Three top executives at the recovering Royal Bancshares of Pennsylvania (RBPAA) will retire from the company by the end of the year.
Robert R. Tabas, chairman and chief executive, will retire from active management but will remain as chairman. Murray Stempel 3rd, vice chairman and chief lending officer, will step down from both of his roles but will stay on the company's board. James J. McSwiggan will retire as president and chief operating officer and will also leave the board.
The $840 million-asset company's board has formed a committee to select an executive search firm to recruit an external candidate for a combined president and CEO position. The transition plan was "designed to improve corporate governance, increase independence and enhance Royal's product capabilities," the Narberth, Pa., company said Wednesday.
"Our goal is to find someone who can help communicate the new Royal message to investors and customers, while bringing fresh ideas and best practices from other community banks to our ongoing operations," Tabas said.
After suffering steep losses on real estate loans, Royal Bancshares' credit quality has improved of late and its quarterly losses have shrunk. A formal enforcement order with its bank was recently lifted.
William R. Hartman, a former chairman and CEO at Citizens Bank Bancorp in Flint, Mich., was recently elected as lead director at Royal Bancshares and will serve as the liaison between the company's chairman, management and independent directors.
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