Regal Financial Bank Reaches New Milestones

SEATTLE--(BUSINESS WIRE)--Regal Financial Bank announced today two very significant events in their history. First, it has successfully completed and closed its $12 million capital campaign that commenced in September of 2011. And, more importantly, it also announced that the Federal Deposit Insurance Corporation (FDIC) and Washington Department of Financial Institutions (WDFI) have terminated the Cease and Desist Order it had been operating under since September 3, 2009.

“These milestones demonstrate the results of our efforts to build a foundation of success for our bank. We appreciate the recognition of our work from the regulators and the trust and confidence in us by our current and new shareholders”

“These milestones demonstrate the results of our efforts to build a foundation of success for our bank. We appreciate the recognition of our work from the regulators and the trust and confidence in us by our current and new shareholders,” said Randy C. James, Chairman and CEO. “This new capital gives us the opportunity to grow our product offerings and add new relationship officers to help build our growing small business market.”

Additionally, Regal Financial Bank updated their shareholders at the end of the Fourth Quarter, 2012, announcing a profitable year of earnings, exceeding their full year plan by 60%. The bank continues to show dramatic improvement across all loan classifications over the past 12 months. As Mr. James stated, “We are seeing excellent reductions in substandard loans offset by quality new loan and deposit growth. With new capital ratios of 19.48% total risk-based capital and Tier 1 leverage capital of 14.1% the bank is well positioned to support its strategic initiatives for 2013.”

About Regal Financial Bank

Headquartered in the heart of downtown Seattle, Regal Financial Bank is a locally owned community bank that understands the value of customer relationships and is focused on exceeding client expectations at every opportunity. We are a business bank. Our team of bankers has a deep and robust level of experience in this market serving the needs of closely held businesses, business owners and principals of small businesses in this region for over 30 years. More information is available at www.regalfinancialbank.com.

Forward-Looking/Safe Harbor Statement

This release contains “forward-looking statements” covered by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on the operations of the Company include, but are not limited to, changes in market interest rates, regional and national economic conditions, legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, and changes in relevant accounting principles and guidelines. These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Regal Financial Bank stock is privately traded and is not liquid as stocks on the public markets such as the NASDAQ or NYSE. Past financial performance does not ensure future results. The Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements.