PHILADELPHIA - USA Bancshares.com reduced its losses in the third quarter. In an earnings report released Friday, the Internet bank said it had a loss of $208,000, versus a loss of $563,000 in the year-earlier period.

In the second quarter the company lost $1.4 million. Officials said reductions in operating overhead, marketing, and advertising were responsible for the improvement.

"Returning to profitability has been a priority for the company, which we expect for the fourth quarter of this year," said Kenneth Tepper, president and chief executive officer.

USA Bancshares had 19,951 applications for new accounts in the quarter, against 18,128 in the previous three months. It now has more than 40,000 funded accounts.

About 25% of the bank's deposit base of $281 million has been generated online. The bank had $342 million of assets as of Sept. 30.

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