<PAGE>

                                    UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C 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 June 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  0-20804

                                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 August 11, 1997, there were 1,425,168 issued and outstanding shares of the
Issuer's Common Stock (exclusive of 324,832 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,
                 June 30, 1997 and December 31, 1996                 1 - 2

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

                 Statements of Income, Six Months
                 Ended June 30, 1997 and 1996                          4

                 Statements of Cash Flows, Six Months
                 Ended June 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

                                               June 30,        December 31,
                                                 1997              1996
                                           -------------      -------------
Assets
  Cash and due from banks                  $   6,232,256      $   4,291,857
  Federal funds sold                           1,650,000          7,985,000
  Money market funds                           5,814,290          4,883,256
                                           -------------      -------------
  Cash and cash equivalents                   13,696,546         17,160,113
                                           -------------      -------------
  Certificates of deposit                        250,000             50,000
                                           -------------      -------------
  Securities:
  Investment securities:
    Available-for-sale, at fair value         48,215,325         51,345,158
    Held-to-maturity, at cost
      (fair value: June 30, 1997 -
       $69,752; December 31, 1996 - $72,223)      69,752             72,223
                                           -------------      -------------
       Total investment securities            48,285,077         51,417,381
                                           -------------      -------------
Mortgage-backed securities:
    Available-for-sale, at fair value         32,441,595         34,467,377
    Held-to-maturity, at cost
    (fair value: June 30, 1997 -
    $224,718; December 31, 1996 - $255,058)      220,795            246,303
                                           -------------      -------------
      Total mortgage-backed securities        32,662,390         34,713,680
                                           -------------      -------------
  Non-marketable equity securities               501,100            501,100
                                           -------------      -------------
  Loans                                      233,935,162        235,682,573
  Less: Allowance for losses on loans          2,157,972          2,359,889
                                           -------------      -------------
  Net loans                                  231,777,190        233,322,684
                                           -------------      -------------
  Loans held for sale                            636,052            639,861
  Real estate held for sale                    1,450,135            215,027
  Federal Home Loan Bank stock, at cost        1,856,000          1,956,000
  Office properties and equipment              4,925,669          4,721,060
  Accrued interest receivable                  2,533,735          2,638,066
  Prepaid expenses and other assets              826,908            914,693
  Intangible assets                            2,277,581          2,393,422
                                           -------------      -------------
Total assets                                $341,678,383       $350,643,087
                                           =============      =============

                                                                  (Continued)
                                       1

<PAGE>

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

                                               June 30,          December 31,
                                                 1997                1996
                                             -----------         --------------
Liabilities and stockholders' equity
  Liabilities:
    Deposits
    Noninterest bearing                     $  8,366,037           $  7,643,667
    Interest bearing                         269,573,938            269,704,540
    Short term borrowings                     12,700,000             26,820,000
    Other borrowings                          11,225,000              7,725,000
    Advance payments by borrowers
      for taxes and insurance                  1,429,636              1,436,595
    Other liabilities                            490,314                819,064
                                            ------------           ------------
  Total liabilities                          303,784,925            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:
      June 30, 1997 - 1,425,168;
      December 31, 1996 - 1,414,918               17,500                 17,500
    Additional paid-in capital                16,103,180             16,181,726
    Retained income,
      substantially restricted                28,407,591             27,219,741
    Less cost of treasury stock
      (324,832 shares at June 30, 1997;
       335,082 shares at December 31, 1996)   (5,696,744)            (5,876,509)
    Unrealized losses on securities
      available-for-sale, net of
      related income taxes                      (396,112)              (409,353)
                                            ------------           ------------
    Total stockholders' equity before
      Employee Stock Ownership
    Plan loan and Bank Incentive
      Plan and Trust                          38,435,415             37,133,105
    Employee Stock Ownership Plan loan          (529,238)              (604,844)
    Bank Incentive Plan and Trust                (12,719)               (34,040)
                                            ------------           ------------
    Total stockholders' equity                37,893,458             36,494,221
                                            ------------           ------------
Total liabilities and
  stockholders' equity                      $341,678,383           $350,643,087
                                            ============           ============

See notes to consolidated financial statements (unaudited)

                                       2

<PAGE>

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

                                                    Three Months Ended June 30,
                                                 -------------------------------
                                                     1997                1996 
                                                 -------------------------------

Interest income:
  Loans                                           $4,680,716         $4,785,922
  Mortgage-backed securities                         568,970            543,180
  Investment securities                              997,118          1,152,449
                                                  ----------         ----------
     Total interest income                         6,246,804          6,481,551
                                                  ----------         ----------
Interest expense:
  Deposits                                         3,189,921          3,424,131
  Borrowed funds                                     350,726            407,676
                                                  ----------         ----------
     Total interest expense                        3,540,647          3,831,807
                                                  ----------         ----------
  Net interest income                              2,706,157          2,649,744

Provision for losses on loans                          3,550             28,650
                                                  ----------         ----------
  Net interest income after provision
    for losses on loans                            2,702,607          2,621,094
Other income:
  Net loss on sale of securities
    available-for-sale                                     -             (9,375)
  Net gain (loss) on sales of real estate
    held for sale                                    (13,458)            20,710
  Net gain (loss) on sales of loans
    held for sale                                      5,966            (30,404)
  Fee income                                         247,225            192,925
  Insurance commissions                               25,627             20,048
  Other                                              104,983            146,502
                                                  ----------         ----------
    Total other income                               370,343            340,406
                                                  ----------         ----------
Other expenses:
  Compensation and benefits                        1,075,279          1,098,643
  Occupancy                                          178,046            168,523
  Furniture and equipment                            124,753            103,148
  Federal insurance premiums                          54,162            163,133
  Advertising                                         80,918             50,551
  Data processing services                            70,818             70,558
  Telephone and postage                               66,218             59,179
  Amortization of intangible assets                   57,920             57,920
  Other general and administrative                   325,856            395,517
                                                  ----------         ----------
    Total other expenses                           2,033,970          2,167,172
                                                  ----------         ----------
  Income before income taxes                       1,038,980            794,328
  Income taxes                                       280,310            190,430
                                                  ----------         ----------
    Net income                                    $  758,670         $  603,898
                                                  ==========         ==========
  Earnings per share                                  $ 0.50             $ 0.40
                                                      ======             ======

See notes to consolidated financial statements (unaudited)

                                       3

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

                                                     Six Months Ended June 30,
                                                  -----------------------------
                                                      1997             1996
                                                  -----------------------------
Interest income:
  Loans                                           $ 9,360,049       $ 9,471,280
  Mortgage-backed securities                        1,150,250         1,115,844
  Investment securities                             2,023,972         2,294,548
                                                  -----------       -----------
     Total interest income                         12,534,271        12,881,672
                                                  -----------       -----------
Interest expense:
  Deposits                                          6,297,168         6,817,203
  Borrowed funds                                      810,499           842,734
                                                  -----------       -----------
     Total interest expense                         7,107,667         7,659,937
                                                  -----------       -----------
  Net interest income                               5,426,604         5,221,735

Provision for losses on loans                               -            38,097
                                                  -----------       -----------
  Net interest income after provision
    for losses on loans                             5,426,604         5,183,638
Other income:
  Net loss on sale of securities available-for-sale         -           (28,809)
  Net gain (loss) on sales of real estate
    held for sale                                     (10,592)           38,428
  Net gain (loss) on sales of loans held for sale      11,897           (20,068)
  Fee income                                          496,186           364,647
  Insurance commissions                                50,580            40,145
  Other                                               198,035           210,258
                                                  -----------       -----------
    Total other income                                746,106           604,601
                                                  -----------       -----------
Other expenses:
  Compensation and benefits                         2,203,372         2,280,683
  Occupancy                                           355,292           350,868
  Furniture and equipment                             239,132           167,086
  Federal insurance premiums                           86,672           319,526
  Advertising                                         113,958            65,679
  Data processing services                            146,928           175,114
  Telephone and postage                               126,208           144,969
  Amortization of intangible assets                   115,841           115,841
  Other general and administrative                    660,597           855,481
                                                  -----------       -----------
    Total other expenses                            4,048,000         4,475,247
                                                  -----------       -----------
  Income before income taxes                        2,124,710         1,312,992
  Income taxes                                        596,020           312,521
                                                  ===========       ===========
    Net income                                    $ 1,528,690       $ 1,000,471

  Earnings per share                                    $1.01             $0.66
                                                        =====             =====

See notes to consolidated financial statements (unaudited)

                                       4

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

                                                     Six Months Ended June 30,
                                                  -----------------------------
                                                      1997             1996
                                                  -----------------------------

Cash flows from operating activities
  Net income                                      $ 1,528,690       $ 1,000,471
  Adjustments to reconcile net income to net cash
    provided by operating activities:
      Provision for losses on loans                         -            38,097
      Depreciation and amortization                   375,607           321,904
      Amortization of investment premiums and
        discounts-net                                  57,924           205,216
      Accretion of loan fees and discounts, net       (32,896)          (58,380)
      Deferred income tax provision (benefit)         (28,003)          (13,710)
      Origination of loans held for sale           (1,790,002)       (3,354,766)
      Proceeds from sales of loans                  1,805,708         3,357,432
      (Increase) decrease in interest receivable      104,331          (424,896)
      Decrease in interest payable on deposits        (5,243)           (11,446)
      Proceeds from sales of trading securities            -         19,662,500
      Purchase of trading securities                       -        (19,884,844)
      Net (gain) loss on sales of loans              (11,897)            20,068
      Net loss on sales of securities                      -             28,809
      Net (gain) loss on sales of real estate
        held for sale                                 10,592            (38,428)
      Other, net                                     (54,530)          (961,738)
                                                  -----------       -----------
  Net cash from operating activities               1,960,281           (113,711)
                                                  -----------       -----------
Cash flows from investing activities
  Investment securities:
    Available-for-sale:
        Purchases                                 (2,183,161)       (26,956,508)
        Proceeds from sales                                -          4,189,375
        Proceeds from calls and maturities         5,189,000          6,500,000
    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        2,124,892          6,197,884
    Held-to-maturity:
      Proceeds from maturities and paydowns           25,508             81,393
    Purchases of certificates of deposit            (505,500)          (826,640)
    Proceeds from maturities of certificates
        of deposit                                   305,500            687,500
    Proceeds from sales of real estate               101,777            933,394
    Net loan fees and costs deferred                 (96,953)            93,574
    Loans originated                             (39,514,897)       (36,996,484)
    Loans purchased                               (1,295,000)          (850,000)
    Principal collected on loans                  41,156,459         34,681,089
    Purchases of office properties and 
      equipment-net                                 (464,375)          (303,102)
    Payment of acquisition costs                           -            (22,868)
                                                  -----------       -----------
  Net cash from investing activities               4,845,721        (15,556,659)
                                                  -----------       -----------


                                                                  (continued)

                                       5

<PAGE>

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


                                                     Six Months Ended June 30,
                                                  -----------------------------
                                                      1997             1996
                                                  -----------------------------

Cash flows from financing activities
  Net increase (decrease) in non-certificate
    of deposit accounts                              (384,602)        3,364,398
  Net increase in certificate of deposit accounts     981,613         5,189,521 
  Decrease in advance payments by
    borrowers for taxes and insurance                  (6,959)          (86,347)
  Proceeds from short-term borrowings              42,780,000        16,730,000
  Repayments of short-term borrowings             (56,900,000)      (20,370,000)
  Proceeds from other borrowings                   16,200,000           650,000
  Repayments of other borrowings                  (12,700,000)                -
  Proceeds from exercise of stock options             101,219             6,912
  Dividends paid                                     (340,840)         (289,274)
  Purchase of treasury stock                                -          (403,079)
                                                  -----------       -----------
  Net cash from financing activities              (10,269,569)        4,792,131
                                                  -----------       -----------
Increase (decrease) in cash and cash equivalents   (3,463,567)      (10,878,239)
Cash and cash equivalents:
  Beginning of year                                17,160,113        25,694,509 
                                                  -----------       -----------
  End of year                                     $13,696,546       $14,816,270
                                                  ===========       ===========
Supplemental disclosures of cash flow information
 Cash paid during the year for:
  Interest on deposits                            $ 6,291,900       $ 6,828,600
                                                  ===========       ===========
  Interest on borrowed funds                      $   880,200       $   842,300
                                                  ===========       ===========
Supplemental disclosures of non-cash
  investing activities:
Real estate acquired through foreclosure          $ 1,328,781       $   224,830
                                                  ===========       ===========

See notes to consolidated financial statements (unaudited)

                                       6

<PAGE>

                        KANKAKEE BANCORP, INC. AND SUBSIDIARY

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
                                    June 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 six-month periods ended June 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 June 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 $396,112.  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 
$204,014. A decrease in market interest rates during the six months ended 
June 30, 1997 resulted in a $13,241 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 six 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 $9.0 million, or 2.6%, to $341.7 
million at June 30, 1997 from $350.7 million at December 31, 1996.

    Cash and cash equivalents decreased by $3.5 million, or 20.2%, from $17.2 
million at December 31, 1996 to $13.7 million at June 30, 1997.  The decrease 
was primarily attributable to a decrease in borrowings, which was partially 
offset by a decrease in investment securities available-for-sale, a decrease 
in mortgage-backed securities available-for-sale and a decrease in loans 
receivable.

    During the six-month period ended June 30, 1997, net loans receivable 
decreased by $1.5 million (0.7%) from $233.3 million to $231.8 million. This 
was primarily the result of the origination (or purchase) of $18.2 million of 
real estate loans and the origination (or purchase) of $21.3 million of 
consumer and commercial business loans, offset by loan repayments which 
totaled $41.2 million. 

    Securities available-for-sale decreased by $3.1 million to $48.2 million 
at June 30, 1997 from $51.3 million at December 31, 1996 as the result of the 
maturity of $5.2 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 $2.1 million, 
or 5.9%, to $32.4 million at June 30, 1997 from $34.5 million at December 31, 
1997. The decrease resulted from maturities of $2.1 million of such 
securities, and by the change in market value adjustment.

                                       8

<PAGE>

    Deposits increased by $592,000, or 0.2% to $277.9 million at June 30, 
1997 from $277.3 million at December 31, 1996. The increase resulted from a 
$1.0 million increase in certificates of deposit, partially offset by a 
$385,000 decrease in passbook, NOW and money market accounts.

    Total borrowings, which decreased by $10.6 million, or 30.7%, to $23.9 
million at June 30, 1997 from $34.5 million at December 31, 1996, consisted 
of $13.7 million in advances from the Federal Home Loan Bank of Chicago (the 
"FHLB") and $10.2 million in funds borrowed using mortgage-backed securities 
available-for-sale as collateral.

    During the second quarter of 1997, real estate held for sale increased 
$1.2 million, or 574.4% to $1.5 million from $215,000 at December 31, 1996.  
The increase was the result of the 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.  However, the borrower remained 
liable on the underlying obligation.  There is also additional collateral on 
the underlying obligation.  The property is currently 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 $3.2 million at June 30, 
1997 as compared to $4.1 million at December 31, 1996.  Non-performing assets 
represented 0.94% and 1.16% of total assets at June 30, 1997 and December 31, 
1996, respectively.  During the six-month period ending June 30, 1997, 
non-performing commercial real estate loans, non-performing construction and 
development loans and non-performing one-to-four family loans decreased by 
$1.7 million, $607,000 and $97,000, respectively.  These decreases were 
partially offset by increases of $1.3 million, $111,000, $85,000 and $78,000 
in foreclosed assets, multi-family loans, commercial business loans and 
consumer loans, respectively.  The ratio of the allowance for losses on loans 
to non-performing loans was 121.6% as of June 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 $2.1 million in 
non-performing loans.

    The Company classified $1.4 million of its assets as Special Mention, 
$4.5 million as Substandard and $43,000 as Loss as of June 30, 1997.  No 
assets were classified as Doubtful at June 30, 1997.  This represents a 
decrease of $840,000 in the Special Mention category and a net increase of 

                                       9

<PAGE>

$234,000 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 1.75% as of June 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 36.0% as of June 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 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
THREE MONTHS ENDED JUNE 30, 1997 AND 1996

    Net income for the three-month period ended June 30, 1997 was $759,000 
compared to $604,000 for the same period in 1996. The difference in net 
income of $155,000 represents a 25.6% increase in net income for the 1997 
period.  The increase in net income resulted from a $56,000 increase in net 
interest income, a $133,000 decrease in general and administrative expenses, 
a $30,000 increase in other income and a $25,000 decrease in the provision 
for losses on loans, partially offset by a $90,000 increase in federal income 
tax expense.

    Net interest income increased $56,000, or 2.1%, during the three-month 
period ended June 30, 1997 compared to the three-month period ended June 30, 
1996.

    The table presented on page 16 ("Table I"), sets forth an analysis of the 
Company's net interest income for the three-month periods ended June 30, 1997 
and 1996.

    As Table I indicates, interest income decreased $235,000, or 3.6%, to 
$6.2 million for the three-month period ended June 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 $328.8 
million during the 1996 period from $345.5 million during the 1995 period, 
which was partially offset by an increase in the yield earned on 
interest-earning assets to 7.62% during the 1997 period from 7.55% during the 
1996 period.  The increase in yield was due to the reinvestment of proceeds 
from maturing and prepaying assets at interest rates higher than the rates 
earned on those maturing and prepaying assets, and, to a lesser extent, from 
upward rate adjustments on adjustable rate mortgage loans.

                                       10

<PAGE>

    Interest expense decreased $291,000, or 7.6%, to $3.5 million for the 
three-month period ended June 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 4.69% and 
$303.0 million, respectively, during the 1997 period from 4.78% and $322.1 
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 66.3% of interest-bearing liabilities during both the 
1997 period and the 1996 period.  Average outstanding borrowings during the 
1997 period were 8.0% of interest-bearing liabilities as compared to 8.7% 
during the 1996 period.

    The provision for losses on loans totaled $4,000 for the three-month 
period ended June 30, 1997 compared to $29,000 for the same period in 1996.  
The decrease was primarily attributed to a modest reduction in loans 
receivable, relative stability in the mix of loans in loans receivable and 
minimal net charges-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 three-month period ended June 30, 1997 increased 
$31,000, or 8.8%, to $371,000 compared to $340,000 for the same period in 
1996. The increase was attributable to increases in net gain on the sale of 
loans, fee income and net gain on the sale of securities available-for-sale 
of $36,000, $54,000 and $9,000, respectively, which were partially offset by 
an increase in net loss on sale of real estate held for sale of $34,000 and a 
decrease in other income of $42,000.  The increase in fee income was the 
result of an ongoing process of review of the Bank's fee structure.

    Other expenses for the three-month period ended June 30, 1997 decreased 
$133,000, or 6.1%, to $2.0 million from $2.2 million during the 1996 period. 
The decrease was attributable to decreases in compensation and benefits 
expense, federal insurance premiums and other general and administrative 
expense of $23,000, $109,000 and $70,000, respectively, which were partially 
offset by increases in occupancy expense, furniture and equipment expense and 
advertising of $10,000, $22,000 and $30,000, respectively.  The decrease in 
federal insurance premiums was due to the lower premium rate in effect 
beginning in 1997 which resulted from the third quarter 1996 recapitalization 
of the Savings Association Insurance Fund (the "SAIF").

    Federal income taxes increased $90,000, or 47.2%, to $280,000 for the 
three-month period ended June 30, 1997, compared to $190,000 for the same 
period in 1996.

RESULTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997 AND 1996

    Net income for the six-month period ended June 30, 1997 was $1.5 million 
compared to $1.0 million for the same period in 1996.  The difference in net 
income of $528,000 represents a 52.8% increase in net income for the 1997 
period.  The increase in net income resulted from a $205,000 increase in net 
interest income, a $38,000 decrease in provision for losses on loans, a 
$142,000 increase in other income and a $427,000 decrease in other expenses, 
which were partially offset by

                                       11

<PAGE>

a $283,000 increase in federal income tax expense.

    Net interest income increased by $205,000, or 3.9%, during the six-month 
period ended June 30, 1997 compared to the six-month period ended June 30, 
1996.

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

    As Table II indicates, interest income decreased $347,000, or 2.7% , to 
$12.5 million for the six-month period ended June 30, 1997 from $12.9 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 $331.7 
million during the 1997 period from $343.8 million, during the 1996 period, 
which was partially offset by an increase in the yield earned on 
interest-earning assets to 7.62% during the 1997 period from 7.54% during the 
1996 period.  The increase in yield was due to the reinvestment of proceeds 
from maturing and prepaying assets at interest rates higher than the rates 
earned on those maturing and prepaying assets, and to adjustments on 
adjustable-rate mortgage loans repricing at higher levels during the period.

    Interest expense decreased $552,000, or 7.2%, to $7.1 million for the 
six-month period ended June 30, 1997 from $7.7 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 $305.9 
million, respectively, during the 1997 period from 4.81% and $320.2 million, 
respectively, during the 1996 period.

    The provision for losses on loans was zero for the six month period ended 
June 30, 1997, compared to $38,000 for the same period in 1996.  The decrease 
was primarily attributed to a modest reduction 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 six-month period ended June 30, 1997 increased 
$141,000, or 23.4%, to $746,000 from $605,000 for the same period in 1996. 
Increases of $29,000, $32,000 and $131,000 attributable to net gain on sale 
of securities available-for-sale, net gain on the sale of loans held for sale 
and fee income, respectively, were partially offset by decreases of $49,000 
and $12,000 in net gain on the sale of real estate held for sale and other 
income, respectively.

    Other expenses for the six-month period ended June 30, 1997 decreased 
$427,000, or 9.5%, 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 $233,000, $77,300, $28,000, $18,000 and 
$195,000, respectively. These decreases were partially offset by increases in 
furniture and equipment and advertising expense of $72,000 and $48,000, 
respectively.  The decrease in federal insurance premiums was due to the 
lower premium rate in effect during the first half of 1997 which resulted 
from the third quarter 1996 recapitalization of the SAIF.  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

                                       12

<PAGE>

full impact of recommendations implemented during 1996 has been reflected in 
the operating results for 1997.

    Federal income taxes increased by $283,000, or 90.7%, to $596,000 for the 
six-month period ended June 30, 1997, compared to $313,000 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 June 
30, 1997, the Bank's liquidity ratio was 13.3%, 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 June 30, 1997, the 
Bank exceeded all current minimum regulatory capital standards.

    At June 30, 1997, the Bank's tangible capital was $29.5 million, or 8.8%, 
of adjusted total assets, which exceeded the 1.5% requirement by $24.5 
million. In addition, at June 30, 1997, the Bank had core capital of $29.5 
million, or 8.8%, of adjusted total assets, which exceeded the 3.0% 
requirement by $19.5 million. The Bank had risk-based capital of $31.6 
million at June 30, 1997, or 16.3%, of risk-adjusted assets, which exceeded 
the minimum risk-based capital requirement by $16.1 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.  Since the current program was announced, no shares of common 
stock have been repurchased.  Through June 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 June 
30, 1997, the Company held 324,832 shares of its common stock as treasury 
stock.

EXERCISE OF STOCK OPTIONS

    During the second quarter of 1997, stock options for 5,000 shares of 
common stock were exercised.  Between June 30, 1997 and August 8, 1997, no 
notice was received 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 July 15, 1997, a cash dividend of $.12 per share 
was declared payable on August 29, 1997 to stockholders of record as of 
August 15, 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.

RECENT REGULATORY DEVELOPMENTS

    The Committee on Banking and Financial Services of the U. S. House of 
Representatives has approved legislation that would eliminate the federal 
thrift charter by requiring each federal thrift to convert to a national or 
state bank within two years following enactment of the legislation.  Any 
federal thrift that failed to convert to a bank within such two-year period 
would, by operation of law, become a national bank as of the second 
anniversary of the enactment of the legislation.  Under the proposed 
legislation, state thrift institutions would be regulated for purposes of 
federal law as state banks.  The proposed legislation would allow a 
converting federal thrift and its parent holding company to retain 
nonconforming investments and activities, subject to certain conditions.

    The proposed legislation would also allow bank holding companies to 
engage in a wider range of nonbanking activities, including greater authority 
to engage in securities and insurance activities.  The expanded powers 
generally would be available to a bank holding company only if the bank 
holding company and its bank subsidiaries remain well-capitalized and 
well-managed, and if each of the depository institution subsidiaries of the 
bank holding company had received at least a "satisfactory" rating under the 
Community Reinvestment Act.  The proposed legislation would also impose 
various restrictions on transactions between the depository institution 
subsidiaries of bank

                                       14

<PAGE>

holding companies and their nonbank affiliates.  These restrictions are 
intended to protect the depository institutions from the risks of the new 
nonbanking activities permitted to such affiliates.

    At this time, the Company is unable to predict whether the proposed 
legislation will be enacted and, therefore, is unable to predict the impact 
such legislation may have on the operations of the Company and the Bank.

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

                                                                        Three Months Ended June 30, 
<S>                                     <C>             <C>             <C>            <C>                <C>            <C>
                                 -------------------------------------------------------------------------------------------------
                                                        1997                                           1996
                                 -------------------------------------------------------------------------------------------------
                                           Average                                        Average
                                        Outstanding      Interest         Yield/        Outstanding        Interest      Yield/
                                           Balance      Earned/Paid        Rate           Balance         Earned/Paid    Rate
                                 -------------------------------------------------    --------------------------------------------
                                                                        (Dollars in Thousands)

Interest-earning assets:
    Loans receivable (1)                 $230,553         $4,681          8.14%           $232,796          $4,786       8.27% 
    Mortgage-backed securities             33,029            569          6.91%             34,276             543       6.37% 
    Investments securities (2)             49,245            777          6.33%             60,020             954       6.39% 
    Other interest-earning assets          14,061            189          5.39%             16,472             173       4.22% 
    FHLB stock                              1,881             31          6.61%              1,956              26       5.35% 
                                        ---------         ------                          --------          ------
Total interest-earning assets             328,769          6,247          7.62%            345,520           6,482       7.55% 
                                        ---------         ------                          --------          ------
Other assets                               14,596                                           15,578
                                        ---------                                         --------
Total assets                             $343,365                                         $361,098
                                        =========                                         ========

Interest-bearing liabilities:
    Time deposits                        $176,681          2,482          5.63%           $185,636           2,660       5.76%
    Savings deposits                       52,395            356          2.73%             55,080             370       2.70%
    Demand and NOW deposits                49,796            352          2.84%             53,436             394       2.97%
    Borrowings                             24,098            351          5.84%             27,983             408       5.86%
                                         --------         ------                          --------          ------
Total interest-bearing liabilities        302,970          3,541          4.69%            322,135           3,832       4.78%
                                        ---------         ------                          --------          ------
Other liabilities                           3,205                                            3,575
                                        ---------                                         --------

Total liabilities                         306,175                                          325,710
                                        ---------                                         --------
Stockholders' equity                       37,190                                           35,388
                                        ---------                                         --------
Total liabilities and
  stockholders' equity                   $343,365                                         $361,098
                                        =========                                         ========
Net interest income                                       $2,706                                            $2,650
                                                          ======                                            ======
Net interest rate spread                                                  2.93%                                          2.77%
                                                                          =====                                          =====
Net earning assets                        $25,799                                          $23,385
                                        =========                                         ========

Net yield on average interest-
 earning assets (net interest
 margin)                                                                  3.30%                                          3.08%
                                                                          =====                                          =====
Average interest-earning assets to
 average interest-bearing liabilities                     108.52%                                           107.26%
                                                          ======                                           =======

(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.

</TABLE>

                                                                     16

<PAGE>

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

                                                                           Six Months Ended June 30, 
<S>                                     <C>             <C>             <C>            <C>                <C>            <C>
                                 -------------------------------------------------------------------------------------------------
                                                        1997                                           1996
                                 -------------------------------------------------------------------------------------------------
                                           Average                                        Average
                                        Outstanding      Interest         Yield/        Outstanding        Interest      Yield/
                                           Balance      Earned/Paid        Rate           Balance         Earned/Paid    Rate
                                 -------------------------------------------------    --------------------------------------------
                                                                        (Dollars in Thousands)

Interest-earning assets:
    Loans receivable (1)                 $231,470         $9,360          8.15%           $231,717          $9,471       8.22%
    Mortgage-backed securities             33,577          1,150          6.91%             34,736           1,116       6.46%
    Investments securities (2)             49,893          1,686          6.81%             55,753           1,761       6.35%
    Other interest-earning assets          14,864            275          3.73%             19,768             475       4.83%
    FHLB stock                              1,913             64          6.75%              1,780              59       6.67%
                                         --------        -------                          --------          ------
Total interest-earning assets             331,717         12,535          7.62%            343,754          12,882       7.54%
                                         --------        -------                          --------          ------
Other assets                               14,093                                           15,759
                                         --------                                         --------
Total assets                             $345,810                                         $359,513
                                         ========                                         ========
Interest-bearing liabilities:
    Time deposits                        $175,853          4,886          5.60%           $184,568           5,306       5.78%
    Savings deposits                       52,286            705          2.72%             54,550             728       2.68%
    Demand and NOW deposits                49,685            706          2.87%             52,406             783       3.00%
    Borrowings                             28,085            811          5.82%             28,664             843       5.91%
                                         --------          -----                          --------           -----
Total interest-bearing liabilities        305,909          7,108          4.69%            320,188           7,660       4.81% 
                                         --------          -----                          --------           -----
Other liabilities                           2,960                                            3,493
                                         --------                                         --------
Total liabilities                         308,869                                          323,681
                                         --------                                         --------
Stockholders' equity                       36,941                                           35,832
                                         --------                                         --------
Total liabilities and
  stockholders' equity                   $345,810                                         $359,513
                                         ========                                         ========
Net interest income                                       $5,427                                            $5,222
                                                          ======                                            ======
Net interest rate spread                                                  2.93%                                          2.73%
                                                                          =====                                          ====
Net earning assets                        $25,808                                          $23,566
                                          =======                                          =======
Net yield on average interest-
 earning assets (net interest
 margin)                                                                  3.30%                                          3.05%
                                                                          =====                                          =====
Average interest-earning assets to
 average interest-bearing liabilities                     108.44%                                           107.36%
                                                          =======                                           =======


(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.

</TABLE>


                                                              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  -  The Annual
         Meeting of Stockholders (the "Meeting") of the Company was held on
         April 25, 1997.  At the Meeting, Charles C. Huber, Thomas M. Schneider
         and Wesley E. Walker were elected to serve as directors with terms
         expiring in 2000.  Continuing with terms expiring in 1999 were William
         Cheffer and Michael A. Stanfa.  Continuing with terms expiring in 1998
         were James G. Schneider and Larry D. Huffman.  The matters approved by
         stockholders at the Meeting and the number of votes cast for, against
         or withheld (as well as the number of abstentions and broker
         non-votes) as to each matter are set forth below:

                                                        Number of Votes
                                               ------------------------------
                                                   For             Withheld
                                               --------------  --------------
         The election of the following
         directors for a three-year term:

         Charles C. Huber                       1,215,534            7,955
         Thomas M. Schneider                    1,215,181            8,308
         Wesley E. Walker                       1,215,231            8,258

                                                                       Broker
                                         For     Against   Abstain    Non-Votes
                                     ---------   -------   -------    ---------
         The ratification of 
         McGladrey & Pullen, LLP,
         as the auditors for the
         year ending
         December 31, 1997:          1,207,692    12,330     3,467          -

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:  AUGUST 11, 1997                         /s/ JAMES G. SCHNEIDER
                                               Chairman,
                                               President and Chief Executive
                                               Officer (Principal Executive
                                               and Operating Officer)


Date:  AUGUST 11, 1997                         /s/ RONALD J. WALTERS
                                               Vice President and Treasurer
                                               (Principal Financial
                                                and Accounting Officer)

                                       19