By Russ Lay on March 27, 2013
Offices in Nags Head and Kitty Hawk will be closed by the end of June, resulting in layoffs of several employees.
Gateway will continue to operate its Southern Shores office, which is actually located in Kitty Hawk.
The Moyock branch will also remain open.
Customers of the Nags Head and Kitty Hawk branches will receive a notification from the bank with more details on the exact dates the branches will close and where their accounts will be transferred.
Douglas J. Glenn, the company’s president and chief operating officer, announced the closings in a press release Wednesday and said they are part of a “One Bank” strategy, which is a blueprint for future performance improvements.
The Bank of Hampton Roads, through mergers and other acquisitions, has operated branches under the Gateway (North Carolina) and Shore Bank (Eastern Shore of Virginia and Maryland) brands in the past. The bank also acquired branches in Richmond.
According to Glenn, the One Bank strategy is designed to deliver “the right mix of full-service branch locations and online and mobile capabilities, supported by the best bankers . . .”
The company is boosting its mobile banking platforms and recently rolled out a mobile banking application.
The release states “that as a result of these consolidations, the Company expects to achieve significant operating expense savings which the Company believes will begin to be realized in the third quarter of 2013. The Company expects to record a charge in the first quarter of 2013 reflecting expenses related to these closings.”
In addition to the Dare County closings, the bank is also closing one branch in Richmond, Va., three in the Hampton Roads area and one on the Eastern Shore.
The bank’s stock, which is traded on NASDAQ under the symbol HMPR, closed today at $1.29 a share, with just under 42,000 shares trading hands, The stock price declined one cent from the previous day’s closing after the news was released at 8 a.m. Wednesday.