Orrstown Financial announces executive retirement and extension

Orrstown Financial Services Inc. (NASDAQ:ORRF) disclosed today that Craig L. Kauffman, the Executive Vice President, Chief Operating Officer, and Director, will retire effective September 30, 2024. Kauffman's departure follows a long tenure of service, including leadership roles at Codorus Valley Bancorp, Inc. and PeoplesBank, A Codorus Valley Company, before their merger with Orrstown.

The retirement decision, as stated in the SEC filing, is due to personal reasons and not related to any disagreements with company operations or practices. Orrstown Financial expressed gratitude for Kauffman's contributions, particularly in the post-merger phase.

Under the Retirement Agreement, Kauffman will receive prorated payments through April 22, 2028, based on an annual pay rate of $819,170. Additionally, he will be provided with six months of COBRA medical and dental premium payments. The Agreement also preserves non-competition restrictions from a previous Employment Agreement until April 22, 2028, and accelerates the vesting of 13,333 shares of restricted stock granted to Kauffman earlier this year.

Furthermore, Orrstown Bank will cover Kauffman’s legal fees up to $35,000 related to the retirement proceedings. The Deferred Compensation Agreement from February 21, 2019, between PeoplesBank and Kauffman, assumed by Orrstown Bank after the merger, remains in effect.

In a separate development, Orrstown Financial's boards voted to extend President and CEO Thomas R. Quinn, Jr.'s employment agreement to May 25, 2026. Quinn has accepted this extension, which was originally set to conclude in May 2025.

In other recent news, Orrstown Financial Services reported stable Q2 earnings following its merger with Codorus Valley Bancorp. The company announced a net income of $7.7 million and diluted earnings per share of $0.73, with adjusted net income of $8.7 million after excluding merger-related expenses. The merger is expected to enhance profitability and shareholder value through increased size and scale.

Non-interest income saw an increase, while tangible book value per common share rose, and the Board of Directors declared an increased quarterly cash dividend.

In other recent developments, Orrstown has updated its executive compensation agreements, as detailed in a recent SEC filing. The new agreements aim to incentivize the continued service of key executives Craig L. Kauffman and Thomas R. Quinn, Jr. The Salary Continuation Agreement with Kauffman outlines a benefits package payable over a 15-year period post-separation, potentially amounting to an annual benefit of $357,260.

Additionally, Orrstown has modified the existing agreement with President and CEO Thomas R. Quinn, Jr., with an increase in the annual benefit payable upon his separation or death. These agreements contain provisions for early termination, change in control, disability, and posthumous benefits.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.