Tower Bancorp Inc. of Harrisburg, Pa., said Wednesday it may cost up to $5.6 million to shut down the former mortgage division of First Chester County Corp., a bank Tower bought in December.
In a filing with the Securities and Exchange Commission, Tower said it expects a pretax restructuring charge of $5 million to $5.6 million, with $4.3 million would be tied to future cash expenditures. The charge includes $1.6 million in one-time termination benefits, $1.2 million in contract termination costs, and $1 million in lease termination costs, among other things.
The $1.6 billion-asset company expects to discontinue the division by midyear, though it will still try to sell the operation. Tower will still offer residential mortgages through its bank and its Graystone Mortgage LLC unit.