BancorpSouth closes Mountainburg branch in ‘optimization’ plan

BancorpSouth’s branch in Mountainburg is one of nine branches the Tupelo, Miss.-based bank will close in Arkansas as part of a move to close 23 branch banks in its operating area.

However, no jobs will be lost as a result of the Mountainburg move. The two employees in that office will be relocated to the bank’s Alma branch.

“We are fortunate to have our Alma facility in such close proximity and believe this will be reasonably convenient for our customers who go to Alma for many other services,” noted a statement from BancorpSouth’s regional office in Fort Smith.

The company first announced the “branch optimization plan” May 10, saying the actions should reduce expenses by about $4.4 million. BancorpSouth’s 10-K indicated that, as of Dec. 31, 2010, the bank owned 253 of its 282 branch banking facilities. The 29 branch banking facilities not owned were occupied under leases with unexpired terms ranging from one to 13 years.

“The volume of business conducted at these locations has been limited, and there has not been sustained growth sufficient to support the normal and routine expenses required to continue operating the branches designated for closure or consolidation,” the company reported in the May 10 statement.

The move will leave 11 BancorpSouth branches in the Fort Smith metro area, and 51 BancorpSouth branches in Arkansas.

Following is the branch closing list released Tuesday (May 17).
• Alabama
Albertville

• Arkansas
Camden
Chidester
El Dorado
Hope
Humnoke
Humphrey
Mountainburg
Paragould
Texarkana

• Missouri
O’Fallon

• Mississippi
Ecru
Edwards
Hamilton
Houlka
Laurel
Tupelo (2 branches closed)
Utica

• Tennessee
Henning
Jackson (2 branches closed)

• Texas
Maud

Company officials have said the branch plan is a “first step to streamline” operations, suggesting other facility, service and personnel cuts are being planned. However, local BancorpSouth officials said no other facility reductions are planned "in the foreseeable future."

BancorpSouth Inc. is a financial holding company with $13.5 billion in assets. The company operates approximately 312 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas.

Coincidentally, an article posted May 12 at The Street focused on Alma and BancorpSouth in reporting on the decline of small town banks. The report notes that there were 14,891 banks in 1990, with the number falling to 7,431 at the end of 2010.

BancorpSouth shares (NYSE: BXS) were trading higher Tuesday, around $13 a share and up from what has been a low trading range. During the past 52 weeks, the share price has ranged from a $21.24 high to a $12.27 low.