HINSDALE, Ill., April 21 /PRNewswire/ -- Alliance Bancorp (Nasdaq: ABCL),
the holding company for Liberty Federal Bank, today reported net income for
the quarter ended March 31, 1997, of $1,429,000, or $0.32 per fully diluted
share.  As previously announced, Alliance Bancorp changed its fiscal year end
from September to December, therefore, the current quarter represents the
first quarter of the fiscal year ending December 31, 1997.

    Adjustments for Merger
    Alliance, formerly Hinsdale Financial Corp., completed its merger of
equals transaction with Liberty Bancorp Inc. on February 10, 1997, when
Alliance exchanged 2,620,270 shares of common stock for all 2,488,675
outstanding common shares of Liberty Bancorp.  The merger of Liberty Bancorp
with and into Alliance was recorded as a purchase accounting transaction, in
which all of Liberty Bancorp's assets and liabilities were recorded at fair
value at the closing date.  The fair value of net assets acquired approximated
the purchase price; accordingly, no goodwill was recorded.  The current
quarter does not include earnings from Liberty Bancorp prior to the date of
the merger.  Due to the merger and change in the fiscal year end, comparisons
to previously reported quarterly periods are not meaningful.
    Net income for the quarter was reduced by non-recurring merger-related
expenses of $343,000, net of tax, including severance incurred by Hinsdale
Federal in a staff restructuring program completed with the merger.  The cost
of severance payable to employees of Liberty Federal Savings Bank related to
the merger was accrued by that company prior to the merger.  Management
anticipates an annual cost reduction of approximately $2.5 million from the
elimination of redundant staff positions and the elimination of certain
benefit plans as outlined in the Agreement and Plan of Merger.  These cost
reductions will start to be fully realized in the third quarter of 1997.

    Bank Operating Results
    Net interest income for the quarter was $7.5 million.  The current
quarter's interest rate spread was 2.49 percent and the interest rate margin
was 2.87 percent.
    The current quarter's noninterest income of $2,697,000 included a pretax
loss of $391,000 from the sale of $59 million of adjustable rate mortgage
loans. The loan sale loss and subsequent reinvestment was part of a
restructuring of the loan portfolio to improve the yield to the bank.  Fees
and commissions are primarily derived from the bank's mortgage banking
subsidiary, Preferred Mortgage Associates Ltd., brokerage commissions on
security transactions for customers through INVEST Financial Corporation and
transaction fees from the shared ATM network.
    General and administrative expenses of $7,889,000 for the quarter included
$553,000 on a pretax basis in non-recurring merger related expenses.
    At March 31, 1997, non-performing loans were $1.8 million, or 0.16 percent
of total loans.  The allowance for loan losses of $5.5 million represents 311
percent of total of non-performing loans.  Non-performing assets were $2.3
million, or 0.18 percent of total assets.
    The bank's tangible capital ratio was 8.17 percent, the leverage capital
ratio was 8.28 percent and the risk-based capital ratio was 15.15 percent.
These ratios substantially exceed all current and fully phased-in regulatory
capital requirements.
    Kenne P. Bristol, president and CEO of Alliance Bancorp and Liberty
Federal Bank, stated that the company's business plan includes an emphasis on,
"Originating equity loans, multi-family loans and commercial real estate loans
funded by deposits and FHLB borrowings; fee income, primarily from origination
fees collected by Preferred Mortgage Associates, commissions for securities
brokerage and financial planning services offered through INVEST Financial
Corporation, and service charges from the bank's shared ATM system; and a
managed capital leveraging strategy to incrementally add to income whereby
mortgage-backed and agency securities will be purchased and funded with a
liability mix of LIBOR-based funding, FHLB daily funding, longer-term reverse
repos, and FHLB term advances.
    "Full integration of the bank onto a single data processing system will be
completed in June 1997, offering integrated customer service from all office
locations, resulting in further operating efficiencies," Bristol added.
"Additionally, the bank entered into a lease to construct and operate a new
office in Naperville, Ill., at the northeast corner of Route 59 and 95th
Street."

    Holding Company's Assets Top $1.3 Billion
    Alliance Bancorp's total assets were $1.3 billion at March 31, 1997, and
total deposits were over $1 billion.  Stockholders' equity was $122 million,
resulting in a book value of $22.93 per share.
    On February 28, 1997, the company announced its intention to repurchase up
to 10 percent of outstanding shares of its common stock from time to time in
open market transactions.  At this time, no buyback transactions have been
completed.
    On March 21, 1997, the company announced a $0.10 per share cash dividend
to holders of record on March 31, 1997, payable on April 18, 1997.  Prior to
the merger, Liberty Bancorp paid a $0.06 per share dividend on February 9,
1997. This is consistent with Alliance's previously announced intention to pay
a cash dividend at an annual rate of $0.65 per share.

    Edward J. Nusrala Appointed Director
    Mr. Fredric G. Novy, chairman of the board of Alliance Bancorp and Liberty
Federal Bank, today announced that Mr. Edward J. Nusrala was appointed to the
board of directors of the company and the bank for a two-year term.  The board
had been searching for a replacement since the death of a former Hinsdale
Financial director.  The appointment was made at the April 17, 1997 board
meeting.
    "The addition of Mr. Nusrala to the board will provide entrepreneurial and
retail marketing talent to the bank," said Novy.
    Nusrala is the founder, president and owner of Famous Brand Shoes, Inc. of
St. Louis, Mo.  Famous Brand Shoes has 37 stores located in the states of
Missouri, Texas, Arizona, Ohio and Alabama.  Nusrala also serves as a director
of Commerce Bank of St. Louis.  He is a graduate of Holy Cross College,
Worcester, Mass., and attended Washington University's MBA program.
    Alliance Bancorp is the parent company of Liberty Federal Bank which was
recently formed through the merger of Hinsdale Federal Bank and Liberty
Federal Savings Bank.  Liberty Federal Bank is a community-oriented financial
services company operating 14 retail banking offices in Chicago, north and
western Cook County and DuPage County.  Preferred Mortgage Associates Ltd., a
subsidiary of Liberty Federal Bank, is one of the largest mortgage brokers in
the Chicago metropolitan area.  Preferred has four mortgage origination
offices including its headquarters in Downers Grove, Ill.
    The company's common stock trades on the Nasdaq National Market tier of
the Nasdaq Stock Market under the symbol:  ABCL.

                      ALLIANCE BANCORP AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                                                         March 31,    Dec. 31,
    (In thousands, except per share data)                  1997        1996
                                                              (unaudited)
    ASSETS
    Cash and due from banks                               $14,242      7,645
    Interest-bearing deposits                              12,485     19,596
    Commercial paper                                        1,700         --
    Investment securities available for sale,
      at fair value                                        24,017      1,998
    Mortgage-backed securities available for sale,
      at fair value                                       126,686      5,140
    Loans, net of allowance for losses of $5,478 at
      March 31, 1997 and $2,272 at December 31, 1996    1,088,476    609,371
    Accrued interest receivable                             7,320      3,522
    Real estate                                             2,217      1,586
    Premises and equipment, net                             6,862      6,592
    Stock in Federal Home Loan Bank of Chicago, at cost    12,855      7,445
    Other assets                                           16,281      5,069
      Total                                            $1,313,141    667,964

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Liabilities:
       Deposits                                        $1,004,517    462,869
       Borrowed funds                                     158,750    131,900
       Collateralized mortgage obligations                  1,990      2,243
       Advances by borrowers for taxes and insurance       12,098      7,919
       Accrued expenses and other liabilities              13,473      6,407
         Total liabilities                              1,190,828    611,338
    Stockholders' Equity:
       Preferred stock, $.01 par value;
         authorized 1,500,000 shares; none outstanding         --         --
       Common stock, $.01 par value;
         authorized 11,000,000 shares; 5,431,455 shares issued
         and 5,333,830 outstanding at March 31, 1997;
         2,790,085 shares issued and 2,695, 085 outstanding
         at December 31, 1996                                  54         27
       Additional paid-in capital                          86,339     21,066
       Retained earnings, substantially restricted         38,012     37,117
       Treasury stock, at cost 97,625 shares
         at March 31, 1997 and 95,000 shares
         at December 31, 1996                              (1,359)    (1,284)
       Common stock purchased by:
         Employee Stock Ownership Plan                         --       (428)
       Unrealized gain (loss) on securities available
         for sale, net of tax                                (733)       128
    Total stockholders' equity                            122,313     56,626
    Commitments and contingencies                              --         --
      Total                                            $1,313,141    667,964

                      ALLIANCE BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME

                                                     Three Months Ended
                                                           March 31,
    (In thousands, except per share amounts)           1997      1996
                                                        (unaudited)
    INTEREST INCOME:
    Loans                                            $16,708    10,922
    Mortgage-backed securities                         1,497       153
    Interest-bearing deposits                            137       248
    Investment securities                                473       173
    Commercial paper                                      31        --
    Federal funds sold                                    15        --
        Total interest income                         18,861    11,496
    INTEREST EXPENSE:
    Deposits                                           8,933     4,933
    Borrowed funds                                     2,348     2,262
    Collateralized mortgage obligations                   60       117
        Total interest expense                        11,341     7,312
        Net interest income                            7,520     4,184
        Provision for loan losses                         --        --
        Net interest income after provision
          for loan losses                              7,520     4,184
    NONINTEREST INCOME:
    Gain (loss) on sales of loans and
      mortgage-backed securities                        (396)      210
    Income from real estate operations                    59        97
    Servicing fee income                                 105       114
    Fees and commissions                               2,910     2,985
    Other                                                 19       165
        Total noninterest income                       2,697     3,571
    NONINTEREST EXPENSE:
    Compensation and benefits                          4,382     3,334
    Occupancy expense                                  1,045       744
    Federal deposit insurance premiums                   128       258
    Computer services                                    363       133
    Other                                              1,971     1,323
        Total noninterest expense                      7,889     5,792
        Income before income taxes                     2,328     1,963
    Income tax expense                                   899       762
        Net income                                    $1,429     1,201
    Primary earnings per share                         $0.32      0.43
    Fully diluted earnings per share                   $0.32      0.43

                      ALLIANCE BANCORP AND SUBSIDIARIES
                   SELECTED FINANCIAL RATIOS AND OTHER DATA

                                                   At Or For The Three Months
                                                        Ended March 31,
    (Dollars in thousands, except per share data)     1997         1996
                                                         (unaudited)
    Average assets                                 $1,093,975    $679,989
    Return on average assets                             0.52%       0.71%
    Return on average equity                             5.74        8.99
    Average stockholders' equity to average assets       9.11        7.86
    Stockholders' equity to total assets                 9.31        7.97
    Tangible capital to total assets (Bank only)         8.17        7.24
    Leverage capital to total assets (Bank only)         8.28        7.47
    Risk-based capital ratio (Bank only)                15.15       13.57
    Interest rate spread during the period               2.49        2.16
    Net yield on average interest-earning assets         2.87        2.54
    General and administrative expenses
      to average assets                                  2.88        3.41
    Non-performing loans to total loans                  0.16        0.13
    Non-performing assets to total assets                0.18        0.13
    Average interest-earning assets to
      average interest-bearing liabilities               1.08x       1.09x
    Book value per share                               $22.93      $20.20
    Weighted average shares outstanding
         Primary                                    4,477,441   2,793,201
         Fully diluted                              4,482,524   2,793,201
    Earnings per share
         Primary                                        $0.32       $0.43
         Fully diluted                                  $0.32       $0.43

    Ratios were calculated on an annualized basis, as applicable.

Link to this page: