Five Star Bank’s parent cuts 23 jobs

The cuts at Warsaw-based Financial Institutions affect about 3% of the financial services firm’s workforce.

The company said it is simplifying its organizational structure by “reducing layers of management that no longer align with the company’s long-term focus.”

Financial Institutions said the restructuring also positions it to better capitalize on its data and technology expertise. Financial Institutions is aiming to achieve $6 million in annual savings, mainly from salaries and benefits.

The impacted positions were “across a range of business lines and functions, the majority of which were within our retail banking division,” said Katherine Croft, a Financial Institutions spokeswoman.

Financial Institutions is also shuffling its executive team, with changes that include the departure of two of its leaders.

Justin K. Bigham, the chief community banking officer, resigned effective last Friday. Bigham had been with Financial Institutions since 2018, and previously served as chief financial officer.

Under a separation agreement, Bigham will receive a lump-sum payment of $250,000, according to a regulatory filing.

Sean Willett, the chief administrative officer, is “pursuing a new opportunity as CEO of an out-of-market bank” and will remain with Financial Institutions through the end of the year to allow for a transition of the functions he oversaw, Financial Institutions said.

Willett has been with Financial Institutions in 2017. The company did not say where he is going next.

In other changes, Financial Institutions promoted Reid Whiting to chief banking officer, a newly created position. Blake Jones, the chief marketing officer, was appointed to the executive leadership team. Three other executives’ leadership duties were expanded.

“As we respond to an evolving and challenging operating environment that we expect to continue in 2024, we now…