Pennsylvania
|
0-26366
|
23-2812193
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Ident. No.)
|
732 Montgomery Avenue, Narberth, Pennsylvania
|
19072
|
|
(Address of principal executive offices)
|
(Zip Code)
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
Item 2.02 | Results of Operation and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
(d)
|
Exhibits:
|
Press release, dated February 3, 2015, regarding financial results for the quarter and year ended December 31, 2014.
|
ROYAL BANCSHARES OF PENNSYLVANIA, INC.
|
||
Dated: February 3, 2015
|
By:
|
/s/ Michael S. Thompson
|
Michael S. Thompson
|
||
Chief Financial Officer
|
· | Net income improved $3.0 million, more than double from 2013. |
· | Earnings per share were $0.14. |
· | Return on average assets and return on average equity were 0.7% and 9.0%, respectively. |
· | Loan growth was 13%. |
· | Net interest income and the net interest margin both rose 11%. |
· | Non-interest expense decreased 17.0%. |
· | Credit quality continued its improvement; the year-end ratio of non-performing loans to total loans was 2.4% and the year-end ratio of non-performing assets to total assets was 2.7%. |
· | Private placement and shareholder rights offering increased tangible common equity and facilitated our ability to repurchase a substantial portion of the preferred stock issued under the U.S. Treasury’s TARP program. |
· | Modernized Royal Bank’s product suite, logo, brand, and website. |
· | Net interest income increased $240,000, or 4%. |
· | Net interest margin grew 15 basis points, or 5%, from the comparable period in 2013. |
· | Loan growth was 5% from September 30, 2014. |
· | Other real estate owned (“OREO”) expenses and impairment decreased $977,000, or 94%. |
· | Professional and legal fees decreased $281,000, or 31%. |
· | Problem loan expenses declined $45,000, or 30%. |
· | Net interest income grew $2.1 million, or 11%. |
· | OREO expenses and impairment decreased $1.8 million, or 66%. |
· | Professional and legal fees decreased $756,000, or 26%. |
· | Problem loan expenses declined $226,000, or 41%. |
For the three months
ended December 31,
|
For the years
ended December 31,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Interest income
|
$
|
7,233
|
$
|
7,069
|
$
|
28,784
|
$
|
27,524
|
||||||||
Interest expense
|
1,614
|
1,690
|
6,484
|
7,357
|
||||||||||||
Net Interest Income
|
5,619
|
5,379
|
22,300
|
20,167
|
||||||||||||
Credit for loan and lease losses
|
(102
|
)
|
(676
|
)
|
(867
|
)
|
(872
|
)
|
||||||||
Net interest income after provision
|
5,721
|
6,055
|
23,167
|
21,039
|
||||||||||||
Non-interest income
|
743
|
2,558
|
3,535
|
6,864
|
||||||||||||
Non-interest expense
|
6,136
|
6,333
|
21,864
|
26,330
|
||||||||||||
Income before taxes
|
328
|
2,280
|
4,838
|
1,573
|
||||||||||||
Income tax (benefit) expense
|
(654
|
)
|
42
|
(654
|
)
|
42
|
||||||||||
Net Income
|
982
|
2,238
|
5,492
|
1,531
|
||||||||||||
Less net income (loss) attributable to noncontrolling interest
|
170
|
(214
|
)
|
382
|
(578
|
)
|
||||||||||
Net Income Attributable to Royal Bancshares
|
$
|
812
|
$
|
2,452
|
$
|
5,110
|
$
|
2,109
|
||||||||
Less Preferred stock Series A accumulated dividend and accretion
|
$
|
434
|
$
|
522
|
$
|
2,078
|
$
|
2,075
|
||||||||
Net income to common shareholders
|
$
|
378
|
$
|
1,930
|
$
|
3,032
|
$
|
34
|
||||||||
Income Per Common Share – Basic and Diluted
|
$
|
0.01
|
$
|
0.14
|
$
|
0.14
|
$
|
-
|
For the three months
ended December 31,
|
For the years
ended December 31,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Return on Average Assets
|
0.4
|
%
|
1.3
|
%
|
0.7
|
%
|
0.3
|
%
|
||||||||
Return on Average Equity
|
5.1
|
%
|
19.9
|
%
|
9.0
|
%
|
4.2
|
%
|
||||||||
Average Equity to Average Assets
|
8.7
|
%
|
6.7
|
%
|
7.7
|
%
|
6.8
|
%
|
||||||||
Book Value Per Share
|
$
|
1.44
|
$
|
1.29
|
$
|
1.44
|
$
|
1.29
|
At December 31,
|
||||||||
Capital ratios (US GAAP):
|
2014
|
2013
|
||||||
Royal Bank Tier I Leverage
|
10.5
|
%
|
9.1
|
%
|
||||
Royal Bank Total Risk Based Capital
|
16.4
|
%
|
15.6
|
%
|
||||
Company Tier I Leverage
|
11.9
|
%
|
9.8
|
%
|
||||
Company Total Risk Based Capital
|
19.2
|
%
|
18.1
|
%
|
At December 31, 2014
|
At December 31, 2013
|
|||||||
Cash and cash equivalents
|
$
|
30,790
|
$
|
16,844
|
||||
Investment securities, at fair value
|
250,368
|
308,727
|
||||||
Other investment, at cost
|
2,250
|
2,250
|
||||||
Federal Home Loan Bank stock
|
2,622
|
4,204
|
||||||
Loans and leases held for sale
|
-
|
1,446
|
||||||
Loans and leases
|
||||||||
Commercial real estate
|
188,861
|
160,030
|
||||||
Construction and land development
|
45,662
|
45,261
|
||||||
Commercial and industrial
|
76,489
|
79,589
|
||||||
Residential real estate
|
42,992
|
25,535
|
||||||
Leases
|
51,583
|
42,524
|
||||||
Tax certificates
|
7,191
|
12,716
|
||||||
Consumer
|
2,354
|
826
|
||||||
Loans and leases
|
415,132
|
366,481
|
||||||
Allowance for loan and lease losses
|
(11,708
|
)
|
(13,671
|
)
|
||||
Loans and leases, net
|
403,424
|
352,810
|
||||||
Premises and equipment, net
|
5,201
|
4,475
|
||||||
Other real estate owned, net
|
9,779
|
9,617
|
||||||
Accrued interest receivable
|
5,270
|
7,054
|
||||||
Other assets
|
22,849
|
24,827
|
||||||
Total Assets
|
$
|
732,553
|
$
|
732,254
|
||||
Deposits
|
$
|
530,425
|
$
|
528,964
|
||||
Borrowings
|
92,426
|
107,881
|
||||||
Other liabilities
|
21,322
|
21,830
|
||||||
Subordinated debentures
|
25,774
|
25,774
|
||||||
Royal Bancshares shareholders’ equity
|
62,219
|
47,534
|
||||||
Noncontrolling interest
|
387
|
271
|
||||||
Total Equity
|
62,606
|
47,805
|
||||||
Total Liabilities and Equity
|
$
|
732,553
|
$
|
732,254
|
For the three months ended
December 31, 2014
|
For the three months ended
December 31, 2013
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Yield
|
Average
Balance
|
Interest
|
Yield
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
12,664
|
$
|
6
|
0.19
|
%
|
$
|
7,553
|
$
|
5
|
0.26
|
%
|
||||||||||||
Investment securities
|
258,745
|
1,581
|
2.42
|
%
|
299,228
|
1,654
|
2.19
|
%
|
||||||||||||||||
Loans
|
411,213
|
5,646
|
5.45
|
%
|
377,040
|
5,410
|
5.69
|
%
|
||||||||||||||||
Total interest-earning assets
|
682,622
|
7,233
|
4.20
|
%
|
683,821
|
7,069
|
4.10
|
%
|
||||||||||||||||
Non-interest earning assets
|
43,790
|
45,631
|
||||||||||||||||||||||
Total average assets
|
$
|
726,412
|
$
|
729,452
|
||||||||||||||||||||
Interest-bearing deposits
|
||||||||||||||||||||||||
NOW and money markets
|
$
|
205,471
|
$
|
160
|
0.31
|
%
|
$
|
205,770
|
$
|
153
|
0.29
|
%
|
||||||||||||
Savings
|
19,194
|
7
|
0.14
|
%
|
17,479
|
9
|
0.20
|
%
|
||||||||||||||||
Time deposits
|
223,016
|
725
|
1.29
|
%
|
239,953
|
799
|
1.32
|
%
|
||||||||||||||||
Total interest-bearing deposits
|
447,681
|
892
|
0.79
|
%
|
463,202
|
961
|
0.82
|
%
|
||||||||||||||||
Borrowings
|
123,215
|
722
|
2.32
|
%
|
130,866
|
729
|
2.21
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
570,896
|
1,614
|
1.12
|
%
|
594,068
|
1,690
|
1.13
|
%
|
||||||||||||||||
Non-interest bearing deposits
|
70,346
|
61,799
|
||||||||||||||||||||||
Other liabilities
|
21,866
|
24,619
|
||||||||||||||||||||||
Shareholders' equity
|
63,304
|
48,966
|
||||||||||||||||||||||
Total average liabilities and equity
|
$
|
726,412
|
$
|
729,452
|
||||||||||||||||||||
Net interest income
|
$
|
5,619
|
$
|
5,379
|
||||||||||||||||||||
Net interest margin
|
3.27
|
%
|
3.12
|
%
|
For the year ended
December 31, 2014
|
For the year ended
December 31, 2013
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Yield
|
Average
Balance
|
Interest
|
Yield
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
9,897
|
$
|
22
|
0.22
|
%
|
$
|
10,941
|
$
|
26
|
0.24
|
%
|
||||||||||||
Investment securities
|
292,208
|
7,191
|
2.46
|
%
|
312,127
|
5,757
|
1.84
|
%
|
||||||||||||||||
Loans
|
383,582
|
21,571
|
5.62
|
%
|
367,219
|
21,741
|
5.92
|
%
|
||||||||||||||||
Total interest-earning assets
|
685,687
|
28,784
|
4.20
|
%
|
690,287
|
27,524
|
3.99
|
%
|
||||||||||||||||
Non-interest earning assets
|
45,558
|
50,037
|
||||||||||||||||||||||
Total average assets
|
$
|
731,245
|
$
|
740,324
|
||||||||||||||||||||
Interest-bearing deposits
|
||||||||||||||||||||||||
NOW and money markets
|
$
|
208,688
|
$
|
653
|
0.31
|
%
|
$
|
210,077
|
$
|
617
|
0.29
|
%
|
||||||||||||
Savings
|
18,765
|
31
|
0.17
|
%
|
17,802
|
37
|
0.21
|
%
|
||||||||||||||||
Time deposits
|
228,754
|
2,920
|
1.28
|
%
|
239,584
|
3,368
|
1.41
|
%
|
||||||||||||||||
Total interest-bearing deposits
|
456,207
|
3,604
|
0.79
|
%
|
467,463
|
4,022
|
0.86
|
%
|
||||||||||||||||
Borrowings
|
128,628
|
2,880
|
2.24
|
%
|
133,261
|
3,335
|
2.50
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
584,835
|
6,484
|
1.11
|
%
|
600,724
|
7,357
|
1.22
|
%
|
||||||||||||||||
Non-interest bearing deposits
|
66,221
|
59,989
|
||||||||||||||||||||||
Other liabilities
|
23,691
|
29,078
|
||||||||||||||||||||||
Shareholders' equity
|
56,498
|
50,533
|
||||||||||||||||||||||
Total average liabilities and equity
|
$
|
731,245
|
$
|
740,324
|
||||||||||||||||||||
Net interest income
|
$
|
22,300
|
$
|
20,167
|
||||||||||||||||||||
Net interest margin
|
3.25
|
%
|
2.92
|
%
|
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