Orrstown Financial Services Inc. on Monday said it has been released from a memorandum of understanding with the state Department of Banking and Securities, an informal regulatory action implemented in April that replaced a consent order.
“We are pleased that the Pennsylvania Department of Banking has released the bank from all of the enforcement actions that it had imposed,” said Thomas Quinn Jr., the company’s president and CEO. “The board of directors and the management team have worked diligently to achieve this result and to position the organization for prudent future expansion. The measures we implemented over the past several years pursuant to guidance from the Pennsylvania Department of Banking and the Federal Reserve Bank of Philadelphia have contributed to our consistent improvement in asset quality metrics, capital levels, and sustained quarterly earnings.”
Ed Novak III, a spokesman for the state Department of Banking and Securities, said he could not confirm nor deny the action.
The holding company for Orrstown Bank has been under stricter government oversight after it reported a $23 million loss in 2011.
A consent order with the Federal Reserve Bank of Philadelphia remains in place.
Orrstown has nearly $1.2 billion in assets. It has 22 banking offices and two remote service facilities in Cumberland, Franklin, Lancaster and Perry counties, as well as Washington County, Md.
Shares of its stock are traded on the NASDAQ under the ticker symbol ORRF.