UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant [X]
Filed by a Party other than the Registrant [_]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[_] CONFIDENTIAL, FOR USE OF THE
COMMISSION ONLY (AS PERMITTED BY
RULE 14A-6(E)(2))
[_] Definitive Proxy Statement
[X] Definitive Additional Materials
[_] Soliciting Material Pursuant to (S) 240.14a-11(c) or (S) 240.14a-12
KANKAKEE BANCORP, INC.
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(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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[_] Fee paid previously with preliminary materials.
[_] Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
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(2) Form, Schedule or Registration Statement No.:
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(3) Filing Party:
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(4) Date Filed: 2/26/2002
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Notes:
Reg. (S) 240.14a-101.
SEC 1913 (3-99)
[Logo of Kankakee Bancorp, Inc.]
310 South Schuyler Avenue
P.O. Box 3 (815) 937-4440
Kankakee, IL 60901-0003 Fax (815) 937-3674
Dear Fellow Stockholders:
As many of you are aware, Kankakee Bancorp, Inc. enjoyed another strong
year in 2001. The business plan and strategies implemented by your board of
directors and management team have led to significant improvements in our
performance over the past two years. We believe that as a stockholder, you will
continue to be the beneficiaries of our successful strategic plan and improved
results as we continue to grow.
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Our Strong Financial Performance
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. Earnings per share (diluted) increased by 31.6% from $1.99 to $2.62
per share in 2001.
. Over the past two years earnings per share have more than doubled.
. Stockholder's equity per share increased by $2.75 during 2001 to
$33.86 at December 31, 2001.
. Total assets grew by 30.4 million, or 6.6%, in 2001. Over the past two
years, total assets have increased by $85.6 million or 21.1%.
. Return on equity increased from 7.0% to 8.2% in 2001. Over the past
two years, return on equity has improved by 77.9%.
. We have paid a dividend every quarter since 1995. We plan to continue
to pay $0.48 per share annually to our stockholders.
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We understand that you may have recently received proxy materials from a
group of investors calling themselves the "Committee to Preserve Shareholder
Value." Although this dissident group has sent you a White proxy card---the
color that has traditionally been used by your board---do not be confused! This
group is not part of your board or management. They are seeking to replace the
two board members up for re-election with their own out-of-state nominees, one
from New Jersey and one from New Hampshire.
CAUTION!
We believe that this group has virtually nothing positive to offer us or
our stockholders that is not already being accomplished. The ideas that the
committee has expressed are already in place:
. Stock Repurchase Plan. We have been aggressively buying back our stock
since 1993. Last year we repurchased 64,200 shares (approximately 5%
of the outstanding) at a total cost of $1.5 million or approximately
$24.03 per share. Since 1993, we have repurchased 669,507 shares at a
total cost of $14.4 million. Continuing our aggressive buyback
program, on January 8, 2002, the board of directors approved the
repurchase of up to 90,000 shares in 2002. The committee
says that a vote for its nominees is "a vote to start the process to
accelerate the share repurchase program". We already have an
aggressive repurchase program!
. Increase Our Earnings. The board has successfully increased earnings
per share over the past two years. The committee has offered no real
strategies to increase earnings and we are confident that the board
will be able to continue to effectuate successful programs and
strategies to grow our earnings in the future. For example:
. Last year we began working with a highly respected consulting
firm - RSM McGladrey - on a branch profitability study.
. We have also already hired a financial advisor - Sandler O'Neill
& Partners L.P. - for general advisory services and to help us
analyze and implement tactical financial plans to further
increase our profitability. Sandler O'Neill is one of the leading
investment banking firms specializing in community centered
financial institutions.
Because the board of directors has already implemented or investigated the
suggestions set forth by the committee, the board does not believe that adding
the committee's nominees to the board will add any value to the organization.
Both nominees maintain their residences in the eastern part of the country and,
as far as we know, they do not have any experience with Kankakee and the rest of
our market area, our residents or our industries.
Your board and management team have earned your support. As our successful
plans begin to bear fruit, it is critically important that we remain in position
to implement new initiatives, without the potential major disruption that the
dissident nominees can cause. Please support your Board's nominees by signing
and returning the enclosed BLUE proxy card today.
Thank you for your consideration and support.
Very truly yours,
/s/ William Cheffer /s/ Larry D. Huffman
William Cheffer Larry D. Huffman
Chairman of the Board President and Chief Executive Officer
Please sign and return the enclosed board of directors BLUE proxy card today. If
you have already returned a white proxy to the committee, you have every legal
right to revoke your vote by signing and returning a later-dated BLUE proxy
card. If you hold your shares in street-name, please return your BLUE proxy in
the envelope provided by your bank or brokerage firm. If you have any questions,
please do not hesitate to call Larry Huffman, our President and Chief Executive
Officer, at (815) 937-4440.
Remember: Only your latest dated proxy counts
Additional Important Information. On March 11, 2002, Kankakee Bancorp, Inc.
filed a definitive proxy statement, which was supplemented on March 18, 2002,
with the Securities and Exchange Commission relating to the annual meeting of
stockholders to be held on April 26, 2002. We urge stockholders to read our
definitive proxy statement because it contains important information about us
and the nominees for director. You may obtain a free copy of our definitive
proxy statement and any other soliciting materials relating to our solicitation
on the Securities and Exchange Commission's website at www.sec.gov, or by
contacting Morrow & Co., Inc., our proxy solicitor, at 1-800-607-0088.
BLUE PROXY CARD
PROXY IS SOLICITED BY THE BOARD OF DIRECTORS
KANKAKEE BANCORP, INC.
For the Annual Meeting of Stockholders -- April 26, 2002
P The undersigned hereby appoints William Cheffer, Larry D. Huffman and
Michael A. Stanfa, or each of them acting in the absence of the others, with
R power of substitution, attorneys and proxies, for and in the name and place of
the undersigned, to vote the number of shares of common stock that the
undersigned would be entitled to vote if then personally present at the annual
O meeting of the stockholders of Kankakee Bancorp, Inc., to be held at
Sully's-Sullivan's Warehouse, a banquet facility located at 555 South West
Avenue, Kankakee, Illinois 60901, on Friday, April 26, 2002, at 10:00 a.m.,
X local time, or any adjournments or postponements of the meeting, upon the
matters set forth in the notice of annual meeting and proxy statement (receipt
of which is hereby acknowledged) as designated on the reverse side, and in
Y their discretion, the proxies are authorized to vote upon such other business
as may come before the meeting:
[_] Check here for address change. [_] Check here if you plan to attend
the meeting.
New Address: ___________________________
________________________________________
________________________________________
(Continued and to be signed on reverse side.)
PLEASE DETACH HERE
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[X] PLEASE MARK VOTE IN BOX IN THE BLUE PROXY CARD
FOLLOWING MANNER USING DARK INK ONLY
The board of directors recommends a vote FOR all proposals.
1. Election of Directors FOR WITHHOLD FOR ALL 2. To ratify the selection of FOR AGAINST ABSTAIN
William Cheffer and Michael A. Stanfa ALL ALL EXCEPT McGladrey & Pullen, LLP, [_] [_] [_]
[_] [_] [_] as auditors for Kankakee
(INSTRUCTIONS: To withhold authority to Bancorp, Inc. for 2002.
vote for any individual nominee, write that
nominee's name in the space below.)
______________________________________
THIS PROXY WILL BE VOTED IN ACCORDANCE WITH
SPECIFICATION MADE. IF NO CHOICES ARE INDICATED,
THIS PROXY WILL BE VOTED FOR ALL PROPOSALS.
Dated __________________________________2002
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(signature)
____________________________________________
(signature)
____________________________________________
(title)
NOTE: Please sign exactly as your name(s) appears.
For joint accounts, each owner should sign. When
signing as executor, administrator, attorney, trustee
or guardian, etc., please give your full title.
PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED POSTAGE-PAID ENVELOPE.
PLEASE DETACH HERE
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