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.