Royal Bancshares of Pennsylvania, Inc. (NASDAQ: RBPAA) ("Royal"),
announced results for the first quarter of 2009.
Royal Bank America, the largest subsidiary of Royal, reported a
net loss for the quarter of $2.3 million after adding an additional
$2.8 million pre-tax in the provision for loan losses.
Royal Investments of Delaware, a wholly owned subsidiary of the
holding company, reported a non-cash charge of $4.2 million due to
an impairment charge related to certain equity securities held in
its available-for-sale (AFS) investment portfolio, which
contributed to a $4.4 million loss for the quarter. This impairment
does not impact capital ratios at Royal Bank America or Royal Asian
Bank, both of which remain above the levels required to be
considered "well-capitalized" according to regulatory standards at
March 31, 2009.
Overall, on a consolidated basis Royal reported a net loss for
the three months ended March 31, 2009 of $6.8 million or $0.53
basic and diluted loss per share, compared to net income of $1.0
million, or $0.08 basic and diluted earnings per share, for the
same period in 2008.
Gross loans and leases for the quarter increased $21 million, a
12% annualized increase, to $721.7 million before adjustments for
the transfer of loans to ORE and charge-offs.
Comments from Robert R. Tabas, Chairman and CEO regarding
results for the quarter:
"We continue to be disappointed by our earnings and it remains
clear we are still feeling the effects of this extreme recessionary
environment. Positive signs are beginning to appear in our core
business and especially in lending. Our plan to move the bank
forward is gaining traction and we are confident that once the
economy begins to show signs of life we will be well
positioned."
Comments from Robert R. Tabas, Chairman and CEO regarding
increase in lending activity:
"Lending continues to be the engine that drives our bank and we
noted a $21 million increase in gross loans and leases since
year-end. A significant portion of this growth has been due to the
momentum we have gained from the launch of our small business
lending campaign, Spur The Economy, and its associated micro-site
www.SpurTheEconomy.com."
Comments from Robert R. Tabas, Chairman and CEO regarding loan
quality:
"Significant changes made in our lending and credit policies
have to date proven effective in shielding us from many of the
perils still inherent in our economy. In fact, the quality of loans
we are approving in 2008 and 2009 are such that to date not a
single one has become impaired."
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. As "The Region's Premier
Commercial Lender," 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.
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 Ended
Mar. 31st
(in thousands, except for earnings per share) 2009 2008
----------- -----------
(Unaudited) (Unaudited)
Interest Income $ 16,354 $ 20,072
Interest Expense 9,285 10,173
----------- -----------
Net Interest Income 7,069 9,899
Provision for Loan Losses 2,797 3,281
----------- -----------
Net Interest Income after Provision 4,272 6,618
Non Interest (Loss)/Income (3,583) 1,292
Non Interest Expense 7,226 6,604
----------- -----------
(Loss)/Income before Taxes (6,537) 1,306
Income Tax Expense (Benefit) 0 116
----------- -----------
Net (Loss)/Income (6,537) 1,190
Less Net Income attributable to noncontrolling
interest 216 147
Net (Loss)/Income attributable to Royal
Bancshares ($ 6,753) $ 1,043
=========== ===========
(Loss) Earnings per share - basic ($ 0.53) $ 0 .08
=========== ===========
SELECTED RATIOS:
Return on Average Assets -2.3% 0.3%
Return on Average Equity -28.6% 2.9%
Average Equity to Assets 7.9% 12.0%
Book Value Per Share $ 5.72 $ 10.83
CONDENSED BALANCE SHEET
(in thousands) Mar. 31, 2009 Dec. 31, 2008
(unaudited) (unaudited)
----------- -----------
Cash and Cash Equivalents $ 41,355 $ 14,259
Investment Securities 388,111 361,254
Loans & Leases (net) 680,144 672,081
Premises and Equipment (net) 25,954 25,853
Accrued Interest receivable 14,332 13,580
Other Assets 103,078 88,559
----------- -----------
Total Assets $ 1,252,974 $ 1,175,586
----------- -----------
Deposits 812,140 760,068
Borrowings 286,444 288,031
Other Liabilities 22,336 20,128
Subordinated debentures 25,774 25,774
Royal Bancshares Shareholders? Equity 104,166 79,687
Noncontrolling Interest 2,114 1,898
----------- -----------
Total Equity 106,280 81,585
----------- -----------
Total Liabilities and Equity $ 1,252,974 $ 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� "Variable Interest Entities."
Media Contact: Marc Sanders Director of Marketing
610.668.4700
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