-- Total assets were $1.18 billion at June 30, 2010, a decrease
of 8.53% from $1.29 billion at December 31, 2009.
-- Second quarter 2010 deposit levels were $791.8 million, down $90
million or 10.21% from $881.8 million at December 31, 2009 and down
$34.4 million or 4.16% from $826.2 million at March 31, 2010. This
was a planned reduction as the company is actively reducing its
reliance on brokered deposits. We also continue to reduce other
borrowings via allowing Federal Home Loan Bank advances to redeem at
maturity. Royal continues to maintain its deposit base from
consumer and commercial accounts, reflecting confidence in the brand
throughout the marketplace as well as the bank's competitive
interest rates on deposit products.
-- Net loans and leases at quarter end were $612.2 million, down 7.00%
or $46.6 million compared to $658.8 million at December 31, 2009
(which includes loans held for sale) and down $18.2 million or 2.89%
from $630.4 million at March 31, 2010.
-- Net interest income increased to $8.3 million in the second quarter
of 2010, from $6.9 million for the same period in 2009, largely due
to a lower cost of funds compared to prior periods. This also drove
an increase in net interest income to $16.4 million for the six
months ended June 30, 2010, compared to $14.0 million for the same
period in 2009.
-- Net interest margin in the second quarter was 3.01%, up 71 basis
points from the comparable 2009 quarter of 2.30%. Net interest
margin for the six month period was 2.90%, up 50 basis points from
2.40% in the comparable period of 2009. Net interest margin was
favorably impacted by 32 basis points in the quarter and 15 basis
points for the six month period, due to the previously-mentioned
income adjustment of $905,000.
-- Non-accrual and impaired loans were $74.4 million at June 30, 2010,
up slightly compared to $73.7 million at December 31, 2009. An
increase in nonaccrual loans since year end was mostly offset as a
result of loans becoming current and placed back on accrual, loan
payoffs, transfers to other real estate owned, and charge-offs.
Royal has no troubled debt restructured loans or loans past due 90
days or more on which it has continued to accrue interest during
the quarter.
-- At June 30, 2010, Royal Bank America had capital ratios above the
level required to meet regulatory standards for a well-capitalized
institution. Total capital to risk-weighted assets was 14.57%;
Tier I capital to risk-weighted assets was 13.30%: and Tier I
capital to average assets was 8.83%.
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 in Pennsylvania, New Jersey and New
York. For the past 40+ years, Royal has played a lead role in the growth
and development of our region, empowering small businesses, entrepreneurs
and individuals to achieve their financial goals and enrich our
communities. More information on Royal Bancshares of Pennsylvania, our
banks and subsidiaries is available at www.royalbankamerica.com.
Forward Looking Statements
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, 2009.
ROYAL BANCSHARES OF PENNSYLVANIA, INC.
CONDENSED INCOME STATEMENT
Three Months Six Months
Ended Jun. 30th Ended Jun. 30th
(in thousands, except for
earnings per common share) 2010 2009 2010 2009
---------- ---------- ---------- ----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest Income $ 15,173 $ 16,570 $ 30,796 $ 32,924
Interest Expense 6,839 9,681 14,442 18,966
---------- ---------- ---------- ----------
Net Interest Income 8,334 6,889 16,354 13,958
Provision for Loan Losses 4,290 6,956 6,193 9,753
---------- ---------- ---------- ----------
Net Interest Income (Loss)
after Provision 4,044 (67) 10,161 4,205
Non Interest Income/(Loss) 1,718 (3,404) 3,023 (6,988)
Non Interest Expense 10,041 8,319 18,094 15,544
---------- ---------- ---------- ----------
Loss before Taxes (4,279) (11,790) (4,910) (18,327)
Income Taxes 0 0 0 0
---------- ---------- ---------- ----------
Net Loss (4,279) (11,790) (4,910) (18,327)
Less Net Income
attributable to
noncontrolling interest 259 264 701 480
Net Loss attributable to
Royal Bancshares $ (4,538) $ (12,054) $ (5,611) $ (18,807)
========== ========== ========== ==========
Loss per common share -
basic $ (0.38) $ (0.95)$ (0.50)$ (1.47)
========== ========== ========== ==========
SELECTED RATIOS:
Return on Average Assets -1.5% -3.9% -0.9% -6.2%
Return on Average Equity -17.2% -45.5% -10.7% -75.3%
Average Equity to Assets 8.7% 8.5% 8.5% 8.3%
Book Value Per Share $ 5.26 $ 5.74 $ 5.26 $ 5.74
CONDENSED BALANCE SHEET
Jun. 30, Dec. 31,
(in thousands) 2010 2009
(unaudited) (unaudited)
Cash and Cash Equivalents $ 114,831 $ 58,298
Investment Securities 349,771 449,671
Loans & Leases (net) 612,197 658,787
Premises and Equipment (net) 16,716 18,798
Accrued Interest receivable 15,985 14,942
Other Assets 73,978 92,230
----------- -----------
Total Assets $ 1,183,478 $ 1,292,726
----------- -----------
Deposits 791,827 881,755
Borrowings 236,566 257,827
Other Liabilities 25,306 23,056
Subordinated debentures 25,774 25,774
Royal Bancshares Shareholders' Equity 100,146 101,156
Noncontrolling Interest 3,859 3,158
----------- -----------
Total Equity 104,005 104,314
----------- -----------
Total Liabilities and Equity $ 1,183,478 $ 1,292,726
----------- -----------
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(R)
"Variable Interest Entities."
Contact Information: Company Contact: Marc Sanders Director of Marketing Royal Bank America Office: 610-668-4700 Cell: 484-802-1944