SOURCE: Royal Bancshares of Pennsylvania
November 15, 2007 16:55 ET
Royal Bancshares of Pennsylvania, Inc. Announcement Regarding Release of Third Quarter Results
NARBERTH, PA--(Marketwire - November 15, 2007) - Royal Bancshares of Pennsylvania, Inc.
(NASDAQ: RBPAA) today announced that it has delayed release of its earnings
and the filing of its Form 10-Q for the quarter ended September 30, 2007.
The Company has engaged independent third parties to assist in the review
of specified loans and to determine whether additional reserves are
appropriate under the circumstances. Certain information required to
complete this review and analysis was not received in time to permit the
Company to file its Quarterly Report on Form 10-Q for the period ended
September 30, 2007 within the time period prescribed.
Based on the preliminary results of its review and analysis, the Company
expects to report a third quarter provision for loan losses of
approximately $14.1 million pre-tax, approximately $13.6 million of which
relates to specific credits and approximately $531,000 of which relates to
general reserves. Additionally, the company will take a charge of
approximately $5.2 million pre-tax for an impairment in an equity
investment in a condominium project. The Company estimates that it will
report a loss for the quarter of $8.9 million. Actual amounts are subject
to change depending upon the final results of the ongoing review and
The Company expects to file its Form 10-Q and release third quarter 2007
results within the next thirty days.
As a result of the Company's failure to file the Form 10-Q in the
prescribed time period, on November 14, 2007, the Company received a
standard NASDAQ Staff Determination Letter indicating that the Company is
not in compliance with NASDAQ's filing requirements for continued listing
of the Company's Class A common stock, and that such securities are,
therefore, subject to delisting from the NASDAQ Global Market. The Company
will not be in compliance with the NASDAQ listing standards until the Form
10-Q is filed. The Company has requested a hearing before a NASDAQ Listing
Qualifications Panel to review the Staff Determination. The Company's
appeal and hearing request will automatically stay the delisting of the
Class A common stock under NASDAQ rules. There can be no assurance that
the Panel will grant the Company's request for continued listing of the
Class A common stock.
About Royal Bancshares of Pennsylvania, Inc.
Royal Bancshares of Pennsylvania, Inc., headquartered in Narberth,
Pennsylvania, operates sixteen full-service branch offices throughout
southeastern Pennsylvania and New Jersey under the name Royal Bank America
and six locations in metro-Philadelphia, Northern New Jersey and New York
under the name Royal Asian Bank. Together, Royal Bank America and Royal
Asian Bank, along with Royal's other affiliates, offer a wide variety of
products and services, including commercial real estate loans, asset based
lending, structured financing, equipment leasing, high-yielding CDs & MMAs
and Internet Banking solutions at www.royalbankamerica.com and
The foregoing material is unaudited and 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.