EX-99.1 2 w71255exv99w1.htm EXHIBIT 99.1 exv99w1
Exhibit 99.1
Royal Bancshares of Pennsylvania, Inc. Announces 3rd Quarter Results
NARBERTH, PA — 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.
Media Contact:
Marc Sanders
Director of Marketing
610.668.4700

 

FOR IMMEDIATE RELEASE
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(R) “Variable Interest Entities.”