Bank of the Pacific to Close Two Branches Consolidating into Nearby Coastal Branch Locations
Why are the Naselle and Warrenton Branches closing?
Over the past decade, customers more and more are choosing to use multiple methods of accessing banking services – online banking, ATMs, debit cards, mobile banking, direct deposit, etc.
This has resulted in a significant decline in branch usage over this same period.
Given these declines in customer branch activity, it has become harder to subsidize the expense of operating a small branch such as Naselle and Warrenton.
In addition, we have not been able to grow the Warrenton deposit base as originally anticipated, and given the small market size, do not foresee that the branch will achieve deposit levels needed to sustain economic viability any time in the near future.
Why is the Bank taking this step when it is achieving strong profitability even with these branches in operation?
All industries, including banking, experience ups and downs. Bank of the Pacific, along with many other banks, is now achieving strong financial performance after the recent economic downturn. As a result, Bank of the Pacific is in position to absorb the costs associated with such an action – primarily severance costs for displaced employees and expenses associated with disposal of former bank buildings.
Bank of the Pacific is not alone in consolidating branches to strengthen its remaining branches – Banks in the US closed over 2,000 branches in 2017.
Are there any other branch closures planned?
Not at this time.
When will the consolidations occur?
The consolidation date is set for February 1st, 2019, pending regulatory approval.
Arrangements are being made to relocate our customer accounts to the branches that they prefer. Employees will be reaching out to our business customers in the area to offer business banking options.
An Open House is planned for early December at each location to discuss the closures, answer any questions and show our appreciation to the community. .
CLICK HERE to read the full Press Release.