Staff Reduced as CNB announces restructuring - KWWL - Eastern Iowa Breaking News, Weather, Closings


Staff Reduced as CNB announces restructuring

WATERLOO (KWWL) -- Waterloo-based Community National Bank today announced a 2009 restructuring plan, which calls for a nearly 15-percent reduction in the bank's staff.  The locally-owned company says the restructuring plan will allow CNB to refocus its efforts on a new business plan to concentrate on a successful future. CNB employs more than 140 workers.

Community National Bancorporation President and CEO, Joe Vich, says the CNB staff has been reduced by a total of 16 employees, some through attrition, and mostly in the Cedar Valley, Vich says, "These changes are designed to improve internal efficiency and reduce expenses, while maintaining excellent customer service. All affected employees were offered a competitive severance package." 

A company press release says the bank announced the restructuring plan as a result of the struggling economy and its impact on CNB's business and earnings. The company did not say if or how the bank has been negatively impacted by current economic conditions, or to what extent. The release says the most challenging part of the new restructuring plan is to reduce bank staff by nearly 15-percent. Many duties and responsibilities will be realigned, as a result of the staff reduction, according to the press release.

In addition, President/CEO Joe Vich says a special team has been appointed to cut overall bank expenses by 5 to 10 percent in 2009. "The bank will also re-energize business development efforts for future growth," Vich says. "The bank has also contracted with an experienced human resources firm to provide outplacement services and assistance with career transitioning."

In an effort to maintain local ownership, Joe Vich founded Community National Bank in 1997 with local investors. CNB began with just two locations in Waterloo and Cedar Falls. Today, the bank has more than $ 300 million in assets and has expanded to seven Iowa locations, including three in Mason City and five locations in southern Minnesota.

Online Reporter: Ron Steele




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