South State in Columbia, S.C., is planning to close 11 branches over the rest of this year.
The $8.7 billion-asset company said in a press release announcing its quarterly results that it will close nine offices and convert two others to drive-thru-only locations. Four of the branches are former Bank of America branches that South State bought last year.
South State, which said the moves should cut $3 million in costs next year, expects to incur about $3 million in one-time costs tied to the effort.
"However, resources will be deployed to support the continued growth of South State as we approach $10 billion in assets," the company said. Banks face mandatory stress testing and caps on interchange fees soon after reaching $10 billion in assets.
South State said it expects about 10% of the branches' $331 million in deposits to run off as a result of the consolidations.
The company's net income rose 2.4% from a year earlier to $24.5 million.