Royal Financial in Chicago has agreed to buy PNA Bank in Chicago.
The $138 million-asset Royal said in a press release Friday that it had agreed to pay $1.2 million in cash for the $99 million-asset PNA Bank. The bank is being sold by FLC Holding, which had already filed a voluntary Chapter 11 bankruptcy petition.
The acquisition is subject to bidding procedures established by the bankruptcy court, and the agreement calls for FLC to pay a break-up fee if, under certain circumstances, another institution ends up with PNA Bank.
Royal, which recently announced that it had taken out a $4 million line of credit from another bank, said it expects to complete the acquisition in the second quarter.
Royal was advised by RP Financial and Vedder Price. FLC was advised by Adelman & Gettleman.