BancorpSouth consolidating, to close 23 bank branches

by For the MBJ

Published: May 10,2011

Tags: banking and finance, Banks, consolidation, financial institutions

TUPELO — BancorpSouth Inc. has launched a branch optimization plan, which includes the planned closing or consolidation, upon final regulatory approval, of 23 bank branches located in six states of BancorpSouth’s eight-state footprint.

The branches are located in Alabama, Arkansas, Mississippi, Missouri, Tennessee and Texas.

The planned closings and consolidations are a result of a comprehensive internal study that, among a range of activities, measured branch performance by comparing financial and non-financial indicators to growth opportunities. The volume of business conducted at these locations has been limited, and there has not been sustained growth sufficient to support the normal and routine expenses required to continue operating the branches designated for closure or consolidation. Other considerations in the company’s decision to close the branches included the bank’s ability to continue serving clients’ financial needs at nearby BancorpSouth locations.

Management believes this initiative is an important first step to streamline BancorpSouth’s branch banking operations, and to provide enhanced efficiency and production capabilities, with minimal impact to customer and community service. Once fully implemented, management expects annual expense savings of approximately $4.4 million. These savings will begin to be realized during the fourth quarter of 2011.

BancorpSouth chairman and CEO, Aubrey Patterson said, “In the last five years, our bank has opened 39 new full-service branches. We have also gained branch banking locations through years of regional merger and acquisition activity. This growth, along with ever-changing market dynamics, created the need to conduct a comprehensive evaluation of BancorpSouth’s branch delivery system across our eight-state footprint. The resulting branch consolidation and closure plan will help ensure that we are utilizing an efficient and productive branch delivery platform, without detracting from the service and access we provide our clients and communities.”

BancorpSouth said it plans to provide affected customers with details of the closings, along with information regarding other BancorpSouth offices conveniently located to serve them. The closings will take place on a schedule beginning in August.

Source: BancorpSouth

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One Response to “BancorpSouth consolidating, to close 23 bank branches”

  1. Sylvia O Says:

    Bancorp South states that they based part of their decision on which banks to close on, “Other considerations in the company’s decision to close the branches included the bank’s ability to continue serving clients’ financial needs at nearby BancorpSouth locations.” When they close the Utica, Mississippi branch, the nearest BCS location will be a minimum of 22 miles away. I do NOT consider that “nearby”. Also, “BancorpSouth said it plans to provide affected customers with details of the closings, along with information regarding other BancorpSouth offices conveniently located to serve them. ” I can hardly wait to get that letter and have them explain to me that a bank a minimum of 22 miles away is somehow “convenient” for me! I think they should have considered closing banks in areas where there were several within a certain radius. I’m pretty sure it is much more convenient to drive a few extra blocks or maybe 5 miles than tell customers they must now drive to another town/city where the round trip will be a minimum of 44 miles! I suppose part of their study included the impact that closing these branches and having those customers move their accounts to other banks instead of staying with BCS would have? Oh wait, if the same people who conducted the study, the ones used words like “nearby” and “convenient”, did that study, then BCS is in for differing figures than the ones submitted.

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