CHICAGO, May 30 /PRNewswire/ -- Avondale Financial Corp. (Nasdaq: AVND),
the holding company for Avondale Federal Savings Bank, today announced the
completion of a $80.3 million asset securitization backed by home equity
lines-of-credit originated by the Bank.
    The certificates were issued by Avondale Home Equity Loan Trust 1997-1, a
trust formed specifically for purposes of the securitization structure.  The
certificates have been rated Aaa by Moody's Investors Services and AAA by
Standard & Poor's and include an irrevocable surety bond guarantee issued by
Capital Markets Assurance Corporation ("CapMAC").  Lehman Brothers Inc. acted
as the sole placement agent for this private placement offering.  The
certificates are backed by a pool of home equity lines-of-credit, which will
continue to be serviced by Avondale.
    Robert Engelman, President and Chief Executive Officer of the Company
said, "This securitization, the Bank's second in the past six months,
represents the final step in the process of expeditiously linking consumers'
needs for cash with the capital market through the Bank's proprietary system -
the Avondale Money Machine.  We are most pleased with the growth of this
activity and expect to complete at least one other transaction of this kind
during 1997."
    The Company operates as a financial services company originating consumer
loans, primarily home equity lines of credit through a wholesale network in
32 states, as well as traditional banking services through its five offices in
the Chicago metropolitan area.  At March 31, 1997, the Company had
$635 million in assets and stockholders' equity of $52.5 million.

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