Sierra Bancorp in Porterville, Calif., is planning to permanently close five branches.
The $3.3 billion-asset company said in a press release Monday that it will close locations that are outside of its primary market area. The closings, which represent about 12% of the company’s network, will take place on June 18.
Sierra attributed the decision to “a change in customer behaviors brought about by the COVID-19 pandemic along with an efficiency review.”
The company recorded a $100,000 charge in the first quarter tied to the closings. Another $600,000 of charges is expected in the second quarter.
Sierra said the moves should save it $800,000 to $1 million annually.
Several banks have announced plans to close branches in recent quarters. KeyCorp said Tuesday that it plans to close 70 locations, or roughly 7% of its network, in coming months.
