CHICAGO, Dec. 15, 2017 (GLOBE NEWSWIRE) -- Royal Financial, Inc. (“Royal Financial”) (OTCQX:RYFL), announced today that its banking subsidiary, Royal Savings Bank (“Royal Bank”), has entered into a Purchase and Assumption Agreement with the Federal Deposit Insurance Corporation (“FDIC”) to acquire selected assets and the insured deposits of Washington Federal Bank for Savings, Chicago, Illinois (“Washington Federal”). The FDIC is acting as the receiver following the Office of the Comptroller of the Currency determination to close Washington Federal.
Effective today, December 15, 2017, Royal Bank has acquired the following assets and liabilities of Washington Federal:
- Approximately $132.4 million in insured deposits (checking, savings, money market and certificates of deposit) offset with cash
Royal Bank also has the option to purchase the two existing Washington Federal office locations and may have the option to acquire selected loans. Neither Royal Financial nor Royal Bank acquired any assets, common stock, preferred stock or debt, or assumed any other obligations, of Washington Bancshares, Inc., the savings and loan holding company for Washington Federal.
Washington Federal branch locations will re-open for normal business as “Royal Savings Bank” on Saturday, December 16, 2017. Customer deposits will continue to be insured by the FDIC up to applicable limits, and customers do not need to take any action to maintain that insurance coverage.
“Our most important message to former Washington Federal customers is that their FDIC-insured deposits are safe, secure and accessible,” said Leonard Szwajkowski, President and CEO of Royal Savings Bank. “Beginning Saturday, December 16, 2017, it will be business as usual at the former Washington Federal locations. We are honored to welcome former Washington Federal clients to the Royal Bank franchise.”
Washington Federal customers will be able to use their Washington Federal checks and ATM and debit cards to bank with Royal Bank. All checks will be processed as usual and will clear up to the insured balance in the account. Customers can use any Royal Bank ATM free of charge.
“Further, we look forward to providing our new customers with high quality personal customer service while offering expanded products, services and additional branch locations. This acquisition increases Royal Bank’s asset size to $450 million and branch network to nine banking centers and two business production offices which expands our reach in the diverse Chicagoland banking market. This combination also provides significant operating efficiencies while maintaining our strong balance sheet. Following completion of the acquisition, Royal Bank will remain well-capitalized as defined in banking regulations.”
“Royal Financial is focused on increasing shareholder value through profitable growth by organic means and by acquisition,” said Jim Fitch, Chairman of Royal Financials Board of Directors. “Royal Financial has now completed three transformative acquisitions since the fall of 2015, which our management team accomplished skillfully and efficiently. We continue to seek and welcome opportunities to expand the company.”
Additional information regarding the acquired branches and specific customer FAQs is available on the company’s website at www.royalbankweb.com.
Royal Financial was advised by Howard and Howard Attorneys PLLC as legal counsel and RP Financial LC. 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 bank branches in Chicagoland and two 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.
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