What are Royal Bancshares Of Pennsylvania Inc's Business Segments?
Community banking
Our community banking segment consists of commercial and retail banking and
equipment leasing. The community banking business segment includes Royal Bank
and Royal Bank Leasing and generates revenue from a variety of products
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and services provided by those entities. Royal Bank and Royal Bank Leasing
have similar economic characterisitcs in that earnings are predominantly derived
from net interest income. For example, commercial lending is dependent upon
the ability of Royal Bank to fund cash needed to make loans with retail deposits
and other borrowings and to manage interest rate and credit risk.
Tax liens
Royal Bank’s tax liens segment includes its 80% and 100% ownership interest
in CSC and RTL, respectively. Royal Bank’s ownership interest in CSC and
RTL was 60%. The Company’s tax liens segment consisted of purchasing delinquent
tax certificates from local municipalities at auction and then processing those
liens to either encourage the property holder to pay off the lien, or to foreclose
and sell the property. The tax liens segment earns income based on interest
rates (determined at auction) and penalties assigned by the municipality along
with gains on sale of foreclosed properties. CSC is liquidating its assets under
an orderly, long term plan. RTL ceased acquiring tax certificates at public
auctions in 2010.
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