Simmons First National in Pine Bluff, Ark., is closing 26 branches in five states.
The company disclosed in a regulatory filing that it will close the locations by Dec. 3. The closures will impact about 100 employees; about 70% will be retained.
Simmons is closing six branches in Arkansas, Tennessee, and Texas. Another five will close in Missouri, and three in Oklahoma.
Simmons said it expects to incur $20 million to $23 million in pretax expenses tied to the closures; the bulk of it — $17 million to $19 million — involves real estate write-downs and lease termination costs. Severance and other personnel termination costs are expected to run $200,000 to $500,000, with professional services fees adding another $3 million to $3.5 million. Just $4 million to $5 million of the total will be cash-based, with the rest recognized as non-cash charges in the third quarter.
Adding in other cost-cutting initiatives, Simmons expects to incur $40 million to $45 million in one-time expenses in the third quarter. Those efforts are projected to boost annual pre-provision net revenue by $37 million to $42 million once fully implemented.
The company said it may reinvest a portion of the gains into growth initiatives, depending on market conditions and capital allocation priorities.