Home
Jump to Risk Factors
Jump to Industries
Jump to Exposures
Jump to Event Codes
Jump to Wiki Summary

Industries
Investment Banking and Brokerage
Commercial and Professional Services
Diversified Commercial Services
Construction and Engineering
Construction Materials
Construction and Farm Machinery and Heavy Trucks
Exposures
Military
Economic
Crime
Regime
Rights
Provide
Judicial
Leadership
Event Codes
Military blockade
Solicit support
Yield to order
Human death
Sports contest
Force
Yield
Seize
Acknowledge responsibility
Sanction
Wiki Wiki Summary
Financial statement Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.\nRelevant financial information is presented in a structured manner and in a form which is easy to understand.
Financial condition report In accounting, a financial condition report (FCR) is a report on the solvency condition of an insurance company that takes into account both the current financial status, as reflected in the balance sheet, and an assessment of the ability of the company to survive future risk scenarios. Risk assessment in an FCR involves dynamic solvency testing, a type of dynamic financial analysis that simulates management response to risk scenarios, to test whether a company could remain solvent in the face of deteriorating economic conditions or major disasters.
Balance sheet In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.
Financial law Financial law is the law and regulation of the insurance, derivatives, commercial banking, capital markets and investment management sectors. Understanding Financial law is crucial to appreciating the creation and formation of banking and financial regulation, as well as the legal framework for finance generally.
Royal Bank of Canada Royal Bank of Canada (RBC; French: Banque royale du Canada) is a Canadian multinational financial services company and the largest bank in Canada by market capitalization. The bank serves over 16 million clients and has 86,000+ employees worldwide.
Commerce Bancshares Commerce Bancshares, Inc. (NASDAQ: CBSH) is a registered bank holding company based in Missouri with primary hubs in Kansas City and St.
RBC Bank RBC Bank is the trading name of RBC Bank (Georgia), N.A., the United States-based retail banking division of the Royal Bank of Canada (RBC) which is targeted toward Canadian snowbirds, expatriates, and frequent tourists. Despite its limited reach, RBC Bank is a federally chartered bank, thus its trading name bears "N.A." letters.
List of holding companies Under the United States Bank Holding Company Act, financial and bank holding companies are regulated by the US Federal Reserve. Companies whose elections to be treated as financial holding companies are effective include:\n\n\n== 0 - 9 ==\n1ST UNITED BANCORP, INC., Boca Raton, Florida\n\n\n== A ==\nAckermans & van Haaren, Antwerp, Belgium\nAlly Financial, Detroit, Michigan\nAlerus Financial, Grand Forks, North Dakota\nAlphabet, Mountain View, California\nAmerican Express, New York, New York\nApple Bank for Savings, New York, New York\nAustralia and New Zealand Banking Group, Melbourne, Australia\n\n\n== B ==\nBancFirst Corporation, Oklahoma City, Oklahoma\nBanco Bradesco, Osasco, Brazil\nBanco do Brasil, Brasilia, Brazil\nBancorpSouth, Tupelo, Mississippi\nBank Hapoalim, Tel Aviv, Israel\nBank of America Corporation, Charlotte, North Carolina\nBank of Montreal, Montreal, Canada\nThe Bank of New York Mellon Corporation, New York, New York\nBank of Nova Scotia, Toronto, Canada\nBarclays, London, England\nBerkshire Hathaway, America\nBNP Paribas, Paris, France\nBOK Financial Corporation, Tulsa, Oklahoma\nBusey Bank, Urbana, Illinois\nBooking Holdings, Norwalk, Connecticut\n\n\n== C ==\nCAJA DE AHORROS Y MONTE DE PIEDAD DE MADRID, Madrid, Spain\nCanadian Imperial Bank of Commerce, Toronto, Canada\nCapital One Financial Corporation, McLean, Virginia\nCardinal Financial Corporation, McLean, Virginia\nCitigroup Inc., New York, New York\nCitizens Bancorp, Corvallis, Oregon\nCity National Corporation, Beverly Hills, California\nComerica Incorporated, Dallas, Texas\nCommerzbank AG, Frankfurt, Germany\nCrédit Agricole S.A., Paris, France\nCredit Suisse Group, Zurich, Switzerland\nCULLEN/FROST BANKERS, INC., San Antonio, Texas\n\n\n== D ==\nDeutsche Bank AG, Frankfurt, Germany\nDiscover Financial Services, Riverwoods, Illinois\nDNB NOR ASA, Oslo, Norway\nDoral Financial Corporation, San Juan, Puerto Rico\nDREXEL MORGAN & CO., Radnor, Pennsylvania\nDZ Bank AG, Frankfurt, Germany\n\n\n== E ==\nEAST WEST BANCORP, INC., Pasadena, California\n\n\n== F ==\nFIFTH THIRD BANCORP, Cincinnati, Ohio\nFIRST BANCORP, San Juan, Puerto Rico\nFIRST CITIZENS BANCORPORATION, INC., Columbia, South Carolina\nFirst Citizens BancShares, Inc., Dyersburg, Tennessee\nFirst Citizens BancShares, Inc., Raleigh, North Carolina\nFirst City Monument Bank Ltd, Lagos, Nigeria\nFirst Commonwealth Financial Corporation, Indiana, Pennsylvania\nFIRST HORIZON NATIONAL CORPORATION, Memphis, Tennessee\nFIRST INTERSTATE BANCSYSTEM, INC., Billings, Montana\nFirst Merchants Corporation, Muncie, Indiana\nFMDQ Holdings PLC, Lagos, Nigeria\nFNB Corporation, Hermitage, PennsylvaniaFMDQ Holdings PLC, Lagos, Nigeria\nFNB Corporation, Hermitage, Pennsylvania\n\n\n== G ==\nGoldman Sachs, New York, New York\nThe Governor and Company of the Bank of Ireland, Dublin, Ireland\nGreen Dot Corporation, Monrovia, California\n\n\n== H ==\nHeirs Holdings, Lagos, Nigeria\nHORIZON BANCORP, Michigan City, Indiana\nHSBC Holdings PLC, London, United Kingdom\nHSH NORDBANK AG, Hamburg, Germany\nHuntington Bancshares, Columbus, Ohio\n\n\n== I ==\nIBERIABANK CORPORATION, Lafayette, Louisiana\nInternational Bancshares Corporation, Laredo, Texas\n\n\n== J ==\nJPMorgan Chase, New York, New York\n\n\n== K ==\nKBC BANK NV, Brussels, Belgium\nKEYCORP, Cleveland, Ohio\nKLEIN FINANCIAL, INC., Chaska, Minnesota\n\n\n== L ==\nLANDESBANK BADEN-WÜRTTEMBERG, Stuttgart, Germany\nLauritzen Corporation, Omaha, Nebraska\nLloyds Banking Group, London, England\n\n\n== M ==\nM&T BANK CORPORATION, Buffalo, New York\nMAINSOURCE FINANCIAL GROUP, Greensburg, Indiana\nMIDWESTONE FINANCIAL GROUP, INC., Iowa City, Iowa\nMITSUBISHI UFJ FINANCIAL GROUP, INC., Tokyo, Japan\nMIZUHO FINANCIAL GROUP INC., Tokyo, Japan\nMORGAN STANLEY, New York, New York\n\n\n== N ==\nNATIONAL AUSTRALIA BANK LIMITED, Melbourne, Australia\nNational Bank of Canada, Montreal, Canada\nNATIXIS, Paris, France\nNatWest Group, Edinburgh, Scotland\nNBT BANCORP INC., Norwich, New York\nNEW YORK PRIVATE BANK & TRUST CORPORATION, New York, New York\nNorinchukin Bank, Tokyo, Japan.
List of multinational corporations This is a list complete of multinational corporations, also known as multinational companies in worldwide or global enterprises.\nThese are corporate organizations that own or control production of goods or services in two or more countries other than their home countries.
Citizens Financial Group Citizens Financial Group, Inc. is an American bank headquartered in Providence, Rhode Island, which operates in the states of Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Vermont, Virginia, and Washington DC.Between 1988 and its 2014 initial public offering, Citizens was a wholly owned subsidiary of The Royal Bank of Scotland Group.
List of companies paying scrip dividends This is a list of publicly traded companies that offer their shareholders the option to be paid with scrip dividends.
List of banks (alphabetical) This is list of notable banks, sorted alphabetically.
Cravath, Swaine & Moore Cravath, Swaine & Moore LLP (known as Cravath) is an American white-shoe law firm with its headquarters in New York City, and an additional office in London. The firm is known for its complex and high profile litigation and mergers & acquisitions work.
Arithmetic Arithmetic (from Ancient Greek ἀριθμός (arithmós) 'number', and τική [τέχνη] (tikḗ [tékhnē]) 'art, craft') is an elementary part of mathematics that consists of the study of the properties of the traditional operations on numbers—addition, subtraction, multiplication, division, exponentiation, and extraction of roots. In the 19th century, Italian mathematician Giuseppe Peano formalized arithmetic with his Peano axioms, which are highly important to the field of mathematical logic today.
Special Activities Center The Special Activities Center (SAC) is a division of the Central Intelligence Agency responsible for covert operations and paramilitary operations. The unit was named Special Activities Division (SAD) prior to 2015.
Operations management Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Operations research Operations research (British English: operational research), often shortened to the initialism OR, is a discipline that deals with the development and application of advanced analytical methods to improve decision-making. It is sometimes considered to be a subfield of mathematical sciences.
Surgery Surgery is a medical or dental specialty that uses operative manual and instrumental techniques on a person to investigate or treat a pathological condition such as a disease or injury, to help improve bodily function, appearance, or to repair unwanted ruptured areas.\nThe act of performing surgery may be called a surgical procedure, operation, or simply "surgery".
Bitwise operation In computer programming, a bitwise operation operates on a bit string, a bit array or a binary numeral (considered as a bit string) at the level of its individual bits. It is a fast and simple action, basic to the higher-level arithmetic operations and directly supported by the processor.
Operation (mathematics) In mathematics, an operation is a function which takes zero or more input values (called operands) to a well-defined output value. The number of operands (also known as arguments) is the arity of the operation.
Mortgage loan A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination.
İşbank İşbank, officially Türkiye İş Bankası, is a commercial bank in Turkey. It was the largest private bank in the country by the size of total assets, total loans, total deposits and equity, as well as by the number of branches and employees as of 31 December 2021.[5] It was the first bank founded by the Turkish Republic.[6] İşbank is a bank that provides consumer loans, vehicle loans, housing loans and commercial loans.[7] “İşbank has the 181st place in The Banker Top 1000 World Banks Ranking 2021”.[8] It was ranked and 673 on the Forbes Global 2000 list for 2021.[9] It had a net profit for 2021 of TRY 13.5 billion[10] and TRY 90.2 billion (equivalent to US$6.9 billion) in Tier I Capital, as defined by Basel's Bank for International Settlements.
Competitor analysis Competitive analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats.
Competitor backlinking Competitor backlinking is a search engine optimization strategy that involves analyzing the backlinks of competing websites within a vertical search. The outcome of this activity is designed to increase organic search engine rankings and to gain an understanding of the link building strategies used by business competitors.By analyzing the backlinks to competitor websites, it is possible to gain a benchmark on the number of links and the quality of links that is required for high search engine rankings.
Competitors for the Crown of Scotland When the crown of Scotland became vacant in September 1290 on the death of the seven-year-old child Queen Margaret, 13 claimants to the throne came forward. Those with the most credible claims were John Balliol, Robert Bruce, John Hastings and Floris V, Count of Holland.
Sport of athletics Athletics is a group of sporting events that involves competitive running, jumping, throwing, and walking. The most common types of athletics competitions are track and field, road running, cross country running, and racewalking.
List of female fitness and figure competitors This is a list of female fitness and figure competitors.\n\n\n== A ==\nJelena Abbou\n\n\n== B ==\nLauren Beckham\nAlexandra Béres\nSharon Bruneau\n\n\n== C ==\nNatalie Montgomery-Carroll\nJen Cassetty\nKim Chizevsky\nSusie Curry\n\n\n== D ==\nDebbie Dobbins\nNicole Duncan\n\n\n== E ==\nJamie Eason\nAlexis Ellis\n\n\n== F ==\nAmy Fadhli\nJaime Franklin\n\n\n== G ==\nAdela García \nConnie Garner\nElaine Goodlad\nTracey Greenwood\nOksana Grishina\n\n\n== H ==\nMallory Haldeman\nVanda Hădărean\nJen Hendershott\nSoleivi Hernandez\nApril Hunter\n\n\n== I ==\n\n\n== J ==\nTsianina Joelson\n\n\n== K ==\nAdria Montgomery-Klein\nAshley Kaltwasser\n\n\n== L ==\nLauren Lillo\nMary Elizabeth Lado\nTammie Leady\nJennifer Nicole Lee\nAmber Littlejohn\nJulie Lohre\nJenny Lynn\n\n\n== M ==\nTimea Majorová\nLinda Maxwell\nDavana Medina\nJodi Leigh Miller\nChisato Mishima\n\n\n== N ==\nKim Nielsen\n\n\n== O ==\n\n\n== P ==\nVicky Pratt\nElena Panova\nChristine Pomponio-Pate\nCathy Priest\n\n\n== Q ==\n\n\n== R ==\nMaite Richert\nCharlene Rink\nKelly Ryan\n\n\n== S ==\nErin Stern\nCarol Semple-Marzetta\nKrisztina Sereny\nTrish Stratus (Patricia Anne Stratigias)\n\n\n== T ==\nKristi Tauti\nJennifer Thomas\n\n\n== U ==\n\n\n== V ==\nLisa Marie Varon\n\n\n== W ==\nLatisha Wilder\nTorrie Wilson\nLyen Wong\nJenny Worth\nNicole Wilkins\n\n\n== Y ==\n\n\n== Z ==\nMarietta Žigalová\nMalika Zitouni\n\n\n== See also ==\nList of female bodybuilders\n\n\n== References ==\nThere has been a rise in the number of women wanting to compete as fitness models.
List of Dancing with the Stars (American TV series) competitors Dancing with the Stars is an American reality television show in which celebrity contestants and professional dance partners compete to be the best dancers, as determined by the show's judges and public voting. The series first broadcast in 2005, and thirty complete seasons have aired on ABC. During each season, competitors are progressively eliminated on the basis of public voting and scores received from the judges until only a few contestants remain.
Round-robin tournament A round-robin tournament (or all-play-all tournament) is a competition in which each contestant meets every other participant, usually in turn. A round-robin contrasts with an elimination tournament, in which participants are eliminated after a certain number of losses.
Misophonia Misophonia is a disorder of decreased tolerance to specific sounds or their associated stimuli that has been characterized using different language and methodologies. Reactions to trigger sounds range from anger and annoyance to activating a fight-or-flight response.
Comparison of DNS blacklists The following table lists technical information for assumed reputable DNS blacklists used for blocking spam.\n\n\n== Notes ==\n"Collateral listings"—Deliberately listing non-offending IP addresses, in order to coerce ISPs to take action against spammers under their control.
Complication (medicine) A complication in medicine, or medical complication, is an unfavorable result of a disease, health condition, or treatment. Complications may adversely affect the prognosis, or outcome, of a disease.
Reproductive toxicity Reproductive toxicity refers to the potential risk from a given chemical, physical or biologic agent to adversely affect both male and female fertility as well as offspring development. Reproductive toxicants may adversely affect sexual function, ovarian failure, fertility as well as causing developmental toxicity in the offspring.
Good Environmental Status Good Environmental Status is a qualitative description of the state of the seas that the European Union's Marine Strategy Framework Directive requires its Member States to achieve or maintain by the year 2020. \nGood Environmental Status is described by 11 Descriptors:\n\nDescriptor 1.
Propylene glycol Propylene glycol (IUPAC name: propane-1,2-diol) is a viscous, colorless liquid, which is nearly odorless but possesses a faintly sweet taste. Its chemical formula is CH3CH(OH)CH2OH. \nContaining two alcohol groups, it is classed as a diol.
Activist shareholder An activist shareholder is a shareholder who uses an equity stake in a corporation to put pressure on its management. A fairly small stake (less than 10% of outstanding shares) may be enough to launch a successful campaign.
Risk Factors
ROYAL BANCSHARES OF PENNSYLVANIA INC ITEM 1A RISK FACTORS An investment in our common stock involves risks
Before making an investment decision, investors should carefully consider the risks described below in conjunction with the other information in this report, including our consolidated financial statements and related notes
If any of the following risks or other risks, which have not been identified or which we may believe are immaterial or unlikely, actually occur, our business, financial condition and results of operations could be harmed
In such a case, the trading price of our common stock could decline, and investors may lose all or part of their investment
Various factors (discussed below) such as increased size, economic conditions, regulatory and legislative considerations, competition and the ability to find and retain people that can make Royal Bancshares &apos community-focused operating model successful, may impede its ability to expand its market presence
If we experience a significant decrease in our growth rate, our results of operations and financial condition may be adversely affected
OUR BUSINESS IS SUBJECT TO THE SUCCESS OF THE LOCAL ECONOMIES AND REAL ESTATE MARKETS IN WHICH WE OPERATE Our success significantly depends on the growth in population, income levels, loans and deposits and on the continued stability in real estate values in our markets
If the communities in which we operate do not grow or if prevailing economic conditions locally or nationally are unfavorable, our business may be adversely affected
Adverse economic conditions in our specific market areas, specifically decreases in real estate property values due to the nature of our loan portfolio, over 94prca of which is secured by real estate, could reduce our growth rate, affect the ability of customers to repay their loans and generally affect our financial condition and results of operations
Royal Bancshares is less able than a larger institution to spread the risks of unfavorable local economic conditions across a large number of more diverse economies
OUR CONCENTRATION OF COMMERCIAL AND CONSTRUCTION LOANS IS SUBJECT TO UNIQUE RISKS THAT COULD ADVERSELY AFFECT OUR EARNINGS Our commercial and construction loan portfolio was dlra505 million at December 31, 2005, comprising 92prca of total loans
Commercial and construction loans are often riskier than home equity loans or residential mortgage loans to individuals
In the event of a general economic slowdown, they would represent higher risk due to slower sales and reduced cash flow that could impact the borrowers &apos ability to repay on a timely basis
OUR ABILITY TO PAY DIVIDENDS DEPENDS PRIMARILY ON DIVIDENDS FROM OUR BANKING SUBSIDIARY, WHICH ARE SUBJECT TO REGULATORY LIMITS We are a bank holding company and our operations are conducted by direct and indirect subsidiaries, each of which is a separate and distinct legal entity
Substantially all of our assets are held by our direct and indirect subsidiaries
Our ability to pay dividends depends on our receipt of dividends from our direct and indirect subsidiaries
Our banking subsidiary, Royal Bank, including the Royal Asian Bank division, is our primary source of dividends
Dividend payments from our banking subsidiary are subject to legal and regulatory limitations, generally based on net profits and retained earnings, imposed by the various banking regulatory agencies
The ability of Royal Bank to pay dividends is also subject to its profitability, financial condition, capital expenditures and other cash flow requirements
At December 31, 2005, approximately dlra30 million was available without the need for regulatory approval for the payment of dividends to us from our banking subsidiary
There is no assurance that our subsidiaries will be able to pay dividends in the future or that we will generate adequate cash flow to pay dividends in the future
Failure to pay dividends on our common stock could have a material adverse effect on the market price of our common stock
13 COMPETITION FROM OTHER FINANCIAL INSTITUTIONS MAY ADVERSELY AFFECT OUR PROFITABILITY We face substantial competition in originating loans, both commercial and consumer
This competition comes principally from other banks, savings institutions, mortgage banking companies and other lenders
Many of our competitors enjoy advantages, including greater financial resources and higher lending limits, a wider geographic presence, more accessible branch office locations, the ability to offer a wider array of services or more favorable pricing alternatives, as well as lower origination and operating costs
This competition could reduce our net income by decreasing the number and size of loans that we originate and the interest rates we may charge on these loans
In attracting business and consumer deposits, Royal Bank faces substantial competition from other insured depository institutions such as banks, savings institutions and credit unions, as well as institutions offering uninsured investment alternatives, including money market funds
Many of our competitors enjoy advantages, including greater financial resources, more aggressive marketing campaigns, better brand recognition and more branch locations
These competitors may offer higher interest rates than we do, which could decrease the deposits that we attract or require us to increase our rates to retain existing deposits or attract new deposits
Increased deposit competition could adversely affect our ability to generate the funds necessary for lending operations
Royal Bancshares &apos banking and non-banking subsidiaries also compete with non-bank providers of financial services, such as brokerage firms, consumer finance companies, credit unions, insurance agencies and governmental organizations which may offer more favorable terms
Some of our non-bank competitors are not subject to the same extensive regulations that govern our banking operations
As a result, such non-bank competitors may have advantages over Royal Bancshares &apos banking and non-banking subsidiaries in providing certain products and services
This competition may reduce or limit our margins on banking and non-banking services, reduce our market share and adversely affect our earnings and financial condition
OUR ALLOWANCE FOR LOAN LOSSES MAY NOT BE ADEQUATE TO COVER ACTUAL LOSSES Like all financial institutions, we maintain an allowance for loan losses to provide for loan defaults and non-performance
Our allowance for loan losses is based on our historical loss experience as well as an evaluation of the risks associated with our loan portfolio, including the size and composition of the loan portfolio, current economic conditions and geographic concentrations within the portfolio
Our allowance for loan losses may not be adequate to cover actual loan losses, and future provisions for loan losses could materially and adversely affect our financial results
WE MAY SUFFER LOSSES IN OUR LOAN PORTFOLIO DESPITE OUR UNDERWRITING PRACTICES Royal Bancshares seeks to mitigate the risks inherent in its loan portfolio by adhering to specific underwriting practices
These practices often include: analysis of a borrowerapstas credit history, financial statements, tax returns and cash flow projections; valuation of collateral based on reports of independent appraisers; and verification of liquid assets
Although we believe that our underwriting criteria are appropriate for the various kinds of loans we make, Royal Bancshares may incur losses on loans that meet these criteria
NEGATIVE PUBLICITY COULD DAMAGE OUR REPUTATION AND ADVERSELY IMPACT OUR BUSINESS AND FINANCIAL RESULTS Reputation risk, or the risk to Royal Bancshares &apos earnings and capital from negative publicity, is inherent in our business
Negative publicity can result from Royal Bancshares &apos actual or alleged conduct in any number of activities, including lending practices, corporate governance and acquisitions, and actions taken by government regulators and community organizations in response to those activities
Negative publicity can adversely affect our ability to keep and attract customers and can expose Royal Bancshares to litigation and regulatory action
Although Royal Bancshares takes steps to minimize reputation risk in dealing with customers and other constituencies, Royal Bancshares, as a larger diversified financial services company with a high industry profile, is inherently exposed to this risk
14 RISKS RELATED TO OUR INDUSTRY OUR BUSINESS IS SUBJECT TO INTEREST RATE RISK AND VARIATIONS IN INTEREST RATES MAY NEGATIVELY AFFECT OUR FINANCIAL PERFORMANCE Changes in the interest rate environment may reduce profits
The primary source of our income for is the differential or &quote spread &quote between the interest earned on loans, securities and other interest-earning assets, and interest paid on deposits, borrowings and other interest-bearing liabilities
As prevailing interest rates change, net interest spreads are affected by the difference between the maturities and re-pricing characteristics of interest-earning assets and interest-bearing liabilities
In addition, loan volume and yields are affected by market interest rates on loans, and rising interest rates generally are associated with a lower volume of loan originations
An increase in the general level of interest rates may also adversely affect the ability of certain borrowers to pay the interest on and principal of their obligations
Accordingly, changes in levels of market interest rates could materially adversely affect our net interest spread, asset quality, loan origination volume and overall profitability
FUTURE GOVERNMENTAL REGULATION AND LEGISLATION COULD LIMIT OUR FUTURE GROWTH Royal Bancshares and our subsidiaries are subject to extensive state and federal regulation, supervision and legislation that govern almost all aspects of the operations of Royal Bancshares and our subsidiaries
These laws may change from time to time and are primarily intended for the protection of consumers, depositors and the deposit insurance funds
Any changes to these laws may negatively affect our ability to expand our services and to increase the value of our business
While we cannot predict what effect any presently contemplated or future changes in the laws or regulations or their interpretations would have on Royal Bancshares, these changes could be materially adverse to Royal Bancshares &apos shareholders
CHANGES IN CONSUMER USE OF BANKS AND CHANGES IN CONSUMER SPENDING AND SAVING HABITS COULD ADVERSELY AFFECT THE COMPANY &apos S FINANCIAL RESULTS Technology and other changes now allow many consumers to complete financial transactions without using banks
For example, consumers can pay bills and transfer funds directly without going through a bank
This &quote disintermediation &quote could result in the loss of fee income, as well as the loss of customer deposits and income generated from those deposits
In addition, changes in consumer spending and saving habits could adversely affect our operations, and Royal Bancshares may be unable to timely develop competitive new products and services in response to these changes that are accepted by new and existing customers
ACTS OR THREATS OF TERRORISM AND POLITICAL OR MILITARY ACTIONS TAKEN BY THE UNITED STATES OR OTHER GOVERNMENTS COULD ADVERSELY AFFECT GENERAL ECONOMIC OR INDUSTRY CONDITIONS Geopolitical conditions may also affect our earnings
Acts or threats or terrorism and political or military actions taken by the United States or other governments in response to terrorism, or similar activity, could adversely affect general economic or industry conditions
OTHER RISKS OUR DIRECTORS, EXECUTIVE OFFICERS AND PRINCIPAL SHAREHOLDERS OWN A SIGNIFICANT PORTION OF OUR COMMON STOCK AND CAN INFLUENCE SHAREHOLDER DECISIONS Our directors, executive officers and principal shareholders, as a group, beneficially owned approximately 65prca of our fully diluted outstanding common stock as of February 28, 2006
As a result of their ownership, the directors, executive officers and principal shareholders will have the ability, by voting their shares in concert, to influence the outcome of any matter submitted to our shareholders for approval, including the election of directors
The directors and executive officers may vote to cause Royal Bancshares to take actions with which the other shareholders do not agree or that are not beneficial to all shareholders