Chicago-based Royal Financial Inc. on April 29 completed itsacquisition ofPark Bancorp Inc.,also based in Chicago. The merger of federally chartered intostate-chartered Royal SavingsBank was also completed the same day.
The acquisition increases Royal Savings Bank's branchnetwork to eight banking centers and two business production offices. Thedeal receivedfinal regulatory approval from the Illinois Department of Financial andProfessional Regulation, the FDIC and the Federal Reserve Bank of Chicago onApril 28, according to a May 1 news release.
Royal Financial projects that the transaction will increaseRoyal Savings Bank to $312 million in total assets, $204 million in loansoutstanding and $269 million in deposits. According to SNL data, Royal SavingsBank had total assets of about $204.8 million as of March 31, while ParkFederal had total assets of about $140.3 million.
In conjunction with completing the acquisition, RoyalSavings Bank also closed the sale of $25.8 million of Park Federal's distressedassets, including other real estate owned, to a New York-based asset managementfirm which Royal Financial selected in a controlled auction of the assets.
As previously announced, Royal Savings Bank will close its bankingoffice at 4800 S. Pulaski Road, Chicago, and consolidate it into its newlyacquired banking office at 5400 S. Pulaski Road, Chicago. The bank has executedan agreement to sell the 4800 S. Pulaski Road office, with the sale expected toclose May 3. Under the sale agreement, Royal Savings Bank will be allowed touse the facility until June 30.
Upon the completion of all planned integration actions,Royal Savings Bank will have seven banking centers, with five branches locatedin Chicago and one each in Niles and Westmont, Ill. In addition, Royal SavingsBank continues with two business production offices, located in Homewood andSt. Charles, Ill.
Royal Savings Bank expects to complete its integration ofthe acquisition with the conversion Park Federal's core computer system onSept. 23.
Royal Financial was advised by Howard & Howard Attorneysas legal counsel, RP Financial LC for financial advice and FTN FinancialCapital Markets for the Park Federal distressed asset sale.Vedder Price PC — led by Daniel McKay II, James Morrissey and Mark Svalina —was legal counsel to Park Bancorp and Park Federal in connection with its saleto Royal Financial.