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Royal Financial to acquire Park Bancorp

CHICAGO - Royal Financial announced it will acquire Park Bancorp, the holding company and parent of Park Federal Savings Bank, which operates three offices in Chicago and one in Westmont.

Under the terms of the agreement, which was approved by the boards of directors of both companies, shareholders of Park Bancorp will be entitled to receive a total of approximately $240,000 in cash in exchange for the outstanding common shares of Park Bancorp, provided that such amount will be reduced to the extent that Park Bancorp's consolidated stockholder's equity is below a specified threshold as of the closing.

Park Bancorp had $146 million in total assets, $78 million in total loans and $112 million in total deposits.

Royal said ti will file bank merger applications with federal and state banking regulators in the near term seeking their approval of the proposed acquisition, and expects the acquisition to close in the second quarter of calendar year 2016.

"This acquisition continues to expand Royal Financial's ability to serve the Chicago banking market while also providing economies of scale and maintaining our strong balance sheet," said Jim Fitch, Chairman of Royal Financial. "In both our recent acquisition of PNA Bank and this agreement to acquire Park Bancorp, our management team has demonstrated great skill and agility."

Royal Financial was advised in the transaction by RP Financial, LC. as financial adviser and Howard & Howard as legal counsel. Park Bancorp, Inc. was advised by Vedder Price P.C. as legal counsel. T

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