Atlantic Union Bankshares is as soon as again closing branches in a quote to minimize expenses.
The Richmond, Virginia, business stated Friday that it will shutter 16 branches, or around 12% of its 130-branch network, by March 1. Fourteen of them remain in Virginia, one remains in Maryland, and one remains in North Carolina.
The choice shows the $19.9 billion-asset business’s less-than-rosy outlook on the economy.
“We continue to think it’s going to be a challenging macroeconomic environment given the pandemic and all of the liquidity in the system,” stated Bill Cimino, Atlantic Union’s director of financier relations. “We don’t see any signs of that easing up, and so while there’s an expectation that interest rates are going to rise next year … we can’t assume that’s going to happen.”
Friday’s statement marks the 3rd round of branch decreases at Atlantic Union considering that the start of the pandemic. In the fall of 2020, the business closed 14 branches, which represented about one-tenth of its network, and lowered headcount by 6%, or approximately 125 positions.
In February, it closed another 5 branches in a relocation forecasted to conserve $1.6 million a year.
In addition to branches, Atlantic Union will likewise close a back-office center in Ruther Glen, Virginia, that houses loan operations, deposit services and client service, Cimino stated. Employees who are based at that workplace will move to either a remote or hybrid working status, he stated.
Meanwhile, about 80 staff members who operate at the impacted branches will be used employment opportunities at other Atlantic Union branches, Cimino stated. He stated it is prematurely to state if there will be task losses since of the closures.
Combined, the branch and workplace shutdowns will cost about $18.1 million prior to taxes, with more than $12 million set to be understood in the 4th quarter, Atlantic Union stated in a regulative filing.
Starting in the 2nd quarter of 2022, the closures are anticipated to conserve the business $8 million a year.
It’s been a hectic December at Atlantic Union. Last week, it provided $250 million in fixed-to-floating subordinated notes to snuff out financial obligation and for basic business functions, consisting of possible acquisitions. The capital raise was finished on Wednesday, according to a filing.
On Friday, the board of directors licensed a share redeemed strategy that permits the business to redeem approximately $100 countless typical shares. It is the 2nd buyback program authorized this year. The initially one, which was revealed in May, licensed approximately $125 million in repurchases.
