A federal bankruptcy court has approved the sale of PNA Bank in Chicago.
Last month Royal Financial, also in Chicago, agreed to buy PNA for $1.2 million in cash from FLC Holding, which is engaged in a Chapter 11 reorganization.
Royal's next step will be to file for merger approval from state and federal regulators, which it expects to complete by the second quarter. Royal would gain slightly under $100 million in assets, pushing its total to $232 million.
"We are pleased with the court's decision today, which removes the cloud of FLC Holding's bankruptcy from PNA Bank and enables us to move forward with applications for regulatory approval," Jim Fitch, the chairman of Royal Financial, said in a press release.
Royal Financial is the parent company of Royal Savings Bank, which would absorb PNA.