-- Total assets were $1.3 billion at June 30, 2009, an increase of 12.3%
from $1.2 billion at December 31, 2008.
-- Second quarter 2009 deposit levels were $876.7 million, up $116.6
million or 15.3% from $760.1 million at December 31, 2008 and up $64.6
million or 8% from $812.1 million at March 31, 2009.
-- Net loans and leases at quarter end were $687.8 million, up 2.4% or
$16 million compared to $671.8 million at December 31, 2008 and up $7.7
million or 1.1% from $680.1 million at March 31, 2009.
-- Net interest income was $6.9 million in the second quarter of 2009,
compared to $9.3 million for the same period in 2008. Net interest income
was $14 million for the six months ended June 30, 2009, compared to $19.1
million for the same period in 2008.
-- Net interest margin in the second quarter was 2.30%, down 124 basis
points from the comparable 2008 quarter of 3.54%. Net interest margin for
the six month period was 2.40%, down 114 basis points from 3.54% in the
comparable period of 2008. The decline for the quarter and the six month
period was driven by an increase in non performing loans, a reduction in
the prime rate by the Federal Reserve, and a reduction in the yield on
investment securities, as well as a strategic decision on the part of
management to maintain a larger position in cash and cash equivalents.
Partially offsetting these declines was a slight reduction in the cost of
interest bearing liabilities.
-- Non-accrual and impaired loans were $85.6 million at June 30, 2009,
compared to $85.8 million at December 31, 2008, a slight decrease of
$227,000. The decline was the result of loans becoming current and placed
back on accrual, loan payoffs, transfers to other real estate owned, and
charge-offs, net of additions. 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.
-- Capital levels at June 30, 2009 exceed the regulatory minimum
requirements for "well capitalized" at both the subsidiary and holding
company level:
As of June 30, 2009
--------------------------------------------------
To be well
capitalized
For capital under prompt
adequacy corrective
Actual purposes action provision
---------------- ---------------- ----------------
(Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio
--------- ----- --------- ----- --------- -----
Total capital (to
risk-weighted assets)
Company (consolidated) $ 154,878 14.71% $ 84,216 8.00% N/A N/A
Royal Bank 116,583 12.21% 76,404 8.00% $ 95,505 10.00%
Royal Asian 14,465 16.34% 7,083 8.00% 8,853 10.00%
Tier I capital (to
risk-weighted assets)
Company (consolidated) $ 141,531 13.44% $ 42,108 4.00% N/A N/A
Royal Bank 104,469 10.94% 38,202 4.00% $ 57,303 6.00%
Royal Asian 13,354 15.08% 3,541 4.00% 5,312 6.00%
Tier I Capital (to
average assets,
leverage)
Company (consolidated) $ 141,531 10.88% $ 39,017 3.00% N/A N/A
Royal Bank 104,469 8.81% 35,554 3.00% $ 59,257 5.00%
Royal Asian 13,354 11.38% 3,520 3.00% 5,867 5.00%
Robert Tabas concluded, "The small business niche has proven to be fruitful
for our business development efforts, and our loan growth this quarter
reflects our continued success in repositioning our lending focus. Our
deposit growth reflects customers underlying satisfaction with our customer
service, convenience, and stability. We are building a foundation for
future growth and believe we are making solid progress."
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. 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.
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, 2008.
ROYAL BANCSHARES OF PENNSYLVANIA, INC.
CONDENSED INCOME STATEMENT
Three Months Six Months
(in thousands, except for Ended June 30th Ended June 30th
earnings per share) 2009 2008 2009 2008
---------- ---------- ---------- ----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest Income $ 16,570 $ 17,702 $ 32,924 $ 37,774
Interest Expense 9,681 8,452 18,966 18,625
---------- ---------- ---------- ----------
Net Interest Income 6,889 9,250 13,958 19,149
Provision for Loan Losses 6,956 4,531 9,753 7,812
---------- ---------- ---------- ----------
Net Interest (Loss) Income
after Provision (67) 4,719 4,205 11,337
Non Interest (Loss)/Income (3,404) 2,452 (6,988) 3,744
Non Interest Expense 8,319 7,041 15,544 13,645
---------- ---------- ---------- ----------
(Loss)/Income before Taxes (11,790) 130 (18,327) 1,436
Income Tax Expense
(Benefit) 0 (185) 0 (69)
---------- ---------- ---------- ----------
Net (Loss)/Income (11,790) 315 (18,327) 1,505
Less Net Income
attributable to
noncontrolling interest 264 163 480 310
Net (Loss)/Income
attributable to Royal
Bancshares ($ 12,054) $ 152 ($ 18,807) $ 1,195
========== ========== ========== ==========
(Loss) Earnings per share -
basic ($ 0.95) $ 0.01 ($ 1.47) $ 0.09
========== ========== ========== ==========
SELECTED RATIOS:
Return on Average Assets -3.9% 0.1% -6.2% 0.2%
Return on Average Equity -45.5% 0.4% -75.3% 1.7%
Average Equity to Assets 8.5% 12.3% 8.3% 12.1%
Book Value Per Share $ 5.74 $ 10.35 $ 5.74 $ 10.35
CONDENSED BALANCE SHEET
(in thousands) June 30, 2009 Dec. 31, 2008
(unaudited) (unaudited)
Cash and Cash Equivalents $ 54,208 $ 14,259
Investment Securities 425,497 361,254
Loans & Leases (net) 690,264 672,081
Premises and Equipment (net) 25,531 25,853
Accrued Interest receivable 13,455 13,580
Other Assets 111,690 88,559
-------------- --------------
Total Assets $ 1,320,645 $ 1,175,586
-------------- --------------
Deposits 876,689 760,068
Borrowings 283,935 288,031
Other Liabilities 25,423 20,128
Subordinated debentures 25,774 25,774
Royal Bancshares Shareholders' Equity 106,446 79,687
Noncontrolling Interest 2,378 1,898
-------------- --------------
Total Equity 108,824 81,585
-------------- --------------
Total Liabilities and Equity $ 1,320,645 $ 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(R)
"Variable Interest Entities."
Contact Information: Media Contact: Joseph Crivelli Senior Vice President Gregory FCA Communications Office: 610-228-2100 Cell: 610-299-6700 Company Contact: Marc Sanders Director of Marketing Royal Bank America Office: 610-668-4700 Cell: 484-802-1944