EX-99 2 ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 For additional information: Marc Sanders, Director of Marketing 610-668-4700 x269- marcsanders@royalbankamerica.com 24% INCREASE IN 1Q EARNINGS FOR ROYAL BANK AMERICA'S PARENT CO. EARNINGS FOR QUARTER TOP $5.3 MILLION 44TH CONSECUTIVE QUARTERLY CASH DIVIDEND NARBERTH, PA - April 21, 2006 - Royal Bank America President/CEO Joseph P. Campbell reports that consolidated earnings for the Bank's holding company, Royal Bancshares of Pennsylvania, Inc., (NASDAQ-RBPAA) for the three-month period ended March 31, 2006 and 2005, were $5.3 million and $4.3 million, respectively. This represents an increase of 24%. Consolidated basic earnings per share for the three-month period ended March 31, 2006 and 2005, were $.42 and $.34, respectively. Consolidated total assets increased 1% to $1.32 billion at March 31, 2006, as compared to $1.30 billion at December 31, 2005. Net loans increased to $583.1 million at March 31, 2006, as compared to $539.4 million at December 31, 2005, an increase of 8%. Total consolidated shareholders' equity was $155.8 million at March 31, 2006, as compared to $155.5 million at December 31, 2005. On April 19, 2006, the Board of Directors of Royal Bancshares of Pennsylvania, Inc. declared its 44th consecutive quarterly cash dividend. This dividend will be twenty-seven and five tenth cents ($.275) per share for holders of Class A common stock and thirty-one and six hundred twenty five thousandths cents ($.31625) per share for holders of Class B common stock of Royal Bancshares of Pennsylvania, Inc. The record date is May 3, 2006, and the payment date is May 17, 2006. Campbell noted continued growth in commercial lending and an uptick in deposits as drivers for success in the first quarter. Additionally, the 17th Royal Bank America branch opened in early March in Fort Lee, NJ, giving the Royal brand further penetration into the New York Metro market. ABOUT ROYAL BANCSHARES OF PENNSYLVANIA, INC. Royal Bancshares of Pennsylvania, Inc. headquartered in Narberth, Pennsylvania, operates seventeen full-service branch offices throughout southeastern Pennsylvania and New Jersey under the name Royal Bank America and four locations under the name Royal Asian Bank. Together, Royal Bank America and Royal Asian Bank offer a wide variety of products and services, including commercial real estate loans, residential mortgages, mezzanine/equity lending, high-yielding CDs & MMAs and Internet Banking solutions at www.royalbankamerica.com and www.royalasianbank.com. 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. ROYAL BANCSHARES OF PENNSYLVANIA, INC. CONDENSED INCOME STATEMENT THREE MONTHS ENDED MAR. 31 (in thousands, except for earnings per share) 2006 2005 ---- ---- (UNAUDITED) (UNAUDITED) Interest Income $21,413 $17,204 Interest Expense 10,079 7,366 ------- ------- Net Interest Income 11,334 9,838 Provision for Loan Losses 335 1 ------- ------- Net Interest Income after 10,999 9,837 Provision Non Interest Income 2,998 2,613 Non Interest Expense 6,187 6,359 ------- ------- Income before Taxes 7,810 6,091 Income Taxes 2,464 1,770 ------- ------- Net Income 5,346 4,321 Earnings per share -basic .42 .34 SELECTED RATIOS: Return on Average Assets 1.7% 1.4% Return on Average Equity 13.9% 12.5% Average Equity to Assets 12.0% 11.4% Book Value Per Share $ 12.17 $ 10.87 CONDENSED BALANCE SHEET (in thousands) MAR. 31, 2006 DEC. 31, 2005 (UNAUDITED) Cash and Cash Equivalents $ 20,279 $ 30,895 Investment Securities 577,959 598,730 Loans Held for Sale 1,291 803 Loans (net) 583,075 539,360 Premises and Equipment (net) 66,918 66,581 Accrued Interest receivable 15,850 14,843 Other Assets 51,401 49,807 ---------- ---------- Total Assets $1,316,773 $1,301,019 Deposits 718,890 697,409 Borrowings 396,415 401,356 Other Liabilities 17,723 18,485 Subordinated debentures 25,774 25,774 Minority Interest 2,150 2,487 Shareholders' Equity 155,821 155,508 ---------- ---------- Total Liabilities and Shareholders' Equity $1,316,773 $1,301,019 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."