<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 September 30,
    1997.

                                      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 Incorporation            (I.R.S. Employer
 or Organization)                                        Identification Number)

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 November 4, 1997, there were 1,370,868 issued and outstanding
shares of the Issuer's Common Stock (exclusive of 379,132 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,
                 September 30, 1997 and December 31, 1996                 1 - 2

                 Statements of Income, Three Months
                 Ended September 30, 1997 and 1996                            3

                 Statements of Income, Nine Months
                 Ended September 30, 1997 and 1996                            4

                 Statements of Cash Flows, Nine Months
                 Ended September 30, 1997 and 1996                        5 - 6

                 Notes to Financial Statements                                7
   
         Item 2. Management's Discussion and Analysis
                 of Financial Condition and Results 
                 of Operations                                           8 - 17

Part II. OTHER INFORMATION                                    

         Item 1. Legal Proceedings                                           18

         Item 2. Changes in Securities                                       18

         Item 3. Defaults Upon Senior Securities                             18

         Item 4. Submission of Matters to a Vote of Security Holders         18

         Item 5. Other Information                                           18

         Item 6. Exhibits and Reports on Form 8-K                            18

         SIGNATURES                                                          19

<PAGE>

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



                                             September 30,        December 31,
                                                 1997                 1996
                                             ------------         ------------
Assets        
  Cash and due from banks                    $  4,507,028         $  4,291,857 
  Federal funds sold                            1,725,000            7,985,000 
  Money market funds                            6,128,459            4,883,256 
                                             ------------         ------------
  Cash and cash equivalents                    12,360,487           17,160,113 
                                             ------------         ------------
  Certificates of deposit                         350,000               50,000 
                                             ------------         ------------
  Securities:
  Investment securities:
     Available-for-sale, at fair value         44,644,777           51,345,158 
     Held-to-maturity, at cost 
        (fair value: September 30, 1997 -
     $69,752; December 31, 1996 - $72,223)         69,752               72,223 
                                             ------------         ------------
          Total investment securities          44,714,529           51,417,381 
                                             ------------         ------------
  Mortgage-backed securities:
     Available-for-sale, at fair value         31,269,102           34,467,377 
     Held-to-maturity, at cost 
        (fair value: September 30, 1997 -
     $215,556; December 31, 1996 - $255,058)      211,779              246,303 
                                             ------------         ------------
          Total mortgage-backed securities     31,480,881           34,713,680 
                                             ------------         ------------
  Non-marketable equity securities                501,100              501,100 
                                             ------------         ------------
  Loans                                       238,209,221          235,682,573 
  Less: Allowance for losses on loans           2,143,988            2,359,889 
                                             ------------         ------------
  Net loans                                   236,065,233          233,322,684 
                                             ------------         ------------
  Loans held for sale                             128,206              639,861 
  Real estate held for sale                     1,395,601              215,027 
  Federal Home Loan Bank stock, at cost         1,856,000            1,956,000 
  Office properties and equipment               5,389,399            4,721,060 
  Accrued interest receivable                   2,269,366            2,638,066 
  Prepaid expenses and other assets             1,206,046              914,693 
  Intangible assets                             2,219,661            2,393,422 
                                             ------------         ------------
Total assets                                 $339,936,509         $350,643,087
                                             ------------         ------------
                                             ------------         ------------


                                                                    (Continued)


                                        1
<PAGE>

<TABLE>
<CAPTION>

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

                                                                     September 30,    December 31,
                                                                        1997             1996
                                                                     ------------     ------------
<S>                                                                  <C>              <C>
Liabilities and stockholders' equity
  Liabilities:
     Deposits
     Noninterest bearing                                             $  7,991,909     $  7,643,667 
     Interest bearing                                                 268,223,048      269,704,540 
     Short term borrowings                                              9,940,000       26,820,000 
     Other borrowings                                                  13,775,000        7,725,000 
     Advance payments by borrowers 
        for taxes and insurance                                           412,976        1,436,595 
     Other liabilities                                                    741,348          819,064 
                                                                     ------------     ------------
  Total liabilities                                                   301,084,281      314,148,866 
                                                                     ------------     ------------

  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: September 30, 1997 -
       1,425,568; December 31, 1996 - 1,414,918                           17,500            17,500 
     Additional paid-in capital                                       16,100,115        16,181,726 
     Retained income, substantially restricted                        28,972,118        27,219,741 
     Less: Cost of treasury stock (324,432 shares at September 30,
      1997; 335,082 shares at December 31, 1996)                      (5,689,729)       (5,876,509)
     Unrealized losses on securities available-for-sale, net of
      related income taxes                                               (12,179)         (409,353)
                                                                     ------------     ------------

     Total stockholders' equity before Employee Stock Ownership
      Plan loan and Bank Incentive Plan and Trust                      39,387,825       37,133,105
     Employee Stock Ownership Plan loan                                  (529,238)        (604,844)
     Bank Incentive Plan and Trust                                         (6,359)         (34,040)
                                                                     ------------     ------------
     Total stockholders' equity                                        38,852,228       36,494,221 
                                                                     ------------     ------------
Total liabilities and stockholders' equity                           $339,936,509     $350,643,087 
                                                                     ------------     ------------
                                                                     ------------     ------------

See notes to consolidated financial statements (unaudited)
</TABLE>

                                        2
<PAGE>
<TABLE>
<CAPTION>

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

                                                          Three Months Ended September 30,
                                                          --------------------------------
                                                               1997           1996
                                                            ----------     ---------
<S>                                                         <C>            <C>
Interest income:
  Loans                                                     $4,738,304     $4,844,505 
  Mortgage-backed securities                                   545,629        487,471 
  Investment securities                                        917,335      1,139,502 
                                                            ----------     ---------
       Total interest income                                 6,201,268      6,471,478 
                                                            ----------     ---------
Interest expense:
  Deposits                                                   3,230,170      3,412,619 
  Borrowed funds                                               350,447        392,100 
                                                            ----------     ---------
       Total interest expense                                3,580,617      3,804,719 
                                                            ----------     ---------
  Net interest income                                        2,620,651      2,666,759 

Provision for losses on loans                                   20,675         23,300 
                                                            ----------     ---------
  Net interest income after provision for losses on loans    2,599,976      2,643,459 
Other income:
  Net gain on sale of securities available-for-sale              1,875         41,376 
  Net gain on sales of real estate held for sale                 2,946          6,137 
  Net gain on sales of loans held for sale                      23,663         14,859 
  Fee income                                                   248,407        210,158 
  Insurance commissions                                         44,364         35,877 
  Other                                                        103,267        819,535 
                                                            ----------     ---------
       Total other income                                      424,522      1,127,942 
                                                            ----------     ---------
Other expenses:
  Compensation and benefits                                  1,075,164      1,075,314 
  Occupancy                                                    207,449        173,479 
  Furniture and equipment                                      118,919        105,889 
  Federal insurance premiums                                    41,781      1,867,470 
  Advertising                                                   50,802         31,095 
  Provision for losses on repossessed assets                     1,104              - 
  Data processing services                                      65,458         70,884 
  Telephone and postage                                         56,987         74,952 
  Amortization of intangible assets                             57,921         57,920 
  Other general and administrative                             327,475        354,913 
                                                            ----------     ---------
       Total other expenses                                  2,003,060      3,811,916 
                                                            ----------     ---------
  Income before income taxes                                 1,021,438        (40,515)
  Income taxes                                                 285,890        (13,760)
                                                            ----------     ---------
       Net income                                           $  735,548     $  (26,755)
                                                            ----------     ---------
                                                            ----------     ---------

  Earnings per share                                             $0.49         ($0.02) 
                                                                 -----         ------
                                                                 -----         ------
</TABLE>

See notes to consolidated financial statements (unaudited)


                                        3
<PAGE>
<TABLE>
<CAPTION>
                                           CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                                               KANKAKEE BANCORP, INC. AND SUBSIDIARY

                                                          Nine Months Ended September 30,
                                                          -------------------------------
                                                               1997           1996
                                                            -----------    -----------
<S>                                                         <C>            <C>
Interest income:
  Loans                                                     $14,098,353    $14,315,785 
  Mortgage-backed securities                                  1,695,879      1,603,315 
  Investment securities                                       2,941,307      3,434,050 
                                                            -----------    -----------
       Total interest income                                 18,735,539     19,353,150 
                                                            -----------    -----------
Interest expense:
  Deposits                                                    9,527,338     10,229,822 
  Borrowed funds                                              1,160,946      1,234,834 
                                                            -----------    -----------
       Total interest expense                                10,688,284     11,464,656 
                                                            -----------    -----------
  Net interest income                                         8,047,255      7,888,494 

Provision for losses on loans                                    20,675         61,397 
                                                            -----------    -----------
  Net interest income after provision for losses on loans     8,026,580      7,827,097 
Other income:
  Net gain on sale of securities available-for-sale               1,875         12,567 
  Net gain (loss) on sales of real estate held for sale          (7,646)        44,565 
  Net gain (loss) on sales of loans held for sale                35,560         (5,209)
  Fee income                                                    744,593        574,805 
  Insurance commissions                                          94,944         76,022 
  Other                                                         301,302      1,029,793 
                                                            -----------    -----------
       Total other income                                     1,170,628      1,732,543 
                                                            -----------    -----------
Other expenses:
  Compensation and benefits                                   3,278,536      3,355,997 
  Occupancy                                                     562,741        524,347 
  Furniture and equipment                                       358,051        272,975 
  Federal insurance premiums                                    128,453      2,186,996 
  Advertising                                                   164,760         96,774 
  Provision for losses on repossessed assets                      6,534              - 
  Data processing services                                      212,386        245,998 
  Telephone and postage                                         183,195        219,921 
  Amortization of intangible assets                             173,762        173,762 
  Other general and administrative                              982,642      1,210,393 
                                                            -----------    -----------
       Total other expenses                                   6,051,060      8,287,163 
                                                            -----------    -----------
  Income before income taxes                                  3,146,148      1,272,477 
  Income taxes                                                  881,910        298,761 
                                                            -----------    -----------
       Net income                                           $ 2,264,238    $  973,716 
                                                            -----------    -----------
                                                            -----------    -----------

  Earnings per share                                              $1.50          $0.64 
                                                                  -----          -----
                                                                  -----          -----
</TABLE>

See notes to consolidated financial statements (unaudited)


                                        4
<PAGE>

<TABLE>
<CAPTION>
                      CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
                          KANKAKEE BANCORP, INC. AND SUBSIDIARY

                                                          Nine Months Ended September 30,
                                                          -------------------------------
                                                                1997            1996
                                                            ------------    ------------
<S>                                                         <C>             <C>
Cash flows from operating activities
  Net income                                                $  2,264,238    $    973,716
  Adjustments to reconcile net income to net cash
    provided by operating activities:
      Provision for losses on loans                               20,675          61,397 
      Provision for losses on repossessed assets                   6,534               - 
      Depreciation and amortization                              570,362         511,222 
      Amortization of investment premiums and discounts, net      95,243         289,809 
      Accretion of loan fees and discounts, net                  (33,549)        (90,426)
      Deferred income tax benefit                                (25,662)        (13,710)
      Origination of loans held for sale                      (3,498,789)     (4,776,690)
      Proceeds from sales of loans                             4,046,004       4,305,598 
      (Increase) decrease in interest receivable                 368,700         (13,522)
      Decrease in interest payable on deposits                   (17,764)        (44,644)
      Proceeds from sales of trading securities                        -      21,412,500 
      Purchase of trading securities                                   -     (21,644,844)
      Net (gain) loss on sales of loans                          (35,560)          5,209 
      Net gain on sales of securities                             (1,875)        (12,567)
      Net (gain) loss on sales of real estate held for sale        7,646         (44,565)
      Net gain on sale of branch                                       -        (707,675)
      Other, net                                                 (27,564)      1,084,919 
                                                            ------------    ------------
  Net cash from operating activities                           3,738,639       1,295,727 
                                                            ------------    ------------

Cash flows from investing activities
  Investment securities:
      Available-for-sale:
        Purchases                                             (2,188,976)     26,961,940)
        Proceeds from sales                                    3,001,875       4,290,751 
        Proceeds from calls and maturities                     6,189,000      14,500,000 
      Held-to-maturity:    
        Proceeds from maturities                                   2,471           2,322 
  Mortgage-backed securities:
      Available-for-sale
        Purchases                                                      -      (2,967,588)
        Proceeds from maturities and paydowns                  3,405,164       7,831,689 
      Held-to-maturity:
      Proceeds from maturities and paydowns                       34,524         108,192 
      Purchases of certificates of deposit                      (705,500)       (826,640)
      Proceeds from maturities of certificates of deposit        405,500       1,064,140 
      Proceeds from sales of real estate                         126,928         939,361 
      Net loan fees and costs deferred                          (134,182)        144,349 
      Loans originated                                       (63,491,802)    (57,384,896)
      Loans purchased                                         (1,735,000)     (1,000,000)
      Principal collected on loans                            61,302,528      49,824,039 
      Purchases of office properties and equipment, net       (1,064,940)       (369,523)
      Cash transferred to buyer on sale of branch                      -      (3,852,993)
      Payment of acquisition costs                                     -         (22,868)
                                                            ------------    ------------
  Net cash from investing activities                           5,147,590     (14,681,605)
                                                            ------------    ------------
                                                                              (continued)
</TABLE>


                                        5
<PAGE>
<TABLE>
<CAPTION>
                                   CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (continued)
                                               KANKAKEE BANCORP, INC. AND SUBSIDIARY

                                                          Nine Months Ended September 30,
                                                          -------------------------------
                                                                1997            1996
                                                            ------------    ------------
<S>                                                         <C>             <C>
Cash flows from financing activities
  Net increase (decrease) in non-certificate
    of deposit accounts                                     ($3,473,680)      1,451,110 
  Net increase in certificate of deposit accounts             2,358,194       5,036,049 
  Net decrease in advance payments by
    borrowers for taxes and insurance                        (1,333,677)     (1,370,363)
  Proceeds from short-term borrowings                        52,720,000      34,460,000 
  Repayments of short-term borrowings                       (69,600,000)    (31,740,000)
  Proceeds from other borrowings                             27,050,000         650,000 
  Repayments of other borrowings                            (21,000,000)     (2,000,000)
  Proceeds from exercise of stock options                       105,169           6,912 
  Dividends paid                                               (511,861)       (430,765)
  Purchase of treasury stock                                          -        (761,963)
                                                            ------------    ------------
  Net cash from financing activities                        (13,685,855)      5,300,980 
                                                            ------------    ------------

Decrease in cash and cash equivalents                        (4,799,626)     (8,084,898)
Cash and cash equivalents:
  Beginning of year                                           17,160,113     25,694,509 
                                                            ------------    ------------
  End of year                                                $12,360,487    $17,609,611 
                                                            ------------    ------------
                                                            ------------    ------------

Supplemental disclosures of cash flow information
 Cash paid during the year for:
  Interest on deposits                                        $9,509,600    $ 10,274,500 
                                                            ------------    ------------
                                                            ------------    ------------
  Interest on borrowed funds                                  $1,223,700    $  1,285,800 
                                                            ------------    ------------
                                                            ------------    ------------


Supplemental disclosures of non-cash investing activities:
 Real estate acquired through foreclosure                     $1,328,781    $   224,830 
                                                            ------------    ------------
                                                            ------------    ------------


Sale of Branch:
  Cash paid                                                                 $ 3,774,524
                                                                            ------------

Assets disposed:
  Cash                                                                      $   (78,469)
  Loans                                                                      (3,845,182)
  Accrued interest receivable                                                   (18,400)
  Premises and equipment                                                       (238,181)
  Other assets                                                                  (15,468)
Liabilities assumed by buyer:
  Non-certificates of deposit                                                 3,684,830 
  Certificates of deposit                                                     4,922,897 
  Accrued interest payable                                                       15,966 
  Escrows on loans                                                               51,664 
  Other liabilities                                                               2,542 
Gain on sale of branch                                                         (707,675)
                                                                            ------------
                                                                             $3,774,524
                                                                            ------------
                                                                            ------------
</TABLE>

See notes to consolidated financial statements (unaudited)


                                        6
<PAGE>

                   KANKAKEE BANCORP, INC. AND SUBSIDIARY

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
                             September 30, 1997

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, 1996 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 and nine-month periods ended September 30, 1997 are not 
necessarily indicative of the results that may be expected for the year 
ending December 31, 1997. 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, 1996.

Note 2 - Earnings Per Share

    Earnings per share of common stock have been determined by dividing net 
income for the period by the weighted 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.  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 September 30, 1997, 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 reduced by $12,179.  This represents the amount by which the book value 
of the available-for-sale securities and the available-for-sale 
mortgage-backed securities exceeded the market value, net of an income tax 
benefit of $6,274.  A decrease in market interest rates during the nine 
months ended September 30, 1997 resulted in a $397,174 increase 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 nine months.  At the 
end of 1996, the book value of the available-for-sale securities portfolio 
exceeded the market value by $409,353, net of income tax benefit.


                                        7
<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 eight branch offices located in the 
communities of Ashkum, Bourbonnais, Champaign, 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.
 

FINANCIAL CONDITION

    Total assets of the Company decreased by $10.7 million, or 3.1%, to 
$339.9 million at September 30, 1997 from $350.7 million at December 31, 1996.

    Cash and cash equivalents decreased by $4.8 million, or 28.0%, from $17.2 
million at December 31, 1996 to $12.4 million at September 30, 1997.  The 
decrease was primarily attributable to decreases in borrowings, deposits and 
advance payments by borrowers for taxes and insurance, and an increase in 
loans, which were partially offset by a decrease in investment securities 
available-for-sale and a decrease in mortgage-backed securities 
available-for-sale.

    During the nine-month period ended September 30, 1997, net loans 
receivable increased by $2.8 million (1.2%) from $233.3 million to $236.1 
million. This was primarily the result of the origination (or purchase) of 
$33.4 million of real estate loans and the origination (or purchase) of $31.8 
million of consumer and commercial business loans, offset by loan repayments 
which totaled $61.3 million. 

    Securities available-for-sale decreased by $6.7 million, or 13.0%, to 
$44.6 million at September 30, 1997 from $51.3 million at December 31, 1996 
as the result of the maturity of $6.2 million in such securities and the sale 
of $3.0 million in such securities, partially offset by the purchase of $2.2 
million in such securities, and by the net change in market value adjustment.

    Mortgage-backed securities available-for-sale decreased by $3.2 million, 
or 9.3%, to $31.3 million at September 30, 1997 from $34.5 million at 
December 31, 1996.  The decrease resulted from maturities of $3.4 million of 
such securities, and by the change in market value adjustment.

    Deposits decreased by $1.1 million, or 0.4%, to $276.2 million at 
September 30, 1997 from $277.3 million at December 31, 1996. The decrease 
resulted from a $3.5 million decrease in passbook, NOW and money market 
accounts, partially offset by a $2.4 million increase in certificate of 
deposit accounts.


                                        8
<PAGE>

    Total borrowings, which decreased by $10.8 million, or 31.4%, to $23.7 
million at September 30, 1997 from $34.5 million at December 31, 1996, 
consisted of $13.8 million in advances from the Federal Home Loan Bank of 
Chicago (the "FHLB") and $9.9 million in funds borrowed using mortgage-backed 
securities available-for-sale as collateral.

    Real estate held for sale increased by $1.2 million, or 549.0%, to $1.4 
million at September 30, 1997, from $215,000 at December 31, 1996.  The 
increase was the result of the second quarter transfer of one property from 
loans to real estate held for sale.  The property, a commercial retail 
building in Champaign, Illinois, was deeded to the Bank.  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 currently 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 which it originates. In 
addition, the Company has continued to build its portfolio of adjustable rate 
commercial real estate loans. The Company has also increased 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. 

NON-PERFORMING ASSETS AND ALLOWANCE FOR LOSSES ON LOANS

    The Company's non-performing assets decreased to $3.6 million at 
September 30, 1997 as compared to $4.1 million at December 31, 1996. 
Non-performing assets represented 1.05% and 1.16% of total assets at 
September 30, 1997 and December 31, 1996, respectively.  During the 
nine-month period ended September 30, 1997, non-performing commercial real 
estate loans, non-performing construction and development loans, 
non-performing commercial business loans and non-performing one-to-four 
family loans decreased by $1.7 million, $23,000, $12,000 and $80,000, 
respectively.  These decreases were partially offset by increases of $1.2 
million and $85,000 in foreclosed assets and consumer loans, respectively.  
The ratio of the allowance for losses on loans to non-performing loans was 
98.8% as of September 30, 1997 as compared to 60.9% as of December 31, 1996.  
The increase in this ratio, which excludes foreclosed assets, was primarily 
the result of a decrease of $1.7 million in non-performing loans.

    The Company classified $1.4 million of its assets as Special Mention, 
$4.4 million as Substandard and $34,000 as Loss as of September 30, 1997.  No 
assets were classified as Doubtful at September 30, 1997.  This represents a 
decrease of $846,000 in the Special Mention category and a net increase of 
$98,000 in the other categories from the December 31, 1996 totals for 
classified assets.  The ratio of classified assets to total assets (including 
items classified as Special Mention) was 1.72% as of September 30, 1997 as 
compared to 1.88% as of December 31, 1996.  The ratio of the allowance for 
losses on loans to classified assets increased to 36.7% as of September 30, 
1997 as compared to 35.8% as of December 31, 1996.

    The allowance for losses on loans is established through a provision for 
losses on loans based 


                                        9
<PAGE>

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.

RESULTS OF OPERATIONS
1996 COMPARATIVE NUMBERS

    Two events during the third quarter of 1996 significantly impacted net 
income for both the three and nine-month periods ended September 30, 1996.  
The combined impact of these two events was a loss of $655,000, or $.44 per 
share, for both the three and nine-month periods of 1996.  The impact of 
these events should be considered in the comparative analyses between the 
three and nine-month periods ended September 30, 1996 and the comparable 1997 
periods.

    The first event was a one-time Federal Deposit Insurance Corporation 
assessment on the federally-insured deposit base of the Bank. The assessment 
was required by federal legislation to increase the balance of the Savings 
Association Insurance Fund.  A $1.7 million expense was recorded during the 
third quarter of 1996.  Net of tax benefit, the special assessment reduced 
net income for both the three-month and nine-month periods ended September 
30, 1996 by $1.1 million, or $.75 per share.

    The second event was the sale, during the third quarter of 1996, by the 
Bank of a branch office which resulted in a gain of $708,000. Net of 
provision for income taxes, net income for both the three and nine-month 
periods ended September 30, 1996 was increased by $467,000, or $.31 per share.

RESULTS OF OPERATIONS 
THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

    Net income for the three-month period ended September 30, 1997 was 
$736,000 compared to a loss of $27,000 for the same period in 1996. This 
represents a $763,000 increase in net income for the 1997 period.  The 
increase in net income resulted from a $1.8 million decrease in general and 
administrative expenses, partially offset by a $703,000 decrease in other 
income, a $46,000 decrease in net interest income and a $300,000 increase in 
federal income tax expense.  The changes in general and administrative 
expense and in other income relate to the third quarter 1996 events discussed 
earlier.

    Net interest income decreased $46,000, or 1.7%, during the three-month 
period ended September 30, 1997 compared to the three-month period ended 
September 30, 1996.

    The table presented on page 16 ("Table I"), sets forth an analysis of the 
Company's net interest 


                                        10
<PAGE>

income for the three-month periods ended September 30, 1997 and 1996.

    As Table I indicates, interest income decreased $271,000, or 4.2%, to 
$6.2 million for the three-month period ended September 30, 1997 from $6.5 
million for the same period in 1996.  The decrease in interest income was the 
result of a decrease in the average balance of interest-earning assets to 
$326.5 million during the 1997 period from $341.0 million during the 1996 
period and by a slight decrease in the yield earned on interest-earning 
assets to 7.54% during the 1997 period from 7.55% during the 1996 period.  
The decrease in the average balance of interest-earning assets was primarily 
due to decreases in balances of investment securities during the period.

    Interest expense decreased $225,000, or 5.9%, to $3.6 million for the 
three-month period ended September 30, 1997 from $3.8 million for the same 
period in 1996.  The decrease in interest expense was the result of a 
decrease in the average yield on interest-bearing liabilities and a decrease 
in the average outstanding balance of interest-bearing liabilities to 4.71% 
and $301.9 million, respectively, during the 1997 period from 4.75% and 
$318.7 million, respectively, during the 1996 period.  The decrease in the 
average yield on interest-bearing liabilities was attributable to a decrease 
in the average yield of certificates of deposit during the period.  Higher 
yielding interest-bearing liabilities, consisting of certificates of deposit 
and borrowings, represented 66.8% of interest-bearing liabilities during the 
1997 period, compared to 66.3% during the 1996 period. Average outstanding 
borrowings during the 1997 period were 7.9% of interest-bearing liabilities 
as compared to 8.6% during the 1996 period.

    The provision for losses on loans totaled $21,000 for the three-month 
period ended September 30, 1997 compared to $23,000 for the same period in 
1996.

    Other income for the three-month period ended September 30, 1997 
decreased $703,000, or 62.4%, to $425,000 compared to $1.1 million for the 
same period in 1996.  A decrease was anticipated due to the $708,000 gain on 
the sale of a branch during the 1996 period.  The decrease was also 
attributable to a decrease of $40,000 in profit on the sale of securities 
available-for-sale which was partially offset by an increase of $38,000 in 
fee income.  The increase in fee income was the result of an ongoing review 
of the Bank's fee structure.

    Other expenses for the three-month period ended September 30, 1997 
decreased $1.8 million, or 47.5%, to $2.0 million from $3.8 million during 
the 1996 period.  The decrease was primarily attributable to a $1.8 million 
decrease in federal insurance premiums. Federal insurance premiums for the 
1996 period included the special one-time assessment of $1.7 million.  The 
remaining $126,000 decrease in federal insurance premiums was due to the 
lower premium rate in effect beginning in 1997.  The decrease was also 
attributed to decreases of $18,000 and $27,000 in telephone and postage and 
other expense, respectively.  These decreases were partially offset by 
increases of $34,000 in occupancy, $13,000 in furniture and equipment expense 
and $20,000 in advertising.

    Federal income taxes increased $300,000 to $286,000 for the three-month 
period ended September 30, 1997, compared to a benefit of $14,000 for the 
same period in 1996.

RESULTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

    Net income for the nine-month period ended September 30, 1997 was $2.3 
million compared to 


                                        11
<PAGE>

$974,000 for the same period in 1996.  The difference in net income of $1.3 
million represents a 132.5% increase in net income for the 1997 period.  The 
increase in net income resulted from a $159,000 increase in net interest 
income, a $41,000 decrease in provision for losses on loans, and a $2.2 
million decrease in other expenses, which were partially offset by a decrease 
of $562,000 in other income and a $583,000 increase in federal income tax 
expense.

    Net interest income increased by $159,000, or 2.0%, during the nine-month 
period ended September 30, 1997 compared to the nine-month period ended 
September 30, 1996.

    The table presented on page 17 ("Table II"), sets forth an analysis of 
the Company's net interest income for the nine months ended September 30, 
1997 and 1996.

    As Table II indicates, interest income decreased $618,000, or 3.2% , to 
$18.7 million for the nine-month period ended September 30, 1997 from $19.4 
million for the same period in 1996.  The decrease in interest income was the 
result of a decrease in the average balance of interest-earning assets to 
$330.2 million during the 1997 period from $342.7 million, during the 1996 
period, which was partially offset by an increase in the yield earned on 
interest-earning assets to 7.59% during the 1997 period from 7.54% during the 
1996 period.  The decrease in the average balance of interest-earning assets 
was due primarily to decreases of $7.8 million and $3.6 million in the 
average balances of investment securities and other interest-earning assets, 
respectively, during the 1997 period.

    Interest expense decreased $777,000, or 6.8%, to $10.7 million for the 
nine-month period ended September 30, 1997 from $11.5 million for the same 
period in 1996.  The decrease in interest expense was the result of a 
decrease in the average yield on interest-bearing liabilities and a decrease 
in the average outstanding balance of interest-bearing liabilities to 4.69% 
and $304.7 million, respectively, during the 1997 period from 4.79% and 
$319.5 million, respectively, during the 1996 period.

    The provision for losses on loans for the nine-month period ended 
September 30, 1997, was $21,000, compared to $61,000 for the same period in 
1996.  The decrease was primarily attributed to a modest increase in loans 
receivable, relative stability in the mix of loans receivable and minimal net 
charge-offs during the 1997 period, other than one charged-off item on which 
the specific reserve exceeded the actual charge-off.

    Other income for the nine-month period ended September 30, 1997 decreased 
$562,000, or 32.4%, to $1.2 million from $1.7 million for the same period in 
1996.  The decrease was attributable to decreases of $11,000, $52,000 and 
$728,000 in net gain on sale of securities available-for-sale, net gain on 
the sale of real estate held for sale and other income, respectively, which 
were partially offset by increases of $41,000, $170,000 and $19,000 in net 
gain on the sale of loans held for sale, fee income  and insurance 
commissions, respectively.  A decrease was anticipated in other income due to 
the $708,000 gain on the sale of a branch during the 1996 period.

    Other expenses for the nine-month period ended September 30, 1997 
decreased $2.2 million, or 27.0%, from the same period in 1996.  The decrease 
was attributable to decreases in federal insurance premiums, compensation and 
benefits, data processing services, telephone and postage and other general 
and administrative expense of $2.1 million, $77,500, $34,000, $37,000 and 
$228,000, respectively.  These decreases were partially offset by increases 
in occupancy, furniture and equipment and advertising expense of $38,000, 
$85,000 and $68,000, respectively.  Federal insurance premiums for the 1996 
period included the special one-time assessment of $1.7 million.  


                                        12
<PAGE>

The remaining $359,000 decrease in federal insurance premiums was due to the 
lower premium rate in effect beginning in 1997.  Cost savings continue to be 
realized from recommendations derived from an operational review of certain 
departments which was conducted in the last half of 1995.  The full impact of 
recommendations implemented during 1996 has been reflected in the operating 
results for 1997.

    Federal income taxes increased by $583,000, or 195.2%, to $882,000 for 
the nine-month period ended September 30, 1997, compared to $299,000 for the 
same period in 1996.

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") requires thrifts to 
maintain a minimum liquidity ratio (cash and cash equivalent investments to 
net withdrawable deposits and borrowings due within one year) of 5%. At 
September 30, 1997, the Bank's liquidity ratio was 11.7%, 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 to 
maintain a minimum level of regulatory capital. The OTS has established the 
following capital requirements: a risk-based capital ratio, a core capital 
ratio and a tangible capital ratio.  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). 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). 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. 
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 September 30, 
1997, the Bank exceeded all current minimum regulatory capital standards.

    At September 30, 1997, the Bank's tangible capital was $29.9 million, or 
9.0%, of adjusted total assets, which exceeded the 1.5% requirement by $24.9 
million. In addition, at September 30, 1997, the Bank had core capital of 
$29.9 million, or 9.0%, of adjusted total assets, which exceeded the 3.0% 
requirement by $20.0 million. The Bank had risk-based capital of $32.0 
million at September 30, 1997, or 16.3%, of risk-adjusted assets, which 
exceeded the minimum risk-based capital requirement by $16.3 million.


                                        13
<PAGE>

STOCK REPURCHASE

    On January 29, 1997, the Company announced that its Board of Directors 
had authorized the repurchase during 1997 of up to 142,000 shares of its 
common stock.  During the nine-month period ending September 30, 1997, no 
shares of common stock were repurchased. Through September 30, 1997, a total 
of 354,357 shares of common stock of the Company had been purchased under the 
previously completed repurchase programs at a total cost of $6.2 million.  As 
of September 30, 1997, the Company held 324,432 shares of its common stock as 
treasury stock.  On October 21, 1997, the Company purchased 55,000 shares of 
its common stock at a total cost of $1.8 million, under the current 
repurchase program.

EXERCISE OF STOCK OPTIONS

    During the third quarter of 1997, stock options for 400 shares of common 
stock were exercised.  During the nine months ended September 30, 1997, stock 
options for 10,650 shares of common stock were exercised.  Options for 300 
shares of common stock were exercised between September 30, 1997 and November 
4, 1997.  No other notice was received between September 30, 1997 and 
November 4, 1997 from holders of options of their intent to exercise options.

DIVIDENDS

    During 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 the first quarter of 1997, the dividend rate was increased 
by 20% to $.12 per share.  On October 15, 1997, a cash dividend of $.12 per 
share was declared payable on December 1, 1997 to stockholders of record as 
of November 14, 1997. 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.

BANK ACQUISITION

    On October 16, 1997, the Company announced that it had entered into an 
agreement to purchase for cash the Coal City National Bank ("CCNB") from Coal 
City Corporation, a multi-bank holding company headquartered in Chicago, 
Illinois.  Terms of the purchase were not disclosed, pending completion of 
due diligence.

    The $50 million asset CCNB is headquartered in Coal City, Illinois, which 
is 25 miles northwest of Kankakee.  CCNB also has full-service offices in 
nearby Diamond and Braidwood, Illinois.  The purchase, which is subject to 
regulatory approvals, is expected to be completed no later than the second 
quarter of 1998.  Under current plans, CCNB's offices will become 
full-service offices of the Bank.

ACCOUNTING DEVELOPMENTS

    In February 1997, the Financial Accounting Standards Board issued 
Statement of Financial Accounting Standards ("SFAS No. 128"), Earnings per 
Share.  SFAS No. 128 requires the 


                                        14
<PAGE>

presentation of both basic earnings per share and diluted earnings per share. 
 Basic earnings per share will be computed by dividing net income by the 
weighted-average number of common shares outstanding.  Diluted earnings per 
share will be computed in the same manner as currently used by Kankakee 
Bancorp, Inc., in computing earnings per share.  SFAS No. 128 will be 
effective for Kankakee Bancorp's 1997 annual report.  If SFAS No. 128 had 
been in effect during 1997, basic earnings per share would have been $.52 and 
$1.59 per share, and the diluted earnings per share would have been $.49 and 
$1.50 per share for the three months and nine months ended September 30, 
1997, respectively.
  

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 
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.


                                        15
<PAGE>

                                                   TABLE I
                                   NET INTEREST INCOME ANALYSIS (UNAUDITED)
                                    KANKAKEE BANCORP, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
                                                          Three Months Ended September 30,
                                                      1997                                    1996
                                      ----------------------------------    -----------------------------------
                                        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)                 $234,174       $4,738       8.03%       $235,365       $4,845       8.19%
  Mortgage-backed securities             32,100          546       6.75%         31,703          487       6.11% 
  Investments securities (2)             46,042          719       6.20%         59,009          991       6.68% 
  Other interest-earning assets          12,288          166       5.36%         12,987          116       3.55% 
  FHLB stock                              1,856           32       6.84%          1,956           33       6.71% 
                                       --------       ------                   --------       ------

Total interest-earning asset            326,460        6,201       7.54%        341,020        6,472       7.55% 
                                       --------                                --------       ------

Other assets                             15,487                                  15,274 
                                       --------                                -------- 

Total assets                           $341,947                                $356,294 
                                       --------                                -------- 
                                       --------                                --------

Interest-bearing liabilities:
  Time deposits                        $177,894        2,530       5.64%       $183,933        2,655       5.74% 
  Savings deposits                       51,862          356       2.72%         54,600          369       2.69% 
  Demand and NOW deposits                48,239          344       2.83%         52,624          389       2.94% 
  Borrowings                             23,855          350       5.82%         27,505          392       5.67% 
                                       --------       ------                   --------       ------

Total interest-bearing liabilities      301,850        3,580       4.71%        318,662        3,805       4.75% 
                                       --------       ------                   --------       ------

Other liabilities                         1,666                                   2,175 
                                       --------                                --------

Total liabilities                       303,516                                 320,837 
                                       --------                                --------

Stockholders' equity                     38,431                                  35,457 
                                       --------                                -------- 

Total liabilities and
 stockholders' equity                  $341,947                                $356,294 
                                       --------                                -------- 
                                       --------                                -------- 

Net interest income                                   $2,621                                  $2,667 
                                                      ------                                  ------
                                                      ------                                  ------

Net interest rate spread                                           2.83%                                   2.80% 
                                                                   -----                                   -----
                                                                   -----                                   -----

Net earning assets                      $24,610                                 $22,358 
                                       --------                                --------  
                                       --------                                -------- 

Net yield on average interest-
 earning assets (net interest
 margin)                                                           3.19%                                   3.11% 
                                                                   -----                                   -----
                                                                   -----                                   -----

Average interest-earning assets to
 average interest-bearing liabilities                108.15%                                 107.02% 
                                                     -------                                 -------
                                                     -------                                 -------
</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.


                                        16
<PAGE>

                                           TABLE II
                            NET INTEREST INCOME ANALYSIS (UNAUDITED)
                             KANKAKEE BANCORP, INC. AND SUBSIDIARY

<TABLE>
<CAPTION>
                                                          Nine Months Ended September 30,
                                                      1997                                    1996
                                      ----------------------------------    -----------------------------------
                                        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)                 $232,457       $14,098     8.11%       $232,967       $14,316       8.21% 
  Mortgage-backed securities             33,078         1,696     6.86%         33,739         1,603       6.35% 
  Investments securities (2)             48,488         2,288     6.31%         56,331         2,751       6.52% 
  Other interest-earning assets          14,243           557     5.23%         17,865           591       4.42% 
  FHLB stock                              1,896            96     6.77%          1,833            92       6.70% 
                                       --------       -------                 --------       -------

Total interest-earning assets           330,162        18,735     7.59%        342,735        19,353       7.54% 
                                       --------       -------                 --------       ------- 

Other assets                             14,516                                 15,525 
                                       --------                               --------

Total assets                           $344,678                               $358,260 
                                       --------                               --------     
                                       --------                               --------   

Interest-bearing liabilities:
  Time deposits                        $176,524         7,416     5.62%       $184,188         7,962       5.77% 
  Savings deposits                       52,154         1,061     2.72%         54,515         1,096       2.69% 
  Demand and NOW deposits                49,203         1,050     2.85%         52,364         1,172       2.99% 
  Borrowings                             26,809         1,161     5.79%         28,401         1,235       5.81% 
                                       --------       -------                 --------       -------

Total interest-bearing liabilities      304,690        10,688     4.69%        319,468        11,465       4.79% 
                                       --------       -------                 --------       -------

Other liabilities                         2,546                                  3,077 
                                       --------                               -------- 

Total liabilities                       307,236                                322,545 
                                       --------                               -------- 

Stockholders' equity                     37,442                                 35,715 
                                       --------                               --------  

Total liabilities and
 stockholders' equity                  $344,678                               $358,260 
                                       --------                               -------- 
                                       --------                               -------- 

Net interest income                                    $8,047                                 $7,888 
                                                      -------                                ------- 
                                                      -------                                ------- 

Net interest rate spread                                          2.90%                                    2.75% 
                                                                  -----                                    -----
                                                                  -----                                    -----

Net earning assets                      $25,472                                $23,267 
                                       --------                               --------   
                                       --------                               --------   

Net yield on average interest-
 earning assets (net interest
 margin)                                                          3.26%                                    3.07% 
                                                                  -----                                    -----
                                                                  -----                                    -----

Average interest-earning assets to
 average interest-bearing liabilities                 108.36%                                107.28% 
                                                      -------                                ------- 
                                                      -------                                ------- 

</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.


                                        17
<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 


                                        18
<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:    November 4, 1997              /s/ MICHAEL A. STANFA  
     ---------------------------       ----------------------------------
                                       Executive Vice President



Date:    November 4, 1997             /s/ RONALD J. WALTERS  
     ---------------------------      -----------------------------------
                                      Vice President and Treasurer
                                      (Principal Financial
                                      and Accounting Officer)





                                        19