Heritage in Washington joins list of banks closing branches
Heritage Financial in Olympia, Wash., is planning to close nine branches.
The $6.7 billion-asset company said the closings represent 15% of its locations. One of the branches will close in October and the rest in January.
“These actions are a result of the company’s increased focus on balancing physical locations and digital banking channels, driven by increased client usage of online and mobile banking and a commitment to improve digital banking technology,” Heritage said in a press release announcing third-quarter earnings.
Heritage said the closings should save $2.3 million a year. The company will incur $1.6 million in one-time expenses associated with the effort.
The company earned $16.6 million in the third quarter after losing $6.1 million a quarter earlier. Its loan-loss provision fell by 91% to $2.7 million.
Several banks have announced plans to close branches while reporting third-quarter results, including Univest Financial in Souderton, Pa., Umpqua Holdings in Portland, Ore., and Banner Corp. in Walla Walla, Wash.