<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DE 20549

                                    FORM 8-K

                             CURRENT REPORT PURSUANT
                          TO SECTION 13 OR 15(d) OF THE
                       SECURITIES AND EXCHANGE ACT OF 1934

Date of Report (Date of earliest event report) October 18, 2006.

                     ROYAL BANCSHARES OF PENNSYLVANIA, INC.
             (Exact name of registrant as specified in its charter)

                                  PENNSYLVANIA
                 (State or Other Jurisdiction of Incorporation)

                    0-26366                               23-2812193
           (Commission File Number)         (IRS Employer Identification Number)

732 MONTGOMERY AVENUE, NARBERTH, PENNSYLVANIA              19072
   (Address of Principal Executive Office)              (Zip Code)

                                  610-668-4700
                (Issuer's telephone number, including area code)

                                       N/A
          (Former Name or Former Address, if Change Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provision:

[_]  Written communication pursuant to Rule 425 under the Securities Act (17 CFR
     230.425)

[_]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

[_]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b)

[_]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))

<PAGE>

SECTION 2 - FINANCIAL INFORMATION

Item 2.02 Results of Operations and Financial Condition.

Royal Bancshares of Pennsylvania, Inc. announced net income for three months
ended September 30, 2006 and the declaration of a cash dividend as detailed in
the attached Press Release as Exhibit 99.1.

SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01 Financial Statements and Exhibits

     (d.) Exhibits

Exhibit Number   Description of Document
--------------   -----------------------
     99.1        Press Release dated October 18, 2006.

                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        ROYAL BANCSHARES OF PENNSYLVANIA, INC.


Dated: October 19, 2006                 /s/ Jeffrey T. Hanuscin
                                        ----------------------------------------
                                        Jeffrey T. Hanuscin
                                        Chief Financial Officer
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SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DE 20549

                                    FORM 8-K

                             CURRENT REPORT PURSUANT
                          TO SECTION 13 OR 15(d) OF THE
                       SECURITIES AND EXCHANGE ACT OF 1934

Date of Report (Date of earliest event report) October 18, 2006.

                     ROYAL BANCSHARES OF PENNSYLVANIA, INC.
             (Exact name of registrant as specified in its charter)

                                  PENNSYLVANIA
                 (State or Other Jurisdiction of Incorporation)

                    0-26366                               23-2812193
           (Commission File Number)         (IRS Employer Identification Number)

732 MONTGOMERY AVENUE, NARBERTH, PENNSYLVANIA              19072
   (Address of Principal Executive Office)              (Zip Code)

                                  610-668-4700
                (Issuer's telephone number, including area code)

                                       N/A
          (Former Name or Former Address, if Change Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provision:

[_]  Written communication pursuant to Rule 425 under the Securities Act (17 CFR
     230.425)

[_]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

[_]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b)

[_]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))
SECTION 2 - FINANCIAL INFORMATION

Item 2.02 Results of Operations and Financial Condition.

Royal Bancshares of Pennsylvania, Inc. announced net income for three months
ended September 30, 2006 and the declaration of a cash dividend as detailed in
the attached Press Release as Exhibit 99.1.

SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01 Financial Statements and Exhibits

     (d.) Exhibits

Exhibit Number   Description of Document
--------------   -----------------------
     99.1        Press Release dated October 18, 2006.

                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        ROYAL BANCSHARES OF PENNSYLVANIA, INC.

Dated: October 19, 2006                 /s/ Jeffrey T. Hanuscin
                                        ----------------------------------------
                                        Jeffrey T. Hanuscin
                                        Chief Financial Officer