Bank of Hawaii in Honolulu and National Bank Holdings in Greenwood Village, Colo., are the latest banks to plan branch closings as more customers switch to digital channels.
The $20.6 billion-asset Bank of Hawaii said it will close 12 locations, along with 50 cash dispensing ATMs. The company said it will incur $6.1 million in one-time expenses tied to the closures, which are expected to reduce annual costs by about $5.1 million.
Bank of Hawaii noted in a presentation for fourth-quarter earnings that 31% of its customers used only digital channels in 2020, an increase from 22% the prior year. Branch-only customers fell to 11% from 17% over that period.
About a quarter of all Bank of Hawaii deposits were made through digital channels in December, nearly double the rate a year earlier. Another third of deposits were made through ATMs.
The $6.7 billion-asset National Bank said it plans to close seven branches by June 30.
“These actions are a result of the company’s continued focus on balancing physical locations and digital banking channels, driven by increased client usage of online and mobile banking and a commitment to further invest in digital banking technology,” National Bank said in a regulatory filing.
National Bank said it expects to incur $1.3 million in one-time expenses, though the closures will likely save it $2.2 million annually.
