NARBERTH, PA--(Marketwire - May 15, 2009) - Royal Bancshares of Pennsylvania, Inc.
(
NASDAQ:
RBPAA) ("Royal"), announced results for the first quarter of 2009.
Royal Bank America, the largest subsidiary of Royal, reported a net loss
for the quarter of $2.3 million after adding an additional $2.8 million
pre-tax in the provision for loan losses.
Royal Investments of Delaware, a wholly owned subsidiary of the holding
company, reported a non-cash charge of $4.2 million due to an impairment
charge related to certain equity securities held in its available-for-sale
(AFS) investment portfolio, which contributed to a $4.4 million loss for
the quarter. This impairment does not impact capital ratios at Royal Bank
America or Royal Asian Bank, both of which remain above the levels required
to be considered "well-capitalized" according to regulatory standards at
March 31, 2009.
Overall, on a consolidated basis Royal reported a net loss for the three
months ended March 31, 2009 of $6.8 million or $0.53 basic and diluted loss
per share, compared to net income of $1.0 million, or $0.08 basic and
diluted earnings per share, for the same period in 2008.
Gross loans and leases for the quarter increased $21 million, a 12%
annualized increase, to $721.7 million before adjustments for the transfer
of loans to ORE and charge-offs.
Comments from Robert R. Tabas, Chairman and CEO regarding results for the
quarter:
"We continue to be disappointed by our earnings and it remains clear we are
still feeling the effects of this extreme recessionary environment.
Positive signs are beginning to appear in our core business and especially
in lending. Our plan to move the bank forward is gaining traction and we
are confident that once the economy begins to show signs of life we will be
well positioned."
Comments from Robert R. Tabas, Chairman and CEO regarding increase in
lending activity:
"Lending continues to be the engine that drives our bank and we noted a $21
million increase in gross loans and leases since year-end. A significant
portion of this growth has been due to the momentum we have gained from the
launch of our small business lending campaign, Spur The Economy, and its
associated micro-site
www.SpurTheEconomy.com."
Comments from Robert R. Tabas, Chairman and CEO regarding loan quality:
"Significant changes made in our lending and credit policies have to date
proven effective in shielding us from many of the perils still inherent in
our economy. In fact, the quality of loans we are approving in 2008 and
2009 are such that to date not a single one has become impaired."
About Royal Bancshares of Pennsylvania, Inc.
Royal Bancshares of Pennsylvania, Inc., headquartered in Narberth,
Pennsylvania, is a two-bank holding company operating the Royal Bank
America and Royal Asian Bank brands throughout Pennsylvania, New Jersey and
New York. As "The Region's Premier Commercial Lender," Royal Bank America
has played a lead role in the growth and development of our area for the
past 40+ years. Royal Asian Bank enjoys a distinctive niche serving the
financing and banking needs of the growing Asian-American population. More
information on Royal Bancshares of Pennsylvania, our banks and subsidiaries
is available at
www.royalbankamerica.com.
The foregoing material may contain forward-looking statements. We caution
that such statements may be subject to a number of uncertainties, and
actual results could differ materially; therefore, readers should not place
undue reliance on any forward-looking statements. Royal Bancshares of
Pennsylvania, Inc. does not undertake, and specifically disclaims, any
obligation to publicly release the results of any revisions that may be
made to any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date of such
statements. For a discussion of the factors that could cause actual results
to differ from the results discussed in any such forward-looking
statements, see the filings made by Royal Bancshares of Pennsylvania, Inc.
with the Securities and Exchange Commission, including its Annual Report -
Form 10-K for the year ended December 31, 2008.
ROYAL BANCSHARES OF PENNSYLVANIA, INC.
CONDENSED INCOME STATEMENT
Three Months Ended
Mar. 31st
(in thousands, except for earnings per share) 2009 2008
----------- -----------
(Unaudited) (Unaudited)
Interest Income $ 16,354 $ 20,072
Interest Expense 9,285 10,173
----------- -----------
Net Interest Income 7,069 9,899
Provision for Loan Losses 2,797 3,281
----------- -----------
Net Interest Income after Provision 4,272 6,618
Non Interest (Loss)/Income (3,583) 1,292
Non Interest Expense 7,226 6,604
----------- -----------
(Loss)/Income before Taxes (6,537) 1,306
Income Tax Expense (Benefit) 0 116
----------- -----------
Net (Loss)/Income (6,537) 1,190
Less Net Income attributable to noncontrolling
interest 216 147
Net (Loss)/Income attributable to Royal
Bancshares ($ 6,753) $ 1,043
=========== ===========
(Loss) Earnings per share - basic ($ 0.53) $ 0 .08
=========== ===========
SELECTED RATIOS:
Return on Average Assets -2.3% 0.3%
Return on Average Equity -28.6% 2.9%
Average Equity to Assets 7.9% 12.0%
Book Value Per Share $ 5.72 $ 10.83
CONDENSED BALANCE SHEET
(in thousands) Mar. 31, 2009 Dec. 31, 2008
(unaudited) (unaudited)
----------- -----------
Cash and Cash Equivalents $ 41,355 $ 14,259
Investment Securities 388,111 361,254
Loans & Leases (net) 680,144 672,081
Premises and Equipment (net) 25,954 25,853
Accrued Interest receivable 14,332 13,580
Other Assets 103,078 88,559
----------- -----------
Total Assets $ 1,252,974 $ 1,175,586
----------- -----------
Deposits 812,140 760,068
Borrowings 286,444 288,031
Other Liabilities 22,336 20,128
Subordinated debentures 25,774 25,774
Royal Bancshares Shareholders Equity 104,166 79,687
Noncontrolling Interest 2,114 1,898
----------- -----------
Total Equity 106,280 81,585
----------- -----------
Total Liabilities and Equity $ 1,252,974 $ 1,175,586
----------- -----------
The above condensed financial information includes consolidation of Equity
Real Estate Investments, owned by Royal Bancshares of Pennsylvania, Inc.,
which are required as a result of FIN 46® "Variable Interest Entities."
Contact Information: Media Contact:
Marc Sanders
Director of Marketing
610.668.4700