Royal Bancshares of Pennsylvania Inc. has cut 9 percent of its workforce which stood at 152 employees as of Dec. 31.
The Narberth-based bank holding company made the disclosure in announcing financial results for its fourth quarter and year-end.
Royal, which hired a new chief executive officer, Kevin Tylus in December, lost money for a fifth straight year. It reported a net loss of $15.6 million, or $1.33 per share, for 2012 compared with a loss of $8.6 million, or 80 cents per share, for 2011.
In a statement, Tylus announced a “profitability improvement plan” involving job cuts, a 10 percent cut in discretionary expenses, reorganization of the management team, and the closure of one branch in King of Prussia on Jan. 17.
“We have taken actions which we believe help reposition the franchise for future success based on very specific priorities,” said Tylus, a former president of Yardville National Bank in New Jersey.
Royal, which operates 14 branches in the Philadelphia area, reported a net loss of $8.0 million, or 64 cents per share, for the fourth quarter, compared with a net loss of $934,000, or 11 cents per share, for the same quarter in 2011.
The company attributed $7.1 million of the quarterly loss to increases in loan and real estate impairments, a decrease in net interest income, and the complete write-down of one private-equity security.
Royal’s non-performing loans declined to $23 million by the end of 2012 from $51.3 million in 2011. Total assets also decreased to $773.7 million as of Dec. 31 from $848.4 million a year ago.
The bank released financial results after the close of trading Wednesday. Shares<NO1> RBPAA<NO> closed at $1.56, down 4 cents.