-- Total assets were $1.2 billion at March 31, 2010, compared to $1.3 billion at December 31, 2009. -- Total deposits were $826.2 million at March 31, 2010 compared to $881.8 million at December 31, 2009. The decrease was largely driven by Royal's ongoing effort to reduce brokered CDs which continued during the first quarter of 2010. -- Total loans decreased to $630.4 million at March 31, 2010 compared to $656.5 million at December 31, 2009 due to pay downs and pay-offs of existing loans and charge-offs. -- At March 31, 2010, 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 14.74%; Tier I capital to risk-weighted assets was 13.46%: and Tier I capital to average assets was 8.64%. All regulatory capital ratios increased during the first quarter. -- Net interest income was $8.0 million in the first quarter of 2010, compared to $7.1 million in the comparable prior year period. The increase was largely driven by Royal's ongoing effort to reduce brokered CDs, Federal Home Loan Bank advances and repricing of maturing retail CDs, which resulted in lower interest expense relative to interest income. This effort also drove a 27 basis point improvement in net interest margin, to 2.79% in the first quarter of 2010, compared to 2.52% in the first quarter of 2009, and a 35 basis point improvement from the linked fourth quarter 2009 where net interest margin was 2.44%. -- Non-accrual and impaired loans were $83.7 million at March 31, 2010, compared to $73.7 million at December 31, 2009, an increase of $10.0 million. The $10.0 million increase was primarily the result of $19.8 million in additions partially offset by a $6.1 million reduction in existing non-accrual loan balances through payments or loans becoming current and placed back on accrual and $3.7 million in charge-offs. -- Gains on sales of AFS investment securities were $167,000 for the quarter as compared to a loss on sales of AFS investment securities of $214,000 in the first quarter of 2009.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, 2009.
ROYAL BANCSHARES OF PENNSYLVANIA, INC.
CONDENSED INCOME STATEMENT
Three Months
(in thousands, except for earnings per Ended Mar. 31st
common share) 2010 2009
----------- -----------
(Unaudited) (Unaudited)
Interest Income $ 15,623 $ 16,354
Interest Expense 7,603 9,285
----------- -----------
Net Interest Income 8,020 7,069
Provision for Loan Losses 1,903 2,797
----------- -----------
Net Interest Income after Provision 6,117 4,272
Non Interest Income/(Loss) 1,305 (3,583)
Non Interest Expense 8,053 7,226
----------- -----------
Loss before Taxes (631) (6,537)
Income Taxes 0 0
----------- -----------
Net Loss (631) (6,537)
Less Net Income attributable to noncontrolling
interest 442 216
Net Loss attributable to Royal Bancshares ($ 1,073) ($ 6,753)
=========== ===========
Loss per common share - basic ($ 0.12) ($ 0.53)
=========== ===========
SELECTED RATIOS:
Return on Average Assets -0.3% -2.3%
Return on Average Equity -4.1% -28.4%
Average Equity to Assets 8.4% 7.9%
Book Value Per Share $ 5.44 $ 5.56
CONDENSED BALANCE SHEET
Mar. 31, Dec. 31,
(in thousands) 2010 2009
(unaudited) (unaudited)
Cash and Cash Equivalents $ 64,315 $ 58,298
Investment Securities 418,260 449,671
Loans & Leases (net) 630,401 658,787
Premises and Equipment (net) 18,269 18,798
Accrued Interest receivable 15,532 14,942
Other Assets 75,165 92,230
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Total Assets $ 1,221,942 $ 1,292,726
------------ ------------
Deposits 826,227 881,755
Borrowings 240,556 257,827
Other Liabilities 23,196 23,056
Subordinated debentures 25,774 25,774
Royal Bancshares Shareholders' Equity 102,589 101,156
Noncontrolling Interest 3,600 3,158
------------ ------------
Total Equity 106,189 104,314
------------ ------------
Total Liabilities and Equity $ 1,221,942 $ 1,292,726
------------ ------------
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