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CHICAGO, Oct. 28, 2019 (GLOBE NEWSWIRE) -- Royal Financial, Inc. (“Royal”) (OTCQX: RYFL), parent company of Royal Savings Bank (“Royal Savings”), announced today that Royal Savings has entered into a definitive purchase and assumption agreement to acquire two Illinois State Bank branch banking centers located in the Illinois cities of Lake in the Hills and McHenry from Brookfield, Wisconsin based North Shore Bank, F.S.B. (“North Shore”). Royal Savings anticipates assuming approximately $42 million in deposits and substantially all of the fixed assets of these locations. The transaction has received approvals from each party’s board of directors and is expected to close in the first quarter of 2020, subject to regulatory approvals and other customary closing conditions.
Both banks will be working closely to ensure a seamless transition for customer accounts and associates transferring to Royal Savings. North Shore’s Lake in the Hills and McHenry branch customers will be receiving additional information related to the sale in the near future. Upon completion of the transaction, Royal Savings will operate eleven branch locations and two loan production offices in the greater Chicago market. The transfer of the branches and related deposits will not affect customer loan accounts, investments, and credit cards with North Shore Bank.
Leonard Szwajkowski, President and Chief Executive Officer of Royal Savings said, “We are pleased to enter into this agreement to acquire two banking centers from North Shore which are located in the northwest suburban Chicago marketplace. The acquisition will allow Royal Savings to increase its deposit market share in the greater Chicagoland and Metropolitan area and expand its geographic footprint with entry into McHenry County, while at the same time providing additional retail deposit funds for reinvestment and growth of our balance sheet. We look forward to serving McHenry County’s banking needs and providing personal and commercial deposit and loan products.” The transaction is expected to be immediately accretive to both earnings and tangible book value.
“This transaction contributes to our financial and long-term strategic goals with manageable risk based on our experienced team’s history of successful acquisitions and system integrations,” said Jim Fitch, Chairman of Royal Financial’s Board of Directors. “Royal Financial is focused on increasing shareholder value through profitable growth by organic means and by acquisition. This announcement is the fourth transformative acquisition since 2015 by the Royal Savings organization, which our management team accomplished skillfully and efficiently. We continue to seek and welcome opportunities to expand the company.”
Royal Financial was advised by Howard and Howard Attorneys PLLC as legal counsel and RP Financial, LC. as financial advisor. North Shore Bank was advised by Reinhart Boerner Van Deuren S.C. as legal counsel and Olsen Palmer LLC as financial advisor.
About Royal Financial, Inc.
Royal Financial, Inc. is a bank holding company serving the Chicago area market through its banking subsidiary Royal Savings 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 nine branches in the city of Chicago and suburbs of Westmont and Niles and two business loan 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.
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.
Contact: Leonard Szwajkowski
President and CEO
Royal Financial, Inc.
Telephone: (773) 382-2111