Orrstown Bank has “turned the corner” after a tough year and a half or so and is poised for a strong 2013, CEO Thomas Quinn said today.
The Shippensburg-based bank’s efforts to clean up its loan portfolio and strengthen its management team have paid off, Quinn said, yielding a $1.03 million profit for the fourth quarter of 2012.
Orrstown has been operating under federal and state consent orders since March. It lost $32 million in 2011, the result of commercial real estate loans going sour, primarily in the Hagerstown, Md., market, according to Quinn.
The bank’s corrective actions included two major distressed-loan sales that helped reduce its total risk assets from $113.8 million in December 2011 to $22.9 million a year later. Managerial appointments included a new chief financial officer and chief operating officer and the newly created position of chief risk officer, Quinn said.
“A lot of change took place,” he said, adding: “We feel very, very confident about where we’re going.”
“We’ll let our attorneys deal with this issue,” he said.