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                                                                      EXHIBIT 1

[LOGO AND LETTERHEAD OF ST. PAUL BANCORP INC.]


                                           N E W S                       
                                           FOR IMMEDIATE RELEASE         
                                           June 20, 1997                 
                                                                         
                                                                         
                                           Contacts:   Robert N. Parke   
                                                       (773) 804-2360    
                                                                         
                                                       Robert E. Williams
                                                       (773) 804-2284    


              ST. PAUL BANCORP ANNOUNCES THREE-FOR-TWO STOCK SPLIT
                   AND INCREASED QUARTERLY CASH DIVIDEND RATE

     Chicago, June 20, 1997 - - St. Paul Bancorp, Inc. (NASDAQ: SPBC) today
announced a three-for-two stock split of its outstanding shares.  New shares to
be issued as a result of the split will be distributed on Monday, July 14, 1997
to shareholders of record as of Monday, June 30, 1997.

     In conjunction with the stock split and subject to the Company's second
quarter 1997 performance, the Board also announced its intention to increase
the Company's regular quarterly cash dividend payout.  The new quarterly cash
dividend of $0.10 per common share will represent a 25% increase over the
previous quarterly rate, on a split-adjusted basis.  The dividend is
anticipated to become effective upon the declaration of the Company's next
quarterly dividend in mid-July, 1997.

     Joseph C. Scully, Chairman of the Board and Chief Executive Officer, said,
"This three-for-two stock split will enhance the liquidity of St. Paul Bancorp
stock, making it more affordable to retail investors.  Furthermore, the
increase in the cash dividend rate reflects the Board's continued confidence in
St. Paul Bancorp's performance and enhances the stock's return to
shareholders."

     St. Paul Bancorp is the parent of St. Paul Federal Bank for Savings,
Illinois' largest independent savings institution.  St. Paul Federal operates
52 branches throughout metropolitan Chicago.  The company also provides
discount brokerage, insurance, annuity, and real estate development services
through other subsidiaries.  St. Paul's stock is listed on the NASDAQ National
Market System under the symbol SPBC.

     TO RECEIVE THIS NEWS RELEASE AND OTHER INFORMATION ON ST. PAUL BANCORP VIA
FAX OR MAIL, USE YOUR TOUCH-TONE PHONE TO CALL THE COMPANY'S NEWS HOTLINE AT
(773) 889-SPBC (7722).

     STOCKHOLDERS MAY DIAL (800) 730-4001 TOLL-FREE TO INQUIRE ABOUT
STOCKHOLDER RECORDS, STOCK TRANSFERS, OWNERSHIP CHANGES, ADDRESS CHANGES,
DIVIDEND PAYMENTS OR THE DIVIDEND REINVESTMENT PLAN.  OR, WRITE TO THE INVESTOR
RELATIONS DEPARTMENT AT BANK OF BOSTON C/O BOSTON EQUISERVE, MAIL STOP
45-02-09, P.O. BOX 644, BOSTON, MA 02102-0644.

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