**EXPLANATORY NOTE**The Company is amending Item 6 of Part II of the Company’s Form 10-K for the year ended December31, 2010 (the “Form 10-K”) in order to correct certain errors under the line items “Return on averageassets,” “Return on average equity,” and “Average equity to average assets” which appear under the BalanceSheet Data within the table of this Item.The Form 10-K as amended hereby continues to speak as of the date of the Form 10-K and thedisclosures have not been updated to speak as of any later date. Any items in this Form 10-K/Athat are not expressly changed hereby shall be as set forth in the Form 10-K. All informationcontained in this Amendment No. 1 and the Form 10-K is subject to updating andsupplementing as provided in the Company’s periodic reports filed with the Securities and ExchangeCommission subsequent to the filing of the Form 10-K.Pursuant to SEC Rule 12b-15, in connection with this Amendment No. 1 on Form 10-K/A, the Company isfiling updated Exhibits 31.1, 31.2, 32.1, and 32.2. **ITEM 6.** **SELECTED FINANCIAL DATA**The following selected consolidated financial and operating information for the Company should beread in conjunction with Item 7, “Management’s Discussion and Analysis of Financial Condition andResults of Operations” and the Consolidated Financial Statements and accompanying notes in Item 8of this Report:
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Statement of Operations Data                       For the years ended December 31, (In thousands, except share data) 2010  2009  2008  2007  2006 Interest income $57,262  $66,043  $72,764  $86,736  $93,006 Interest expense  25,994   37,439   38,109   48,873   46,372                 Net interest income  31,268   28,604   34,655   37,863   46,634 Provision for loan and lease losses  22,140   20,605   21,841   13,026   1,803                 Net interest income after loan and lease losses  9,128   7,999   12,814   24,837   44,831                 Gain on sale of premises & equipment  156   —   1,991   —   — Gain on sale of premises & equipment relatedto real estate owned via equity investments  667   1,817   1,679   1,860   3,036 Income from bank owned life insurance  379   1,099   1,233   875   847 Service charges and fees  1,266   1,419   1,186   1,348   1,404 Gains on sales related to real estate jointventures  —   —   1,092   350   — Income related to real estate ownedvia equity investments  564   1,302   965   1,384   3,591 Gains on sale of real estate  1,019   294   429   1,111   2,129 Gains on sale of loans  510   914   190   404   379 Gains (loss) on investment securities  1,290   1,892   (1,313)  5,358   383 Gain on sale of security claim  1,656   —   —   —   — Other income  737   578   148   198   202                 Other income,excluding other-than-temporaryimpairment losses  8,244   9,315   7,600   12,888   11,971                 Total other than-temporary-impairment losses oninvestment securities  (566)  (13,431)  (23,388)  —   — Portion of loss recognized in other comprehensive loss  87   2,390   —   —   —                 Net impairment losses recognized in earnings  (479)  (11,041)  (23,388)  —   —                 Total other income (loss)  7,765   (1,726)  (15,788)  12,888   11,971                 (Loss) income before other expenses & income taxes  16,893   6,273   (2,974)  37,725   56,802 Non-interest expense                    Salaries and benefits  11,591   12,235   15,044   12,215   13,451 Impairment related to OREO  7,374   4,537   —   —   — Impairment related to real estate owned viaequity investments  2,600   —   1,500   8,500   — Expenses related to real estate owned viaequity investments  529   907   966   1,590   1,606 Impairment related to real estate joint venture  1,552   —   —   5,927   — Other  17,097   24,514   15,023   11,800   9,595                 Total other expense  40,743   42,193   32,533   40,032   24,652                 (Loss) income before tax expense (benefit)  (23,850)  (35,920)  (35,507)  (2,307)  32,150 Income tax expense (benefit)  —   474   2,643   (1,568)  10,015                 Net (loss) income $(23,850) $(36,394) $(38,150) $(739) $22,135                 Less net income (loss) attributable to noncontrolling interest  243   1,402   (68)  (1,303)  567 Net (loss) income attributable to Royal Bancshares  (24,093)  (37,796)  (38,082)  564   21,568 Less Series A Preferred stock accumulated dividendand accretion  (1,970)  (1,672)  —   —   — Net (loss) income available to common shareholders  (26,063)  (39,468)  (38,082)  564   21,568                      Basic (loss) earnings per common share $(1.97) $(2.64) $(2.86) $0.04  $1.60                 Diluted (loss) earnings per common share $(1.97) $(2.64) $(2.86) $0.04  $1.59                 
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Balance Sheet Data                       For the years ended December 31,(In thousands) 2010 2009 2008 2007 2006Total Assets  980,626   1,292,726   1,175,586   1,278,475   1,356,311 Total average assets (2)  1,177,922   1,295,126   1,189,518   1,314,361   1,317,688 Loans, net  475,725   656,533   671,814   625,193   580,759 Total deposits  693,913   881,755   760,068   770,152   859,457 Total average deposits  791,026   857,742   724,384   869,884   761,267 Total borrowings (1)  180,723   283,601   313,805   339,251   301,203 Total average borrowings (1)  256,688   307,225   307,597   254,757   377,139 Total shareholders’ equity (3)  84,093   101,156   79,687   146,367   163,254 Total average shareholders’ equity  103,895   107,511   131,155   158,695   158,372 Return on average assets  (2.04%)  (2.57%)  (3.20%)  0.04%  1.64%Return on average equity  (23.19%)  (30.94%)  (29.04%)  0.36%  13.62%Average equity to average assets  8.82%  8.30%  11.03%  12.07%  12.10%Dividend payout ratio  0.00%  0.00%  (10.52%)  2743.40%  66.10% (1) Includes obligations through VIE equity investments and subordinated debt. (2) Includes premises and equipment of VIE. (3) Excludes noncontrolling interest.**ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES**   (a) (3) The following Exhibits are filed herewith as a part of this amendment to the report:   31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.   3l.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.   32.1 Section 1350 Certification of Chief Executive Officer.   32.1 Section 1350 Certification of Chief Financial Officer.
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**SIGNATURES**Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, theRegistrant has duly caused this amendment to the report to be signed on its behalf by theundersigned, thereunto duly authorized.      ROYAL BANCSHARES OF PENNSYLVANIA, INC.