OmniAmerican Bancorp Inc. (OABC), parent company of OmniAmerican Bank, announced Oct. 9 it will discontinue making auto loans through dealers and lay off 24 workers primarily related to leaving that business. The layoffs are about 8 percent of the bank’s 307 employees, according to OmniAmerican officials.
“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 in a news release. “OmniAmerican is financially strong and committed to enhancing shareholder value while delivering an exceptional customer experience.” These workforce reductions will primarily come from the elimination of positions in auto lending and administrative functions. OmniAmerican expects to record combined charges of approximately $800,000 in employee separation expense in the 4th quarter of 2013 related to these changes.
As part of the workforce reductions, the bank will eliminate the position of chief operating officer. As a result Terry M. Almon will leave the company on Oct. 9, according to OmniAmerican’s filing with the Securitas and Exchange Commission
“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.” OmniAmerican will continue to make direct auto loans to consumers. – Robert Francis