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Suffolk Bancorp to close four branches

Suffolk Bancorp announced the planned closing of four of its branch offices. When the actions announced are fully implemented by March, the company will have closed six branches in Suffolk County. In terms of the financial impact, once all six branches are closed, total ongoing operating expense reductions will exceed $2.4M annually. The company will take a one-time charge in the current quarter of approximately $1.9M to account for early lease terminations, severance costs, accelerated depreciation of furniture, fixtures and equipment, and other ancillary closing-related costs. This total charge does not include what is expected to be the positive impact of selling the Water Mill and Mattituck buildings. The company has executed a contract for the sale of the Water Mill building that we expect to close this quarter at an approximate net gain of $400,000, and it also intends to market its Mattituck branch for sale in 2014.