================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                 --------------
                                    FORM 8-K

                                 CURRENT REPORT


                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934



                Date of Report (Date of earliest event reported)
                                October 12, 1998



                            AVONDALE FINANCIAL CORP.
--------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its Charter)



   DELAWARE                   0-24566              36-3895923
--------------------------------------------------------------------------------
(State or other         (Commission File No.)    (IRS Employer
 jurisdiction of                                  Identification
 incorporation)                                       Number)



20 NORTH CLARK STREET, CHICAGO, ILLINOIS                 60602
--------------------------------------------------------------------------------
(Address of principal executive offices)               (Zip Code)



       Registrant's telephone number, including area code: (312) 782-6200
--------------------------------------------------------------------------------



                                      N/A
--------------------------------------------------------------------------------
          (Former name or former address, if changed since last report)

<PAGE>

Item 5.  Other Events

     On October 12, 1998 Avondale  Financial  Corp.  ("Avondale")  and Coal City
Corporation  ("Coal  City")  entered  into  an  Agreement  and  Plan  of  Merger
(including related stock option  agreements)  which,  together with all exhibits
thereto, is included as Exhibit 2 hereto and incorporated by reference herein.

     A copy of the joint press release announcing execution of the Agreement and
Plan of Merger is attached hereto as Exhibit 99.1 and  incorporated by reference
herein.

     A copy of Avondale's  press release  announcing a loss in the third quarter
of 1998 is attached hereto as Exhibit 99.2 and incorporated by reference herein.

     Additional  information on Coal City in the form of an offering  memorandum
with respect to certain  floating rate capital  securities is attached hereto as
Exhibit 99.3 and incorporated by reference herein.

Item 7.   Financial Statements and Exhibits

    (c)   Exhibits

    2     Agreement and Plan of Merger, dated as of October 12,
          1998, by and between Avondale Financial Corp. and Coal
          City Corporation.

    99.1  Joint Press Release of Avondale and Coal City, dated
          October 13, 1998.

    99.2  Press Release of Avondale dated October 13, 1998.

    99.3  Offering Memorandum with respect to Coal City Capital
          Trust I Floating Rate Capital Securities.

                                        2


<PAGE>



                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                 AVONDALE FINANCIAL CORP.


Date: October 12, 1998                           By: /s/ ROBERT S. ENGELMAN, JR.
                                                     ---------------------------
                                                     Robert S. Engelman, Jr.
                                                     President and Chief
                                                      Executive Officer

<PAGE>

                    EXHIBIT INDEX

EXHIBIT
NUMBER                      DESCRIPTION
-------                     ----------- 
2            Agreement and Plan of Merger, dated as of October 12,
             1998, by and between Avondale Financial Corp.
             and Coal City Corporation.

99.1         Joint Press Release of Avondale and Coal City,
             dated October 13, 1998.

99.2         Press Release of Avondale dated October 13, 1998.

99.3         Offering Memorandum with respect to Coal City
             Capital Trust I Floating Rate Capital Securities.
[{"type": "8-K", "sequence": "1", "description": "FORM 8-K", "secsgml_size_bytes": 4422}]
{"company-data": {"conformed-name": "AVONDALE FINANCIAL CORP", "cik": "0000908143", "assigned-sic": "6035", "irs-number": "363895923", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-24566", "film-number": "98727203"}, "business-address": {"street1": "20 N CLARK ST", "city": "CHICAGO", "state": "IL", "zip": "60602", "phone": "3127826200"}, "mail-address": {"street1": "20 NORTH CLARK STREET", "city": "CHICAGO", "state": "IL", "zip": "60602"}}
================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                 --------------
                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                Date of Report (Date of earliest event reported)
                                October 12, 1998

                            AVONDALE FINANCIAL CORP.
--------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its Charter)

   DELAWARE                   0-24566              36-3895923
--------------------------------------------------------------------------------
(State or other         (Commission File No.)    (IRS Employer
 jurisdiction of                                  Identification
 incorporation)                                       Number)

20 NORTH CLARK STREET, CHICAGO, ILLINOIS                 60602
--------------------------------------------------------------------------------
(Address of principal executive offices)               (Zip Code)

       Registrant's telephone number, including area code: (312) 782-6200
--------------------------------------------------------------------------------

                                      N/A
--------------------------------------------------------------------------------
          (Former name or former address, if changed since last report)
Item 5.  Other Events

     On October 12, 1998 Avondale  Financial  Corp.  ("Avondale")  and Coal City
Corporation  ("Coal  City")  entered  into  an  Agreement  and  Plan  of  Merger
(including related stock option  agreements)  which,  together with all exhibits
thereto, is included as Exhibit 2 hereto and incorporated by reference herein.

     A copy of the joint press release announcing execution of the Agreement and
Plan of Merger is attached hereto as Exhibit 99.1 and  incorporated by reference
herein.

     A copy of Avondale's  press release  announcing a loss in the third quarter
of 1998 is attached hereto as Exhibit 99.2 and incorporated by reference herein.

     Additional  information on Coal City in the form of an offering  memorandum
with respect to certain  floating rate capital  securities is attached hereto as
Exhibit 99.3 and incorporated by reference herein.

Item 7.   Financial Statements and Exhibits

    (c)   Exhibits

    2     Agreement and Plan of Merger, dated as of October 12,
          1998, by and between Avondale Financial Corp. and Coal
          City Corporation.

    99.1  Joint Press Release of Avondale and Coal City, dated
          October 13, 1998.

    99.2  Press Release of Avondale dated October 13, 1998.

    99.3  Offering Memorandum with respect to Coal City Capital
          Trust I Floating Rate Capital Securities.

                                        2
SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                 AVONDALE FINANCIAL CORP.

Date: October 12, 1998                           By: /s/ ROBERT S. ENGELMAN, JR.
                                                     ---------------------------
                                                     Robert S. Engelman, Jr.
                                                     President and Chief
                                                      Executive Officer
EXHIBIT INDEX

EXHIBIT
NUMBER                      DESCRIPTION
-------                     ----------- 
2            Agreement and Plan of Merger, dated as of October 12,
             1998, by and between Avondale Financial Corp.
             and Coal City Corporation.

99.1         Joint Press Release of Avondale and Coal City,
             dated October 13, 1998.

99.2         Press Release of Avondale dated October 13, 1998.

99.3         Offering Memorandum with respect to Coal City
             Capital Trust I Floating Rate Capital Securities.