Fed Terminates Pair of Written Agreements

The Federal Reserve Board has terminated enforcement actions with Royal Bancshares of Pennsylvania in Narberth and First Pryority Bank in Pryor, Okla.

The Fed terminated its 2010 written agreement with Royal on July 15, the regulator announced Tuesday. The agreement had required the $745 million-asset company to improve lending oversight, form a capital plan and refrain from issuing debt or dividends without Fed approval.

Royal undertook an aggressive cost-cutting campaign after losing nearly $16 million last year, and posted its first profit since 2008 earlier this year. The company reshuffled its management last year, tapping former PNC Financial Services Group (PNC) executive F. Kevin Tylus as its chief executive in December.

Royal Bank of Pennsylvania had a Tier 1 leverage ratio of 9.85% and total risk-based capital of 17.28% as of the end of April, according to the Federal Deposit Insurance Corp.

The 2008 written agreement with First Pryority was terminated July 17. It required the $180 million-asset company to improve corporate governance, adopt a capital plan and issue progress reports.

First Pryority has a Tier 1 leverage ratio of 10.99% and total risk-based capital of 16.66% as of mid-July, according to the FDIC.