Business
Finward Bancorp and Royal Financial, Inc. Announce Signing of Definitive Merger Agreement
MUNSTER, Ind. and CHICAGO, July 29, 2021 (GLOBE NEWSWIRE) -- Finward Bancorp (OTC Pink: FNWD) (“FNWD”), the parent of Peoples Bank, and Royal Financial, Inc.
About this update from Finward Bancorp
[{"type":"text","content":"MUNSTER, Ind. and CHICAGO, July 29, 2021 (GLOBE NEWSWIRE) -- Finward Bancorp (OTC Pink: FNWD) (“FNWD”), the parent of Peoples Bank, and Royal Financial, Inc. (OTCQX: RYFL) (“RYFL”) announced today they have executed a definitive merger agreement pursuant to which FNWD will acquire RYFL and its wholly-owned subsidiary, Royal Savings Bank, of Chicago, Illinois, in a stock and cash transaction. A copy of the definitive agreement is available as Exhibit 2.1 to the Form 8-K filed by FNWD today with the Securities Exchange Commission (the “SEC”) at the SEC’s internet site (http://www.sec.gov). Under the terms of the merger agreement, stockholders of RYFL who hold 101 or more shares of RYFL common stock will have the right to elect to receive $20.14 per share in cash or 0.4609 shares of FNWD common stock, or a combination of both, for each outstanding share of RYFL common stock, subject to allocation provisions to assure that, in the aggregate, 65% of RYFL’s outstanding shares of common stock will receive FNWD common stock and 35% will receive cash. Stockholders of RYFL holding less than 101 shares of RYFL common stock will have the right to receive $20.14 in cash and no stock consideration for each share of RYFL common stock. Based on FNWD’s closing stock price of $44.00 as of July 28, 2021, the merger consideration has an aggregate value of approximately $52.9 million, which represents approximately 115% of RYFL’s tangible book value, and which includes approximately $0.9 million paid to RYFL’s stock option holders. RYFL is a bank holding company headquartered in Chicago, Illinois with total consolidated assets of $533 million as of June 30, 2021. Royal Savings Bank was established in 1887 and serves the Chicagoland metropolitan market with nine full-service locations. “I’m proud to announce our merger with Royal Financial and Royal Savings Bank, an exciting combination that we are confident will create value for our shareholders, our employees, our customers, and our communities. This partnership is a strong cultural, strategic, and financial fit for both of our organizations. Our companies have a long history of serving our communities and helping our customers be more successful,” said Benjamin Bochnowski, president and chief executive officer of FNWD. “By joining together, we expect to achieve more on a greater scale to help us s...