OmniAmerican Increases Focus on Commercial and Retail Banking With Business Line Exit, Reduced Expenses
October 09 2013 - 6:37PM
In an effort to focus resources on commercial, mortgage and retail
banking, OmniAmerican Bancorp, Inc. (Nasdaq:OABC) announced today
that its subsidiary, OmniAmerican Bank, is discontinuing the
purchase of auto loans originated through auto dealerships.
Additionally, the bank is taking various actions to reduce overall
costs and to increase efficiency.
"Our exit from the auto dealer market and our cost reduction
measures are critical to our success as a full-service,
relationship-focused community bank," said Tim Carter, president
and CEO of OmniAmerican Bank. "OmniAmerican is financially strong
and committed to enhancing shareholder value while delivering an
exceptional customer experience."
In addition to exiting the auto dealer market, OmniAmerican is
further reducing costs by eliminating 24 positions, which is
approximately eight percent of the bank's total workforce. These
workforce reductions will primarily come from the elimination of
positions in auto lending and administrative functions. Relative to
these changes, OmniAmerican expects to record combined charges of
approximately $800,000 in employee separation expense in the 4th
quarter of 2013.
"Interest margin pressure and the competitive rate environment
are impacting the profitability of banks across the nation," Carter
said. "In order to adjust to these pressures, we must continually
streamline our processes and find new ways to reduce our expenses.
The elimination of positions to achieve a cost reduction is never
an easy decision, and is not one that was taken lightly."
About OmniAmerican Bancorp, Inc.
OmniAmerican Bancorp, Inc. is traded on the NASDAQ Global Select
Market under the symbol "OABC" and is the holding company for
OmniAmerican Bank, a full-service financial institution
headquartered in Fort Worth, Texas. OmniAmerican Bank operates 15
full-service branches in the Dallas/Fort Worth Metroplex and offers
a full array of consumer products and services as well as
business/commercial services, mortgages and retirement planning.
Founded over 50 years ago, OmniAmerican Bank had $1.32 billion in
assets at June 30, 2013 and is proud to provide the highest level
of personal service. Additional information is available at
www.OmniAmerican.com.
CONTACT: Michelle Frith Hargis
Cooksey Communications
(972) 580-0662, ext. 14
michelle@cookseypr.com
(MM) (NASDAQ:OABC)
Historical Stock Chart
From Jun 2024 to Jul 2024
(MM) (NASDAQ:OABC)
Historical Stock Chart
From Jul 2023 to Jul 2024