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
Royal Bancshares Updates Investors on Sale of Royal Asian Bank
| Source: Royal Bancshares of Pennsylvania
NARBERTH, PA--(Marketwire - December 21, 2009) - Royal Bancshares of Pennsylvania, Inc.
(NASDAQ : RBPAA ) today announced that it has terminated the agreement
relating to the sale of Royal Asian Bank, which was previously announced to
investors in September 2009. Despite raising a significant amount of
capital, the Korean-American investor group pursuing the buyout was unable
to raise sufficient capital to meet the terms of the agreement and ensure
all regulatory approvals necessary to complete the transaction would be
obtained.
The investor group was led by Edward Shin, Royal Asian Bank's President and
CEO, who will remain with the bank and continue to manage its day-to-day
operations.
In commenting on today's announcement, Mr. Shin stated, "I appreciate the
support of the entire Royal Bancshares management team. As we worked to
execute this transaction, they clearly demonstrated to me that the best
interests of Royal's shareholders and customers were paramount in the
decision making process."
Robert Tabas, Chairman and CEO of Royal Bancshares of Pennsylvania, Inc.,
added, "While we believe that Royal Asian Bank has matured to the point
where it can stand on its own in service to the Asian-American community,
the capital-raising environment today remains challenging. Our Royal Asian
Bank division is a valuable franchise, with assets of $110 million; a
strong capital base; operations in Pennsylvania, New York and New Jersey;
and strong brand recognition with customers. We continue to believe that
the Royal Asian franchise can generate shareholder value and we will work
with its management team to continue to grow the bank and meet the needs of
our customers."
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.