Community banking

Orrstown in Pa. Cutting 32 Jobs After Tech Upgrades

By Andy Peters April 24, 2014, 9:14 a.m. EDT 1 Min Read

Community banking

Fed Takes Action Against Two Banks

The Federal Reserve Board has entered into written agreements with two community banks: Remer Bancorp. in Minnesota and Orrstown Financial Services in Shippensburg, Pa.

By Jackie Stewart

March 23

Orrstown Financial Services (ORRF) in Shippensburg, Pa., will cut 32 jobs in its operations and retail branches after implementing technology upgrades.

The $1.2 billion-asset company said it will record a $150,000 charge in the second quarter for the job cuts. Orrstown estimates that the cuts will produce yearly savings of $1.5 million.

Orrstown disclosed the job cuts as part of its first-quarter earnings. Net income rose 27% from a year earlier, to $1.98 million, or 24 cents a share, as the company shifted excess liquidity into higher-rate securities and as asset quality improved.

Separately, the Pennsylvania Department of Banking and Securities on Tuesday terminated a March 2012 consent order with Orrstown. The order was replaced by a memorandum of understanding issued by the state banking commissioner and by Federal Reserve Board. It eliminates some of the requirements of the consent order.

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