SOURCE: Royal Bancshares of Pennsylvania
December 30, 2010 12:15 ET
Royal Bancshares Completes Sale of Royal Asian Bank Stock to Group Led by Edward Shin
NARBERTH, PA--(Marketwire - December 30, 2010) - James J. McSwiggan, President and COO of Royal Bancshares of Pennsylvania, Inc. (NASDAQ: RBPAA), and Edward Shin, President and CEO of Royal Asian Bank, jointly announced today that an ownership group led by Mr. Shin had completed the purchase of all of the outstanding common stock of Royal Asian Bank owned by Royal Bancshares of Pennsylvania, Inc. The sale was completed under an agreement signed in August 2010. Under the terms of the agreement, the purchase price for the stock was equal to the total shareholders' equity of Royal Asian Bank, determined in accordance with generally accepted accounting principles as of November 30, 2010, or approximately $12.3 million.
Originally launched in 2004, Royal Asian Bank provides banking products and services to businesses and consumers in the Korean-American communities of Southeastern Pennsylvania, Northern New Jersey and Flushing, New York. As of September 30, 2010, Royal Asian Bank had assets of approximately $87.0 million, deposits of approximately $74.1 million and loans of approximately $63.1 million (net of its loan loss allowance).
Edward Shin, who will lead Royal Asian Bank as its President and CEO, noted, "Our group's acquisition will enable us to continue to provide innovative banking and financing solutions, as well as highly personalized customer service, to meet the specific needs of the growing Korean-American communities which have embraced our bank."
Royal Bancshares President and COO James J. McSwiggan noted, "The sale of Royal Asian Bank is consistent with our goals of focusing our efforts on reinvigorating the Royal Bank America brand and returning our company to sustained profitability. We congratulate Edward and his team and wish them continued success as they independently grow their bank."
Stevens & Lee, P.C. provided legal counsel for Royal Bancshares of Pennsylvania, Inc. and Waldman Law Group, P.C. provided legal counsel for the buyers in connection with the transaction.
About Royal Bancshares of Pennsylvania, Inc.
Royal Bancshares of Pennsylvania, Inc., headquartered in Narberth, Pennsylvania, is the parent company of Royal Bank America, which for the past 40+ years has played a lead role in the growth and development of our region by empowering small businesses, entrepreneurs and individuals to achieve their financial goals and enrich our communities. More information on Royal Bancshares of Pennsylvania, Royal Bank America and its subsidiaries is available at www.royalbankamerica.com.
The foregoing material 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. For a discussion of the factors that could cause actual results to differ from the results discussed in any such forward-looking statements, see the filings made by Royal Bancshares of Pennsylvania, Inc. with the Securities and Exchange Commission, including its Annual Report - Form 10-K for the year ended December 31, 2009.