In brief: Orrstown implements efficiency plan, cuts board pay
The board members of Orrstown Financial Services Inc., the parent company of Orrstown Bank, are taking a 25 percent cut in their fees this year as part of an efficiency plan announced last month.
The plan, dubbed "Operation Bottom Line," aims to save $5 million during the next two years with a mix of cost-cutting and revenue enhancements.
Components include reduction in expenses related to loan workouts, "a comprehensive review of all vendor and third-party expenses," an efficiency drive and "investments in key business lines designed to drive revenue growth," Orrstown said in a statement shortly before Christmas.
The Shippensburg-based bank lost $39.5 million in the first nine months of 2012, though it has said it expects to set much of that loss against future tax liabilities. It is under federal and state consent orders to improve its loan portfolio and risk management.
Operation Bottom Line is part of Orrstown's overall plan "to return to historical levels of performance," President and CEO Thomas Quinn said in a statement.