Alliance Bancorp, Inc. of Pennsylvania Reports Second Quarter Results and Regular...

Alliance Bancorp, Inc. of Pennsylvania Reports Second Quarter Results and
Regular Quarterly Cash Dividend

BROOMALL, Penn., July 22, 2008 (PRIME NEWSWIRE) -- Alliance Bancorp, Inc. of
Pennsylvania (the "Company") (Nasdaq:ALLB) announced today results for the
quarter ended June 30, 2008. The Company also announced that its Board of
Directors declared a regular quarterly cash dividend on the common stock of the
Company of $.06 per share, payable on August 15, 2008 to the shareholders of
record at the close of business on August 1, 2008.

The Company reported net income of $84,000 or $.01 per diluted share for the
quarter ended June 30, 2008 as compared to $415,000 or $.06 per diluted share
for the quarter ended June 30, 2007. Net interest income increased $114,000 or
4.4% to $2.7 million while other income decreased $439,000 for the quarter ended
June 30, 2008 as compared to the same period in 2007. Other expenses increased
$159,000 or 6.5% to $2.6 million and the provision for income taxes decreased
$173,000 for the quarter ended June 30, 2008 as compared to the same period in
2007. The decrease in other income was primarily due to the previously announced
loss on sale of certain mutual funds which amounted to $153,000 combined with a
$266,000 impairment charge on the remaining $2.7 million in mutual funds. In
April 2008, the Company significantly reduced its investment in these funds by
selling $15.5 million of its mutual fund portfolio. The increase in other
expenses primarily resulted from increases in salaries and employee benefits as
well as advertising and marketing costs.

For the six months ended June 30, 2008, net income amounted to $126,000 or $.02
per diluted share as compared to $799,000 or $.11 per diluted share for the six
months ended June 30, 2007. Net interest income increased $79,000 or 1.5% to
$5.3 million and other income decreased $796,000. Other expenses increased
$134,000 or 2.7% to $5.1 million and the provision for loan losses increased
$170,000 for the six months ended June 30, 2008 as compared to the same period
in 2007. The increase in net interest income was primarily due to a decrease in
interest expense on customer deposits and the decrease in other income was
primarily due to $629,000 of impairment charges and a $153,000 loss on sale of
securities both of which were related to the Company's investment in mutual
funds. The increase in other expenses primarily resulted from increases in
salaries and employee benefits, occupancy and equipment expenses and advertising
and marketing costs.

The Company's total assets decreased $8.6 million or 2.0% to $415.9 million at
June 30, 2008 as compared to $424.5 million at December 31, 2007. Investment
securities decreased $16.3 million or 24.0% to $51.6 million and mortgage-backed
securities decreased $4.6 million or 12.9% to $31.0 million. Net loans
receivable increased $12.5 million or 4.9% to $269.4 million at June 30, 2008.
Customer deposits decreased $6.4 million or 1.9% to $324.4 million at June 30,
2008 from $330.8 million at December 31, 2007. Total stockholders' equity
decreased $2.3 million or 4.4% to $49.2 million or 11.8% of total assets at June
30, 2008. Nonperforming assets increased $2.5 million to $4.6 million or 1.1% of
total assets at June 30, 2008 as compared to $2.1 million or 0.5% of total
assets at December 31, 2007. Such increase was due to the placement of five
commercial real estate loan relationships on non-accrual status. These loans are
secured by properties located in the Company's primary lending area. The
nonperforming assets at June 30, 2008 included $1.5 million in single-family
residential real estate loans, $2.9 million in commercial real estate loans,
$74,000 in commercial business loans and $38,000 in consumer loans. The
allowance for loan losses was $2.9 million or 64.3% of nonperforming loans at
June 30, 2008 as compared to $2.8 million or 135.0% at December 31, 2007.

Dennis D. Cirucci, President and Chief Executive Officer of the Company, stated
that, "Alliance Bancorp has repurchased 194,224 shares or 6.0% of the
outstanding minority shares since February 1, 2008 through our stock repurchase
program." He added, "We will continue to execute the repurchase program."

Alliance Bancorp, Inc. of Pennsylvania is the holding company for Alliance Bank,
a Pennsylvania chartered, FDIC-insured savings bank headquartered in Broomall,
Pennsylvania. Alliance Bank operates nine full-service branch offices located in
Delaware and Chester Counties, Pennsylvania.

This news release contains forward-looking statements. Forward-looking
statements can be identified by the fact that they do not relate strictly to
historical or current facts. They often include the words "believe," "expect,"
"anticipate," "intend'" "plan," "estimate" or words of similar meaning, or
future or conditional verbs such as "will," "would," "should," "could" or "may."

Forward-looking statements, by their nature, are subject to risks and
uncertainties. A number of factors -- many of which are beyond the Company's
control -- could cause actual conditions, events or results to differ
significantly from those described in the forward-looking statements. The
Company's reports filed from time-to-time with the Securities and Exchange
Commission describe some of these factors, including general economic
conditions, changes in interest rates, deposit flows, the cost of funds, changes
in credit quality and interest rate risks associated with the Company's business
and operations. Forward-looking statements speak only as of the date they are
made. The Company does not undertake to update forward-looking statements to
reflect circumstances or events that occur after the date the forward-looking
statements are made or to reflect the occurrence of unanticipated events.

ALLIANCE BANCORP, INC. OF PENNSYLVANIA

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)

Three Months Six Months
Ended Ended
June 30, June 30,
-------------- ----------------
2008 2007 2008 2007
------ ------ ------- -------
Interest income $5,552 $6,094 $11,434 $12,017

Interest expense 2,840 3,496 6,183 6,845
------ ------ ------- -------

Net interest income 2,712 2,598 5,251 5,172

Provision for loan losses 45 25 210 40

Other income (loss) (1) (99) 340 (141) 655

Other expenses 2,617 2,458 5,066 4,932
------ ------ ------- -------

Income (loss) before income taxes (49) 455 (166) 855

Income tax (benefit) expense (2) (133) 40 (292) 56
------ ------ ------- -------
Net income $84 $415 $126 $799
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Basic earnings per share $0.01 $0.06 $0.02 $0.11
====== ====== ======= =======

Diluted earnings per share $0.01 $0.06 $0.02 $0.11
====== ====== ======= =======
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(1) 2008 Other income (loss) includes pre-tax impairment charges
on securities of $266,000 and $629,000 for the three and six
months ended June 30, 2008.

(2) 2008 Income tax (benefit) expense includes a $90,000 and
$213,000 benefit related to the impairment charge for the
three and six months ended June 30, 2008.

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UNAUDITED SELECTED CONSOLIDATED FINANCIAL DATA
(In thousands)

June 30, December 31,
-------- ---------
2008 2007
-------- ---------
Total assets $415,857 $424,466
Cash and cash equivalents 40,500 42,079
Investment and mortgage-backed securities 82,591 103,493
Loans receivable - net 269,424 256,932
Deposits 324,363 330,788
Borrowings 37,103 37,042
Total stockholders' equity 49,207 51,458
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CONTACT: Alliance Bancorp, Inc.
Peter J. Meier, CFO
(610) 359-6903
Fax: (610) 359-6906