genlou
8 years ago
Royal Bancshares of Pennsylvania, Inc. Reports Profit for Full Year and Fourth Quarter 2016
Quality Loan Growth Boosts Earnings; Balance of "TARP" Shares Retired
BALA CYNWYD, PA--(Marketwired - January 30, 2017) - Royal Bancshares of Pennsylvania, Inc. ("the Company") (NASDAQ: RBPAA), parent company of Royal Bank America ("Royal Bank"), is pleased to report net income attributable to the Company of $4.1 million, or $0.13 per diluted share, and $10.4 million, or $0.31 per diluted share, for the three and twelve months ended December 31, 2016, respectively. Comparatively, net income was $6.4 million, or $0.20 per diluted share, and $11.0 million, or $0.31 per diluted share, for the three and twelve months ended December 31, 2015, respectively. During the fourth quarter of 2016, the Company reversed $1.9 million of the valuation allowance related to net deferred tax assets which contributed to a net tax benefit of $1.8 million. This transaction positively affected both the fourth quarter and full year 2016 results.
Excluding the net tax benefit of $1.9 million, net income attributable to the Company was $2.2 million, or $0.07 per diluted share, for the three months ended December 31, 2016, and excluding the net tax benefit of $1.8 million, net income attributable to the Company was $8.6 million, or $0.25 per diluted share, for the full year 2016. In 2015, the Company reversed $5.4 million of the valuation allowance related to net deferred tax assets, which contributed to a net tax benefit of $5.1 million.
The Company's President and Chief Executive Officer, Kevin Tylus, noted, "Quality loan growth and expense discipline drove our increase in earnings for 2016. Throughout the year, as we received regulatory approval, we repurchased all of the remaining Series A Preferred stock ("TARP"). We have fully retired the $30.4 million in original principal and avoid future dividends at a rate of 9%. During 2016, to meet the needs of our growing customer base, we broadened our online customer technologies, implemented enhancements to our website, and added residential mortgages to our suite of products. Recently, we completed extensive renovations of our Narberth retail location, which brings a modern experience to our customers."
Highlights for the three months and year ended December 31, 2016 included:
Balance Sheet Trends:
At December 31, 2016, total assets were $832.5 million and grew $21.1 million, or 2.6%, from $811.4 million at September 30, 2016, and increased $44.2 million, or 5.6%, from $788.3 million at December 31, 2015.
Total loans were $602.0 million at December 31, 2016, an increase of $26.2 million, or 4.5%, from $575.8 million at September 30, 2016. In 2016, total loans grew $102.9 million, or 20.6%, from $499.1 million at December 31, 2015. Increases were recognized in multiple commercial loan portfolio classes.
Total deposits were $629.5 million at December 31, 2016 and increased $37.3 million, or 6.3%, from $592.2 million at September 30, 2016. In 2016, total deposits increased $51.6 million, or 8.9%, from $577.9 million at December 31, 2015.
Total Company equity was $51.6 million at December 31, 2016, a decrease of $17.7 million, or 25.5%, from $69.3 million at September 30, 2016 and declined $20.3 million, or 28.2%, from $71.9 million at December 31, 2015. The Company repurchased or redeemed the remaining 18,856 shares of Series A preferred stock from time to time during 2016 as shares became available for purchase and the Company received the required regulatory approvals to repurchase such shares. The Company paid $29.5 million to repurchase the outstanding shares and eliminated future dividends on these shares.
Asset Quality:
genlou
9 years ago
Royal Bancshares of Pennsylvania, Inc. Reports Profit for First Quarter 2016
Quality Loan and Core Deposit Growth, Margin Expansion Boost Earnings and Assets; Repurchased 21% of Outstanding Series A Preferred Shares
BALA CYNWYD, PA -- (Marketwired) -- 04/21/16 -- Royal Bancshares of Pennsylvania, Inc. ("Company") (NASDAQ: RBPAA), parent company of Royal Bank America ("Royal Bank"), is pleased to report net income attributable to the Company of $2.2 million, or $0.06 per diluted share, for the three months ended March 31, 2016 compared to $1.6 million, or $0.04 per diluted share, for the three months ended March 31, 2015.
Kevin Tylus, the Company's President and Chief Executive Officer, noted, "Our momentum from 2015 carried into the first quarter with robust loan and core deposit growth. Growth and changes in our balance sheet positively contributed to our first quarter results. In March, due to our consistent performance, we received approval from the Federal Reserve Bank to repurchase $4.0 million, or 21%, of our Series A preferred stock, which helps improve our balance sheet and eliminates future dividend payments on the repurchased shares. Our positive financial performance demonstrates our ability to meet the challenges of low interest rates, local competition, and uncertainty from domestic and global market volatility. We remain strongly focused on opportunities that may continue to strengthen the balance sheet and on high quality, in footprint strategies to continue our earnings momentum."
Highlights for the three months ended March 31, 2016 included:
Balance Sheet Trends:
At March 31, 2016, total assets were $798.5 million and grew $10.2 million, or 1.3%, from $788.3 million at December 31, 2015.
Total loans were $531.1 million at March 31, 2016, an increase of $32.0 million, or 6.4%, from $499.1 million at December 31, 2015. Current quarter increases were recognized in multiple loan portfolio segments.
Total deposits were $589.3 million at March 31, 2016, an increase of $11.4 million, or 2.0%, from $577.9 million at December 31, 2015.
During the first quarter of 2016, the Company repurchased 4,000 shares of its Series A preferred stock.
Asset Quality:
The ratio of non-performing loans to total loans continues to show improvement and decreased to 0.98% at March 31, 2016 from 1.10% at December 31, 2015. Excluding tax liens, the ratio of non-performing loans to total loans was 0.80% and 0.88% at March 31, 2016 and December 31, 2015, respectively.
Non-performing loans were $5.2 million at March 31, 2016 compared to $5.5 million at December 31, 2015.
The ratio of non-performing assets to total assets was 1.54% at March 31, 2016 compared to 1.64% at December 31, 2015. Excluding tax lien assets, the ratio of non-performing assets to total assets was 0.56% and 0.59% at March 31, 2016 and December 31, 2015, respectively.
Non-performing assets of $12.3 million at March 31, 2016 decreased $608 thousand, or 4.7%, from $12.9 million at December 31, 2015.
During the first quarter of 2016, the Company recorded a provision to the allowance for loan and lease losses of $212 thousand compared to a credit of $580 thousand for the first quarter of 2015. The 2016 provision was primarily attributable to growth and net charge-off activity within the leasing portfolio.
Income Statement and Other Highlights:
The return on average assets for the three months ended March 31, 2016 was 1.11% compared to 0.89% for the three months ended March 31, 2015.
The return on average equity for the three months ended March 31, 2016 was 11.98% compared to 10.11% for the three months ended March 31, 2015.
At March 31, 2016, the Company's Tier 1 leverage and Total Risk Based Capital ratios were 11.51% and 17.30%, respectively, compared to 12.44% and 18.57%, respectively, at December 31, 2015. The Common Equity Tier 1 ratio was 9.38% at March 31, 2016 compared to 9.37% at December 31, 2015.
Net interest income increased $782 thousand, or 13.7%, from $5.7 million for the three months ended March 31, 2015 to $6.5 million for the three months ended March 31, 2016. The growth in net interest income was primarily related to an increase in interest income and the average yield earned on average interest-earning assets. Additionally in the first quarter of 2016, we recorded $169 thousand in interest income from the satisfaction of a loan that had been previously charged-off.
The net interest margin grew to 3.51% for the first quarter of 2016 compared to 3.40% for the comparable period in 2015. The increase in net interest margin was directly related to an increase in the yield on average interest-earning assets due to a change in the composition of such assets and the $169 thousand transaction stated previously.
Non-interest income for the first quarter of 2016 was $1.2 million and increased $640 thousand from $567 thousand for the first quarter of 2015. The quarterly improvement in non-interest income was impacted by a $341 thousand increase in income from Company owned life insurance and a $180 thousand increase in net gains on the sale of investment securities.
Non-interest expense was $5.2 million for the quarter ended March 31, 2016 and increased $126 thousand from $5.1 million for the comparable period in 2015. Contributing to the increase in non-interest expense for 2016 was an increase of $177 thousand in other real estate owned expenses and impairment charges and $107 thousand increase in salaries and benefits. Partially mitigating the increase in non-interest expense was a $150 thousand credit for unfunded loan commitments due to a decline in such commitments compared to a $127 thousand provision for unfunded loan commitments during the first quarter of 2015.
In March 2016, we requested and were granted approval from the Federal Reserve Bank to repurchase 4,000 shares, or 21%, of our outstanding Series A preferred stock. We have reduced the total outstanding of Series A preferred stock by 51% from the original outstanding amount of $30.4 million to $14.9 million as a result of the private placement in 2014 and the repurchase completed this quarter. We used existing cash on-hand to complete this quarter's repurchase and eliminated approximately $225 thousand in undeclared dividends. This transaction will eliminate $360 thousand per annum in future cumulative dividends when such dividends are declared.
genlou
10 years ago
Royal Bancshares of Pennsylvania, Inc. Reports Third Quarter Profit and Completes Shareholder Rights Offering
Core Earnings Growth Drives Financial Results Shareholder Rights Offering Raises Additional Tangible Common Equity
NARBERTH, PA, Oct 22, 2014 (Marketwired via COMTEX) -- Royal Bancshares of Pennsylvania, Inc. ("Company") (NASDAQ: RBPAA), parent company of Royal Bank America ("Royal Bank"), is pleased to report net income of $1.4 million, or earnings attributable to the Company of $0.05 per diluted common share, for the third quarter of 2014 compared to net income of $342,000, or a loss attributable to the Company of $0.01 per diluted common share, for the third quarter of 2013. For the nine months ended September 30, 2014, the Company earned net income of $4.3 million, or earnings attributable to the Company of $0.15 per diluted common share, compared to a net loss of $343,000, or a loss attributable to the Company of $0.14 per diluted common share, for the same period in 2013.
Third quarter financial highlights include:
-- Net income improved $1.1 million from the comparable 2013 period.
-- Net interest margin grew 31 basis points from the comparable period in
2013.
-- Return on average assets and return on average equity were 0.78% and
9.67%, respectively.
-- Net interest income increased 10% from the comparable 2013 period.
-- Non-interest expenses declined 15% from the equivalent period in 2013.
-- Loan growth was 5% from June 30, 2014.
Financial highlights for the first nine months of 2014 include:
-- Net income improved $4.6 million from the comparable 2013 period.
-- Net interest margin grew 39 basis points from the comparable period in
2013.
-- Return on average assets and return on average equity were 0.78% and
10.60%, respectively.
-- Net interest income increased 13% from the comparable 2013 period.
-- Non-interest expenses declined 21% from the equivalent period in 2013.
-- Loan growth was 8% from December 31, 2013.
Financial results reflect continued evolvement in core business
The Company's Chief Executive Officer Kevin Tylus noted, "The announcement today of our third quarter results demonstrates the commitment and focus of Royal Bank in creating sustainable growth and continued improvement in our financial results. Loan growth, cost control discipline, and progress in overall asset quality have contributed to core earnings growth. We are experiencing success in expanding our commercial and retail relationships, while promoting our new brand through redesigned products and modern technology. Also, we are pleased that the additional common equity raised through the shareholder rights offering improved tangible common equity."
The $1.1 million quarterly improvement was mainly related to the following items:
-- Net interest income grew $498,000, or 10%.
-- Due to the improvement in overall credit quality, the Company was able
to record a credit for loan and lease losses of $51,000 compared to a
provision for loan and lease losses of $218,000 for the comparable
period in 2013.
-- Other real estate owned ("OREO") expenses and impairment decreased
$690,000, or 82%.
-- Problem loan expenses declined $60,000, or 46%.
-- The 2014 third quarter included $238,000 in net gains on the sale of
investment securities.
The $4.6 million improvement for the first nine months of 2014 from the same period in 2013 was mainly related to the following items:
-- Net interest income grew $1.9 million, or 13%.
-- The credit for loan and lease losses improved $569,000 (from a credit
of $196,000 to a credit of $765,000) due to the continued positive
progress in loan credit quality.
-- Salaries and benefits declined $493,000, or 6%.
-- OREO expenses and impairment fell $849,000, or 49%.
-- Professional and legal fees dropped $475,000, or 23%.
-- Problem loan expenses declined $334,000, or 60%.
-- The first nine months of 2013 included a legal settlement expense
related to a tax lien subsidiary, of which the Company's share was
$990,000 and $230,000 in restructuring charges.
Partially offsetting these noteworthy items for the quarter and nine months ended September 30, 2014 were reductions of $419,000 and $1.1 million, respectively, in gains on the sale of premises and equipment and decreases of $456,000 and $576,000, respectively, in net gains on the sale of OREO. The Company's leasing subsidiary again contributed positively to the quarterly and year-to-date financial results.
Loans and leases held for investment at September 30, 2014 totaled $397.2 million compared to $366.5 million at December 31, 2013. The 8% net loan growth of $30.7 million was achieved notwithstanding an approximate $28.7 million decline in classified loans due to payoffs and pay downs, including payoffs of out of market loans. The commercial loan pipeline continues to strengthen. Investment securities available for sale decreased $43.3 million while total cash and cash equivalents grew $5.1 million from the levels at December 31, 2013. While deposits declined $13.2 million from $529.0 million at December 31, 2013, the deposit composition improved. Total checking and savings accounts increased $5.4 million while money market accounts and certificates of deposit declined $18.6 million. Total borrowings decreased $10.3 million since December 31, 2013. Shareholders' equity increased $14.7 million as a result of the $6.0 million completion of the shareholder rights offering, a $4.3 million recovery in the accumulated other comprehensive loss, and the 2014 year-to-date net income.
Net Interest Margin
For the third quarter of 2014, the net interest margin of 3.25% grew 31 basis points from the equivalent quarter in 2013. Net interest income increased $498,000 and $1.9 million for the three and nine months ended September 30, 2014, respectively, from their comparable periods in 2013. The quarterly and yearly increase in net interest income was primarily attributed to an increase in the interest income earned on investments, improvement in the mix of earning assets and a reduction in interest expense. Quarter over quarter average interest-bearing deposits declined $6.0 million and included a $12.0 million reduction in higher-cost time deposits partially offset by a $4.5 million increase in NOW and money market accounts. Average non-interest bearing demand deposits grew $4.7 million. While average interest-earning assets for the quarter ended September 30, 2014 decreased $5.9 million from the comparable quarter in 2013, the average yield on such assets increased 17 basis points. Average loans increased $12.6 million and average investments decreased $24.6 million. Average interest-earning cash increased $6.1 million in anticipation of future loan fundings. For the third quarter of 2014, the average rate paid on interest-bearing liabilities was 1.12% compared to 1.26% for the 2013 comparable quarter.
For the nine months ended September 30, 2014 the net interest margin was 3.25% compared to 2.86% for the same period in 2013. For the nine months ended September 30, 2014 average interest-earning assets declined $5.7 million from the same period in 2013; however, the average yield on such assets grew 25 basis points. Period over period average loans increased $10.4 million while average cash and investments declined $3.1 million and $13.0 million, respectively, primarily to fund the growth in loans. Despite the decline in average investments, the average yield on such investments grew 74 basis points. This increase in the investment average yield resulted from a decrease in premium amortization due to a reduction in principal prepayments. Period over period the average interest rate paid on interest-bearing liabilities declined 16 basis points.
Asset quality trends
Nonperforming loans were $10.8 million, $10.2 million and $13.5 million at September 30, 2014, December 31, 2013 and September 30, 2013, respectively, and the ratio of nonperforming loans to total loans was 2.7%, 2.8%, and 3.6% for the same periods. Asset quality trends led to a reduction in credit quality expenses, which include OREO and loan collection expenses, of $750,000 in the third quarter of 2014 when compared to the third quarter of 2013 and a reduction of $1.2 million for the nine months ended September 30, 2014 from the comparable period in 2013. Additionally for the first nine months of 2014, the credit for loan and lease losses increased $569,000 from a credit of $196,000 for the first nine months of 2013 to a credit of $765,000. During 2014, classified and impaired loans declined nearly $29.1 million due to pay downs, payoffs and upgrades. Non-performing assets were $20.4 million, $19.8 million and $27.4 million at September 30, 2014, December 31, 2013, and September 30, 2013, respectively.
Shareholder rights offering completed
In August, the Company successfully completed a shareholder rights offering that was over-subscribed by nearly three times in the oversubscription portion of the offering. The Company issued approximately 5,000,000 shares of its Class A common stock in the offering and received gross proceeds from the offering of approximately $6.0 million, which improved tangible common equity.
Royal Bancshares of Pennsylvania, Inc.
Royal Bancshares of Pennsylvania, Inc., headquartered in Narberth, Pennsylvania, is the parent company of Royal Bank America, which for the past 50 years has played a lead role in the growth and development of our region by empowering small businesses, entrepreneurs and individuals to achieve their financial goals and enrich our communities. More information on Royal Bancshares of Pennsylvania, Inc., Royal Bank America and its subsidiaries can be found 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, 2013.
ROYAL BANCSHARES OF PENNSYLVANIA, INC. CONDENSED INCOME STATEMENTS
(unaudited, dollars in thousands, except per share data)
Three months Nine months
ended September 30th ended September 30th
2014 2013 2014 2013
--------- --------- --------- ---------
Interest income $ 7,191 $ 6,960 $ 21,551 $ 20,455
Interest expense 1,623 1,890 4,870 5,667
--------- --------- --------- ---------
Net Interest Income 5,568 5,070 16,681 14,788
(Credit) provision for loan and
lease losses (51) 218 (765) (196)
--------- --------- --------- ---------
Net interest income after
provision 5,619 4,852 17,446 14,984
Non-interest income 1,204 1,937 2,792 4,306
Non-interest expense 5,375 6,290 15,728 19,997
--------- --------- --------- ---------
Income (loss) before taxes 1,448 499 4,510 (707)
Income taxes - - - -
--------- --------- --------- ---------
Net Income (Loss) 1,448 499 4,510 (707)
Less net income (loss)
attributable to noncontrolling
interest 25 157 212 (364)
--------- --------- --------- ---------
Net Income (Loss) Attributable
to Royal Bancshares $ 1,423 $ 342 $ 4,298 $ (343)
========= ========= ========= =========
Less Preferred stock Series A
accumulated dividend and
accretion $ 152 $ 520 $ 1,644 $ 1,553
========= ========= ========= =========
Net income (loss) to common
shareholders $ 1,271 $ (178) $ 2,654 $ (1,896)
========= ========= ========= =========
Income (Loss) Per Common Share -
Basic and Diluted $ 0.05 $ (0.01) $ 0.15 $ (0.14)
========= ========= ========= =========
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