HINSDALE, Ill., Oct. 17 /PRNewswire/ -- Alliance Bancorp (Nasdaq: ABCL),
the holding company for Liberty Federal Bank, today reported net income for
the third quarter ended September 30, 1997, of $3,340,000, or $0.39 per fully
diluted share.  Year-to-date earnings were $7,405,000, representing $0.92 per
fully diluted share for the nine months ended September 30, 1997.  Earnings
per share for both the current and prior periods have been adjusted to reflect
the effect of the Company's three-for-two common stock split in the form of a
stock dividend paid September 26, 1997, to shareholders of record as of
September 12, 1997.
    Alliance Bancorp completed its merger of equals transaction with Liberty
Bancorp Inc. on February 10, 1997.  Net income for prior periods, and for the
current year-to-date, does not include earnings from Liberty Bancorp Inc.
prior to the date of the merger.  Comparisons to previously reported periods,
as a result of the merger, are not meaningful as the transaction was accounted
for using the purchase method of accounting.
    Net interest income for the quarter was $10,993,000.  The current
quarter's interest rate spread was 2.94 percent and the interest rate margin
was 3.27 percent.  During the current quarter the bank received $1.7 million
of additional interest income on two loans that were settled and paid off.
Year-to-date net interest income, including the additional interest, was $27.4
million, with an interest rate spread of 2.59 percent and an interest rate
margin of 2.97 percent.
    The current quarter's noninterest income was $4,507,000.  Year-to-date
noninterest income of $11.4 million included a first-quarter pretax loss of
$391,000 from a sale of $59 million of loans.  Fees and commissions are
primarily derived from the bank's mortgage banking subsidiary, Preferred
Mortgage Associates Ltd., brokerage commissions on security transactions for
customers of Liberty Financial Services Inc., the bank's investment and
insurance subsidiary, transaction fees from the bank's shared ATM network,
fees for loans serviced, and fees from deposit accounts.
    In the prior year's quarter ended September 30, 1996, the Federal Deposit
Insurance Corporation charged a special assessment upon all thrifts having
deposits insured by the Savings Association Insurance Fund.  The pre-merger
bank, Hinsdale Federal Bank, paid a special insurance assessment of $2.8
million, contributing to the net loss of $281,000 for that quarter.  After the
thrifts replenished the insurance fund, the FDIC reduced the insurance
premiums.  The bank now pays considerably less for deposit insurance on more
than twice the balance in deposit accounts; the doubling of the balance in
deposit accounts from last year was a result of the merger.
    General and administrative expenses were $10,047,000 for the current
quarter.  The Company recorded $806,000 in pretax non-recurring expense that
included employment expense, retirement costs and additional costs pertaining
to the merger.  Year-to-date general and administrative expenses were $26.7
million, and included $1,359,000 in pretax non-recurring expenses included in
the first and third quarters.
    At September 30, 1997, non-performing loans were $2.3 million, or 0.23
percent of total loans.  The allowance for loan losses of $5.4 million
represented 241 percent of the balance of non-performing loans.  Non-
performing assets were $2.9 million, or 0.21 percent of total assets.
    At September 30, 1997, the bank's tangible capital ratio was 8.13 percent,
the leverage capital ratio was 8.24 percent and the risk-based capital ratio
was 15.93 percent.  These ratios substantially exceed all current and fully
phased-in regulatory capital requirements.
    Alliance Bancorp's total assets were $1.4 billion at September 30, 1997
and total deposits were $998 million.  Stockholders' equity was $129 million,
resulting in a book value of $16.10 per share.
    On August 22, 1997, the Company announced a $0.11 per share cash dividend
to holders of record on September 30, 1997, payable on October 20, 1997.
    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.  Liberty Financial Services Inc., a
subsidiary of Liberty Federal Bank, provides full-service insurance services
as a licensed insurance agency, and investment transactions for customers
through INVEST Financial Corporation with 11 licensed brokers operating in all
14 offices of the bank.  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 bank has entered into a lease to operate a new banking office,
expected to open in mid-1998, in southwest Naperville, Illinois, on the
northeast corner of route 59 and 95th street.
    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

                                                   September 30,  December 31,
    (In thousands, except per share data)               1997         1996
                                                          (unaudited)
    ASSETS
    Cash and due from banks                           $11,202       7,645
    Interest-bearing deposits                          25,432      19,596
    Investment securities available for sale,
      at fair value                                    92,176       1,998
    Mortgage-backed securities available for sale,
      at fair value                                   196,888       5,140
    Loans, net of allowance for losses of $5,435 at
      September 30, 1997 and $2,272
      at December 31, 1996                            996,854     609,371
    Accrued interest receivable                         9,880       3,522
    Real estate                                         2,669       1,586
    Premises and equipment, net                         7,354       6,592
    Stock in Federal Home Loan Bank
      of Chicago, at cost                              12,855       7,445
    Other assets                                       15,874       5,069
      Total                                        $1,371,184     667,964

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Liabilities:
    Deposits                                         $998,051     462,869
    Borrowed funds                                    222,725     131,900
    Collateralized mortgage obligations                 1,392       2,243
    Advances by borrowers for taxes and insurance       4,043       7,919
    Accrued expenses and other liabilities             15,883       6,407
      Total liabilities                             1,242,094     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;
      8,174,435 shares issued and
      8,020,348 outstanding at September 30, 1997
      4,185,128 shares issued and 4,042,628
      outstanding at December 31, 1996                     82          27
    Additional paid-in capital                         86,519      21,066
    Retained earnings, substantially restricted        42,206      37,117
    Treasury stock, at cost;
      154,087 shares at September 30, 1997
      and 142,500 shares at December 31, 1996          (1,502)     (1,284)
    Common stock purchased by:
      Employee Stock Ownership Plan                        --        (428)
    Unrealized gain on securities available
      for sale, net of tax                              1,785         128
    Total stockholders' equity                        129,090      56,626
    Commitments and contingencies
      Total                                        $1,371,184     667,964

    All share amounts reflect the 50% stock dividend declared on August 22,
 1997.

                      ALLIANCE BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME

                                  Three Months Ended  Nine Months Ended
                                    September 30,       September 30,
    (In thousands, except per
      share amounts)                 1997    1996      1997     1996
                                                 (unaudited)
    INTEREST INCOME:
    Loans                          $20,663  10,649    55,913   32,240
    Mortgage-backed securities       3,401     131     8,030      442
    Interest-bearing deposits          336     191       777      767
    Investment securities            2,107     149     3,925      469
    Commercial paper                    --      --        37       --
    Federal funds sold                  --      --        15       --
      Total interest income         26,507  11,120    68,697   33,918
    INTEREST EXPENSE:
    Deposits                        12,044   4,875    32,631   14,710
    Borrowed funds                   3,427   1,929     8,509    6,242
    Collateralized mortgage
      obligations                       43      81       154      301
        Total interest expense      15,514   6,885    41,294   21,253
        Net interest income         10,993   4,235    27,403   12,665
        Provision for loan losses       --      --        --       --
        Net interest income after
          provision for
          loan losses               10,993   4,235    27,403   12,665
    NONINTEREST INCOME:
    Gain (loss) on sales of loans
      and mortgage-backed
      securities                        76     152      (238)     354
    Gain on sales of other assets       --      61        --       61
    Income (loss) from real
      estate operations                (97)     52       (38)     226
    Servicing fee income               113     116       327      344
    Fees and commissions             4,389   2,993    11,284    8,800
    Other                               26       4        79      184
        Total noninterest income     4,507   3,378    11,414    9,969
    NONINTEREST EXPENSE:
    Compensation and benefits        5,700   3,314    14,995    9,934
    Occupancy expense                1,142     796     3,246    2,282
    Federal deposit insurance
      premiums                         159     277       447      803
    Federal deposit insurance
      special assessment                --   2,829        --    2,829
    Computer services                  305     135     1,006      397
    Other                            2,741   1,398     7,044    4,155
        Total noninterest expense   10,047   8,749    26,738   20,400
        Income (loss) before
           income taxes              5,453  (1,136)   12,079    2,234
    Income tax expense (benefit)     2,113    (855)    4,674      182
        Net income (loss)          $ 3,340    (281)    7,405    2,052
    Primary earnings (loss)
      per share                      $0.39   (0.07)     0.93     0.49
    Fully diluted earnings
      (loss) per share               $0.39   (0.07)     0.92     0.49

    All share amounts reflect the 50% stock dividend declared on August 22,
1997.

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