Suffolk Bancorp in Riverhead, N.Y., has hired Fiserv as core processor and it plans to record a $1.4 million charge to cover the vendor switch.
The $2.1 billion-asset holding company for Suffolk County National Bank will record the restructuring charge in the fourth quarter, according to a Wednesday news release. Suffolk expects to go live with the new system in the second quarter. The change is expected to have a positive financial impact on future expense levels for data processing, software maintenance, and equipment expense and depreciation, Suffolk said.
The charge will cover the termination of contracts with its existing core processor and other vendors. Suffolk did not identify its existing core processor.
"We have, over many decades, layered numerous products and services on top of our core system, creating a complex technology environment that is difficult to manage and has made introducing new products and services challenging and inefficient," Howard Bluver, chief executive, said in the release.