US-based financial services company IberiaBank is planning to close or consolidate 22 branch locations during the second and third quarters of this year in a bid to improve its operational efficiency.
The bank noted that the plan will be incremental to branch consolidations that are already planned with regard to the Gibraltar Private Bank and Trust acquisition.
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Since 2014, IberiaBank has opened or acquired 81 branch locations and has closed or consolidated 53 branches including the latest announcement.
After the consolidation, the company will have 296 operating locations across the Southeast region.
IberiaBank president and CEO Daryl Byrd said: “These closures are intended to optimise our branch and ATM network as part of on-going efforts to improve the efficiency of our franchise.
“As our clients increasingly use and become more reliant on our digital channels, we continuously review our distribution channels to ensure we are operating efficiently.”
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By GlobalDataAfter the completion of these closures, the bank expects an improvement on annual run-rate operating expense by more than $8m on a pre-tax basis.
It also expects an additional $2m drop in non-interest expense in the fourth quarter of this year.
Total cost associated with the branch closures is estimated to be around $12m in non-core charges.
A regional financial company, IberiaBank has offices in the US states of Louisiana, Arkansas, Tennessee, Texas, Alabama, Florida, Georgia, New York, North Carolina and South Carolina.
