Business editor Dennis Seid is currently listening to a BanccorpSouth webcast. More information will be posted as it becomes available.
Among the 23 branches BancorpSouth plans to close this year are eight Mississippi locations, including three in Tupelo. While the exact locations of the closures aren’t identified, the breakdown is this:
• Alabama/Florida – 1
• Arkansas – 8
• Central Mississippi – 2
• Mid-Mississippi – 2
• Missouri – 1
• Northeast Tennessee – 3
• South Mississippi – 1
• Texas/Louisiana – 2
• Tupelo – 3
BancorpSouth divides its footprint into the aforementioned areas. The only region not represented on the closing list is Southwest Tennessee/Northwest Mississippi, which includes Memphis and Southaven.
BancorpSouth said the targeted closings represent $36 million in loans and total deposits of $239 million.
BancorpSouth calls it a “Branch Optimization Plan,” but the result is that 23 of its branches are slated for closure. The branches are located in six of the eight states where its footprint touches: Alabama, Arkansas, Mississippi, Missouri, Tennessee and Texas.
Management and staff have been notified, bank officials say, but customers should all be notified by the end of next week. So far, the bank says it would like for the customers to be notifed first before letting everybody else know where all the branches are that are being closed.
About 100 employees will be affected, but they’ll be offered jobs wherever possible.
The cost to BancorpSouth, pre-tax, will be about $3 million, but annual savings should be about $4.4 million.
Greg Ray, senior vice president, branch administration, said it was an extensive 9-month study that was conducted. No set number of branches were slated for closure; 23 just happened to be the number that came out.
“It was a combination of bank performance and opportunity,” he said. By “performance” he was referring to profitability.
Ray said BancorpSouth studied “where we needed to be, where we didn’t need to be and where we wanted to go.”
Most of the branches are smaller locations, with four employees or less, although some may be larger locations.
Read more in Wednesday’s Daily Journal.