Royal Bancshares of Pennsylvania Inc. reported a third-quarter loss of $1.9 million and an impairment charge overshadowed improved credit trends.
The Narberth, Pa., company lost $2.8 million loss a year earlier. Royal said the improvement came from an 80.5% reduction in the loan-loss provision compared to a year earlier, to $428,000, and a $2.2 million decline in other expenses. Robert Tabas, the company's chairman and chief executive, said in a Tuesday press release that most of the third-quarter loss was a result of a $1.4 million impairment charge tied to an investment security in the company's portfolio of trust-preferred securities.
The $857 million-asset company said that its net interest income fell more than 9% from a year earlier, to $6.8 million, though its net interest margin expanded by 48 basis points, to 3.36%.
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