-- Total deposits increased 11.0% in the quarter to $843.9 million at
September 30, 2009 as compared to $760.1 million at December 31, 2008. This
increase is net of $64.1 million of deposits that are shown as liabilities
held for sale related to the pending sale of Royal Asian Bank.
-- Total capital to risk-weighted assets for Royal Bank America was
13.46%, compared to a well-capitalized regulatory standard of 10.00%; Tier
I capital to risk-weighted assets was 12.19%, compared to a well-
capitalized regulatory standard of 6.00%; and Tier I capital to average
assets is 8.80% compared to a well-capitalized regulatory standard of
5.00%.
-- Current liquidity for Royal Bank America exceeds $300 million as
compared to $130 million reported at the end of the second quarter of 2009.
-- Net interest income after a provision for loan and lease losses was
$3.5 million in the third quarter of 2009, compared to $2.8 million for the
same period in 2008. Net interest income after a provision for loan and
lease losses was $7.7 million for the nine months ended June 30, 2009,
compared to $14.2 million for the same period in 2008.
-- For the nine months ended September 30, 2009, net interest margin was
2.38% compared to 3.32% in the comparable period of 2008. The factors
negatively impacting the net interest margin for the nine month period were
consistent with those affecting the net interest margin during the third
quarter of 2009.
-- Gains on sales of Available For Sale (AFS) investment securities were
$1.3 million for the third quarter as compared to a loss on sales of AFS
investment securities of $1.1 million in the third quarter of 2008.
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, Inc., 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 Nine Months
(in thousands, except Ended Sept. 30th Ended Sept. 30th
for earnings per 2009 2008 2009 2008
share) ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest Income $ 16,799 $ 17,632 $ 49,723 $ 55,407
Interest Expense 9,570 9,517 28,536 28,142
------------ ------------ ------------ ------------
Net Interest Income 7,229 8,115 21,187 27,265
Provision for Loan
Losses 3,716 5,275 13,469 13,087
------------ ------------ ------------ ------------
Net Interest Income
after Provision 3,513 2,840 7,718 14,178
Non Interest
Income/(Loss) 2,705 (14,022) (4,283) (10,279)
Non Interest
Expense 9,829 7,471 25,373 21,116
------------ ------------ ------------ ------------
Loss before Taxes (3,611) (18,653) (21,938) (17,217)
Income Tax Expense
(Benefit) 474 (6,833) 474 (6,902)
------------ ------------ ------------ ------------
Net Loss (4,085) (11,820) (22,412) (10,315)
Less Net Income
attributable to
noncontrolling
interest 281 192 761 502
Net Loss
attributable to
Royal Bancshares $ (4,366) $ (12,012) $ (23,173) $ (10,817)
============ ============ ============ ============
Loss per common
share - basic $ (0.37) $ (0.90) $ (1.84) $ (0.81)
============ ============ ============ ============
SELECTED RATIOS:
Return on Average
Assets -1.3% -4.0% -2.4% -1.2%
Return on Average
Equity -15.4% -36.0% -29.3% -10.3%
Average Equity to
Assets 8.3% 11.2% 8.2% 11.8%
Book Value Per
Share $ 6.07 $ 8.82 $ 6.07 $ 8.82
CONDENSED BALANCE SHEET
(in thousands) Sept. 30, 2009 Dec. 31, 2008
(unaudited) (unaudited)
Cash and Cash Equivalents $ 70,776 $ 14,259
Investment Securities 464,932 361,254
Loans & Leases (net) 616,277 672,081
Assets Held for Sale 78,599 -
Premises and Equipment (net) 24,089 25,853
Accrued Interest receivable 14,512 13,580
Other Assets 92,625 88,559
----------- -----------
Total Assets $ 1,361,810 $ 1,175,586
----------- -----------
Deposits 843,944 760,068
Liabilities Held for Sale 65,318 -
Borrowings 280,784 288,031
Other Liabilities 32,618 20,128
Subordinated debentures 25,774 25,774
Royal Bancshares Shareholders' Equity 110,855 79,687
Noncontrolling Interest 2,517 1,898
----------- -----------
Total Equity 113,372 81,585
----------- -----------
Total Liabilities and Equity $ 1,361,810 $ 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