DCB Financial Corp. reported a $1.8 million loss for the second quarter of 2011. That’s compared to a $2 million loss for the same period last year, according to a company press release. Bank officials said the loss was mostly because of problem credits offset by earned interest income, and one-time costs associated with employee layoffs announced last month.
DCB laid off 31 employees last month, or about 18 percent of its entire workforce. It also closed five branches in Delaware County. The restructuring will save the company an estimated $1 million annually, Chief Financial Officer John A. Ustaszewski said in a written statement.
“As we’ve reduced the overall size of the balance sheet, we put together plans to reduce the staffing to support it, and, attempted to align the number of branches to total deposits so that we can be as efficient as possible,” Ustaszewski said.
“Management is still working diligently to get The Bank back to a sustained profitability,” CEO and President Tom Whitney said in a written statement. “These initiatives are another step towards doing just that. Our shareholders and customers have been very supportive of our plans. Under the circumstances, they understand that certain decisions need to be made in order to keep The Bank moving in the right direction. Though we are disappointed in our quarterly results, there is no question we are getting closer to our goals. These decisions have not been easy, but they are necessary.”