SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 28, 2000
Alliance Bancorp
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(Exact Name of Registrant as Specified in Charter)
Delaware 0-20082 33-3811768
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(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
One Grant Square, Hinsdale, Illinois 60521
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (630) 323-1776
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
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On February 28, 2000, Alliance Bancorp (the "Registrant") announced the
successful completion of an auction of $100,000,000 of Federal Home Loan Bank
("FHLB") advances. The advances were sold to other member banks of the FHLB of
Chicago. Liberty Federal Bank, the Registrant's wholly owned subsidiary, will
record a pre-tax gain of $7.2 million on the sale of the advances. This will be
reported as an "Extraordinary Item-Gain on Early Extinguishment of Debt, Net of
Tax" of $4.7 million. For further information, see the Registrant's press
release dated February 28, 2000, which is included as Exhibit 99.1 to this
report.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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The following Exhibits are filed as part of this report:
Exhibit 99.1 Press Release of Alliance Bancorp dated February 28, 2000.
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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.
ALLIANCE BANCORP
By: /s/Richard A. Hojnicki
DATE: March 3, 2000 --------------------------------
Richard A. Hojnicki
Executive Vice President and Chief
Financial Officer
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EXHIBIT INDEX
The following Exhibits are filed as part of this report:
Exhibit 99.1 Press Release of Alliance Bancorp.
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EXHIBIT 99.1
PRESS RELEASE OF ALLIANCE BANCORP
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For: Alliance Bancorp Contact: Richard A. Hojnicki
One Grant Square Executive Vice President
Hinsdale, Illinois 60521 and Chief Financial Officer
NASDAQ/NMS-ABCL (630) 323-1776
ALLIANCE BANCORP REPORTS SUCCESSFUL AUCTION OF ADVANCES
Hinsdale, Illinois, February 28, 2000 -- Alliance Bancorp (Nasdaq: ABCL), the
holding company for Liberty Federal Bank ("the Bank"), today reported the
successful completion of an auction of $100,000,000 of Federal Home Loan Bank
("FHLB") Advances. The advances were sold to other member banks of the Chicago
FHLB. Liberty Federal Bank will record a pre-tax gain of $7.2 million on the
sale of the advances. This will be reported as an "Extraordinary Item-Gain on
Early Extinguishment of Debt, Net of Tax "of $4.7 million. In related
transactions, the Bank also sold $99 million of Investment and Mortgage-backed
securities, recognizing a loss of $5.5 million. The net of these transactions
after costs is a pre-tax gain of $1.4 million, which will be reported for the
quarter ended March 31, 2000.
"This de-leveraging transaction of approximately 5% of the Bank's assets and
liabilities brings a number of benefits to the Company - the most important
being the potential for enhanced longer term earnings through re-leveraging",
stated Kenne P. Bristol, President and CEO of Alliance Bancorp and Liberty
Federal Bank. "At current market prices, the Bank was able to recognize a net
transaction gain equal to three years' worth of net interest income this
leveraged position provided. Since the Bank is currently originating a
significant amount of commercial and multi-family real estate loans, we intend
to prudently re-leverage with loan products at increased spreads. The current
accounting treatment of "securities available for sale" only reflects market
changes in the value of assets, and not the offsetting market value effect on
liabilities. Therefore, with this transaction we have also been able to increase
equity", added Mr. Bristol.
The overall effect of this de-leveraging will increase the Net Income of
Alliance Bancorp by approximately $868,000, or 8(cent) per diluted share, for
the quarter ended March 31, 2000. The Bank was assisted in this transaction by
the investment banking firm of Keefe, Bruyette & Woods, Inc.
Statements contained in this news release which are not historical facts are
forward-looking statements, as the term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties which could cause actual results to differ materially
from those currently anticipated, due to a number of factors, which include, but
are not limited to, factors discussed in documents filed by the Company with the
Securities and Exchange Commission from time to time.
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The Company's common stock trades on the Nasdaq National Market tier of the
Nasdaq Stock Market under the symbol: ABCL.
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