Bay Banks of Virginia (BAYK) in Kilmarnock is reducing its workforce due to a decline in branch traffic.
The $328 million-asset company said Monday that four employees have accepted early retirement offers that were extended to employees 55 years old or older and with 10 or more years with the bank. The bank said it has also eliminated 7.5 positions, which it expects to result in annual savings of $311,000.
The company made the cuts due to "substantial" decline in branch traffic in recent years, it said in the news release.
Bay Banks of Virginia froze its pension plan at the end of last year, it said in its latest annual report. The bank's first-quarter earnings rose 33% from a year earlier, to $140,000, because of an increase in noninterest income from account fees and increased mortgage sales to Fannie Mae.