Total interest income                                |  |                                  | 8,125,221 |                                 | 7,265,640
|                                                     |  |                                  |           |                                 |          
|Interest expense:                                    |  |                                  |           |                                 |          
|Deposits                                             |  |                                  | 3,040,829 |                                 | 2,942,624
|Borrowed money                                       |  |                                  | 1,186,800 |                                 | 600,180  
|                                                     |  |                                  |           |                                 |          
|Total interest expense                               |  |                                  | 4,227,629 |                                 | 3,542,804
|                                                     |  |                                  |           |                                 |          
|Net interest income before provision for loan losses |  |                                  | 3,897,592 |                                 | 3,722,836
|Provision for loan losses                            |  |                                  | 45,000    |                                 | 84,000   
|                                                     |  |                                  |           |                                 |          
|Net interest income after provision for loan losses  |  |                                  | 3,852,592 |                                 | 3,638,836
|                                                     |  |                                  |           |                                 |          
|Noninterest income:                                  |  |                                  |           |                                 |          
|Service fees                                         |  |                                  | 249,871   |                                 | 193,383  
|Real estate and insurance commissions                |  |                                  | 34,451    |                                 | 26,706   
|Gain on sale securities                              |  |                                  | 12,715    |                                 |         
|Other                                                |  |                                  | 14,949    |                                 | 35,924   
|                                                     |  |                                  |           |                                 |          
|Total noninterest income                             |  |                                  | 311,986   |                                 | 256,013  
|                                                     |  |                                  |           |                                 |          
|Noninterest expense:                                 |  |                                  |           |                                 |          
|Compensation and benefits                            |  |                                  | 1,420,579 |                                 | 1,223,125
|Office building, net                                 |  |                                  | 88,801    |                                 | 76,658   
|Depreciation and repairs                             |  |                                  | 205,634   |                                 | 181,187  
|Data processing                                      |  |                                  | 109,953   |                                 | 88,435   
|Federal insurance premium                            |  |                                  | 40,278    |                                 | 30,030   
|NOW account operating expenses                       |  |                                  | 68,719    |                                 | 65,753   
|Foundation contribution                              |  |                                  |          |                                 |         
|Other                                                |  |                                  | 743,059   |                                 | 689,526  
|                                                     |  |                                  |           |                                 |          
|Total noninterest expense                            |  |                                  | 2,677,023 |                                 | 2,354,714
|                                                     |  |                                  |           |                                 |          
|Income (loss) before income taxes                    |  |                                  | 1,487,555 |                                 | 1,540,135
|Income tax expense (benefit)                         |  |                                  | 518,107   |                                 | 470,454  
|                                                     |  |                                  |           |                                 |          
|Net income (loss)                                    |  | $                                | 969,448   |                                 | 1,069,681
|                                                     |  |                                  |           |                                 |          
|Earnings (loss) per share (basic and diluted)        |  | $                                | 0.20      |                                 | 0.15     
|                                                     |  |                                  |           |                                 |          

See accompanying notes to consolidated financial statements.



## 

EFC BANCORP, INC. AND SUBSIDIARIES   Consolidated Statements of Cash Flows (unaudited)   For the nine months ended September 30, 1999 and 1998

|                                                                                                  |  | 1999 |             | 1998 |            
|------------------------------------------------------------------------------------------------- |  | ---- | ----------- | ---- | -----------
|Cash flows from operating activities:                                                             |  |      |             |      |            
|Net income (loss)                                                                                 |  | $    | 3,081,317   |      | (588,451   
|Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |      |             |      |            
|Amortization of premiums and discounts, net                                                       |  |      | 73,386      |      | 78,166     
|Provision for loan losses                                                                         |  |      | 135,000     |      | 194,000    
|Stock award plan shares allocated                                                                 |  |      | 500,052     |      |           
|ESOP shares committed to be released                                                              |  |      | 448,071     |      |           
|Change in fair value of ESOP shares                                                               |  |      | (127,114    | )    |           
|Gain on sale of investment securities                                                             |  |      | (12,715     | )    | (11,814    
|Depreciation of office properties and equipment                                                   |  |      | 420,474     |      | 362,793    
|Increase in accrued interest receivable and other assets, net                                     |  |      | (201,400    | )    | (634,940   
|Increase in income taxes payable, accrued expenses and other liabilities, net                     |  |      | 495,753     |      | 10,003     
|                                                                                                  |  |      |             |      |            
|Net cash provided by (used in) operating activities                                               |  |      | 4,812,824   |      | (590,243   
|                                                                                                  |  |      |             |      |            
|Cash flows from investing activities:                                                             |  |      |             |      |            
|Net increase in loans receivable                                                                  |  |      | (34,554,869 | )    | (45,043,199
|Purchases of loans receivable                                                                     |  |      | (26,251,630 | )    | (7,134,836 
|Purchases of mortgage-backed securities available-for-sale                                        |  |      |            |      | (4,549,273 
|Principal payments on mortgage-backed securities available-for-sale                               |  |      | 5,171,777   |      | 5,652,028  
|Maturities of investment securities available-for-sale                                            |  |      | 11,078,008  |      | 20,460,496 
|Proceeds from the sale of investment securities available-for-sale                                |  |      | 10,012,715  |      | 2,011,814  
|Purchases of investment securities available-for-sale                                             |  |      | (24,113,865 | )    | (40,417,232
|Purchases of office properties and equipment                                                      |  |      | (1,940,668  | )    | (1,512,314 
|Purchases of stock in the Federal Home Loan Bank of Chicago                                       |  |      | (2,110,160  | )    | (549,000   
|Proceeds from the sale of foreclosed real estate                                                  |  |      | 83,980      |      |           
|Net (increase) in foreclosed real estate                                                          |  |      |            |      | (1,069,653 
|                                                                                                  |  |      |             |      |            
|Net cash used in investing activities                                                             |  |      | (62,624,712 | )    | (72,151,169
|                                                                                                  |  |      |             |      |            
|Cash flows from financing activities:                                                             |  |      |             |      |            
|Proceeds from the issuance of common stock                                                        |  |      |            |      | 72,769,326 
|Purchase of common stock by ESOP                                                                  |  |      |            |      | (8,961,298 
|Cash dividends paid                                                                               |  |      | (1,252,432  | )    |           
|Purchase of treasury stock                                                                        |  |      | (20,746,007 | )    |           
|Net increase (decrease) in deposits                                                               |  |      | 39,331,360  |      | (6,142,091 
|Proceeds from borrowed money                                                                      |  |      | 64,200,000  |      | 34,000,000 
|Repayments on borrowed money                                                                      |  |      | (27,000,000 | )    | (6,000,000 
|                                                                                                  |  |      |             |      |            
|Net cash provided by financing activities                                                         |  |      | 54,532,921  |      | 85,665,937 
|                                                                                                  |  |      |             |      |            
|Net increase (decrease) in cash and cash equivalents                                              |  |      | (3,278,967  | )    | 12,924,525 
|Cash and cash equivalents at beginning of period                                                  |  |      | 23,279,906  |      | 10,098,554 
|                                                                                                  |  |      |             |      |            
|Cash and cash equivalents at end of period                                                        |  | $    | 20,000,939  |      | 23,023,079 
|                                                                                                  |  |      |             |      |            

See
accompanying notes to consolidated financial statements.



## 

Item 1. Financial Statements, continued

EFC BANCORP, INC.   Notes to Consolidated Financial Statements

Note 1:  BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements include the accounts of EFC Bancorp, Inc. (the Company) and its wholly-owned subsidiary,
Elgin Financial Savings Bank (the Bank) and its wholly-owned subsidiary, Fox Valley Service Corp.

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. Certain information and footnote disclosures
normally included in financial statements presented in accordance with generally accepted accounting principles have been condensed or omitted. The results of operations for the interim periods are
not necessarily indicative of the results to be expected for the full year. It is suggested that the accompanying unaudited consolidated financial statements be read in conjunction with the Company's
1998 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, 1999 and 1998 are as follows:

|                                                                          |  | Three months ended
September 30, |          | Nine months ended
September 30, |          
|------------------------------------------------------------------------- |  | -------------------------------- | -------- | ------------------------------- | ---------
|
|Net income (loss)                                                         |  | $                                | 969,448  |                                 | 1,069,681
|Other comprehensive income (loss), net of tax:                            |  |                                  |          |                                 |          
|Unrealized holding gains (losses) on securities arising during the period |  |                                  | (229,114 | )                               | 267,785  
|Less:                                                                     |  |                                  |          |                                 |          
|reclassification adjustment for net gain realized in net income           |  |                                  | (8,010   | )                               |         
|                                                                          |  |                                  |          |                                 |          
|Comprehensive income (loss)                                               |  | $                                | 748,344  |                                 | 1,337,466
|                                                                          |  |                                  |          |                                 |          

For
the three and nine month periods ended September 30, 1999 the sale of investment securities resulted in a gain of $12,715 ($8,010 net of tax effect). For the three and nine month periods
ended September 30, 1998 the sale of investment securities resulted in a gain of $0 and $11,814 ($7,443 net of tax effect), respectively.

Note 3:  REORGANIZATION TO A STOCK CORPORATION

On August 12, 1997, the Board of Directors adopted a Plan of Conversion, as amended pursuant to which the Bank converted (the Plan) from a state
chartered savings bank to a state chartered stock savings bank (the Conversion). The Plan was approved by the regulatory authorities and the members at a special meeting. EFC Bancorp, Inc. was
formed by the Bank in October 1997 and acquired 100% of the Bank's

outstanding common stock in connection with the Conversion. During 1997, the Bank changed its name to Elgin Financial Savings Bank.

On
April 3, 1998, the Bank completed the Conversion and the Company completed the issuance and sale of 6,936,513 shares of its own common stock (the Transaction), at a price of
$10.00 per share, through an initial public offering (IPO). The Company also contributed 554,921 shares of its common stock, from authorized, but unissued shares, to a charitable foundation (the
Foundation) immediately following the conversion. The combined effect of the net proceeds from the Transaction and the contribution to the Foundation amounted to $72,769,326. The Company received net
proceeds from the
Transaction of $67,220,130, after the reduction from gross proceeds of $2,145,000 for IPO related expenses, which were initially deferred. On the date of the Transaction, $12,490,054 of deposits and
$56,875,076 of nondepository stock subscription funds were transferred to stockholder's equity and $37,258,531 of nondepository stock subscription funds were subsequently returned to subscribers; also
subsequent to the Transaction, the ESOP purchased, through a $8,961,298 loan from the Company, 599,314 shares of common stock in the open market.

The
Bank established a liquidation account, as of the date of Conversion, in the amount of $31,024,068, equal to its retained earnings as of the date of the latest consolidated
balance sheet appearing in the final prospectus. The Liquidation Account is established to provide a limited priority claim on the assets of the Bank to qualifying pre-conversion depositors (Eligible
and Supplemental Eligible Account Holders) who continue to maintain deposits in the Bank after Conversion. In the unlikely event of a complete liquidation of the Bank, and only in such an event, each
Eligible Account Holder would then receive from the Liquidation Account a liquidation distribution based on his proportionate share of the then total remaining qualifying deposits.

The
Foundation, created in connection with the Conversion, submitted a request to the Internal Revenue Service to be recognized as a tax-exempt organization and would likely be
classified as a private foundation. The contribution of common stock to the Foundation by the Company will be tax deductible, subject to an annual limitation based on 10% of the Company's annual
taxable income. The Company, however, would be able to carryforward any unused portion of the deduction for five years following the contribution. The Company recognized a $5,549,000 expense
for the full amount of the contribution, offset in part by the $2,053,000 corresponding tax benefit, during the second quarter of 1998.

Subsequent
to the Conversion, the Bank may not declare or pay cash dividends on or repurchase any of its shares of common stock if the effect thereof would cause stockholder's equity
to be reduced below applicable regulatory capital maintenance requirements or if such declaration and payment would otherwise violate regulatory requirements or would reduce the Bank's capital level
below the amount then required for the aforementioned Liquidation Account. Also, capital distribution regulations limit the Bank's ability to make capital distributions which include dividends, stock
redemptions or repurchases, cash-out mergers, interest payments on certain convertible debt and other transactions charged to the capital account based on their capital level and supervisory
condition.

In
addition to the 25,000,000 authorized shares of common stock, the Company is authorized to issue 2,000,000 shares of preferred stock with a par value of $.01 per share. The Board
of Directors is authorized, subject to any limitations by law, to provide for the issuance of the shares of preferred stock in series, to establish from time to time the number of shares to be
included in each such series, and to fix the designation, powers, preferences, and rights of the shares of each series and any qualifications, limitations or restrictions thereof. As of
September 30, 1999, there were no shares of preferred stock issued.



## 

Note 4:  STOCK TENDER OFFER

On April 23, 1999, the Company announced that its Board of Directors authorized the repurchase of up to 1,779,233 shares of its common stock, which
represents 25 percent of its outstanding shares as of April 16, 1999. The repurchase was made through a "Modified Dutch Auction Tender" (the "Tender Offer"). Under this procedure, the Company's
shareholders were given the opportunity to sell part or all of their shares to the Company at a price not less than $10.00 per share and not more than $12.00 per share.

The
Tender Offer expired on June 1, 1999. As a result of the offer, the Company purchased 1,709,544 or 24.0% of the outstanding shares of common stock at $12.00 per share. The
purchase price, including offering costs, totaled $20,746,007. After the auction, the Company had 5,407,390 shares of common stock outstanding.

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, 1999 and results of operations for the three and nine months ended
September 30, 1999, 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 and 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 1998 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, 1999 and December 31, 1998

Total assets at September 30, 1999 were $477.7 million, which represented an increase of $56.8 million, or 13.5%, compared to
$420.9 million at December 31, 1998. The increase in total assets was primarily as a result of an increase in loans receivable of $60.7 million, or 19.6%, to $369.7 million
at September 30, 1999 from $309.0 million at December 31, 1998. Of the $60.7 million increase, $26.3 million was due to loans purchased. The increase in loans
receivable was primarily attributable to a favorable rate environment during the quarter. The growth in total assets was funded by increases in borrowed money and

savings deposits. Borrowed money, representing FHLB advances, increased by $37.2 million to $94.2 million at September 30, 1999 from $57.0 million at December 31, 1998. Savings
deposits increased $39.3 million to $308.9 million at September 30, 1999 from $269.6 million at December 31, 1998. Stockholders' equity decreased by
$20.0 million to $68.8 million at September 30, 1999 from $88.8 million at December 31, 1998. The decrease in stockholders' equity was primarily due to the Company's
successful completion of a Modified Dutch Auction Tender, that expired on June 1, 1999, wherein 1,709,544 or 24.0% of the outstanding shares of common stock were purchased at $12.00 per share.
Funds invested in interest bearing deposits were used to fund the repurchase. After this transaction, there were 5,407,390 shares of common stock outstanding. In addition to the auction, dividends
totaling $1.8 million were declared during the first nine months of 1999.

Comparison of Operating Results For the Three Months Ended September 30, 1999 and 1998

General.The Company's net income decreased $100,000, to $969,000 for the three months ended
September 30, 1999, from $1.1 million for the three months ended September 30, 1998.

Interest Income.Interest income increased $860,000, or 11.8%, to $8.1 million for the
three months ended September 30, 1999, compared with the same period in 1998. The increase in interest income was primarily due to an increase in average interest-earning assets, which
increased by $55.5 million, or 14.0%, to $452.5 million for the three months ended September 30, 1999 from $397.0 million for the comparable period in 1998, the
effect of which was partially offset by a decrease in the average yield on interest-earning assets by 14 basis points to 7.18% for the three months ended September 30, 1999 from 7.32%
for the three months ended September 30, 1998.

Mortgage
loan interest income increased by $1.1 million for the three months ended September 30, 1999. The average balance of mortgage loans increased $62.7
million, while the loan yield decreased by 14 basis points from 7.64% to 7.50%. Interest income from investment securities and mortgage backed securities decreased by $207,000 for the
three months ended September 30, 1999, compared with the same period in 1998. This decrease resulted from a combination of a decrease in average balance of $11.0 million and an 11
basis point decline in yield. Interest income on short term deposits decreased by $82,000 as a result of a decrease in yield. The related average balance increased by $500,000 to $19.5 million
for the three months ended September 30, 1999, from $19.0 million for the three months ended September 30, 1998.

Interest Expense.Interest expense increased by $685,000, or 19.3%, to $4.2 million for the
three months ended September 30, 1999 from $3.5 million for the three months ended September 30, 1998. This increase resulted from the combination of an increase in
the average balance of interest-bearing liabilities, partially offset by an overall decrease in the average rate paid on those interest-bearing liabilities. The average balance of interest-bearing
liabilities increased by $80.3 million, or 27.1%, to $376.6 million at September 30, 1999 from $296.3 million at September 30, 1998. This change reflects a $32.7 million
increase in the deposit accounts, with the remaining $47.6 million increase attributable to advances from
the FHLB-Chicago. The average rate paid on combined deposits and borrowed money decreased by 29 basis points to 4.49% for the three months ended September 30, 1999 from 4.78% for the
three months ended September 30, 1998.

Net Interest Income Before Provision for Loan Losses.Net interest income before provision for
loan losses increased $175,000, or 4.7%, to $3.9 million for the three months ended September 30, 1999 from $3.7 million for the comparable period in 1998. This increase
was primarily attributable to an interest rate spread increase of 15 basis points to 2.69% for the three months ended September 30, 1999 from 2.54% for the three months ended
September 30, 1998. The net interest margin as a percent of interest-earning assets decreased by 30 basis points to 3.45% for the three months ended September 30, 1999 from 3.75%
for the comparable period in 1998. This decrease is due to a net decrease in interest-earning assets in excess of

interest-bearing liabilities of $24.8 million, partially offset by the aforementioned increase in interest rate spread.

Provision for Loan Losses.The provision for loan losses decreased by $39,000, to $45,000 for
the three months ended September 30, 1999 from $84,000 in 1998. At September 30, 1999, December 31, 1998 and September 30, 1998, non-performing loans totaled
$1.9 million, $1.0 million and $767,000, respectively. As of October 5, 1999, four loans totaling $531,000 or 28.2% of total non-performing loans as of September 30, 1999,
were brought current, subsequently reducing non-performing loans to $1.4 million. At September 30, 1999, the ratio of the allowance for loan losses to non-performing loans was 78.7%
compared to 136.5% at December 31, 1998 and 167.7% at September 30, 1998. The ratio of the allowance to total loans was 0.40%, 0.44% and 0.43%, at September 30, 1999,
December 31, 1998 and September 30, 1998, respectively. Charge-offs for the three months ended September 30, 1999 amounted to $25,000. There were no charge-offs for the
prior year three month period. 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 $312,000 and $256,000 for the
three months ended September 30, 1999 and 1998, respectively. The increase in noninterest income is primarily attributable to an $56,000 increase in service fees.

Noninterest Expense.Noninterest expense increased $322,000, to $2.7 million for the
three months ended September 30, 1999 from $2.4 million for the comparable period in 1998. Compensation and benefits increased by $197,000, or 16.1%, to $1.4 million for
the three months ended September 30, 1999 compared to $1.2 million for the three months ended September 30, 1998. This increase was primarily due to a combination of
annual salary increases, the addition of staff and the adoption of a stock-based benefit plan on October 27, 1998. All other operating expenses, including advertising, marketing, insurance,
postage, communications, data processing and other office expense increased by a combined $125,000, or 11.0%, to $1.2 million for the three months ended September 30, 1999 from
$1.1 million for the three months ended September 30, 1998. Of this increase, $22,000 is related to data processing costs and $88,000 to media advertising. Management continues to
emphasize the importance of expense management and control in order to continue to provide expanded banking services to a growing market base.

Income Tax Expense.Income tax expense totaled $518,000 for the three months ended
September 30, 1999 compared to $470,000 for the comparable period in 1998. The increase in the provision for income taxes was the result of an increase in the effective income tax rate. The
effective income tax rate increased to 34.8% for the three months ended September 30, 1999 from 30.6% for the three months
ended September 30, 1998. Income before income tax expense remained relatively unchanged, decreasing $53,000 from the three months ended September 30, 1998 to the current three
month period.

Comparison of Operating Results For the Nine Months Ended September 30, 1999 and 1998

General.The Company's net income increased $3.7 million, to $3.1 million for the
nine months ended September 30, 1999, from a $588,000 loss for the nine months ended September 30, 1998. The increase is directly attributable to the establishment and funding of
the Foundation. On April 3, 1998, the Company completed its conversion to the stock form of ownership. As part of the conversion the Company established the Foundation with a one-time
$5.5 million non-recurring pre-tax donation ($3.5 million after tax). The donation was funded with authorized but unissued common stock immediately following the conversion. The
contribution amounted to 8.0% of the common stock sold. The net income of the Company, excluding the one-time, non-recurring contribution to the Foundation, amounted to $2.9 million for the
nine months ended September 30, 1998.

Interest Income.Interest income increased $2.3 million, or 11.1%, to $23.3 million for
the nine months ended September 30, 1999, compared with the same period in 1998. The increase in interest income was

primarily due to an increase in average interest-earning assets, which increased by $49.0 million, or 12.7%, to $434.0 million for the nine months ended September 30, 1999
from $385.0 million for the comparable period in 1998, the effect of which was partially offset by a decrease in the average yield on interest-earning assets by 10 basis points to 7.15% for the
nine months ended September 30, 1999 from 7.25% for the nine months ended September 30, 1998.

Mortgage
loan interest income increased by $2.9 million for the nine months ended September 30, 1999. The average balance of mortgage loans increased $60.0
million, while loan yield decreased by 25 basis points to 7.53% for the nine months ended September 30, 1999 from 7.78% for the nine months ended September 30, 1998. Interest income from
investment securities and mortgage backed securities decreased by $394,000 for the nine months ended September 30, 1999, compared with the same period in 1998. This decrease resulted
from a combination of a decrease in average balance of $4.6 million and a 29 basis point decline in yield. Interest income on short term deposits decreased by $333,000 as a result of decreases
in yield and average balance. The yield on short term deposits decreased by 50 basis points. The related average balance decreased by $9.6 million to $21.0 million for the
nine months ended September 30, 1999, from $30.6 million for the nine months ended September 30, 1998. This decrease is primarily due to a combination of the
reallocation from short-term deposits of the stock subscription proceeds received in March 1998 and the April 1999 Tender Offer.

Interest Expense.Interest expense increased by $1.1 million, or 10.1%, to
$11.5 million for the nine months ended September 30, 1999, from $10.4 million for the nine months ended September 30, 1998. This increase resulted from the
combination of an increase in the average balance of interest-bearing liabilities, partially offset by an overall decrease in the average rate paid on those interest-bearing liabilities. The average
balance of interest-bearing liabilities increased by $51.5 million, or 17.4%, to $347.0 million at September 30, 1999 from $295.5 million at September 30, 1998. This change
reflects an $11.6 million increase in the deposit accounts, with the remaining $39.9 million increase attributable to advances from the FHLB-Chicago. The average rate paid on combined
deposits and borrowed money decreased by 29 basis points to 4.42% for the nine months ended September 30, 1999 from 4.71% for the nine months ended September 30, 1998.

Net Interest Income Before Provision for Loan Losses.Net interest income before provision for
loan losses increased $1.3 million, or 12.1%, to $11.8 million for the nine months ended September 30, 1999 from
$10.5 million for the comparable period in 1998. This increase was primarily attributable to an increase in interest rate spread by 19 basis points to 2.73% for the nine months ended
September 30, 1999 from 2.54% for the nine months ended September 30, 1998. The net interest margin as a percent of interest-earning assets decreased by 2 basis points to 3.62%
for the nine months ended September 30, 1999 from 3.64% for the comparable period in 1998.

Provision for Loan Losses.The provision for loan losses decreased by $59,000, to $135,000 for
the nine months ended September 30, 1999 from $194,000 in 1998. At September 30, 1999, December 31, 1998 and September 30, 1998, non-performing loans totaled
$1.9 million, $1.0 million and $767,000, respectively. As of October 5, 1999, four loans totaling $531,000 or 28.2% of total non-performing loans as of September 30, 1999,
were brought current, subsequently reducing non-performing loans to $1.4 million. At



September 30,
1999, the ratio of the allowance for loan losses to non-performing loans was 78.7% compared to 136.5% at December 31, 1998 and 167.7% at September 30, 1998. The
ratio of the allowance to total loans was 0.40%, 0.44% and 0.43%, at September 30, 1999, December 31, 1998 and September 30, 1998, respectively. Charge-offs totaled $27,000 and
$34,000 for the nine months ended September 30, 1999 and 1998, 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 $829,000 and $628,000 for the nine months
ended September 30, 1999 and 1998, respectively. The increase in noninterest income is primarily attributable to a $212,000 increase in service fees.

Noninterest Expense.Noninterest expense decreased by $4.4 million, to $7.7 million for
the nine months ended September 30, 1999 from $12.1 million for the comparable period in 1998. On April 3, 1998 the Company completed its conversion to the stock form of
ownership. As part of the conversion the Company established the Elgin Financial Foundation with a one-time $5.5 million non-recurring pre-tax donation. This donation was funded with authorized
but unissued common stock immediately following the conversion. This contribution amounted to 8.0% of the common stock sold. Compensation and benefits increased by $697,000, or 20.6%, to
$4.1 million for the nine months ended September 30, 1999 compared to $3.4 million for the nine months ended September 30, 1998. This increase was primarily
due to a combination of annual salary increases, the addition of staff, the adoption of an Employee Stock Ownership Plan which was established in connection with the Conversion and the adoption of a
stock-based benefit plan on October 27, 1998. All other operating expenses, including advertising, marketing, insurance, postage, communications, data processing and other office expense
increased by a combined $399,000, or 12.4%, to $3.6 million for the nine months ended September 30, 1999 compared to $3.2 million for the comparable period in 1998. Of this
increase, $62,000 is due to costs associated with the preparation of the annual report and the annual meeting, and $123,000 of media advertising. Management continues to emphasize the importance of
expense management and control in order to continue to provide expanded banking services to a growing market base.

Income Tax Expense.Income tax expense totaled $1.7 million for the nine months
ended September 30, 1999 compared to a benefit of ($617,000) for the comparable period in 1998. The increase in the provision for income taxes was the result of an increase in income before
income tax expense. Earnings before income tax expense increased by $6.0 million, to $4.8 million for the nine months ended September 30, 1999 from a loss of
$1.2 million for the same period in 1998. This increase is primarily attributable to the one-time non-recurring $5.5 million donation made to establish the Foundation.

Liquidity and Capital Resources

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

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

The
Bank's most liquid assets are cash and interest-bearing demand accounts. The levels of these assets are dependent on the Bank's operating, financing, lending and investing
activities during any given period. At September 30, 1999, cash and interest-bearing demand accounts totaled $20.0 million, or 4.2% of total assets.

See
the "Consolidated Statement 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, 1999 and 1998.

At
September 30, 1999, the Bank exceeded all of its regulatory capital requirements. The following is a summary of the Bank's regulatory capital ratios at September 30,
1999:

|Total Capital to Total Assets         |  | 12.38%
|------------------------------------- |  | ------
|Total Capital to Risk-Weighted Assets |  | 20.00%
|Tier I Leverage Ratio                 |  | 12.24%
|Tier I to Risk-Weighted Assets        |  | 19.51%

At
September 30, 1999, the Company had a Total Capital to Total Assets ratio of 14.40%.

On
September 23, 1999, the Company announced its third quarter dividend of $0.10 per share. The effective date of the dividend was October 4, 1999. Payment of the cash
dividend was made on October 12, 1999.

Year 2000 Compliance

With the new Millennium approaching, organizations are examining their computer systems to ensure they are Year 2000 compliant. The issue, in simple terms, is
that many existing computer programs and firmware use only two digits to identify the year in a date field. The designs of these products were engineered without considering the impact of the upcoming
century change. As the century is implied in the date on January 1, 2000, computers and or systems that are not year 2000 compliant could assume the year is 1900 or generate incorrect data.
Systems that calculate, compare or sort using the incorrect date will cause erroneous results, ranging from system malfunctions to incorrect or incomplete transaction processing. If not remedied,
potential risks include business interruption or shut down, financial loss, reputation loss and legal liability. The Bank primarily utilizes a third party vendor which has completed their process of
modification, upgrade and replacement of its computer software applications and systems to accommodate the "Year 2000" date changes.

The
Bank has undertaken a company-wide initiative to address the year 2000 issue. Using the guidelines set forth in the Federal Financial Institutions Examination Council (FFIEC)
Interagency statements, Year 2000 Project Management Awareness, the Company has developed a comprehensive action plan to prepare, as necessary, computer systems and facilities. As part of the action
plan the Board of Directors approved the formation of a Year 2000 Steering Committee. The Year 2000 Steering Committee consists of representatives of the data processing, lending, savings, operations,
accounting and
compliance areas. The members of this committee have primary responsibility for fulfillment of the Bank's Year 2000 commitment.

The
Bank has completed the assessment stage of the action plan. As part of this stage an inventory of all software and hardware used internally and at the third party service bureau
was performed and documented, including operational hardware categorized as non-IT (information technologies) systems. After inventorying all systems the Bank performed a risk assessment to determine
whether system components were compliant. There were five vendors that were identified as mission critical and letters of Year 2000 readiness were obtained from them. The risk assessment process was
used to generate an Inventory Risk Analysis Matrix (IRAM) of both hardware and software. The IRAM is being used as a guide for the renovation and validation stages of the action plan.

The
Renovation and Validation stages of the Action Plan are 100% complete. A duplicate of the current in-house system was built and is being utilized for testing with our service
provider, BISYS. BISYS is a national financial service bureau identified by Elgin Financial Savings Bank as a mission critical service provider. BISYS has notified the Bank, in writing, that its
remediation efforts are complete. In addition, testing is 100% complete. The Bank has analyzed the testing data and no known Year 2000 issues were found on our renovated systems. In addition, the
Bank's compliance officer is monitoring adherence to the comprehensive action plan. The FDIC also conducts Year 2000 examinations of the Bank.

The
Bank is focusing on developing appropriate policies or risk mitigation actions to address Year 2000 related failures prior to the millennium. The Bank has developed contingency
plans, which have been validated by a third party. The contingency plan has the following phases of operations; Organizational Planning, Business Impact Analysis, Plan Generation, and Validation. In
addition, as part of the contingency plans, the Bank has purchased an interactive trial balance system that allows customer account balances to be accessed quickly.

Relative
to Year 2000 related corporate risks, the Bank's most likely worst case scenario relates to possible excess amount of customer withdrawals resulting from depositor concern
over Year 2000 failures. Accordingly, the Bank has developed a customer awareness program to inform customers of the Bank's efforts to be Year 2000 compliant, and in so doing assure that their funds
are secure. Parts of this program include a mailing to all account holder households, customer seminars, and articles in the Bank's local newspaper.

The
Bank estimates that its external costs related to the Year 2000 will be approximately $80,000, and has incurred and recorded approximately $58,000 in expense through
September 30, 1999. This level of cost is not considered material to the operations of the Company. Internal staff time spent on Year 2000 activities has been extensive, however, such time and
expense has not been quantified.

Recent Accounting Pronouncements

The Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments
and Hedging Activities," in June 1998. SFAS No. 133 standardizes the accounting for derivative instruments, including certain derivative instruments embedded in other contracts. Under the
standard, entities are required to carry all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value
(i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so,
on the reason for holding it. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in
fair values, cash flows, or foreign currencies. If the hedged exposure is a fair value exposure, the gain or loss on the derivative instrument is recognized in earnings in the period of change
together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. If the hedged exposure is a cash flow exposure, the effective portion of the gain or loss on the
derivative instrument is reported initially as a component of other comprehensive income (outside earnings) and subsequently reclassified into earnings when the forecasted transaction affects
earnings. Any amounts excluded from the assessment of hedge effectiveness as well as the ineffective portion of the gain or loss is reported in earnings immediately. SFAS No. 133 is effective for all
quarters of fiscal years beginning after June 15, 1999. Earlier application is encouraged, but is permitted only as of the beginning of any fiscal quarter that begins after the issuance
of the statement. This statement should not be applied retroactively to financial statements of prior periods. During June, 1999, the FASB issued the Statement of Financial Accounting Standards No.
137, "Accounting for Derivative Instruments and Hedging ActivitiesDeferral of the Effective Date of FASB Statement No. 133an amendment of FASB Statement No. 133,"
("SFAS 137") that delays SFAS 133 until fiscal years beginning after June 15, 2000. The Company anticipates that the adoption of SFAS No. 133 will not have a material impact in
the Company's results of operations.

The
FASB has issued SFAS No. 134, "Accounting for Mortgage-Backed Securities after the Securitization of Mortgage Loans Held for Sale by a Mortgage Banking Enterprise: an amendment of
FASB Statement No. 65," which was effective as of the first fiscal quarter beginning after December 31, 1998. This statement requires that after the securitization of a mortgage loan held for
sale, an entity engaged in mortgage banking activities classify the resulting mortgage-backed securities or other retained interests based on its ability and intent to sell or hold those investments.
This statement conforms the subsequent accounting for securities retained after the securitization of mortgage loans by a mortgage banking entity with the required accounting for securities retained
after the securitization of other types of assets by a nonmortgage banking enterprise. The Company, as required, adopted SFAS No. 134 in the first quarter 1999, which did not have a material impact on
the Company's results of operations.



## 

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, 1999.

(In thousands)

|       |  |   |        |  |   |         |   | NPV as % of Portfolio Value of Assets |   
|------ |  | - | ------ |  | - | ------- | - | ------------------------------------- | --
|
|
|
|       |  |   |        |  |   |         |   |                                       |   
|+300   |  | $ | 42,857 |  | $ | (22,773 | ) | (34.70                                | )%
|+200   |  |   | 49,686 |  |   | (15,944 | ) | (24.29                                | ) 
|+100   |  |   | 57,526 |  |   | (8,104  | ) | (12.35                                | ) 
|Static |  |   | 65,630 |  |   |        |   |                                      |   
|-100   |  |   | 70,311 |  |   | 4,681   |   | 7.13                                  |   
|-200   |  |   | 74,628 |  |   | 8,998   |   | 13.71                                 |   
|-300   |  |   | 75,012 |  |   | 9,382   |   | 14.30                                 |   

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 will differ from actual results.



## 

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings.

None.

Item 2.  Changes in Securities and Use of Proceeds.

None.

Item 3.  Defaults Upon Senior Securities.

None.

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

None.

Item 5.  Other Information.

None.

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

| |  | (a) |  | Exhibits                  |  |                                                    
| |  | --- |  | ------------------------- |  | ---------------------------------------------------
| |  |     |  | 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    
| |  |     |  | 27.0                      |  | Financial Data Schedule                            
| |  | (b) |  | Reports on Form 8-K
None.
| |  |     |  |                           |  |                                                    

---

*  Incorporated
herein by reference from the Exhibits filed with the Registration Statement on Form S-1 and any amendments thereto. Registration Statement No. 333-38637 filed
with the Securities and Exchange Commission on October 24, 1997.



## 

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 12, 1999 |  | By:              
|Dated: November 12, 1999 |  | By:              



## QuickLinks





INDEX





EFC BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (unaudited) For the nine months ended September 30, 1999 and 1998









(In thousands)

PART II. OTHER INFORMATION



SIGNATURES