Royal Bancshares Updates Investors on Sale of Royal Asian Bank
22 December 2009 - 8:15AM
Marketwired
Royal Bancshares of Pennsylvania, Inc. (NASDAQ: RBPAA) today
announced that it has terminated the agreement relating to the sale
of Royal Asian Bank, which was previously announced to investors in
September 2009. Despite raising a significant amount of capital,
the Korean-American investor group pursuing the buyout was unable
to raise sufficient capital to meet the terms of the agreement and
ensure all regulatory approvals necessary to complete the
transaction would be obtained.
The investor group was led by Edward Shin, Royal Asian Bank's
President and CEO, who will remain with the bank and continue to
manage its day-to-day operations.
In commenting on today's announcement, Mr. Shin stated, "I
appreciate the support of the entire Royal Bancshares management
team. As we worked to execute this transaction, they clearly
demonstrated to me that the best interests of Royal's shareholders
and customers were paramount in the decision making process."
Robert Tabas, Chairman and CEO of Royal Bancshares of
Pennsylvania, Inc., added, "While we believe that Royal Asian Bank
has matured to the point where it can stand on its own in service
to the Asian-American community, the capital-raising environment
today remains challenging. Our Royal Asian Bank division is a
valuable franchise, with assets of $110 million; a strong capital
base; operations in Pennsylvania, New York and New Jersey; and
strong brand recognition with customers. We continue to believe
that the Royal Asian franchise can generate shareholder value and
we will work with its management team to continue to grow the bank
and meet the needs of our customers."
About Royal Bancshares of Pennsylvania, Inc.
Royal Bancshares of Pennsylvania, Inc., headquartered in
Narberth, Pennsylvania, is a two-bank holding company operating the
Royal Bank America and Royal Asian Bank brands throughout
Pennsylvania, New Jersey and New York. Royal Bank America has
played a lead role in the growth and development of our area for
the past 40+ years. Royal Asian Bank enjoys a distinctive niche
serving the financing and banking needs of the growing
Asian-American population. More information on Royal Bancshares of
Pennsylvania, our banks and subsidiaries is available at
www.royalbankamerica.com.
Forward-Looking Statements
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, 2008.
Media Contact: Joseph Crivelli Senior Vice President Gregory FCA
Communications Office: 610-228-2100 Cell: 610-299-6700 Company
Contact: Marc Sanders Director of Marketing Royal Bank America
Office: 610-668-4700 Cell: 484-802-1944
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