Looks like some major charges to earnings in the short-run. Good for the long-run. Better hunker down and just enjoy that $0.01 divvy, cuz they'll likely be a big hit on the stock price when the full scope of the charges to close down those facilites is revealed.
I believe I read that closing these 23 branches would save approximately $4.4M. I suspect a combination of BXS/TRMK could close a like number, not to mention the vast savings from operational consolidation. The synergies would be huge!
The rest of the story. While bank management touted the big savings to be realized from the announced branch closures, they failed to mention the massive write downs that will be taken in future quarters on these worthless pieces of real estate. Is any other bank lining up to lease or purchase these underperforming, geographically challenged locations?
Well - they cut the dividend so that they could pay for the location closings I guess. Window dressing to make them look more attractive for a purchase maybe? Strong financial position - sounds like this ship has a few holes blown in the bottom and they are taking on water! All the changes to debit card fees, fewer loans being made, more defaults - was time to jump ship a long time ago. So what do we do now, sit and hope that they take enough weight off for it to float or hang on for the deep 6?