Horizon Financial cuts staff

Horizon Financial will reduce its staff by 27 people, from line personnel to senior management, the Bellingham-based parent of Horizon Bank said in a release Friday.

The staff cuts, along with decreases in other areas, should result in annual savings of more than $3 million, it said.

"Because of the challenges in the Pacific Northwest housing markets, we anticipate further pressure on our net interest margin, asset quality and profitability," CEO Rich Jacobson said in the release. "We believe that these cost-reduction measures are important to preserve capital while we weather this economic cycle."

According to a regulatory filing last spring, Horizon Bank employed 272 full-time and 43 part-time employees.

Horizon will take a one-time severance charge of about $135,000 to third-quarter earnings. The company said its subsidiary, Horizon Bank, remains well-capitalized according to regulatory guidelines.

Horizon Financial is a $1.45 billion-asset company with 19 branches, four commercial loan centers and four real estate loan centers in Whatcom, Skagit, Snohomish and Pierce counties.

Melissa Allison: 206-464-3312 or mallison@seattletimes.com