PremierWest to close 11 branches "One our dump banks"

[henrysmedford]

1/14/12 9:04 AM
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PremierWest to close 11 branches
Five will be shuttered in Oregon, six in California; most will be
in small communities
By Greg Stiles
Mail Tribune
January 14, 2012 2:00 AM
PremierWest Bank said Friday it will close 11 branches by the end of April, producing an annual
savings of $1.9 million.
The Medford-based bank said it decided to reduce its branches by 25 percent following an extensive
analysis.
Chief Marketing Officer Ken Wells said the cutbacks will leave PremierWest with 33 offices. The 11
branches — five in Oregon and six in California — scheduled for closure represent less than 10
percent of its deposits.
Branch consolidation is projected to produce savings of about $1.9 million beginning in the second
quarter. The bank anticipated the move would result in $790,000 in first-quarter pretax income.
PremierWest Bank President Jim Ford said Friday the company isn't sure how many employees might
lose jobs during the consolidation.
"We don't know that number yet," Ford said. "Clearly we will do everything we can to ensure that all
employees have positions with the bank through this process."
The move comes after years of struggle for the bank following the real estate bubble collapse and
resulting commercial development failures.
"This is an extremely difficult decision because it affects our employees and in some cases
communities already hard-hit by the extended period of economic weakness," Ford said. "We certainly
will continue, as we always have, to put people first and act with compassion toward our employees
and the affected communities."
PremierWest will shutter Oregon branches in Drain, Glide, Shady Cove, Running Y resort near
Klamath Falls and the Airport Road office in Medford near its corporate headquarters. In California,
Weed, Dunsmuir, Dorris, Tulelake, McCloud and Bechelli Lane-Redding branches will close.
"Every business has a need or responsibility to stay profitable," Wells said. "In some communities we
stayed a lot longer than other businesses."
Wells said letters will go out Tuesday to affected customers, and some will receive telephone calls.
Customers will see no interruption in accessing accounts, which are being transferred to nearby
branches.
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Ford noted branch consolidation has been a national trend since 2008 because of Internet banking, a
weak economy and increasing regulatory costs for community banks.
"These factors led to pressure on profitability, particularly for community banks operating numerous
small, neighborhood branches," Ford said. "PremierWest has made every effort to continue to operate
each of our locations, but in some cases branch consolidation is the only viable option. We expect to
retain a sizable percentage of our customers through service at our nearby branches."
PremierWest is the sixth-largest bank based in the state with $1.1 billion in deposits. It is one of 29
Oregon banks operating under federal and state regulatory orders.
Since the first half of last year, PremierWest has been under consent orders from the Federal Deposit
Insurance Corp., requiring approval before it can declare dividends, take on new debt or redeem shares
for at least the near future. To remove the oversight orders, PremierWest must boost its capital levels
and cash flow. The closures will move the company in that direction.
PremierWest said the consolidation will improve industry metrics such as average deposits per branch
— where it expects a 40 percent gain — reduced core expenses and improved capital ratios.
Reach reporter Greg Stiles at 541-776-4463 or e-mail business@mailtribune.com.
Branches to be closed
In Oregon, branches in Drain, Glide, Shady Cove, the Running Y resort near Klamath Falls and the
Airport Road office in Medford near its corporate headquarters will be closed.
In California, the Weed, Dunsmuir, Dorris, Tulelake, McCloud and Bechelli Lane-Redding branches
will close.

[Verbane]

In California, the Weed branch will close.... the outrage

[henrysmedford]

In California, the Weed branch will close.... the outrage

As long as thay have a bank in Zigzag, Oregon life goes on.http://en.wikipedia.org/wiki/Zigzag,_Oregon

[bman]

they are probably losing too much money sending all those zincs back to be rerolled....

[henrysmedford]

they are probably losing too much money sending all those zincs back to be rerolled....

Some truth there from -- http://www.realcent.org/viewtopic.php?f=23&t=10396&hilit=+loss

We have been cut of at one branch were we have an account for dumping to much coin . When we ask at different branch why she said that the coin shows up on the Profit and loss. And off the record that the manger was in fear of her job.

It was a PremierWest branch just down the road from a branch that is closing.