SOURCE: Royal Bancshares of Pennsylvania

October 20, 2008 17:39 ET

Royal Bancshares of Pennsylvania, Inc. Announces 3rd Quarter Results

NARBERTH, PA--(Marketwire - October 20, 2008) - Royal Bancshares of Pennsylvania, Inc. ("Royal") (NASDAQ: RBPAA), the holding company for Royal Bank America and Royal Asian Bank, announced results for the third quarter of 2008.

Net loss for the three months ended September 30, 2008 was $12.0 million or $0.90 basic and diluted loss per share, compared to a net loss of $9.2 million or $0.69 basic and diluted loss per share for the same period in 2007. Net loss for the nine months ended September 30, 2008 was $10.8 million or $0.81 basic and diluted loss per share, compared to a net loss of $2.9 million or $0.21 basic and diluted loss per share for the same period in 2007. Consolidated total assets ended September 30, 2008 were $1.2 billion, compared to $1.3 billion at December 31, 2007.

Comments from Robert R. Tabas, Chairman, Royal Bancshares of Pennsylvania, Inc.:

Despite results for this quarter, we remain significantly "well-capitalized" and confident regarding the safety and soundness of our institutions. We continue to enjoy an enviable capital position, which has allowed us to weather the impact of the current economic climate better than a broad number of financial institutions.

A significant portion of our loss for the quarter was the direct result of specific market events, namely the demise of Lehman Brothers and Washington Mutual, which impacted many financial institutions. Setting aside these impairments, income levels were comparable to prior year's numbers in many categories, a sign that our core business model remains strong.

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 Real Estate 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. Additional subsidiaries include RBA Leasing, engaged in equipment leasing solutions for small and mid-sized businesses, and RBA Capital, a lender finance company. More information on Royal Bancshares of Pennsylvania, our banks and subsidiaries is available at www.royalbankamerica.com.

ROYAL BANCSHARES OF PENNSYLVANIA, INC. CONDENSED INCOME STATEMENT

                              Three Months              Nine Months
                            Ended Sept. 30th          Ended Sept. 30th

(in thousands, except
 for earnings per
 share)                    2008         2007         2008         2007
                        -----------  -----------  -----------  -----------
                        (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)

Interest Income         $    17,632  $    22,348  $    55,407  $    64,905
Interest Expense              9,517       12,250       28,142       36,790
                        -----------  -----------  -----------  -----------
Net Interest Income           8,115       10,098       27,265       28,115
Provision for Loan
 Losses                       5,275        6,896       13,087        7,267
                        -----------  -----------  -----------  -----------
Net Interest Income
 after Provision              2,840        3,202       14,178       20,848
Non Interest Income         (14,022)       1,847      (10,279)       7,115
Non Interest Expense          7,663       18,857       21,618       32,757
                        -----------  -----------  -----------  -----------
Loss before Taxes           (18,845)     (13,808)     (17,719)      (4,794)
Income Tax Benefit           (6,833)      (4,628)      (6,902)      (1,900)
                        -----------  -----------  -----------  -----------
Net Loss                    (12,012)      (9,180)     (10,817)      (2,894)

Loss per share -basic   ($      .90) ($      .69) ($      .81) ($      .21)

SELECTED RATIOS
Return on Average Assets       -4.0%        -2.8%        -1.2%        -0.3%
Return on Average Equity      -36.0%       -22.6%       -10.3%        -2.4%
Average Equity to Assets       11.2%        12.3%        11.8%        12.2%
Book Value Per Share     $     8.82   $    11.17

CONDENSED BALANCE SHEET

(in thousands)                                Sept. 30, 2008 Dec. 31, 2007
                                               (unaudited)    (unaudited)
Cash and Cash Equivalents                     $       59,590 $       10,905
Investment Securities                                322,658        531,695
Loans (net)                                          657,244        625,193
Premises and Equipment (net)                          27,641         31,408
Accrued Interest receivable                           14,294         15,256
Other Assets                                          91,059         64,018
                                              -------------- --------------
  Total Assets                                $    1,172,486 $    1,278,475
                                              -------------- --------------

Deposits                                             736,974        770,152
Borrowings                                           268,530        313,477
Other Liabilities                                     21,886         20,838
Subordinated debentures                               25,774         25,774
Minority Interest                                      2,369          1,867
Shareholders' Equity                                 116,953        146,367
                                              -------------- --------------
Total Liabilities and Shareholders' Equity    $    1,172,486 $    1,278,475
                                              -------------- --------------

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."

Contact Information

  • Media Contact:
    Marc Sanders
    Director of Marketing
    610.668.4700