Ailing Orrstown Bank in Shippensburg, Pa., has named a former chief lobbyist at the American Bankers Association to its board of directors.
Floyd E. Stoner, who retired from the ABA on Dec. 31 after 27 years with the trade group, joined Orrstown's board on April 1, the $1.5 billion-asset bank said Thursday. Stoner has also been nominated to serve on the board of the holding company, Orrstown Financial Services (ORRF) and will stand for election at the company's annual meeting in May.
Orrstown lost $30 million in the fourth quarter as problems in its loan portfolio mounted and the bank was recently hit with an enforcement order that requires to strengthen its credit and underwriting practices.
Thomas R. Quinn, Orrstown's president and chief executive, said in a news release that Stoner's experience at the ABA "provides a unique perspective on the issues facing community banking today. His contributions to the oversight and governance of the company will be critical as we strengthen Orrstown Bank to fulfill its mission to the shareholders and customers of the region."
Stoner held a variety of positions with the ABA during his career and was most recently its executive vice president of Congressional relations and public policy.
Since his retirement, Stoner has served as a senior advisor at Alliance Partners, a Chevy Chase, Md., firm that helps facilitate loan participations for community banks. Stoner and his wife have a home in the Shippensburg area.