Royal Financial in Chicago reported a fiscal third-quarter loss of $421,000, compared to earnings of $41,000 a year earlier, as noninterest expense rose.
The $108 million-asset company said Friday that for the nine months that ended March 31 it lost $342,000, compared to $257,000 in net income for the same period a year earlier.
The company’s noninterest expense rose more than 16% from a year earlier, to $1.5 million, because of elevated costs tied to foreclosed assets, salaries and employee benefits, among other things.
Royal Financial’s net interest income fell less than 1% from a year earlier, to $930,000. The net interest margin compressed 56 basis points from a year earlier, to 4.07%, because of a decrease in the average yields of interest earning assets. Noninterest income nearly doubled from a year earlier, to $116,000, because of higher levels of secondary mortgage market lending.