SouthCrest Financial Group in Atlanta will lose money in the fourth quarter after closing a branch and an operations center.
The $540 million-asset company said in a press release Thursday that it will report “slightly negative pretax results” due to a $1.6 million expense tied to the closures. The moves will save the company $500,000 to $600,000 annually.
No layoffs are planned as a result of the closures.
The company agreed last month to sell its two Alabama branches to the $375 million-asset Guardian Credit Union in Alabama. SouthCrest said at the time that it was selling the locations to focus on expanding around Atlanta.
SouthCrest also said it is likely that tax reform legislation under consideration in Congress would “substantially” reduce the valuation of the roughly $504,000 deferred-tax asset on its books.
The company earned $1.9 million in the third quarter.