Royal Bancshares Of Pennsylvania Inc (RBPA) has reported a 35.66 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $4.12 million, or $0.13 a share in the quarter, compared with $6.41 million, or $0.20 a share for the same period last year. Revenue during the quarter grew 9.76 percent to $7.22 million from $6.58 million in the previous year period. Net interest income for the quarter rose 7.75 percent over the prior year period to $6.64 million. Non-interest income for the quarter fell 20.34 percent over the last year period to $0.84 million.
Royal Bancshares Of Pennsylvania Inc has made provision of $0.26 million for loan losses during the quarter, down 59.78 percent from $0.63 million in the same period last year.
Net interest margin improved 7 basis points to 3.43 percent in the quarter from 3.36 percent in the last year period.
The Company's president and chief executive officer, Kevin Tylus, noted, "Quality loan growth and expense discipline drove our increase in earnings for 2016. Throughout the year, as we received regulatory approval, we repurchased all of the remaining Series A Preferred stock (“TARP”). We have fully retired the $30.4 million in original principal and avoid future dividends at a rate of 9%. During 2016, to meet the needs of our growing customer base, we broadened our online customer technologies, implemented enhancements to our website, and added residential mortgages to our suite of products. Recently, we completed extensive renovations of our Narberth retail location, which brings a modern experience to our customers.”
Liabilities outpace assets growth
Total assets stood at $832.48 million as on Dec. 31, 2016, up 5.61 percent compared with $788.28 million on Dec. 31, 2015. On the other hand, total liabilities stood at $780.21 million as on Dec. 31, 2016, up 8.97 percent from $715.98 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $591.59 million as on Dec. 31, 2016, up 20.88 percent compared with $489.41 million on Dec. 31, 2015. Deposits stood at $629.55 million as on Dec. 31, 2016, up 8.94 percent compared with $577.89 million on Dec. 31, 2015. Investments stood at $172.10 million as on Dec. 31, 2016, down 23.95 percent or $54.21 million from year-ago. Shareholders equity stood at $52.27 million as on Dec. 31, 2016, down 27.70 percent or $20.02 million from year-ago.
Return on average assets moved down 129 basis points to 2.01 percent in the quarter from 3.30 percent in the last year period. At the same time, return on average equity decreased 917 basis points to 28.78 percent in the quarter from 37.95 percent in the last year period.
Nonperforming assets moved down 26.18 percent or $3.38 million to $9.54 million on Dec. 31, 2016 from $12.93 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 1.15 percent in the quarter, down from 1.64 percent in the last year period.
Tier-1 leverage ratio stood at 8.49 percent for the quarter, down from 12.44 percent for the previous year quarter. Average equity to average assets ratio was 8.48 percent for the quarter, down from 8.84 percent for the previous year quarter. Book value per share was $1.72 for the quarter, down 2.82 percent or $0.05 compared to $1.77 for the same period last year.
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