CHICAGO, May 01, 2016 (GLOBE NEWSWIRE) -- Royal Financial, Inc. (“Royal Financial”) (OTCQX:RYFL), parent company of Royal Savings Bank (“Royal Bank”), announced today that it completed its acquisition of Park Bancorp (“Park Bancorp”) and the merger of Park’s wholly-owned subsidiary, Park Federal Savings Bank (“Park Federal”), a federally-chartered bank, with and into Royal’s wholly-owned subsidiary, Royal Savings Bank (“Royal Bank”), a state-chartered savings bank, on April 29, 2016. Park Bancorp was simultaneously merged into Royal Financial.
“Royal Financial is focused on increasing shareholder value through profitable growth by organic means and by acquisition,” said Jim Fitch, Chairman of Royal Financial’s Board of Directors. “Royal Financial has completed two transformative acquisitions in seven months, which our management team accomplished skillfully and efficiently. We continue to seek and welcome opportunities to expand the company.”
On January 14, 2016, Royal Financial and Park Bancorp executed their Agreement and Plan of Merger subject to certain conditions, including approval by Park Bancorp’s shareholders of the sale and regulatory approval of merger applications. On March 22, 2016, Park Bancorp shareholders voted to approve the sale and merger. On April 28, 2016, Royal Financial and Royal Bank received final regulatory approval from the Illinois Department of Financial and Professional Regulation, the Federal Deposit Insurance Corporation, and the Federal Reserve Bank of Chicago.
Leonard Szwajkowski, President and CEO of Royal Financial, stated, “We welcome the customers and staff of Park Federal to Royal Bank, and we look forward to providing our new customers with high quality and personal customer service while offering an expanded product and service mix. This acquisition increases Royal Bank’s branch network to eight banking centers and two business production offices, which enables us to continue to expand our reach in the diverse Chicagoland banking market. This combination also provides significant operating efficiencies while maintaining our strong balance sheet.”
Royal Financial projects that the acquisition will increase Royal Bank to $312 million in total assets, $204 million in loans outstanding, and $269 million in deposits. Upon the completion of all planned integration actions, Royal Bank will have seven banking centers, with five branches located in Chicago, one in Niles, Illinois and one in Westmont, Illinois. In addition, Royal Bank continues with two business production offices, located in Homewood and St. Charles, Illinois.
In conjunction with completing the acquisition, Royal Bank also closed the previously-announced sale of $25.8 million of Park Federal’s distressed assets, including Other Real Estate Owned (“OREO”), to a New York-based asset management firm which Royal Financial selected in a controlled auction of the assets.
As previously announced, Royal Bank will close its banking office at 4800 S. Pulaski Road, Chicago, and consolidate it into its newly-acquired banking office at 5400 S. Pulaski Road, Chicago. Royal Bank has executed an agreement to sell the 4800 S. Pulaski Road office, with the sale expected to close on May 3, 2016. Under terms of the sale agreement, Royal Bank will be allowed to use the facility until June 30, 2016.
Royal Bank projects that it will complete its integration of the acquisition with the conversion of Park Federal’s core computer system on September 23, 2016.
Royal Financial was advised by Howard and Howard Attorneys as legal counsel, RP Financial LC. for financial advice and FTN Financial Capital Markets for the Park Federal distressed asset sale.
About Royal Financial, Inc.
Royal Financial, Inc. is a bank holding company serving the Chicago area market through its banking subsidiary Royal Bank. Royal Bank is a federally-insured financial institution that offers a range of checking and savings products and a full line of home and commercial lending solutions. Royal Bank has been operating continuously in Chicago since 1887, and currently has eight bank branches in Chicagoland and business production offices in Homewood and St. Charles, Illinois. Visit Royal Financial, Inc. and Royal Bank at: www.royalbankweb.com. Royal Financial’s stock is traded on OTCQX under the symbol RYFL.
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Forward Looking Statements: This press release may include forward-looking statements. These forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies, and expectations, can generally be identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. The Company’s respective ability to predict results or the actual effect of future plans or strategies is inherently uncertain and actual results may differ materially from those predicted in such forward-looking statements. Factors that could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to: changes in interest rates; the economic health of the local real estate market; general economic conditions; continued credit deterioration in the loan portfolio that would cause Royal Bank to further increase the allowance for loan losses; 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 or composition of the loan and securities portfolios; demand for loan products in the Company’s market areas; deposit flows; competition; demand for financial services in the Company’s market areas; and changes in accounting 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.