CenterState Banks (CSFL) in Davenport, Fla., plans to close 13% of its branches and fire 57 employees.
The $2.4 billion-asset company said it plans to close seven branches and a drive-through facility by mid-April. It will use two of the branches as loan-production offices and sell the remaining five. The changes are part of an effort to shave $6 million in annual operating expenses, the company said in a regulatory filing Tuesday. To that end,
The 57 employees will lose their jobs because of the branch closings and other cost-cutting measures, the filing said.
CenterState also plans to restructure its credit administration and portfolio management divisions, along with residential lending and retail staffing. The company will take other steps to reduce costs by cutting back on health care and communications expenses and making changes to its wealth management and correspondent units.
The company announced the branch closings and layoffs after a disappointing fourth quarter where earnings fell 18% from a year earlier, to $1.8 million.
CenterState said it will record a $2.8 million charge in the first quarter tied to the cost-cutting measures.
The company completed its $76.9 million purchase of Gulfstream Bancshares earlier this month, adding $378 million in loans, $479 million in deposits and four branches. CenterState said it expects to take a $2.3 million one-time charge for merger-related expenses in the first quarter.