CHICAGO, Oct. 13 /PRNewswire/ -- Avondale Financial Corp. (Nasdaq: AVND),
the holding company for Avondale Federal Savings Bank announced today that it
expects to report a loss for the third quarter of 1997, the result of an
additional provision for loan losses of approximately $16.5 million (or
approximately $3.07/share after tax), in connection with its disposition of
the bulk of the Bank's private label credit card portfolio.
    As previously announced, the Company decided to exit the private label
credit card business and put the portfolio up for sale.  The additional third
quarter loss provisions resulted from lower-than-expected bids received on the
private label credit card portfolio offered for sale by the Bank.
    Other than this loan portfolio, all other aspects of the Bank's loan
programs are performing substantially in line with expectations.
    Robert S. Engelman, Jr., President and Chief Executive Officer said, "We
are obviously disappointed with the level of the additional reserves.  In view
of our previously announced decision to terminate the credit card program that
produced significant loan losses, we feel selling the portfolio at this time,
exiting the business and putting this situation behind us is in the best
interest of our stockholders."
    Even after this provision, Avondale will continue to be a well-capitalized
institution with approximately 7.5% core capital.
    Avondale expects to release its third quarter financial results on or
about October 22, 1997.
    Avondale Financial Corp. is the holding company for Avondale Federal
Savings Bank.  The Bank operates five offices in the Chicago area.  Avondale
Financial Corp.'s shares trade on Nasdaq under the symbol AVND.

Link to this page: