<PAGE>

                                    UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION
                                 WASHINGTON, DC 20549
                                _____________________

                                      FORM 10-Q

(MARK ONE)

[X]  Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act
     of 1934 For the Quarterly Period Ended March 31, 1998.

                                          or

[ ]  Transition Report Under Section 13 or 15(d) of the Securities Exchange Act
     of 1934 For the Transition Period From __________ to __________.

Commission File Number 1-13676

                               KANKAKEE BANCORP, INC.
         ----------------------------------------------------------------------
               (Exact Name of Registrant as Specified in its Charter)

DELAWARE                                 36-3846489
-------------------------------          --------------------------------------
(State or Other Jurisdiction of          (I.R.S. Employer Identification Number)
Incorporation or Organization)

310 SOUTH SCHUYLER AVENUE, KANKAKEE, ILLINOIS                   60901
------------------------------------------------------------------------------
  (Address of Principal Executive Offices)                     (Zip Code)

                               (815) 937-4440
------------------------------------------------------------------------------
            (Registrant's telephone number, including area code)


Check whether the Issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
                                    ---       ---

As of May 8, 1998, there were 1,379,988 issued and outstanding shares of the
Issuer's Common Stock (exclusive of 370,012 shares of the Issuer's Common Stock
held as treasury stock).    


<PAGE>

                                KANKAKEE BANCORP, INC.

                                        INDEX
                                        -----

                                                                          Page
                                                                         Number

Part I.   FINANCIAL INFORMATION

          Item 1.   Consolidated Financial
                    Statements (Unaudited)

                    Statements of Financial Condition,
                    March 31, 1998 and December 31, 1997                  1 - 2

                    Statements of Income and Comprehensive Income,
                    Three Months Ended March 31, 1998 and 1997                3

                    Statements of Cash Flows, Three Months
                    Ended March 31, 1998 and 1997                           4-5

                    Notes to Financial Statements                             6
   
          Item 2.   Management's Discussion and Analysis
                    of Financial Condition and Results 
                    of Operations                                          7-15

          Item 3.   Quantitative and Qualitative Disclosure
                    About Market Risk                                         8

Part II.  OTHER INFORMATION                                    

          Item 1.   Legal Proceedings                                        16

          Item 2.   Changes in Securities                                    16

          Item 3.   Defaults Upon Senior Securities                          16

          Item 4.   Submission of Matters to a Vote of Security Holders      16

          Item 5.   Other Information                                        16

          Item 6.   Exhibits and Reports on Form 8-K                         16

          SIGNATURES                                                         17
<PAGE>


              CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
                        KANKAKEE BANCORP, INC. AND SUBSIDIARY

<TABLE>
<CAPTION>
                                                                     March 31,      December 31,
                                                                       1998             1997
                                                                   ------------    -------------
<S>                                                                <C>             <C>
Assets
  Cash and due from banks                                          $ 20,210,247    $  9,184,362 
  Federal funds sold                                                 18,800,000       8,575,000 
  Money market funds                                                  5,475,740       5,066,530 
                                                                   ------------    -------------
  Cash and cash equivalents                                          44,485,987      22,825,892 
                                                                   ------------    -------------
  Certificates of deposit                                               338,846       1,602,000 
                                                                   ------------    -------------
  Securities:
  Investment securities:
      Available-for-sale, at fair value                              52,514,808      36,823,019 
      Held-to-maturity, at cost (fair value: March 31, 1998 -
      $1,275,309; December 31, 1997 - $69,752)                        1,274,900          69,752 
                                                                   ------------    -------------
          Total investment securities                                53,789,708      36,892,771
                                                                   ------------    -------------
  Mortgage-backed securities:
      Available-for-sale, at fair value                              28,668,814      28,299,596 
      Held-to-maturity, at cost (fair value: March 31, 1998 -
      $199,131; December 31, 1997 - $207,815)                           194,926         203,662 
                                                                   ------------    -------------
          Total mortgage-backed securities                           28,863,740      28,503,258 
                                                                   ------------    -------------
  Non-marketable equity securities                                      501,100         501,100 
                                                                   ------------    -------------
  Loans                                                             252,169,497     240,925,455 
  Less: Allowance for losses on loans                                 2,492,183       2,130,146 
                                                                   ------------    -------------
  Net loans                                                         249,677,314     238,795,309 
                                                                   ------------    -------------
  Loans held for sale                                                 1,914,897         254,406 
  Real estate held for sale                                           1,456,725       1,326,302 
  Federal Home Loan Bank stock, at cost                               1,856,000       1,856,000 
  Office properties and equipment                                     6,594,130       5,340,406 
  Accrued interest receivable                                         2,623,382       2,465,594 
  Prepaid expenses and other assets                                     900,776         884,458 
  Intangible assets                                                   6,474,477       2,161,740 
                                                                   ------------    -------------
Total assets                                                       $399,477,082    $343,409,236 
                                                                   ------------    -------------
                                                                   ------------    -------------
                                                                                      (Continued)
</TABLE>
                                       1
<PAGE>

     CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (continued)
              KANKAKEE BANCORP, INC. AND SUBSIDIARY

<TABLE>
<CAPTION>
                                                                     March 31,      December 31,
                                                                       1998             1997
                                                                   ------------    -------------
<S>                                                                <C>             <C>
Liabilities and stockholders' equity
  Liabilities:
      Deposits
          Noninterest bearing                                      $ 17,237,159    $  9,720,181 
          Interest bearing                                          315,962,708     270,301,558 
      Short term borrowings                                                   -       8,220,000 
      Other borrowings                                               23,275,000      15,275,000 
      Advance payments by borrowers for taxes and insurance           2,617,405       1,428,880 
      Other liabilities                                               1,852,270         642,250 
                                                                   ------------    ------------
  Total liabilities                                                 360,944,542     305,587,869 
                                                                   ------------    ------------

  Stockholders' equity
      Preferred stock, $.01 par value; authorized, 500,000
        shares; none outstanding                                              -               - 
      Common stock, $.01 par value; authorized, 3,500,000
        shares; issued and outstanding: March 31, 1998 -
        1,377,988; December 31, 1997 - 1,371,638                         17,500          17,500 
      Additional paid-in capital                                     16,078,500      16,090,239 
      Retained income, substantially restricted                      30,182,238      29,554,920 
      Less: Cost of treasury stock (372,012 shares at March 31,
       1998; 378,362 shares at December 31, 1997)                    (7,334,350)     (7,459,540)
      Unrealized gains on securities available-for-sale, net of
       related income taxes                                              42,285          71,881
                                                                   ------------    ------------
      Total stockholders' equity before
        Employee Stock Ownership Plan loan                           38,986,173      38,275,000 
      Employee Stock Ownership Plan loan                               (453,633)       (453,633)
                                                                   ------------    ------------
      Total stockholders' equity                                     38,532,540      37,821,367 
                                                                   ------------    ------------
Total liabilities and stockholders' equity                         $399,477,082    $343,409,236 
                                                                   ------------    ------------
                                                                   ------------    ------------
</TABLE>
See notes to consolidated financial statements (unaudited)


                                       2
<PAGE>

     CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)
                  KANKAKEE BANCORP, INC. AND SUBSIDIARY

<TABLE>
<CAPTION>

                                                                    Three Months Ended March 31,
                                                                    ----------------------------
                                                                        1998            1997
                                                                     ----------     ----------
<S>                                                                  <C>            <C>
Interest income:
  Loans                                                              $5,099,853     $4,679,333 
  Mortgage-backed securities                                            468,212        581,280 
  Investment securities                                               1,168,872      1,026,854 
                                                                     ----------     ----------
      Total interest income                                           6,736,937      6,287,467 
                                                                     ----------     ----------
Interest expense:
  Deposits                                                            3,497,979      3,107,247 
  Borrowed funds                                                        355,244        459,773 
                                                                     ----------     ----------
      Total interest expense                                          3,853,223      3,567,020 
                                                                     ----------     ----------
  Net interest income                                                 2,883,714      2,720,447 

Provision for losses on loans                                                 -         (3,550)
                                                                     ----------     ----------
  Net interest income after provision for losses on loans             2,883,714      2,723,997 

Other income:
  Net gain (loss) on sales of real estate held for sale                     203          2,866 
  Net gain (loss) on sales of loans held for sale                        34,619          5,931 
  Fee income                                                            417,061        248,961 
  Insurance commissions                                                  33,727         24,953 
  Other                                                                 113,858         93,052 
                                                                     ----------     ----------
      Total other income                                                599,468        375,763 
                                                                     ----------     ----------
Other expenses:
  Compensation and benefits                                           1,251,968      1,128,093 
  Occupancy                                                             190,509        177,246 
  Furniture and equipment                                               123,643        114,379 
  Federal insurance premiums                                             42,236         32,510 
  Advertising                                                            39,698         33,040 
  Provision for losses on foreclosed assets                               2,538              - 
  Data processing services                                               87,004         76,110 
  Telephone and postage                                                  81,842         59,990 
  Amortization of intangible assets                                      94,521         57,921 
  Other general and administrative                                      375,419        334,741 
                                                                     ----------     ----------
      Total other expenses                                            2,289,378      2,014,030 
                                                                     ----------     ----------
  Income before income taxes                                          1,193,804      1,085,730 
Income taxes                                                            401,128        315,710 
                                                                     ----------     ----------
  Net income                                                         $  792,676     $  770,020 
                                                                     ----------     ----------
                                                                     ----------     ----------

  Basic earnings per share                                                $0.58          $0.54 
                                                                     ----------     ----------
                                                                     ----------     ----------
  Diluted earnings per share                                              $0.54          $0.51 
                                                                     ----------     ----------
                                                                     ----------     ----------

Net income                                                             $792,676       $770,020 
Other comprehensive income:
  Unrealized losses on available-for-sale
  securities, net of related income taxes                               (29,596)      (602,868)
                                                                     ----------     ----------
  Comprehensive income                                               $  763,080     $  167,152 
                                                                     ----------     ----------
                                                                     ----------     ----------
</TABLE>

See notes to consolidated financial statements (unaudited)

                                       3
<PAGE>

                 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                     KANKAKEE BANCORP, INC. AND SUBSIDIARY

<TABLE>
<CAPTION>

                                                                    Three Months Ended March 31,
                                                                    ----------------------------
                                                                        1998            1997
                                                                     ----------     ----------
<S>                                                                  <C>            <C>
Cash flows from operating activities:
  Net income                                                           $792,676     $  770,020 
  Adjustments to reconcile net income to net
  cash provided by operating activities:
  Provision for losses on loans                                               -         (3,550)
  Depreciation and amortization                                         226,843        183,413 
  Amortization of investment premiums and discounts, net                 54,668         29,935 
  Accretion of loan fees, costs and discounts, net                      (19,807)       (15,614)
  Deferred income tax provision (benefit)                                     -        (32,366)
  Originations of loans held for sale                               (15,357,397)      (766,396)
  Proceeds from sales of loans                                       13,731,525        775,175 
  (Increase) decrease in interest receivable                            149,686        377,263 
  Increase (decrease) in interest payable on deposits                   (28,120)        (8,149)
  Net (gain) loss on sales of loans                                     (34,619)        (5,932)
  Net gain (loss) on sales of real estate held for sale                    (203)        (2,866)
  Other, net                                                            879,317        397,209 
                                                                     ----------     ----------
  Net cash from operating activities                                    394,569      1,698,142 

Cash flows from investing activities
Investment securities
  Available-for sale:
      Purchases                                                      (8,574,630)    (1,085,468)
      Proceeds from calls and maturities                              8,000,000      2,000,000 
  Held-to-maturity:
      Purchases                                                      (1,025,000)             - 
Mortgage-backed securities:
  Available-for-sale:
      Purchases                                                      (1,997,500)             - 
      Proceeds from maturities and paydowns                           1,770,385      1,115,988 
  Held-to-maturity:
      Proceeds from maturities and paydowns                               8,736          7,808 
  Purchases of certificates of deposit                                 (765,692)      (305,500)
  Proceeds from maturities of certificates of deposit                 2,028,846        205,500 
  Proceeds from sales of real estate                                          -         18,993 
  Net loan fees and costs deferred                                        9,021        (28,941)
  Loans originated                                                  (19,200,771)   (14,012,468)
  Loans purchased                                                      (300,000)      (675,000)
  Principal collected on loans                                       26,065,159     19,449,874 
  Purchases of office properties and equipment, net                    (689,758)      (275,952)
  Purchase of Coal City National Bank                                (8,054,109)             - 
                                                                     ----------     ----------
Net cash from investing activities                                   (2,725,313)     6,414,834 

</TABLE>
See notes to consolidated financial statements.


                                       4
<PAGE>


         CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (continued)
              KANKAKEE BANCORP, INC. AND SUBSIDIARY

<TABLE>
<CAPTION>

                                                                    Three Months Ended March 31,
                                                                    ----------------------------
                                                                        1998            1997
                                                                    -----------    -----------
<S>                                                                  <C>            <C>
Cash flows from financing activities
  Net increase (decrease) in non-certificate
    of deposit accounts                                              $2,289,593     $1,949,462 
  Net increase in certificate of deposit accounts                      (947,619)    (1,007,748)
  Net increase (decrease) in advance payments by
    borrowers for taxes and insurance                                 1,175,764      1,109,316 
  Proceeds from short-term borrowings                                         -     34,580,000 
  Repayments of short-term borrowings                                (8,220,000)   (44,870,000)
  Proceeds from other borrowings                                      8,000,000              - 
  Proceeds from exercise of stock options                               113,451         51,845 
  Dividends paid                                                       (165,358)      (170,420)
                                                                    -----------    -----------
  Net cash from financing activities                                  2,245,831     (8,357,545)
                                                                    -----------    -----------
Increase (decrease) in cash and cash equivalents                        (84,913)      (244,569)
Cash and cash equivalents:
  Beginning of period                                                22,825,892     17,160,113 
  Cash acquired with Coal City National Bank                         21,745,008              - 
                                                                    -----------    -----------
  End of period                                                     $44,485,987    $16,915,544 
                                                                    -----------    -----------
                                                                    -----------    -----------
Supplemental disclosures of cash flow information
 Cash paid during the year for:
  Interest on deposits                                               $3,469,900     $3,099,100 
                                                                    -----------    -----------
                                                                    -----------    -----------
  Interest on borrowed funds                                           $372,800       $551,000 
                                                                    -----------    -----------
                                                                    -----------    -----------
  Income taxes                                                               $0        $36,449 
                                                                    -----------    -----------
                                                                    -----------    -----------
Supplemental disclosures of non-cash investing activities:
 Real estate acquired through foreclosure                              $124,520        $82,417 
                                                                    -----------    -----------
                                                                    -----------    -----------
 Change in unrealized gains (losses) on securities available-for-sale   $44,843       $913,438 
                                                                    -----------    -----------
                                                                    -----------    -----------
 Change in deferred taxes attributable to the unrealized gains
 (Losses) on securities available-for-sale                             ($15,247)     ($310,570)
                                                                    -----------    -----------
                                                                    -----------    -----------
Purchase of Coal City National Bank
 Assets acquired:
   Cash                                                             $21,745,008 
   Investments                                                       15,538,921 
   Loans                                                             17,560,127 
   Accrued interest receivable                                          307,474 
   Premises and equipment                                               696,288 
   Intangible assets                                                  4,407,258
   Other assets                                                         122,646 
 Liabilities assumed:
   Non-certificates of deposit                                      (28,996,351)
   Certificates of deposit                                          (22,691,676)
   Accrued interest payable                                            (176,247)
   Other liabilities                                                   (459,339)
                                                                    -----------
                                                                   $ (8,054,109)
                                                                    ----------- 
                                                                    ----------- 
</TABLE>

See notes to consolidated financial statements

                                       5
<PAGE>


                        KANKAKEE BANCORP, INC. AND SUBSIDIARY

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
                                    March 31, 1998

Note 1 - Basis of Presentation

     The accompanying unaudited consolidated financial statements have been 
prepared in accordance with generally accepted accounting principles for 
interim financial information and with instructions to Form 10-Q. 
Accordingly, they do not include all of the information and footnotes 
required by generally accepted accounting principles for complete financial 
statements. In the opinion of management, all adjustments (consisting of 
normal recurring accruals) considered necessary for a fair presentation have 
been included. The statement of condition at December 31, 1997 has been 
derived from the audited financial statements at that date, but does not 
include all of the information and footnotes required by generally accepted 
accounting principles for complete financial statements. Operating results 
for the three-month period ended March 31, 1998 are not necessarily 
indicative of the results that may be expected for the year ending December 
31, 1998. For further information, refer to the consolidated financial 
statements and footnotes thereto included in the annual report for Kankakee 
Bancorp, Inc. (the "Company") on Form 10-K for the year ended December 31, 
1997.

Note 2 - Earnings Per Share

     Basic earnings per share of common stock have been determined by 
dividing net income for the period by the average number of shares of common 
stock outstanding.  Diluted earnings per share of common stock have been 
determined by dividing net income for the period by the average number of 
shares of common stock and common stock equivalents outstanding. Common stock 
equivalents assume exercise of stock options and the calculation assumes 
purchase of treasury stock with the option proceeds at the average market 
price for the period (when dilutive). The Company has an incentive stock 
option plan for the benefit of directors, officers and employees.  Diluted 
earnings per share have been determined considering the stock options 
granted, net of stock options which have been exercised.
  
Note 3 - Accounting for Certain Investments in Debt and Equity Securities

     At March 31, 1998, in accordance with the requirements of Statement of 
Financial Accounting Standards No. 115 ("SFAS 115"), "Accounting for Certain 
Investments in Debt and Equity Securities", stockholders' equity has been 
increased by $42,285.  This represents the amount by which the market value 
of the available-for-sale securities and the available-for-sale 
mortgage-backed securities exceeded the book value, net of an income tax 
provision of $21,828. An increase in market interest rates during the three 
months ended March 31, 1998 resulted in a $29,596 decrease in the market 
value, net of income tax effect, of the available-for-sale securities and the 
available-for-sale mortgage-backed securities during the three months.  At 
the end of 1997, the market value of the available-for-sale securities 
portfolio exceeded the book value by $71,881, net of income tax benefit.



                                        6
<PAGE>


                                KANKAKEE BANCORP, INC.
                         MANAGEMENT'S DISCUSSION AND ANALYSIS
                   OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

     The Company was formed in late 1992 under the laws of the State of 
Delaware for the purpose of becoming the savings and loan holding company of 
Kankakee Federal Savings Bank (the "Bank"), the Company's principal 
subsidiary.

     The Bank was originally chartered in 1885 as an Illinois savings and 
loan association and was converted to a federally chartered thrift 
institution in 1937. The Bank serves the financial needs of families and 
local businesses in its primary market areas through its main office at 310 
South Schuyler Avenue, Kankakee, Illinois and eleven branch offices located 
in the communities of Ashkum, Bourbonnais, Braidwood, Champaign, Coal City, 
Diamond, Dwight, Herscher, Hoopeston, Manteno and Momence, Illinois. The 
Bank's business involves attracting deposits from the general public and 
using such deposits to originate residential mortgage loans and, to a lesser 
extent, commercial real estate, consumer, commercial business, multi-family 
and construction loans in its primary market areas. The Bank also invests in 
investment securities, mortgage-backed securities and various types of short 
term liquid assets.

BANK ACQUISITION

     On January 29, 1998, the Company completed the acquisition of Coal City 
National Bank ("CCNB") from Coal City Corporation, a multi-bank holding 
company headquartered in Chicago, Illinois.  CCNB was based in Coal City, 
Illinois, which is 30 miles northwest of Kankakee, and also had offices in 
nearby Braidwood and Diamond, Illinois.  All three offices of CCNB became 
offices of the Bank upon completion of the merger, and their operating 
results have been included with those of the Bank since January 29, 1998.

At the time of purchase, CCNB had total assets of approximately $56.0 
million, deposits of approximately $51.7 million and stockholders' equity of 
approximately $3.7 million.  The cash purchase price, including acquisition 
costs, was $8.2 million, and the transaction was accounted for as a purchase. 
Intangible assets of about $4.4 million were recorded as a result of this 
purchase.

FINANCIAL CONDITION

     Total assets of the Company increased by $56.1 million, or 16.3%, to 
$399.5 million at March 31, 1998 from $343.4 million at December 31, 1997.  
The reason for the increase in total assets was the acquisition of CCNB.

     Cash and cash equivalents increased by $21.7 million, or 94.9%, from 
$22.8 million at December 31, 1997 to $44.5 million at March 31, 1998.  The 
increase was primarily attributable to cash and cash equivalents acquired 
with the purchase of CCNB.

     During the three-month period ended March 31, 1998, net loans receivable 
increased by $10.9 million, or 4.6%, from $238.8 million to $249.7 million. 
This was primarily the result of the acquisition of $17.6 million in loans 
with CCNB, the origination (or purchase) of $3.7 million of real estate loans 
and the origination (or purchase) of $15.8 million of consumer and commercial 
business loans, offset by loan repayments which totaled $26.1 million. 


                                        7
<PAGE>


     Loans held for sale increased by $1.7 million, or 652.7%, during the 
three-month period ended March 31, 1998, to $1.9 million from $254,000 at 
December 31, 1997.  The increase was the result of the origination of $15.4 
million of such loans, which was partially offset by the sale of $13.7 
million of such loans. The increase in origination and sale of loans held for 
sale is the result of relatively low market interest rates on mortgage loans, 
which have created a new round of refinancings.

     Securities available-for-sale increased by $15.7 million, or 42.6%, to 
$52.5 million at March 31, 1998 from $36.8 million at December 31, 1997 as 
the result of the acquisition of $15.1 million of such securities with the 
purchase of CCNB, and the purchase of $8.6 million in such securities, which 
was partially offset by the maturity of $8.0 million of such securities and 
by the net change in market value adjustment.

     Mortgage-backed securities available-for-sale increased by $369,000, or 
1.3%, to $28.7 million at March 31, 1998 from $28.3 million at December 31, 
1997.  The increase resulted from the acquisition of $286,000 of such 
securities with the purchase of CCNB, the purchase of $2.0 million of such 
securities, partially offset by maturities of $1.8 million of such 
securities, and by the change in market value adjustment.

     During the three-month period ended March 31, 1998, intangible assets 
increased by $4.4 million, or 199.5%, to $6.5 million from $2.2 million at 
December 31, 1997.  This increase was a direct result of the purchase of CCNB 
on January 29, 1998.

     Deposits increased by $53.2 million, or 19.0%, to $333.2 million at 
March 31, 1998 from $280.0 million at December 31, 1997. The increase 
resulted from the acquisition of $51.9 million in deposits with the purchase 
of CCNB and a $2.3 million increase in passbook, NOW and money market 
accounts, partially offset by a $948,000 decrease in certificate of deposit 
accounts.

     Total borrowings, which decreased by $220,000, or 0.9%, to $23.3 million 
at March 31, 1998 from $23.5 million at December 31, 1997, consisted entirely 
of advances from the Federal Home Loan Bank of Chicago (the "FHLB").

     Real estate held for sale increased by $130,000, or 9.8%, to $1.5 
million at March 31, 1998, from $1.3 million at December 31, 1997.  The 
increase was the result of the transfer of two single family properties from 
loans to real estate held for sale during the quarter.  Included in real 
estate held for sale is a commercial retail building in Champaign, Illinois, 
which was deeded to the Bank in 1997.  The borrower has remained liable on 
the underlying obligation, which is also secured by additional collateral.  
The property is currently being offered for sale.  Management does not 
presently anticipate that a loss will be incurred.

ASSET/LIABILITY MANAGEMENT

     Management attempts to control fluctuations in net interest income which 
result from an imbalance in the amounts of assets and liabilities that 
reprice during a period of time. The Company attempts to mitigate its 
interest rate exposure, to the extent consistent with the maintenance of an 
adequate interest rate spread, by retaining adjustable rate loans and 
selling, in the secondary market (with servicing typically retained), the 
majority of 30-year fixed-rate mortgage loans, and the majority of 15-year 
fixed-rate mortgage loans bearing a contractual interest rate of less than 
7.00%, which it originates. In addition, the Company has continued, as market 
circumstances permit, to build its 


                                        8
<PAGE>


portfolio of adjustable rate commercial real estate loans. The Company has 
also increased, as market circumstances permit, its origination of 
installment and home equity consumer loans having adjustable or floating 
interest rates and/or relatively short terms to maturity in an effort to 
control interest rate risk.

The Company currently does not enter into derivative financial instruments 
including futures, forwards, interest rate risk swaps, option contracts, or 
other financial instruments with similar characteristics.  However, the 
company is party to financial instruments with off-balance sheet risk in the 
normal course of business to meet the financing needs of its customers such 
as commitments to extend credit and letters of credit.


NON-PERFORMING ASSETS AND ALLOWANCE FOR LOSSES ON LOANS

     The Company's non-performing assets decreased to 1.12% of total assets 
at March 31, 1998 from 1.27% of total assets at December 31, 1997.  
Non-performing assets increased to $4.5 million at March 31, 1998 compared to 
$4.3 million at December 31, 1997.  During the three-month period ended March 
31, 1998, non-performing commercial real estate loans, non-performing 
construction and development loans, non-performing commercial business loans 
and non-performing consumer loans increased by $38,000, $81,000, $33,000 and 
$74,000, respectively. In addition, foreclosed assets increased by $130,000.  
These increases were partially offset by decreases of $45,000 and $185,000 in 
non-performing one-to-four family loans and restructured debt, respectively.  
The ratio of the allowance for losses on loans to non-performing loans was 
83.2% as of March 31, 1998 as compared to 75.6% as of December 31, 1997.  The 
increase in this ratio, which excludes foreclosed assets and restructured 
troubled debt, was primarily the result of an increase of $362,000 in the 
allowance for losses on loans which was partially offset by an increase of 
$181,000 in non-performing loans.  The acquisition of CCNB increased the 
reserve for losses on loans and had the effect of increasing total assets, 
but had no impact on total non-performing assets.

     The Company classified $1.7 million of its assets as Special Mention, 
$4.8 million as Substandard and $34,000 as Loss as of March 31, 1998.  No 
assets were classified as Doubtful at March 31, 1998.  This represents a 
decrease of $23,000 in the Special Mention category and a net increase of 
$101,000 in the other categories from the December 31, 1997 totals for 
classified assets.  The ratio of classified assets to total assets (including 
items classified as Special Mention) was 1.64% as of March 31, 1998 as 
compared to 1.89% as of December 31, 1997.  The ratio of the allowance for 
losses on loans to classified assets increased to 38.0% as of March 31, 1998 
as compared to 32.9% as of December 31, 1997.

     The allowance for losses on loans is established through a provision for 
losses on loans based on management's evaluation of the risk inherent in the 
loan portfolio and changes in the nature and volume of its loan activity. 
Such evaluation, which includes a review of all loans with respect to which 
full collectibility may not be reasonably assured, considers the fair value 
of the underlying collateral, economic conditions, historical loan loss 
experience and other factors that warrant recognition in providing for an 
adequate allowance for losses on loans. The Bank also requires additional 
reserves for delinquent and classified loans.

     While management believes that it uses the best information available to 
determine the allowance for losses on loans, unforeseen market conditions 
could result in adjustments to the allowance for losses on loans and net 
earnings could be significantly affected if circumstances differ 
substantially from the assumptions used in establishing the allowance for 
losses on loans.


                                      9

<PAGE>

RESULTS OF OPERATIONS 
THREE MONTHS ENDED MARCH 31, 1998 AND 1997

     Net income for the three-month period ended March 31, 1998 was $793,000 
compared to $770,000 for the same period in 1997. This represents a $23,000 
increase in net income for the 1998 period.  The increase in net income 
resulted from a $164,000 increase in net interest income and a $223,000 
increase in other income.  These items were partially offset by increases of 
$275,000 in general and administrative expenses and $85,000 in federal income 
tax expense.

     Net interest income increased $164,000, or 6.0%, during the three-month 
period ended March 31, 1998, compared to the three-month period ended March 
31, 1997.

     The table presented on page 15 ("Table I"), sets forth an analysis of 
the Company's net interest income for the three-month periods ended March 31, 
1998 and 1997.

     As Table I indicates, interest income increased $450,000, or 7.1%, to 
$6.7 million for the three-month period ended March 31, 1998 from $6.3 
million for the same period in 1997.  The increase in interest income was the 
result of an increase in the average balance of interest-earning assets to 
$364.5 million during the 1998 period, primarily resulting from the 
acquisition of CCNB, from $334.7 million during the 1997 period.  This was 
partially offset by a decrease in the yield earned on interest-earning assets 
to 7.50% during the 1998 period from 7.62% during the 1997 period.  The 
increase in the average balance of interest-earning assets was primarily due 
to increases in balances of loans and other interest-earning assets during 
the period.

     Interest expense increased $286,000, or 8.0%, to $3.9 million for the 
three-month period ended March 31, 1998 from $3.6 million for the same period 
in 1997.  The increase in interest expense was the result of an increase in 
the average outstanding balance of interest-bearing liabilities to $344.6 
million during the 1998 period from $308.0 million during the 1997 period.  
This increase was partially offset by a decrease in the average yield on 
interest-bearing liabilities to 4.53% during the 1998 period from 4.70% 
during the 1997 period.  The increase in average interest-bearing liabilities 
resulted primarily from the CCNB acquisition.  The decrease in the average 
yield on interest-bearing liabilities resulted from the lower average cost 
associated with the CCNB deposits and from a lower cost of borrowings during 
the quarter.

     No provision for losses on loans was deemed necessary during the first 
quarter of 1998 based on management's review of the adequacy of the allowance 
for losses on loans subsequent to the acquisition of $398,000 in allowance 
for losses on loans as part of the purchase of CCNB in January.  The 
provision for losses on loans for the first quarter of 1997 was a negative 
$4,000.

     Other income for the three-month period ended March 31, 1998 increased 
$223,000, or 59.5%, to $599,000 compared to $376,000 for the same period in 
1997.  The increase was attributable to an increase of $168,000 in fee 
income, $29,000 in gain on sale of loans held for sale, $20,000 in other 
income and $9,000 in insurance commissions, which were partially offset by a 
decrease of $3,000 in gain on sale of real estate.  The increase in fee 
income was the result of the acquisition of CCNB and of an ongoing review of 
the Bank's fee structure.  The increase in gain on the sale of loans held for 
sale was the result of a higher volume of sales compared to the year earlier 
period.

     Other expenses for the three-month period ended March 31, 1998 increased 
$275,000 or 13.7%, to $2.3 million from $2.0 million during the 1997 period. 
The increase was primarily attributable to expenses associated with the 
ongoing operation of the former CCNB offices and to an increase in the 

                                      10

<PAGE>

amortization of intangible assets.  There were increases of $124,000 (11.0%) 
in compensation and benefits, $37,000 (63.2%) in amortization of intangible 
assets, $10,000 (29.9%) in federal insurance premiums, $22,000 (36.4%) in 
telephone and postage and $7,000 (20.2%) in advertising.

     Federal income taxes increased $85,000 to $401,000 for the three-month 
period ended March 31, 1998, compared to $316,000 for the same period in 1997.

LIQUIDITY AND CAPITAL RESOURCES

     The Bank maintains a certain level of cash and other liquid assets to 
fund normal volumes of loan commitments, deposit withdrawals and other 
obligations. The Office of Thrift Supervision (the "OTS") regulations 
currently require each savings association to maintain, for each calendar 
quarter, an average daily balance of liquid assets (including cash and cash 
equivalent investments) equal to at least 4% of its liquidity base as of the 
end of the preceding calendar quarter or the average daily balance of its 
liquidity base during the preceding calendar quarter.  The liquidity base 
consists of net withdrawable accounts plus borrowings repayable in 12 months 
or less.  At March 31, 1998, the Bank's liquidity ratio was 26.4%, which was 
well in excess of the minimum regulatory requirement.

     The Bank's primary sources of funds are deposits and proceeds from 
payments of principal and interest on loans and the sale or maturity of 
investment securities and mortgage-backed securities. Management considers 
current liquidity and additional sources of funds adequate to meet 
outstanding liquidity needs.

     Federally insured savings banks, such as the Bank, are required by 
federal law and OTS regulations to maintain minimum levels of regulatory 
capital. The OTS has established the following minimum capital requirements: 
a risk-based capital ratio, a core capital ratio and a tangible capital 
ratio.  In addition to these minimum regulatory capital requirements, another 
provision of federal law grants the OTS broad power to take prompt corrective 
action to resolve the problems of undercapitalized institutions.  The OTS 
regulations implementing this statutory authority (the "prompt corrective 
action regulations") establish other capital thresholds which determine 
whether an institution will be deemed to be "well capitalized", "adequately 
capitalized", "undercapitalized", "significantly undercapitalized" or 
"critically undercapitalized".  The capital category to which an institution 
is assigned in turn determines the actions the OTS may take to address the 
institution's undercapitalization.  The capital regulations of the OTS 
exclude the effect of SFAS 115 for the purpose of calculating regulatory 
capital.

     The capital regulations currently require tangible capital of at least 
1.5% of adjusted total assets (as defined by regulation). Under the prompt 
corrective action regulations, however, an institution with a ratio of 
tangible capital to total assets below 2.0% is deemed to be "critically 
undercapitalized" and, as such, will be subject to a variety of sanctions 
under the prompt corrective action regulations, including, without 
limitation, limits on asset growth, restrictions on activities and, 
ultimately, the appointment of a receiver. Tangible capital generally 
includes common stockholders' equity and retained income and certain 
non-cumulative perpetual preferred stock and related income less intangible 
assets (other than specified amounts of purchased mortgage servicing rights) 
and certain non-includable investments in subsidiaries.

     The capital regulations also currently require core capital equal to at 
least 3.0% of adjusted total assets (as defined by regulation).  Under the 
prompt corrective action regulations, however, an institution that with a 

                                      11

<PAGE>

ratio of core capital to adjusted total assets of 3.0% will be deemed to be 
"adequately capitalized" only if the institution also has a composite rating 
of "1" under the Uniform Financial Institutions Rating System ("UFIRS").  All 
other institutions must maintain a minimum ratio of core capital to adjusted 
total assets of 4.0% in order to be deemed to be "adequately capitalized", 
and an institution, regardless of its UFIRS rating, will be deemed to be 
"well capitalized" only if it maintains a ratio of core capital to adjusted 
total assets of at least 5.0%.  If an institution fails to remain at least 
"adequately capitalized", the OTS may impose one or more of a variety of 
sanctions on the institution to address its undercapitalized condition, 
including, without limitation, requiring the submission of a capital plan, 
restricting growth and restricting the payment of capital distributions (such 
as dividends).  Core capital generally consists of tangible capital plus 
specified amounts of certain intangible assets.

     The OTS risk-based requirement currently requires associations to have 
total capital of at least 8.0% of risk-weighted assets.  In order to be 
considered "well capitalized" under the prompt corrective action regulations, 
however, an institution must maintain a ratio of total capital to total 
risk-weighted assets of at least 10.0% and a ratio of core capital to total 
risk-weighted assets of at least 6.0%.  Total capital consists of core 
capital plus supplementary capital, which consists of, among other things, 
maturing capital instruments, such as subordinated debt and mandatorily 
redeemable preferred stock, and a portion of the Bank's general allowance for 
losses on loans.

     As of March 31, 1998, the Bank exceeded all current minimum regulatory 
capital standards and was deemed to be "well capitalized" for purposes of the 
OTS's prompt corrective action regulations.  At March 31, 1998, the Bank's 
tangible capital was $26.3 million, or 6.8%, of adjusted total assets, which 
exceeded the 1.5% requirement by $20.5 million and exceeded the 2.0% 
"critically undercapitalized" threshold by $18.6 million.   In addition, at 
March 31, 1998, the Bank had core capital of $26.3 million, or 6.8%, of 
adjusted total assets, which exceeded the 4.0% requirement by $10.8 million 
and exceeded the 5.0% "well capitalized" threshold by $6.9 million.  The Bank 
had risk-based capital of $28.8 million at March 31, 1998, or 13.3%, of 
risk-adjusted assets, which exceeded the minimum risk-based capital 
requirement by $11.4 million and exceeded the 10.0% "well capitalized" 
threshold by $7.1 million.  Additionally, the Bank's $26.3 million of core 
capital equaled 12.1% of total risk-weighted assets, which exceeded the 6.0% 
"well capitalized" threshold by $15.8 million.

STOCK REPURCHASE

     On January 13, 1998, the Company's Board of Directors authorized the 
repurchase during 1998 of up to 137,000 shares of its common stock.  During 
the three-month period ending March 31, 1998, no shares of common stock were 
repurchased.  Through March 31, 1998, a total of 409,357 shares of common 
stock of the Company had been purchased under the previously completed 
repurchase programs at a total cost of $8.0 million.  As of March 31, 1998, 
the Company held 372,012 shares of its common stock as treasury stock.  There 
were no repurchases of shares of its common stock by the Company during the 
period from March 31, 1998 through May 8, 1998.

EXERCISE OF STOCK OPTIONS

     During the first quarter of 1998, stock options for 6,350 shares of 
common stock were exercised.  Options for 2,000 shares of common stock were 
exercised between March 31, 1998 and May 8, 1998.  No other notice was 
received between March 31, 1998 and May 8, 1998 from holders of options of 
their intent to exercise options.

                                      12

<PAGE>

DIVIDENDS

     In January, 1995, the Company began a regular quarterly dividend program 
and declared the first cash dividend since becoming a public company.  During 
1995 and 1996, cash dividends of $.10 per share were paid each quarter.  
During 1997 and for the first quarter of 1998, cash dividends of $.12 per 
share were paid each quarter.  On April 14, 1998, a cash dividend of $.12 per 
share was declared payable on May 29, 1998 to stockholders of record as of 
May 14, 1998. Future dividends will depend primarily upon earnings, financial 
condition and need for funds, as well as restrictions imposed by regulatory 
authorities regarding dividend payments and capital requirements.

YEAR 2000

     The federal banking regulators have issued several statements providing 
guidance to financial institutions on the steps the regulators expect 
financial institutions to take to become Year 2000 compliant.  Each of the 
federal banking regulators is also examining the financial institutions under 
its jurisdiction to assess each institution's compliance with the outstanding 
guidance.  If an institution's progress in addressing the Year 2000 problem 
is deemed by its primary federal regulator to be less than satisfactory, the 
institution will be required to enter into a memorandum of understanding with 
the regulator which will, among other things, require the institution to 
promptly develop and submit an acceptable plan for becoming Year 2000 
compliant and to provide periodic reports describing the institution's 
progress in implementing the plan.  Failure to satisfactorily address the 
Year 2000 problem may also expose a financial institution to other forms of 
enforcement action that its primary federal regulator deems appropriate to 
address the deficiencies in the institution's Year 2000 remediation program.

The Company licenses all software used in conducting its business from third 
party software vendors.  None of the Company's software has been internally 
developed.  The Company has developed a comprehensive list of all software 
and all hardware in use within the organization.  Every vendor has been 
contacted regarding the Year 2000 issue, and the Company is closely tracking 
the progress each is making in resolving the problems associated with the 
issue.  Software is upgraded as the vendors resolve Year 2000 problems.  The 
vendor of the primary software in use at the Bank is scheduled to release its 
Year 2000 compliant software in May 1998.  Testing standards are being 
formulated for comprehensive testing of this software during the last half of 
1998.  Additionally, the Company has begun the process of contacting its 
borrowers to determine the level of progress they have made in addressing the 
impact that the Year 2000 issue will have on their respective businesses.  At 
the present time, no situations that will require material cost expenditures 
to become fully compliant have been identified.

The Company has incurred costs totaling approximately $20,000 related to 
hardware and software upgrades because of the Year 2000 issue and anticipates 
incurring additional costs of approximately $40,000 during 1998, primarily 
related to additional planning and testing.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION 
REFORM ACT OF 1995

     This report contains certain forward-looking statements within the 
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 
21E of the Securities Exchange Act of 1934, as amended.  The Company intends 

                                      13

<PAGE>

such forward-looking statements to be covered by the safe harbor provisions 
for forward-looking statements contained in the Private Securities Reform Act 
of 1995, and is including this statement for purposes of these safe harbor 
provisions. Forward-looking statements, which are based on certain 
assumptions and describe future plans, strategies and expectations of the 
Company, are generally identifiable by use of the words "believe," "expect," 
"intend," "anticipate," "estimate," "project" or similar expressions.  The 
Company's ability to predict results or the actual effect of future plans or 
strategies is inherently uncertain.  Factors which could have a material 
adverse effect on the operations and future prospects of the Company and its 
subsidiaries include, but are not limited to, changes in: interest rates, 
general economic conditions, legislative/regulatory changes, monetary and 
fiscal policies of the U. S. Government, including policies of the U. S. 
Treasury and the Federal Reserve Board, the quality of composition of the 
loan or investment portfolios, demand for loan products, deposit flows, 
competition, demand for financial services in the Company's market area and 
account principles, policies and guidelines.  These risks and uncertainties 
should be considered in evaluating forward-looking statements and undue 
reliance should not be placed on such statements.  Further information 
concerning the Company and its business, including additional factors that 
could materially affect the Company's financial results, is included in the 
Company's filings with the Securities and Exchange Commission.









                                      14

<PAGE>

<TABLE>
<CAPTION>
                                                                     TABLE I
                                                   NET INTEREST INCOME ANALYSIS (UNAUDITED)
                                                     KANKAKEE BANCORP, INC. AND SUBSIDIARY


                                                           Three Months Ended March 31, 
                                                 1998                                         1997
                                 -------------------------------------       --------------------------------------
                                   Average                                     Average
                                 Outstanding   Interest         Yield/       Outstanding    Interest         Yield/
                                  Balance     Earned/Paid        Rate          Balance     Earned/Paid       Rate
                                 -------------------------------------       --------------------------------------
                                                              (Dollars in Thousands)
<S>                               <C>            <C>            <C>            <C>            <C>            <C>
Interest-earning assets:
  Loans receivable (1)           $250,410       $5,100          8.26%          $231,810       $4,679         8.19% 
  Mortgage-backed securities       28,700          468          6.61%            34,088          581         6.91% 
  Investments securities (2)       50,042          839          6.80%            50,534          847         6.80% 
  Other interest-earning assets    33,469          300          3.64%            16,324          147         3.65% 
  FHLB stock                        1,856           30          6.56%             1,956           33         6.84% 
                                 --------       ------                         --------       ------         
Total interest-earning assets     364,477        6,737          7.50%           334,712        6,287         7.62% 
                                 --------       ------                         --------       ------         

Other assets                       21,766                                        12,687 
                                 --------                                      --------

Total assets                     $386,243                                      $347,399 
                                 --------                                      --------
                                 --------                                      --------

Interest-bearing liabilities:
  Time deposits                  $196,457        2,714          5.60%          $174,890        2,404         5.57% 
  Savings deposits                 56,922          374          2.66%            52,594          349         2.71% 
  Demand and NOW deposits          65,823          410          2.53%            49,706          354         2.89% 
  Borrowings                       25,385          355          5.67%            31,115          460         6.00% 
                                 --------       ------                         --------       ------         
Total interest-bearing 
  liabilities                     344,587        3,853          4.53%           308,005        3,567         4.70% 
                                 --------       ------                         --------       ------         

Other liabilities                   3,424                                         2,799 
                                 --------                                      --------

Total liabilities                 348,011                                       310,804 
                                 --------                                      --------

Stockholders' equity               38,232                                        36,595 
                                 --------                                      --------

Total liabilities and
  stockholders' equity           $386,243                                      $347,399 
                                 --------                                      --------
                                 --------                                      --------

Net interest income                             $2,884                                        $2,720 
                                                ------                                        ------
                                                ------                                        ------         

Net interest rate spread                                        2.97%                                        2.92% 
                                                               ------                                        -----
                                                               ------                                        -----

Net earning assets                $19,890                                      $26,707 
                                 --------                                      --------
                                 --------                                      --------

Net yield on average interest-
 earning assets (net interest
 margin)                                                        3.21%                                        3.30% 
                                                               ------                                        -----
                                                               ------                                        -----

Average interest-earning assets to
 average interest-bearing liabilities           105.77%                                       108.67% 
                                                -------                                       -------
                                                -------                                       -------
</TABLE>

(1)  Calculated including loans held for sale, and net of deferred loan fees,
     loan discounts, loans in process and loan loss reserves.
(2)  Calculated including investment securities available-for-sale.


                                        15

<PAGE>

                                KANKAKEE BANCORP, INC.

                             PART II - OTHER INFORMATION


Item 1.   LEGAL PROCEEDINGS  -  There are no material pending legal proceedings
          to which the Company or the Bank is a party other than ordinary
          routine litigation incidental to their respective businesses.

Item 2.   CHANGES IN SECURITIES   -   None

Item 3.   DEFAULTS UPON SENIOR SECURITIES   -   None

Item 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS  - None

Item 5.   OTHER INFORMATION   -   None

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K

          Exhibits   -   Exhibit 27 - Financial Data Schedule
     
          Reports on Form 8-K  -  None 


                                       16

<PAGE>

                                KANKAKEE BANCORP, INC.

                                      SIGNATURES

     In accordance with the requirements of the Securities Exchange Act of 1934,
the Registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                        KANKAKEE BANCORP, INC.
                                        Registrant




Date:     May 8, 1998                  /s/ MICHAEL A. STANFA
          -----------                  ----------------------------
                                       Executive Vice President



Date:     May 8, 1998                  /s/ RONALD J. WALTERS
          -----------                  ----------------------------
                                       Vice President and Treasurer
                                      (Principal Financial
                                       and Accounting Officer)













                                       17