The three top executives of Royal Bancshares of Pennsylvania Inc., including CEO Robert R. Tabas, will step down by the end of the year.
The retirement of Tabas would mark the first time since 1980 that a Tabas family member will not have a management role in the bank. Daniel Tabas acquired the bank in 1980 and it went public in 1983.
Shares of the Narberth bank holding company were up 12 percent, or 15 cents, Wednesday morning to $1.38 on the news.
In a statement, the company, which operates its branches under the Royal Bank America name, said Robert Tabas, who has been chief executive since 2009, will retire by the end of 2012. He will remain on the board of directors as chairman.
"This is a bittersweet announcement for me," said Robert Tabas, Daniel Tabas' son, in the statement. "But we believe this is right for the future of Royal Bank."
Murray Stempel III, Royal's vice chairman and chief lending officer, will retire by year's end, leaving both positions, but remaining as a member of the board. (Stempel is Daniel Tabas' son-in-law.)
James J. McSwiggan, who is president and chief operating officer, also announced will retire on or before Dec. 31. In addition, he will step down from the board.
Royal Bancshares' board has formed a search committee to pick an executive search firm and interview prospects for the bank holding company's new president and CEO.