STC Capital Bank Enters into Definitive Agreement to Merge with Bank of Palatine

STC Capital Bank, a strong progressive community bank in St. Charles, announced today that it has signed a definitive agreement to merge with the Bank of Palatine, in Palatine, IL. The transaction is subject to the approval of bank stockholders, regulatory authorities and other customary conditions. STC Capital Bank, formed in 2006, is a $160 million dollar state chartered bank with $22 million in capital, serving the western suburbs of Chicago. The new combined bank will be approximately $210 million in assets. Concerning the transaction Tony Sisto, STC Chairman and Chief Executive Officer stated, "This consolidation will allow us to strengthen our reputation of providing outstanding personal service to local communities. The Bank of Palatine has had a history of serving its' local community and really cares about its clients. This fits perfectly with our philosophy of Service, Trust and Commitment that the STC in our name stands for." Winn Davidson, President and Chief Executive Officer of Bank of Palatine commented, "Our customers will continue to see many of the same familiar faces in the bank as before but will also enjoy a greatly expanded selection of deposit and loan products to serve today's financial needs." Mr. Davidson continued, "It has been our pleasure serving Bank of Palatine's customers for almost forty years and Bank of Palatine will continue serving its customers as part of STC Capital Bank. On behalf of the board of directors, myself and the entire staff of the Bank of Palatine, we thank our customers for their loyalty and confidence through the years." Kemp & Grzelakowski, Ltd., served as legal adviser to STC Capital Bank. D.A. Davidson & Co. served as financial adviser and Barack, Ferrazzano, Kirschbaum & Nagelberg LLP served as legal adviser to Bank of Palatine in conjunction with the transaction. For more information regarding STC Capital Bank, please call (630)377-1555 or visit their website at www.stccapitalbank.com. STC Capital Bank is a wholly owned subsidiary of STC Bancshares Corp. and is an Equal Housing Lender and member of the FDIC.