Royal Bancshares of Pennsylvania Inc. reported on Thursday a fourth-quarter loss of $10.1 million and that it is has entered into a written agreement with the Federal Reserve Bank of Philadelphia.
The $1.29 billion-asset company in Narberth, Pa., narrowed its loss by 63% from a year earlier. It reported a loan-loss provision of $7.1 million, down 18%. Nonaccrual loans totaled $73.7 million, down 14%. It said the reduction was driven by paydowns, chargeoffs and loans moving into the other real estate owned category.
Though Royal reported that its banks were well capitalized at the end of the fourth quarter, its March 17 agreement with the Philadelphia Fed gives it 60 days to submit a plan to maintain sufficient capital at the company and its bank units.