StellarOne Corporation Announces Results of Phase One Efficiency Initiative

StellarOne Corporation STEL today reported the expected results of its planned phase one efficiency initiative. Operating savings from recent efforts are expected to begin in third quarter of 2012 and reach approximately $2.2 - $2.4 million of annualized cost savings by 2013. Included in the planned initiatives are the elimination of 34 staff positions or approximately 4% of the workforce beginning with the start of third quarter, and relocation and realignment of certain functional areas and responsibilities. Approximately 75% of the projected cost savings are compensation and benefit related, and will result in one-time charges for severance benefits and associated costs of approximately $1 million which will be included in second quarter results. Excluding these charges, the estimated realized cost savings from phase one of this initiative are expected to be approximately $1.3 – $1.5 million in 2012 and $2.2 - $2.4 million in 2013.