Royal Financial in Chicago has agreed to buy Park Bancorp in Chicago.
The $207 million-asset Royal said in a press release Friday that it will pay about $240,000 in cash for the $146 million-asset Park. The deal is expected to close in the second quarter.
Royal said it expects the transaction to be accretive in its first full year. Royal said it plans to restructure Park's balance sheet by selling off certain performing and nonperforming loans, other real estate owned and bank properties; it will also prepay certain higher costing borrowings.
"The transaction is attractive and fits Royal Financial's strategy to enhance the value of our franchise," said Jim Fitch, Royal's chairman, in the release. "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."
This the second time Park has agreed to sell itself. Parkway Bancorp in Harwood Heights, Ill., agreed to buy Park Bancorp in Chicago in May for $300,000 to $417,000, but the deal was terminated in November.
Royal was advised RP Financial and Howard & Howard. Park Bancorp was advised by Vedder Price.