<PAGE>   1
                                                                    Page 1 of 17

                                                                Exhibit Index on
                                                                   Page 12 of 17


               UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C.
                                    20549

                                  FORM 10-K

                Annual Report Pursuant to Section 13 or 15(d)
                    of the Securities Exchange Act of 1934



For the fiscal year ended May 31, 1997             Commission File Number 0-9086


                         BANKERS BUILDING LAND TRUST
            ------------------------------------------------------
            (Exact name of Registrant as specified in its charter)


          Illinois                                             36-6067489    
-------------------------------                           -------------------
(State or other jurisdiction of                            (I.R.S. Employer  
incorporation or organization)                            Identification No.)


     AMCORE Bank N.A., Rockford
         501 Seventh Street
     Rockford, Illinois, Trustee                                    61104   
----------------------------------------                          ----------
(Address of principal executive offices)                          (Zip Code)


Registrant's telephone number, including area code:             815-968-2241
                                                                ------------



         Securities registered pursuant to Section 12(g) of the Act:

       5,000 Units representing beneficial interest in the Registrant.


Indicate by check mark if disclosure of delinquent files pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.

Yes   X    No
     ---      ---

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes   X    No
     ---      ---

                                      1
<PAGE>   2
                                                                    Page 2 of 17






                                    PART I



Item 1.   Business


Registrant, Bankers Building Land Trust (the "Trust") is a trust organized
under the laws of the State of Illinois, which is engaged in the single
business activity of holding title to certain land at the southwest corner of
Clark and West Adams Streets in Chicago, Illinois, collecting rent under the
lease described below and disbursing the net proceeds.  The Trust was formed
under a Trust Agreement and Declaration of Trust (the "Trust Agreement") dated
June 1, 1926 with the National Bank of the Republic of Chicago, as Trustee, and
will terminate upon the occurrence of certain conditions set forth in the Trust
Agreement.  In 1933, Illinois National Bank and Trust Company (the "Bank"), 501
Seventh Street,  P.O. Box 1537, Rockford, Illinois 61110-0037 (AMCORE Bank
N.A., Rockford after 1985) became Trustee of the Trust (the "Trustee") as a
result of the resignation of the original Trustee.  AMCORE Bank N.A., Rockford
utilizes AMCORE Investment Group, N.A., formerly AMCORE Trust Company, ("Trust
Company") to perform its duties as Trustee.  The Trust has no employees but the
Trust Company currently employs 125 persons.

The sole assets of the Trust (the "Trust Estate") are the above-mentioned land
and cash.  The Bankers Building, a 41 story office building which was completed
in 1927, is situated on the land owned by the Trust.  The land is subject to a
99 year lease commencing on June 1, 1926 and expiring on May 31, 2025 (the
"Lease").

The annual rental for the leased property is $275,000 payable in equal
quarterly  installments to the Trustee on the first day of March, June,
September and December of each year, plus fees and expenses of the Trustee.
The current Lessee is LaSalle National Bank as Trustee of Trust Number 49371
dated August 25, 1975  (the "Lessee").

Due to bankruptcy, the former lessee of the land has transferred ownership of
the building located on the land in satisfaction of the lessee's mortgage.  The
new owner of the building assumed the lease of the land owned by the Trust.  In
addition, the Trust entered into an agreement with the new owner to sell the
land and the building as one entity.

Beneficial interest in the Trust is divided into 5,000 equal units (the
"Units")  which are represented by Bankers Building Land Trust Certificates
(the "Certificates").  Each owner of a Certificate (the "Certificate Holder")
is distributed quarterly a pro rata portion of the rentals, which the Trustee
understands have equaled $55 per unit per year since the inception of the
Trust, except as described in Item 11.  However, this amount may be reduced by
expenses of the Trustee which are not reimbursed by the Lessee.




                                      2
<PAGE>   3

                                                                    Page 3 of 17





Item 2.   Properties



The sole asset of the Trust (other than cash) is property consisting of a fee
interest, subject to a 99 year lease entered into on June 1, 1926 and expiring
on May 31, 2025, in the land under the Bankers Building at 105 West Adams
Street,  Chicago, Illinois.  The land has an area of approximately 22,300
square feet and is located at the southwest corner of Clark and West Adams
Streets in the central business district of the City of Chicago in an area
known as the Loop.  The land is improved with a 420,000 square foot 41 story
brick and steel frame commercial office building built in 1926-27 as a
condition of the Lease.

The Lease was recorded in the Cook County deed records on July 12, 1926 with
the  original Lessee, Adams Clark Building Corporation, assuming the obligation
to wreck the existing buildings on the premises and construct a new office
building at a cost of not less than $4,650,000.  The original lessors were
Ernest M. Jackson and Carrie M. Jackson, who after assigning their interest to
the Trust on July 10, 1926, shortly thereafter sold the Certificates for an
amount which the Trustee understands to have been approximately $1,000 per
Unit.  The current Lessee of the trust property is LaSalle National Bank, as
Trustee of Trust Number 49371 dated August 25, 1925, which obtained the
leasehold interest by an Assignment dated August 25, 1975.  The Lease provided
for an option to purchase the property for $5,500,000 but the option expired on
June 1, 1976 unexercised.  There are no further options outstanding.

Rents of $275,000 per year with no provision for increase (except that interest
of 7% per annum is assessed for late payments) are payable under the Lease
quarterly in advance on the first day of March, June, September and December.
The Lease requires the Lessee to pay all taxes, assessments and other fees and
expenses, incurred in connection with the land or building including reasonable
compensation and expenses of the Trustee that would act to diminish the annual
net income distribution of $275,000 to the Certificate Holders.  In addition,
the Lease provides for a trustee of insurance who is responsible for collecting
premiums from the Lessee and purchasing insurance for the Bankers Building.

At the termination of the Lease either by default or expiration, the Trust will
become the owner of the building and the property will no longer be subject to
any lease.  It is unclear what value, if any, the building might have in the
year 2025 when the Lease expires.  It is possible that the building may become
unsuitable for rental purposes prior to the expiration of the Lease.  As the
Bankers Building gets older and requires more maintenance or remodeling in
order to be suitable for tenant occupancy, the Lessee or any successor may be
unwilling to make the financial outlays necessary to attract tenants in view of
the reversion of the building to the Trust in the year 2025.  Accordingly, the
Trust may find it necessary to sell the property to the Lessee, or to someone
who can combine the Trust's interest in the property and the Lessee's interest
in the building into an economically feasible unit.  If such a sale occurs
prior to the expiration of the Lease, there will be a distribution of the sale
proceeds to the Certificate Holders and a termination of the Trust.




                                      3
<PAGE>   4

                                                                    Page 4 of 17






Item 3.   Legal Proceedings



There are no material pending legal proceedings to which the Trustee is a party
or of which the property in the Trust is the subject.






Item 4.   Submission of Matters to a Vote of Security Holders


No matter was submitted during the fourth quarter of the 1997 fiscal year to a
vote of Security Holders.








                                    PART II



Item 5.   Market for the Registrant's Common Stock and Related Security Holder
          Matters


The Trustee understands that there is no regular market for the Certificates
but that certain brokers have from time to time handled occasional transactions
in the Certificates.  The price for the Units in transactions in which the
Trustee was aware of the sales price was approximately $870 to $880 in fiscal
year 1997and $810 to $870 in fiscal year 1996.

As of May 31, 1997, the number of Certificate Holders of record was 440.  (See
Item 1. Business for a description of the distribution to Certificate Holders
of the proceeds payable under the Lease.)





                                      4
<PAGE>   5
                                                                    Page 5 of 17



Item 6.   Selected Financial Data


This selected financial data should be read in conjunction with the financial
statements and related notes of Bankers Building Land Trust appearing elsewhere
herein.


<TABLE>
<CAPTION>

                                                           Year ended May 31,
                                      -------------------------------------------------------

                                      1997        1996        1995        1994        1993
                                      ----        ----        ----        ----        ----
<S>                                <C>         <C>         <C>         <C>         <C>
Operating revenues:


  Rent                             $  275,000  $  275,000  $  275,000  $  275,000  $  275,000

  Servicing fees                       33,237       7,950       7,950       7,950       7,948

  Interest                              3,223      --          --          --          --
                                   ----------- ----------  ----------  ----------  ----------

Total operating
    revenues                          311,460     282,950     282,950     282,950     282,950
                                   ----------  ----------  ----------  ----------  ----------


Operating expenses:


  Trustee fees and
      other expenses                    7,950      27,950       7,950      27,950       7,950
                                   ----------  ----------  ----------  ----------  ----------

Total operating
    expenses                            7,950      27,950       7,950      27,950       7,950
                                   ----------  ----------  ----------  ----------  ----------


Net income                         $  303,510  $  255,000  $  275,000  $  255,000  $  275,000
                                   ==========  ==========  ==========  ==========  ==========


Distributions to
    certificate
    holders                        $  295,000  $  255,000  $  275,000  $  255,000  $  275,000
                                   ==========  ==========  ==========  ==========  ==========


Total assets
    at year-end                    $4,596,783  $4,399,995  $4,329,335  $4,329,575  $4,329,041
                                   ==========  ==========  ==========  ==========  ==========
</TABLE>



                                       5
<PAGE>   6


                                                                    Page 6 of 17




Item 7.   Management's Discussion and Analysis of Financial Condition and 
Results of Operations



Due to the passive nature of the Registrant's activities, which generally
include only the collection of rent and the disbursements of these proceeds
less expenses to the Certificate Holders of the Registrant, there has been no
material variation, except for the following matter, in the Registrant's
financial condition or results of operations, during the year ended May 31,
1997.  As described in Item 1, the Trust received $250,000 in advances from the
new owner of the building to enter into the agreement.



Item 8.   Index to Financial Statements and Schedules

<TABLE>
<CAPTION>
                                                                           Pages
<S>                                                                        <C>

Independent Auditor's Report                                                F-l


Financial Statements:

Balance Sheets as of May 31, 1997 and 1996                                  F-2
                                                                               
Statements of Operations and Retained Earnings                                 
  for the years ended May 31, 1997, 1996 and 1995                           F-3
                                                                               
Statements of Cash Flows for the years ended                                   
  May 31, 1997, 1996 and 1995                                               F-4

Notes to Financial Statements                                         F-5 - F-6
</TABLE>




All schedules are omitted because they are not applicable, are not required, or
the information is included in the financial statements or footnotes thereto.



Item 9.   Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure



None



                                      6
<PAGE>   7



                                                                    Page 7 of 17




                                   PART III




Item 10.   Directors and Executive Officers of the Registrant



The Trust has no directors or executive officers.  The Trust Company 
administers the Trust pursuant to a Trust Agreement which sets out the
responsibilities and duties of the Trustee.  Such duties include, but are not
limited to, the following tasks: keeping the register of names of the
Certificate Holders, maintaining records showing receipts and disbursements of
the Trust, collecting rents and distributing income to the Certificate Holders
and other ministerial duties relating to the operation of the Trust.  The
self-executing provisions of the Trust Agreement and the 99 year Lease, along
with the passive nature of the Trust, limits the involvement of the Trustee to
the above activities.  However, in the event of a default by the Lessee, the
Trustee has the authority to take such action as is necessary and proper for
the best interests of the Trust with respect to managing, leasing, operating,
selling or otherwise disposing of the Trust Estate.  The Trustee may in the
event of default terminate the Trust by transferring title to the Certificate
Holders for them to hold as tenants in common.  In addition, the Trustee is
empowered upon such default to sell a portion of or the entire Trust Estate and
distribute ratably the net proceeds of  such sale after deducting all necessary
expenses of the sale including reasonable  compensation for the Trustee.  If
the Trust is not terminated by other provisions in the Trust Agreement, the
Trust will terminate 21 years after the death of the last to die of the persons
specified in the Trust Agreement.  As of October 1996, the Trustee was aware of
one individual specified in the Trust Agreement who was still living.

Although not required to do so, the Trustee may in its absolute discretion seek
the advice of the Certificate Holders.  If a majority interest of the
Certificate Holders agree on a course of action that is not inconsistent with
express provisions of the Trust Agreement, the Trustee may, but is not
obligated to, effectuate such course of action.

The Bank is chartered as a national bank and the Trust Company is chartered as
a non-depository national bank.  As such, the Bank and the Trust Company are
under the supervision of, and subject to regular examination by, the
Comptroller of the Currency.  In addition, the Bank is subject to the rules and
regulations of the Federal Reserve Board and the Federal Deposit Insurance
Corporation.  As of May 31, 1997, the total assets and deposits of the Bank
were approximately $1,474,400,000 and $1,005,500,000, respectively.  The Trust
Company had approximately 4,152 accounts and the market value of assets held in
accounts over which the Trust Company exercised investment discretion was
approximately $2,472,603,000 as of May 31, 1997.  The Trust Company consists of
125 employees and officers.  The principal persons in the Trust Company are:
John M. Pepe, Chairman of the Board; Carl J. Dargene, Vice Chairman of the
Board; Alan W. Kennebeck, President, and Chief Executive Officer; Lee R. Mayer,
Secretary; Marvin R. Anderson, Treasurer, Senior Vice President and Controller;
Jay R. Maddox, Executive Vice President, Trust Officer; Lillie L. Rude,
Executive Vice President and Trust Officer.



                                      7
<PAGE>   8

                                                                    Page 8 of 17



Item 11.   Executive Compensation


Unless paid by the Lessee, the Trustee is entitled to reasonable compensation
out of the gross rental proceeds payable under the Lease for its services and
management of the Trust and reimbursement for expenses reasonably incurred in
connection with the administration of the Trust.  In the event the Trustee
renders extraordinary services to the Trust, it is entitled to additional
reasonable compensation from the same sources.  Such amounts are payable from
the gross income or proceeds of the Trust Estate prior to distribution of the
net proceeds to the Certificate Holders.  The Lease requires the Lessee to pay
the Trustee its compensation and any amount incurred in connection with the
Trust's administration which would otherwise be payable out of the gross income
of the Trust Estate and would act to reduce the net income of $55 per year per
Unit ($275,000/5,000 Units = $55) that was intended under the Lease for
distribution to the Certificate Holders.  The current Trustee is not aware of
any period during which the Certificate Holders were entitled to receive their
distribution of $55 per annum per Certificate and received less than this
amount except for the years ended May 31, 1987, May 31, 1994, and May 31, 1996.
During 1987, the Trust incurred a $5,000 fee for an appraisal of the land
owned by the Trust.  The distribution for 1987 was $54 per Certificate.  During
1994, the Trust incurred $20,000 in legal fee.  The distribution for 1994 was
$51 per certificate.  During 1996, the Trust incurred $20,000 in legal fees.
The distribution for 1996 was $51 per certificate.  During 1997, the Trust
recovered the $20,000 in legal fees incurred during 1996.  The distribution for
1997 was $59 per certificate.  Reduced distributions could occur if the Lessee
or any successor defaulted under the Lease and the Trustee was unable to lease
or sell the building and land or if the Lessee or any successor refused to pay
or reimburse the Trustee for expenses of the Trust.  As provided in the Lease,
the Lessee is currently reimbursing the Trustee for the costs associated with
the reporting requirements of the Securities Exchange Act of 1934, as amended.

The Lease requires the Lessee to pay rents quarterly in advance.  Payment to
the  Certificate Holders is not made until the first day of the following
quarter.  The  Trust Agreement does not obligate the Trustee to pay interest to
the Certificate Holders for the interest earned, if any, during the period in
which the Trustee has receipt of the rents but is not yet obligated to make
distributions to the Certificate Holders.  Total trust fees were $7,950 for the
year ended May 31, 1997.



Item 12.   Security Ownership of Certain Beneficial Owners and Management


The following table lists the beneficial ownership of the Trust's certificates
of beneficial interest with respect to all persons known by the Trust as of May
31, 1997 to be beneficial owners of more than five percent of such
certificates.


<TABLE>
<CAPTION>

Name and Address of Beneficial Owner  Amount of Beneficial Interest  Percent of Class
------------------------------------  -----------------------------  ----------------
<S>                                   <C>                            <C>
Cede & Co.                                          2,775                  55.50%
Box 222
Bolling Green Station
New York, NY  10004
</TABLE>

                                       
                                       
                                       8
<PAGE>   9



                                                                    Page 9 of 17



Item 13.   Certain Relationships and Related Transactions



See Item 12. above.






























                                      9
<PAGE>   10


                                                                   Page 10 of 17







                                   PART IV





Item 14.   Exhibits, Financial Statements, Schedules, and Reports on Form 8-K



(a)  See Item 8.  Index to Financial Statements and Schedules on Page 6.


(b)  See "Exhibit Index" on Page 11.


(c)  During the first quarter,  a report on Form 8-K was filed August 7, 1996
     notifying the SEC of the change in accountants.

     During the second quarter, a report on Form 8-K was filed September 20,
     1996 notifying the SEC of transfer of the building in satisfaction of the
     lessee's mortgage.  In addition, the Trust entered into an agreement with
     the lessee's lender to sell the land and the building as one entity.










                                      10
<PAGE>   11

                                                                   Page 11 of 17





                                   SIGNATURES





Pursuant to the requirements of                   Date
                                                      -------------


the Securities Exchange Act of                    Bankers Building Land Trust
                                                  ----------------------------
                                                          (Registrant)

1934, the Registrant has duly
                                                  AMCORE Bank N.A.,

caused this report to be signed                   By   Rockford, Trustee
                                                    ----------------------


on its behalf by the undersigned,                 By  /s/ Lee R. Mayer
                                                    --------------------

                                                    Lee R. Mayer,
thereunto duly authorized.                          Senior Vice President
                                                    and Trust Officer












                                      11
<PAGE>   12

                                                                   Page 12 of 17








                                EXHIBIT INDEX




The following exhibits are filed with this Registration Statement:



 4.01   Trust Agreement and Declaration of Trust dated June 1, 1926, naming the
 National Bank of the Republic of Chicago as Trustee, (previously filed in
 paper as Exhibit 1 to the Registrant's Form 10 Registration Statement, File
 No. 0-9086, and incorporated herein by reference).



 10.01  Indenture of Lease dated June 1, 1926, between Ernest A. Jackson and
 Carrie M. Jackson and Adams Clark Building Corporation, (previously filed in
 paper as Exhibit 2 to the Registrant's Form 10 Registration Statement, File
 No. 0-9086, and incorporated herein by reference).


 10.02  Trustee's deed dated June 27, 1933, from the National Bank of the
 Republic of Chicago as Trustee, to the Illinois National Bank and Trust
 Company, as Trustee, (previously filed in paper as Exhibit 3 to the 
 Registrant's Form 10 Registration Statement, File No. 0-9086, and incorporated
 herein by reference).












                                      12
<PAGE>   13

                                                                      EXHIBIT 13



                                      
                                      
                         BANKERS BUILDING LAND TRUST
                                      
                               FINANCIAL REPORT
                                      
                                MAY  31, 1997
                                      








<PAGE>   14


                                   CONTENTS

<TABLE>
<S>                                                                    <C>
--------------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT                                                 F-1
--------------------------------------------------------------------------------
FINANCIAL STATEMENTS
Balance sheets                                                               F-2
Statements of operations and retained earnings                               F-3
Statements of cash flows                                                     F-4
Notes to financial statements                                          F-5 - F-6

--------------------------------------------------------------------------------
</TABLE>




<PAGE>   15

                      
                   [LETTERHEAD OF McGLADREY & PULLEN, LLP]
                                      

                                      
                         INDEPENDENT AUDITOR'S REPORT
                                      

To the Trustee
Bankers Building Land Trust
Rockford, Illinois

We have audited the accompanying balance sheets of Bankers Building
Land Trust as of May 31, 1997 and 1996, and the related statements of
operations and retained earnings, and cash flows for the years then ended.
These financial statements are the responsibility of the Trust's management. 
Our responsibility is to express an opinion on these financial statements based
on our audits.

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.  An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Bankers Building
Land Trust as of May 31, 1997 and 1996, and the results of its operations and
its cash flows for the years then ended in conformity with generally accepted
accounting principles.


                                            /s/ McGladrey & Pullen, LLP


Rockford, Illinois
July 11, 1997
                                      
                                      
                                     F-1
<PAGE>   16

BANKERS BUILDING LAND TRUST
<TABLE>
<CAPTION>

BALANCE SHEETS
MAY 31, 1997 and 1996
                                                               1997               1996
-----------------------------------------------------------------------------------------
<S>                                                     <C>                <C> 
ASSETS
Cash                                                    $   346,783.00     $   149,995.00
Land subject to operating lease                           4,250,000.00       4,250,000.00
                                                        ---------------------------------
           TOTAL ASSETS                                 $ 4,596,783.00     $ 4,399,995.00
                                                        =================================
LIABILITIES AND CERTIFICATE HOLDERS' EQUITY

Liabilities
  Due to certificate holders                            $    68,750.00     $    48,750.00
  Deferred rental income                                     72,500.00          68,750.00
  Advance from lessee                                       196,523.00          11,995.00
  Accrued legal fees                                                            20,000.00
                                                        ---------------------------------
           TOTAL LIABILITIES                                337,773.00         149,495.00

Certificate holders' equity
  Certificates of beneficial interest
    5,000 units issued and outstanding                    4,250,000.00       4,250,000.00
  Retained earnings                                           9,010.00             500.00
                                                        ---------------------------------
           TOTAL CERTIFICATE HOLDERS' EQUITY              4,259,010.00       4,250,500.00
                                                        ---------------------------------
           TOTAL LIABILITIES AND CERTIFICATE HOLDERS' 
            EQUITY                                      $ 4,596,783.00     $ 4,399,995.00
                                                        =================================
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.


                                       
                                      F-2
                                       
<PAGE>   17


BANKERS BUILDING LAND TRUST

STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
YEARS ENDED MAY 31, 1997, 1996, AND 1995

<TABLE>
<CAPTION>

                                                1997                1996             1995
----------------------------------------------------------------------------------------------
<S>                                           <C>                 <C>               <C>
Operating Revenues:
  Rent                                        $  275,000          $  275,000        $  275,000
  Servicing fees                                  33,237               7,950             7,950
  Interest                                         3,223                  -                 -
                                              ------------------------------------------------
         TOTAL OPERATING REVENUES                311,460             282,950           282,950

Operating Expenses,
  trustee fees and other expenses                  7,950              27,950             7,950
                                              ------------------------------------------------
         NET INCOME                              303,510             255,000           275,000

Retained earnings, beginning of year                 500                 500               500
Distributions to certificate holders             295,000             255,000           275,000
                                              ------------------------------------------------
Retained earnings, end of year                $    9,010          $      500        $      500
                                              ================================================
</TABLE>

See Notes to Financial Statements.


















                                      F-3
<PAGE>   18


BANKERS BUILDING LAND TRUST 

STATEMENTS OF CASH FLOWS 
YEARS ENDED MAY 31, 1997, 1996, and 1995

<TABLE>
<CAPTION>

                                                       1997              1996              1995
--------------------------------------------------------------------------------------------------
<S>                                                <C>               <C>               <C>
Cash Flows From Operating Activities:
  Net income                                       $   303,510       $   255,000       $   275,000
  Adjustments to reconcile net income to
    net cash provided by operating activities:
    Increase (decrease) in accrued expenses                 -             (4,263)           (2,216)
    Increase in deferred rental income                   3,750            68,750                -
    Increase in advance from lessee                    184,528             6,173             1,976
    Increase (decrease) in accrued legal fees          (20,000)           20,000                -
           NET CASH PROVIDED BY OPERATING          -----------------------------------------------
             ACTIVITIES                                471,788           345,660           274,760
                                                   -----------------------------------------------
Cash Flows From Financing Activities
  Distributions to certificate holders, NET CASH
  (USED IN) FINANCING ACTIVITIES                      (275,000)         (275,000)         (275,000)
                                                   -----------------------------------------------
           NET INCREASE (DECREASE) IN CASH             196,788            70,660              (240)

CASH:
  BEGINNING                                            149,995            79,335            79,575
                                                   -----------------------------------------------
  Ending                                           $   346,783       $   149,995       $    79,335
                                                   ===============================================
</TABLE>



See Notes to Financial Statements.











                                     F-4
<PAGE>   19

BANKERS BUILDING LAND TRUST

NOTES TO FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

Note 1.  Nature of Business and Significant Accounting Policies

Nature of business:  Bankers Building Land Trust is a trust organized under the
laws of the Dtate of Illinois which is engaged in the single business activity
of holding title to certain land in Chicago, Illinois, collecting rent from the
lease of the land and disbursing the net proceeds to the holders of
certificates of beneficial interest.

A summary of the Trust's significant accounting policies follows:

Accounting estimates:  The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts in the financial
statements and the accompanying notes.  Actual results could differ from those
estimates.

Land valuations:  The land has been valued at its cost to the parties that
established the Trust in 1926 based upon information obtained from the records
of the Cook Vounty Recorder.

Deferred rental income:  The Trust defers rental income received in advance of
the period for which the rent applies.  This is amortized into income over the
rental period on a straight-line basis.

Financial instruments:  The Trust has no financial instruments for which the
carrying value differs materially from fair value.
                        

NOTE 2.  LEASE AND SERVICING FEES

The  Trust is the lessor of approximately 22,300 square feet of land
located on the southwest corner of Clark and West Adams streets in the central
business district of the City of Chicago.  The lease commenced on June 1, 1926
and expires on may 31, 2025.  The annual rental, payable in quarterly
installments for the leased property, is $275,000 plus servicing fees for
expenses of the trustee.

The  following is a schedule by years of minimum future rental income
on the lease as of May 31, 1997:


<TABLE>
              Year Ending May 31:
        ----------------------------
              <S>                      <C>
                     1998              $  275,000.00
                     1999                 275,000.00
                     2000                 275,000.00
                     2001                 275,000.00
                     2002                 275,000.00
                  Thereafter            6,325,000.00
                                       -------------
        Total minimum future rentals   $7,700,000.00
                                       =============
</TABLE>



                                     F-5
<PAGE>   20

BANKERS BUILING LAND TRUST

NOTES TO FINANCIAL STATEMENTS

--------------------------------------------------------------------------------

NOTE 2.  LEASE (CONTINUED)

Due to bankruptcy, the former lessee of the land has transferred ownership of
the building located on the land in satisfaction of the lessee's mortgage.  The
new owner of the building assumed the lease of the land owned by the Trust.  In
addition, the Trust entered into an agreement with the new owner to sell the
land and the building as one entity.

NOTE 3.  INCOME TAXES

The trust is considered a partnership for income tax purposes.  The Trust has
been deemed to have made an election out of the partnership's provisions of the
Internal Revenue Code.  Therefore, no partnership income tax returns are filed
on behalf of the trust.  Distributions to certificate holders are taxable to
the certificate holders, and reported by means of an information return.
Accordingly, no provision for income taxes has been made in the financial
statements.

                                      
                                     F-6