-- Total assets were $1.29 billion at December 31, 2009, an increase of 10.0% from $1.18 billion at December 31, 2008. -- Total deposits increased 16% in the year to $881.8 million at December 31, 2009 as compared to $760.1 million at December 31, 2008. -- Net loans and leases decreased to $656.5 million at December 31, 2009 as compared to $671.8 million at December 31, 2008. -- On-hand liquidity exceeds $270 million at December 31, 2009. -- At December 31, 2009, 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 13.37%; Tier I capital to risk-weighted assets was 12.09%; and Tier I capital to average assets was 8.09%. -- Net interest income was $28.6 million in 2009, compared to $34.7 million in 2008. The decrease in net interest income was primarily due to the increased level of non-performing loans, lower yields on performing loans and investments and an increased level of interest bearing deposits related to increased liquidity, which were partially offset by lower rates paid on brokered and retail certificates of deposit. -- Net interest margin was 2.39% in 2009, a reduction of 76 basis points from 3.15% in 2008. The decline was primarily due to lower market rates lower yields on interest-earning assets coupled with a higher level of non-performing loans. This was partially offset by average lower rates paid on interest-bearing liabilities. -- At December 31, 2009 non-accrual and impaired loans totaled $73.7 million compared to $85.8 million at December 31, 2008. The $12.1 million decline in non-accrual loans was the result of a $42.9 million reduction in existing non-accrual loan balances through payments or loans becoming current and placed back on accrual, $27.8 million transferred to other real estate owned, and $19.8 million in charge-offs which collectively were offset by $78.4 million in additions. -- Gains on sales of Available For Sale (AFS) investment securities were $1.9 million for the year as compared to a loss on sales of AFS investment securities of $1.3 million in 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. 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, 2008.
ROYAL BANCSHARES OF PENNSYLVANIA, INC.
CONDENSED INCOME STATEMENT
(in thousands, except Three Months Twelve Months
for earnings per Ended Dec. 31st Ended Dec. 31st
share) 2009 2008 2009 2008
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest Income $ 16,320 $ 17,358 $ 66,043 $ 72,764
Interest Expense 8,903 9,967 37,439 38,109
----------- ----------- ----------- -----------
Net Interest Income 7,417 7,391 28,604 34,655
Provision for Loan
Losses 7,136 8,754 20,605 21,841
----------- ----------- ----------- -----------
Net Interest Income
after Provision 281 (1,363) 7,999 12,814
Non Interest
Income/(Loss) 2,556 (5,510) (1,726) (15,788)
Non Interest Expense 12,282 11,417 37,656 32,533
----------- ----------- ----------- -----------
Loss before Taxes (9,445) (18,290) (31,383) (35,507)
Income Tax Expense
(Benefit) 0 9,545 474 2,643
----------- ----------- ----------- -----------
Net Loss (9,445) (27,835) (31,857) (38,150)
Less Net Income
attributable to
noncontrolling
interest 641 (570) 1,402 (68)
Net Loss attributable
to Royal Bancshares ($ 10,086) ($ 27,265) ($ 33,259) ($ 38,082)
=========== =========== =========== ===========
Loss per common share -
basic ($ 0.79) ($ 2.05) ($ 2.64) ($ 2.86)
=========== =========== =========== ===========
SELECTED RATIOS:
Return on Average
Assets -3.0% -9.1% -2.6% -3.2%
Return on Average
Equity -35.5% -104.2% -30.9% -29.0%
Average Equity to
Assets 8.5% 8.7% 8.3% 11.0%
Book Value Per Share $ 5.34 $ 6.01 $ 5.34 $ 6.01
CONDENSED BALANCE SHEET
(in thousands) Dec. 31, 2009 Dec. 31, 2008
(unaudited) (unaudited)
Cash and Cash Equivalents $ 58,298 $ 14,259
Investment Securities 449,671 361,254
Loans & Leases (net) 658,787 672,081
Premises and Equipment (net) 18,798 25,853
Accrued Interest receivable 14,942 13,580
Other Assets 92,230 88,559
-------------- --------------
Total Assets $ 1,292,726 $ 1,175,586
-------------- --------------
Deposits 881,755 760,068
Borrowings 257,827 288,031
Other Liabilities 23,056 20,128
Subordinated debentures 25,774 25,774
Royal Bancshares Shareholders' Equity 101,156 79,687
Noncontrolling Interest 3,158 1,898
-------------- --------------
Total Equity 104,314 81,585
-------------- --------------
Total Liabilities and Equity $ 1,292,726 $ 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