The Bancorp Bank will layoff dozens of employees as a result of its plan to discontinue new loan originations for retail and wholesale customers by the end of the year, part of a restructuring of its small business lending program.

The change will lead to the elimination of 64 jobs, the company said Friday, representing around 9% of its workforce. The cuts will incur around $5.6 million in charges, of which $4.5 million is expected to be recognized in the third quarter.

The company, which is a wholly owned subsidiary of The Bancorp, Inc., said that 16 additional jobs are expected to be or have been vacated and not backfilled.

The cuts in total will generate around $14 million in annualized run-rate savings, the company said.

It said it will continue serving its existing small business lending customers despite the restructuring.

"We have a clear strategic map of where The Bancorp is headed and are making these changes consistent with our fintech pipeline and growth expectations," Chief Executive Officer Damian Kozlowski said. "By simplifying how we operate and building a more focused, technology-enabled organization, we can move faster, serve our partners more effectively and sustain strong performance over the long term."