Legacy Bancorp Inc. in Pittsfield, Mass., announced Tuesday that it would trim 5% of its staff and take a pretax charge of about $438,000 this quarter to pay for the severance expenses.
The $858 million-asset Legacy said it would eliminate 10 jobs, including seven management positions, as part of a cost-cutting plan.
In a press release issued after the stock market closed, J. Williar Dunlaevy, Legacy's chairman and chief executive officer, said the company needs to become more efficient "in light of current economic realities and market conditions."
Its third-quarter profit fell 60% from the year earlier, to $520,000, as noninterest expenses increased 30%, to $6.5 million, and interest expenses increased 22%, to $6.6 million.
On December 7, Legacy bought five branches in the Albany area from First Niagara Financial Group Inc. in Lockport, N.Y., for $10.6 million. The deal enabled Legacy to enter the retail market in New York and increased its branch total to 16.
Legacy, a former mutual thrift, completed its conversion to full stock ownership in October 2005 and raised $95 million to fund its expansion.
