Touchstone Bankshares in Prince George, Va., laid off an undisclosed number of employees.
The parent of the $644 million-asset bank said the job cuts should lower annual expenses by roughly $1 million. The restructuring is expected to lower third-quarter earnings by about $200,000; savings should kick in the following quarter.
“We are continuing to implement a long-standing strategic initiative to streamline the bank for enhanced efficiency and profitability,” James Black, the bank’s president and CEO, said in the release.
“This restructuring is intended to provide long-term and sustainable earnings enhancement without negatively impacting customer service and operational activities,” Black added. “I recognize that this type of transformational change is difficult, but I believe it is in the best interests of the bank and its stakeholders.”