CHICAGO, July 11, 2014 (GLOBE NEWSWIRE) -- Royal Financial, Inc. (the "Company") (OTCBB:RYFL), incorporated under the laws of Delaware on December 15, 2004, for the purpose of serving as the holding company of Royal Savings Bank (the "Bank"), announced today that the Bank will relocate the branch office that serves Chicago's East Side community from its current location in a ninety year-old building to a vibrant, new "micro-branch" approximately one mile away.
"To better serve our customers and stockholders, we are pleased to announce this new development in our branch service strategy. With this relocation, we will continue to provide high-quality banking services by bringing a fresh and exciting approach that will meet the banking needs of our customers at reduced cost and risk," said Leonard Szwajkowski, President and Chief Executive Officer. The relocation is subject to approvals by the Federal Deposit Insurance Corporation and the Illinois Department of Financial and Professional Regulation.
The new branch will operate space leased from a neighborhood grocery. The Bank expects to open the new branch in late Summer 2014, improve customer service with newly trained client advisors, and provide increased access to bank facilities. The operating lease has a five-year term with two five-year renewal options. The Bank also expects this relocation to decrease operating expenses, avoid major capital expenditures that may be required in the aging current building, and require a lease build-out of approximately $200,000.
The Bank recently entered into a Real Estate Purchase and Sale Contract to sell the existing two-story building located at 10555 S. Ewing Av., Chicago, to a nationally recognized real estate development firm. The buyer will perform its due diligence in two phases, each of which may require up to 120 days. The Bank expects to complete its exit from the existing facility not later than December 31, 2014, and close the sale in Fiscal Year 2015 with a pre-tax capital gain of approximately $900,000.
Royal Savings Bank offers a range of checking and savings products and a full line of home and commercial lending solutions. Royal Savings Bank has been operating continuously in the south and southeast communities of Chicago since 1887, and currently has two branches in Chicago with lending centers in Homewood and St. Charles Illinois. Visit Royal Financial, Inc. and Royal Savings Bank at www.royal-bank.us
Forward-Looking Statements: This press release may include forward-looking statements. These forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. Our 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 and the Bank 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 our loan portfolio that would cause us to further increase our 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 our market areas; deposit flows; competition; demand for financial services in our 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.
Mr. Leonard Szwajkowski President and CEO Telephone: (773) 382-2111 E-mail: firstname.lastname@example.org