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Orrstown Financial to close five more bank branches
Shippensburg-based Orrstown Financial Services Inc., parent company of Orrstown Bank, announced that it is closing five branches and adopting other staffing adjustments to improve efficiency.
The changes are due to “a rapidly changing banking environment,” a release said.
The five branches are in Chambersburg (Lincoln Way East); East Earl (Shady Maple); Mechanicsburg (Simpson Street); Orrstown; and Spring Run (Path Valley). The closures, subject to regulatory approval, are expected to be completed later this year.
ATMs will remain at the Orrstown and Path Valley locations.
When combined with the 11 branches that closed in 2020 and 2021, Orrstown Financial will have eliminated 16, or 43%, of its branches, since the end of 2019.
“The bank is not exiting any markets and is simply adjusting its distribution model within existing markets,” the release noted.
Staffing adjustments will involve eliminating certain bank positions and the early retirement of three officers. Orrstown Financial expects many of the impacted branch employees to fill vacancies within the organization.
The company plans to use some of the savings generated from these initiatives to address ongoing wage pressures and make additional investments in technology.
“The actions announced today serve as a critical step toward repositioning the franchise to focus on emerging delivery channels and digital solutions and maximizing our efficiency through continued automation,” Thomas R. Quinn Jr., Orrstown’s president and CEO, said in the release.
“We will still seek to expand the franchise through strategic placement of brick-and-mortar locations along with providing best in class digital solutions. We intend to continue to provide the service our clients have come to expect while broadening our impact across the region.”
Paula Wolf is a freelance writer
