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Segment Information
 3 Months Ended
Mar. 31, 2013
Segment Information [Abstract]  
Segment Information
Note 16.     Segment Information
 
FASB ASC Topic 280, "Segment Reporting" ("ASC Topic 280") established standards for public business enterprises to report information about operating segments in their annual financial statements and requires that those enterprises report selected information about operating segments in subsequent interim financial reports issued to shareholders.  It also established standards for related disclosure about products and services, geographic areas, and major customers.  Operating segments are components of an enterprise, which are evaluated regularly by the chief operating decision makers in deciding how to allocate and assess resources and performance.  The Company's chief operating decision makers are the CEO and the Chief  Administrative and Risk Officer ("CARO"). The Company has identified its reportable operating segments as "Community Banking" and "Tax Liens".
 
Community banking
 
The Company's Community Banking segment which includes Royal Bank consists of commercial and retail banking and leasing. The Community Banking business segment is managed as a single strategic unit which generates revenue from a variety of products and services provided by Royal Bank.  For example, commercial lending is dependent upon the ability of Royal Bank to fund cash needed to make loans with retail deposits and other borrowings and to manage interest rate and credit risk.
 
Tax lien operation
 
The Company's Tax Lien Operation consists of purchasing delinquent tax certificates from local municipalities at auction and then processing those liens to either encourage the property holder to pay off the lien, or to foreclose and sell the property.   The tax lien operation earns income based on interest rates (determined at auction) and penalties assigned by the municipality along with gains on sale of foreclosed properties.
 
The following table presents selected financial information for reportable business segments for the three month periods ended March 31, 2013 and 2012.
 
 
Three months ended March 31, 2013
 
 
Community
 
 
Tax Lien
 
 
 
 
(In thousands)
 
Banking
 
 
Operation
 
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
715,157
 
 
$
36,221
 
 
$
751,378
 
Total deposits
 
 
531,370
 
 
 
-
 
 
 
531,370
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
5,949
 
 
$
803
 
 
$
6,752
 
Interest expense
 
 
1,551
 
 
 
429
 
 
 
1,980
 
Net interest income
 
 
4,398
 
 
 
374
 
 
 
4,772
 
(Credit) provision for loan and lease losses
 
 
(310
)
 
 
59
 
 
 
(251
)
Total other income
 
 
1,162
 
 
 
246
 
 
 
1,408
 
Total other expenses
 
 
5,611
 
 
 
529
 
 
 
6,140
 
Income tax expense (benefit)
 
 
-
 
 
 
-
 
 
 
-
 
Net income
 
$
259
 
 
$
32
 
 
$
291
 
Noncontrolling interest
 
 
160
 
 
 
13
 
 
 
173
 
Net income attributable to Royal Bancshares
 
$
99
 
 
$
19
 
 
$
118
 
 
Three months ended March 31, 2012
Community
Tax Lien
 
(In thousands)
Banking
Operation
Consolidated
Total assets
$
779,212
$
57,519
$
836,731
Total deposits
$
576,166
$
-
$
576,166
Interest income
$
7,217
$
1,589
$
8,806
Interest expense
1,901
912
2,813
Net interest income
$
5,316
$
677
$
5,993
Provision (credit) for loan and lease losses
109
(25
)
84
Total other  income
789
(128
)
661
Total other expenses
5,772
2,295
8,067
Income tax expense (benefit)
51
(51
)
-
Net income (loss)
$
173
$
(1,670
)
$
(1,497
)
Noncontrolling interest
$
40
$
(668
)
$
(628
)
Net income (loss) attributable to Royal Bancshares
$
133
$
(1,002
)
$
(869
)
 
Interest income earned by the Community Banking segment related to the Tax Lien Operation was approximately $429,000 and $912,000 for the three month periods ended March 31, 2013 and 2012, respectively.