City Holding (CHCO) in Charleston, W.Va., said it will close a branch in Virginia Beach after determining that the location had an undesirable deposit mix.
The $3.4 billion-asset company said in a regulatory filing Friday that the branch will close on Dec. 31 when its lease expires. It was one of 10 branches the company picked up when it bought Community Financial last year. At that time, Community Financial said it would sell largely because it lacked the liquidity to support its loan portfolio.
The Virginia Beach branch seemed to have difficulty drawing low-cost deposits and making commercial loans, City Holding said in the recent filing. "This branch … consists primarily of CD deposits," Charles Hagebock, City Holding's president and chief executive, said in the filing. "Core deposits are low, the branch closes very few loans, and there is not a strong base of business customers. This mix of business does not generate the revenue required to maintain a profitable branch."
Some of the branch's six employees will be reassigned another Virginia Beach branch. Customers will also be reassigned to the other branch, the filing said.