The $857 million-asset company said that the order, which was issued by the Federal Deposit Insurance Corp. and the Pennsylvania Department of Banking, was replaced with an informal agreement.
The consent order had found that unit Royal Bank America had operated without adequate management, had an excessive level of delinquent loans and had engaged in unsatisfactory lending and collection practices. The order required the bank to develop a classified assets reduction plan, maintain a Tier 1 capital ratio of 8% and revise its liquidity and funds management policy.
At Sept. 30, the bank had a Tier 1 capital ratio of 8.85%. Earlier this month, the company reported a third-quarter loss of $1.9 million, compared to a $2.8 million loss a year earlier.
Be the first to comment on this post using the section below.