Alliance Bancorp Reports Successful Auction of Advances.Business Editors HINSDALE, Ill.--(BUSINESS WIRE)--Feb. 28, 2000 Alliance Bancorp (Nasdaq: ABCL ABCL American Birth Control League ABCL As Built Configuration List ABCL Amitabh Bachhan Corporation Limited ), 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 FHLB Federal Home Loan Bank ") 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 The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of Debt, Net of Tax" of $4.7 million. In related transactions, the Bank also sold $99 million of Investment and Mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. , 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 (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 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 cents 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , as the term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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. The Company's common stock trades on the Nasdaq National Market tier of the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol: ABCL. |
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