Orrstown Financial CFO Departs

Bradley S. Everly, the chief financial officer at the ailing Orrstown Financial Services (ORRF) in Shippensburg, Pa., has resigned after 14 years on the job.

The $1.4 billion-asset Orrstown announced Everly’s resignation from the company and its bank subsidiary in a Securities and Exchange Commission filing Monday. No explanation was given, but Orrstown said in the filing that the resignation “was not due to any disagreement” with the company or any matter relating to its accounting principles.

Everly, 61, has been Orrstown’s CFO since 1998, a year before the company went public.  No successor has been named.

In a research note to investors, Sandler O’Neill analyst Casey Orr said that Everly’s departure was not a surprise given Orrstown’s recent struggles. The company lost $8.2 million in the first quarter, compared to a profit of $3.8 million in the same period last year, and it was recently hit with an enforcement order that requires it to bolster its capital levels and reduce its level of problem loans.

“While the departure does create a vacancy, we think most investors will generally conclude that some shake-up within management's ranks was inevitable,” Orr wrote in his research note.

Orrstown’s shares have fallen 70% since the company’s asset-quality problems surfaced last summer. Because of the sharp drop in stock price independent proxy advisors had recommended that shareholders reject management’s pay package, but shareholders voted in favor of management’s compensation at the company’s annual meeting earlier this month.