CONTACT: MARC SANDERS
Director of Marketing
Phone: 610.668.4700 www.royalbankamerica.com ROYAL BANK AMERICA
Fax: 610.668.3670 www.royalasianbank.com MEDIA RELEASE
www.mortgagephilly.com
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ROYAL BANK AMERICA'S PARENT COMPANY INCREASES CASH DIVIDEND 10%
Reports 42nd Consecutive Quarterly Cash Dividend - 15% Increase in Net Loans
(NARBERTH, PA) -October 20, 2005 - Royal Bank America President/CEO Joseph P.
Campbell reports the quarterly cash dividend for the Bank's holding company,
Royal Bancshares of Pennsylvania, Inc.,(NASDAQ: RBPAA) will increase by 10%.
Consolidated earnings for the quarter ended September 30, 2005, were $4.9
million as compared to $5.1 million for the same three-month period ended
September 30, 2004. Consolidated basic earnings per share for the three-months
ended September 30, 2005 and 2004, were $0.39 and $0.41, respectively.
Consolidated earnings for the nine-month period ended September 30, 2005 were
$16.5 million or $1.31 per basic share as compared to $14.7 million or $1.17 per
basic share for the nine-month period ended September 30, 2004, a 12% increase.
Consolidated total assets increased 6% to $1.3 billion at September 30, 2005, as
compared to $1.2 billion at December 31, 2004. Investment securities increased
to $613 million at September 30, 2005, as compared to $584 million at December
31, 2004, an increase of 5%. Net Loans increased to $523 million at September
30, 2005, as compared to $455 million at December 31, 2004, an increase of 15%.
Total consolidated capital rose to $145.2 million for the period ended September
30, 2005, as compared to $140.9 million for the period ended December 31, 2004.
On October 19, 2005, the Board of Directors of Royal Bancshares of Pennsylvania,
Inc. declared its 42nd consecutive quarterly cash dividend. This dividend is
twenty-seven and five-tenth cents ($.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 November 4, 2005, and the payment date is
November 18, 2005.
Royal Bancshares of Pennsylvania, headquartered in Narberth, Pennsylvania,
operates sixteen full-service branches under the name Royal Bank America and
five 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, deposit accounts 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 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 IMMEDIATE RELEASE MORE
ROYAL BANCSHARES OF PENNSYLVANIA, INC. (RBPAA)
QUARTERLY EARNINGS RELEASE PAGE 2
ROYAL BANCSHARES OF PENNSYLVANIA
CONDENSED INCOME STATEMENTS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
(in thousands, except for earnings per share)
2005 2004 2005 2004
------- ------- ------- -------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
Interest Income $19,645 $16,515 $56,179 $50,551
Interest Expense 8,751 6,793 23,812 20,492
------- ------- ------- -------
Net Interest Income 10,894 9,722 32,367 30,059
Provision for Loan Losses 0 1 1 6
------- ------- ------- -------
Net Interest Income after 10,894 9,721 32,366 30,053
Provision
Non Interest Income 3,294 3,822 9,787 10,469
Non Interest Expense 7,526 6,225 21,455 19,583
------- ------- ------- -------
Income before Taxes 6,662 7,318 20,698 20,939
Income Taxes 1,759 2,206 4,232 6,269
------- ------- ------- -------
Net Income $ 4,903 $ 5,112 $16,466 $14,670
======= ======= ======= =======
Earnings per share-basic $ 0.39 $ 0.41 $ 1.31 $ 1.17
SELECTED RATIOS:
Return on Average Assets 1.5% 1.7% 1.8% 1.6%
Return on Average Equity 13.3% 14.7% 15.4% 14.3%
Average Equity to Assets 11.5% 11.6% 11.4% 11.4%
Book Value Per Share $ 11.57 $ 11.22
CONDENSED BALANCE SHEETS
(in thousands) SEPT. 30, 2005 DEC. 31, 2004
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(UNAUDITED)
Cash and Cash Equivalents $16,534 $27,109
Investment Securities 613,444 584,261
Loans Held for Sale 1,155 2,204
Loans (net) 523,136 454,775
Premises and Equipment (net) 53,511 72,433
Accrued Interest receivable 14,747 15,634
Other Assets 52,422 48,858
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Total Assets $1,274,949 $1,205,274
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Deposits $696,217 $742,382
Borrowings 386,721 278,249
Other Liabilities 17,973 14,338
Subordinated debentures 25,774 25,774
Minority Interest 3,053 3,655
Shareholders' Equity 145,211 140,876
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Total Liabilities and Shareholders Equity $1,274,949 $1,205,274
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