(Adds Royal Bancshares comment on capitalization, earnings)
WASHINGTON, March 25 The Federal Reserve said
on Thursday Royal Bancshares of Pennsylvania Inc (RBPAA.O), the
parent of Royal Bank America and Royal Asian Bank, would need
its written consent to declare or pay any dividends.
The Fed said the actions were part of a written agreement
between Royal Bancshares of Pennsylvania Inc and the Federal
Reserve of Philadelphia.
The Fed said the bank could not declare or pay any
dividends or make any other payments that would reduce the
bank's capital without the Fed's consent.
Marc Sanders, director of marketing for the
Pennsylvania-based bank, said Royal has not paid a dividend
since April 2008.
The bank will also have 60 days to submit a plan to
maintain its capital base, taking into account allowances for
loan and lease losses, concentration of credit, and projected
retained earnings, the Fed said.
"We continue to meet all regulatory capital ratio levels
required for an institution to be considered "well
capitalized," Sanders said.
Royal Bancshares last week reported a net loss of $10.1
million, or 79 cents a common share, compared to a year earlier
net loss of $27.3 million, or $2.05 per share. It had total
assets of $1.29 billion as of Dec. 31
The banking firm's full-year 2009 loss was $33.3 million,
versus a net loss of $38.1 million. It said the 2009 results
were hurt by $11 million of impairment losses on investment
securities, $20.6 million of provisions for loan and lease
losses, $7.8 million of expenses related to other real estate
owned and loan collections, and FDIC assessments of $3.8
Royal Bancshares of Pennsylvania is based in Narberth,
(Reporting by Nancy Waitz; Editing by James Dalgleish)